The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-10-27

+LrO thrown out upon the consumer.
comnetitors and capital. is incompat-
lille with the healthy commercial hfe
of the nation.
The government reviews III great
detail the conditions in the steel trade
before rbe consolidation OF 1898 1900
and the formation of the Federal steer
company, the Carnegie company OF New
Jersey. the American Steel q Nlre
company, the National Tube company,
the National Steel company. the Amer
lean Tinplate company. the American
steel Hoop company. the American
Sheet Steel company and other corpo-
rations prior to the formation OF the
United States Steel corporation itself
in 1901
Describing the United States Steel
corpora ion s acquisition OF the Ten
nessee Coal & Iron company. the petI-
lion relates:
lin 1907 the corporation acquired
The control and almost the entire Own
ership of the Tennessee Coal, Iron x
Railroad company The properties al
this company were located manly IN
Alabama and Tennessee.
"Owing TO the character of ITS coal
and iron deposits thc Tennessee com
panv could manufacture pig iron cheap
or than il could be made in any other
of it's vast holdings Of coal and IRON
properties il was strong probable iu-
ture competitor of the corporation.
Most of the rails in the United states
had been made out of Bessemer ores.
On account nj accidents attributed 10
weakness in such rails. demand arose
for an open hearth rail and for such
process the ores owned bv the Iennes-
see company were available.
Hartman S Big Order.
"ln 1907 Il sensation was created In
the steel rail market by r., H. barrl"
man ordering from the Tennessee com,
panv l57,500 tons Of open hearth steel
rails at 81 more per ton than the price
of Bcssemer rails This at once put
that company into the position of an
actual competitor of the corporation
and of possible competitor that could
not be ignored, of great potcntlallty,
1.-The corporation was not SLOW 10
discern the situation. James GaSleY-
first vice president Of the corpora ton,
having attached himself with the prop,
critics Of the Tennessee company. had
already recommended to Mr.. Frlck
who was then director Of the cOrpo-
ration. that il acquire the properties OF
the Tennessee company.
"Grant B. SchIcv of the firm Of
Moore & Schley of New York City was
one of the syndicate holding a major
itv of the stock This was known to
the Officers OF the corporation. Moore
Schley, in October. 1907, owed large
sums Of money in New York and else
where from S35.000,000 to $3s.000,00
upon call and time loans, which were
running to maturity. Some Of these
loans were partly secured by pledge OIL
100000 shares Of Tennessee stock, the
amount fIuctuating.
"In October. 1907. a great panic
came and New York was the storm cen
! ter.
"Those in control of the corporation
! obtained intimate knowledge of the af
| fairs of Moore & Schiey and of then
! holdings of Tennessee stock. The credit
of Moore & Schcy and the character oI
their stockholdings such as TENNESSEE
stock, Republic Iron & Steel stock ant
other jndustrials, was discussed on tn,
street and among bankers, and the qnes
ion Of their failnre WAS mOoted. Thu
! Tennessee stock was especially sublec
ted to criticism, and in Wall stree
parlance was hammered as collat
cra1.
Dicker With Schley.