The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-05-28

K Soou. no JuuSo hau nol ioibollcH
tho million forfeit. lilo hurried to Car
negio and convinced him his bonds
would be safer II tho bonds would
cover tho National Company. This
made tho National plant worth 500
100000 more
$50 the formation of the Steel Cor
porltion resulted because Carnegie was
giving Morgan trouble over transpor-
tation," said Stanley.
Soon Accomplished.
Exactly. Our plans were accom-
Carnegie plant cost $500 100000. OF
which Carnegie got s32o,oo0.ooo for
what he had agreed to sell before for
$4,000, 600"
DO you consider there Ia any tang
ible value. behind the Steel Corporation
common stock?" asked Stanley.
II decline to answer" said Gates.
promptly.
The committee tried TO get Gates to
tell why every charge had been re-
iuced TN transportation except the
cost of labor. which he said had gone
up 30 per cent. but he would not
Stanley then took new tack.
Was the steel trust formed TO pre-
vent competitions" he asked.
Gates laughed again
what werc Morgan's motives, L
can't tell" he. said. Get him down
here and let him tell. Carnegle's
threat to go into everything helped
him TO get n good price for his stock.
and this reminds me bought from
Carnegie his wlrc business for $780,
600, after 1t had cost him about $1,000
oO0"
This brought out some delicious
"Reminiscences OF tho iron master.
I'm what way had Carnegie demon
lalizcd tho steel busncss?" asked Rep
resentative Bcal.
Andie Kicked.
well, you Sec" drawled Gates, I'VE
had some understandings AT times. and
.Andie kicked them over when he
pleased Carnegie controlled every
one under him. and no one could mum
age Carnegie. He was bull In a
china shop. The things he did might
reduce or advance prices. and stability
was desired"
i Arc there any conditions preventing
independent concerns from getting large
business of ono class?" asked Stanley.
"Dull times" said Gates.
j II quote from n ncwspl per-" said
Stanley. THAT Morgan owns railroad Dis
and controls tho Steel Corporation.
Therefore, he buys rails for railroads
from ha own steel companies. Know
anything as to this"
u do not" replied Gates soiemnly
DO you know the mileage or rail
roads under the same control AZ tho
Steel Corporation?
No" 4
III we could return to normal con-
/ ditions, that when times arc hard
prices fall. that when times are good
prices rise. would that add TO the
prosperit of the steel Industry"
'Thut depends on many conditions
and what happens, There would be lack
of stability in prices with all steel
/ concerns in competition. When you
deprec' atY the value of steel rails YOU
dcpreciate the value OF railroad. II
is a good deal like The tariff problem
It's local and personal
What is the percentage OF compt-
tition III the steel, Industry
| "Culuplete except as 10 rams,
who sells woven wires in Texas"
one concern. 1t sells product OF the
steel Corporation, and has.15 per cent
OF tho business"
Why don't other fellows set busy
therc?" I'LL III.
.pos.ibly afraid the steel Corpora
| ton will nut the screws u them on
other ra ilroads which tho corporation
II controls"
cary has said that By exercise OF
mower the Steel Corporation could put
all other concerns out OF business.
snys lie Cnn't DO IL.
Gates twirlcd his mus,ache for a
minute well, he can't: he answered
hluntly.
!, Where do you get your ore:
mine it, we. like the Steel Corpo-
ia ton, are sellers OF ore. OF course.
/, Unless an independent concern had its
own ore and was forced TO buy from
: the Steel Corporation. a condition
might arise under which 1t could he
forced out of business.
..Suppose,' asked Stanley, Gary
should get all the independents to a
dinner and suggest an established
price which, II not followed. would be
u, punished by reprisals and subject the
offending independent to loss OF bust
ness?'
. why don't you get tho men who
attend such dinners" said Gates. Il
don't believe the steel Corporation
would make any such threat or that
my one would pay attention 10 H.
. Why don't you get Morgan and Gary
down here and nave them tell you
about such dinners"
'.Oh. we will get them all right"
said Stanley
'Good!' exclaimed Gates.
.'Has there ever been any agree
ment between your company and the
!. Steel Corporation looking to the fixing
OF prices or output?" asked Congress
man Young.
Expected that question:, said Gates.
II asked the president of the Republic
Company before coming here. and he
said he never had anything 10 do with
such agreement. l never have"
Young: You are The largest owner
OF stock In the Republic?"
Are you asking this for tax pur-
poses?" demanded Gates, suspiciousiy.
. II have stock and Il voice In the com
pany That is enough. isn't ito"
0IcGillicuddy: "Who fixes prices of
articles for the Steel Corporation
Gates:t"I do not know. If you were
head of the Steel Corporation you
would see that no ono concern con
tinucd to lose money. would not you:
4 Get the auditor to tell YOU"
AIcGilliclddY. -"Mhat WAS Nnllr MIR :