Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1911-06-01


he surprised the committee with the fur
Their information that when John D.
Rockefeller sought to enter tho steel
business deal was put through by
which the Standard Oil magnate was
forced TO sell out for 40 cents on the dol
lar
a FORCED TRANSACTION.
Charactcrizing Mr.. Carnegie as "a bull
in a china shop" Mr.. Oates told of n
midnight conference between himself
Charles NJ. schwab and J. Perpont Nor
gan, at which the steel corporation was
conceived, and how It resulted In Car
negie getting $500. 100000 IN the corpora =
TONS securities for his steel interests,
which he had previously offered for slGo.
eco in cash.
MIR. Gates also told the committee Of
the taking over OF the Tennessee Coal
e Iron company by the United States
Steel corporation during the panic Of
1907. deal In which he was interested
as a stockholder Of the Tennessee COM
pary. This. he declared, was n forced
transa elton carried out by Mr. Morgan
ana other financial leaders to save from
ruin the Trust Company of America
threatened by the financial upheaval be-
cause IL had loaned too much money or
stock of the Tennessee Coal & Iron COM
! pany.
Plans made by Mr. Carnegie in 1879,
and In 1900 to circle his steel interests
! with a railroad of his own and to com.
| pete with the National Tube company
| Just organized by Mr., Morgan, by Tho
/ erection OF a tube works Mt Astabula
| Ohio, were the factors that led to tn,
birth Of the steel combine. The story OF
| the negotiations, which led up to III,
| combination now the subject of congress
sional inquiry. was entirely told by Mr.
| Gates.
HOW CARNEGIE WON \ MILLION.
The price of finished steel" Mr.
Gates said, became badly demoralizc,
in 1896 or 1897 Mr.. Frick and Judge W
H. Moore conceived the idea of securing
an option from Mr Carnegie for his stee
plant They got the option and pai
Sl,cOo,00o for IT,
Soon afterward naturalization Of tn
| business became 50 great that they cou;
not put the deal through. The price
think was $1,000 900 They ha to forfeit
that option and theY were not particu
larry pleased.
pretty soon the Federal Steel com
pary was formed with the consolidate
of the Lorraine Steel company, the Min
nesota Iron company. the Illinois Stee
| company and the Elgin, Joliet & Eas,
ern railroad.
In 1899 or 1900 j. p Morgan organize
the National Tube company and wa
making money. Mr.. Carnegie then TOO
It into his head to build a railroad fror
Lake Erie around his plants ana ais
to erect tube works at Ashtabula. Ohit
Mr., Morgan heard OF it and consulte
with James ]. Hill of the Great Northcr
railway.
Mr. Morgan expressed fears that
Carnegie went into the railroad bus
ness he would demor9lize the railroa
situation as he had the steel bushes
and If he built tube mill he woul
demoralize steel prices.
after considerable talk Mr.. Hill su:
gested to Mt. Morgan that he talk TO IT
about It. | went to see Mr.. Morga,
who asked me how to stop Mr.. Carnegi
: | told him the only man who had an
: influence with Carnegie was Charles
Schwah.
BIRTH or STEEL CORPORATION.
"'Get Schwab. Mr. Morgan told n
for a conference
Il got Schwab and that night we wei
to Mr.. Morgan's house. We conferrt
with Mr.. Morgan all night until s.
o'clock the next morning, AMI when we lie
, we had formed the tentative plan
merge the steel corporations into OF
concern. the United States Steel corpor
ton Theroupon the plan for the Unite
states Steel corporation was drafted,
soon after that time Judge Moor
went to see Mr.. Carnegie and said
S him, If you are going to take bono
/ for your property, make them cove
= tho National Steel company as wei
5 Mr. Carnegie followed this advic
= thereby getting for the National Ste
r company $4,000, 900 more than IT VIZ
e worth"
e Mr.. Gates said the steel corporate
= paid SAC, 100000 for the American Ste
o g. Wire company. of which he was Il
9 presiding genius.
The property for which Mr.. Carneg
had given an option at sl60,000,o'
T was turned into the steel corporate
I at s32o,O00, 900, said Mr.. Gates.
:, PUT ROCKEFELLER OUT.
= John d. Rockefeller's name came ,
= In the hearing when Mr.. Gates was a.
= iacribing Mr.. Carnegie's desires
/. branch out after the organization
the National Tube company.
John p. Rockefeller" he said. "on
s lstarted steel mill and threatened