The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-05-28
went 10 Earops'in July, 1897. returning
November Q the same year
sitsi .gS{5A All ut AiUrEuu.s liouse

& went TO Europeiin July. 1907, returning
,sNovcinbcr the same year.
89siy i3iA All nt MUrEuu's House.
'1 went TO the Office OF Mir. Schiey
!. ana found that negotiations were pend
$ins between Frlck, Gary ana Morgan
on one side. ana Schlcy. iianna and
others. representing the Tennessee Coal
! and Iron Company. tor the purchase OF
4 tho latter company. All were a, Nor
gan's house"
Did you say nj MorGan's mercy?'f
s asked Chairman Stanley.
no replied Gates. srinning. AT
MorSan's residence. They oncrcd in
exchange for Tennessee Company
stock am equal amount uf United
States steel second mort sAgc SIS
was not willing 10 traoc on This basis
3 Foui hours later we accepted on d
basis OF ilsS.4 per cent, accepting
steel Corporation sinking fund SIS.
We met At the Office al the Tennessee
4 Company next morning totcnder our
designations. told Judge Gary he
was simply nayins a majority OF the
STOCK and taking our, designations.
Judge Gary Said lie aid not care about
the minority stocEhuidcrs Insisted
he must asree To pay the minority
the same as lie paid us. AMI before we
closed the deal he passed Il resolution
10 that effect" concluded Gates, swing
ing about in Ills chair with grim
J smile. tl He
.Who owned the majority stock with
Non?' asked AIR McGillicuddy, of
blaine.
Gates: TColonel Oliver H. Payne. j.
b. Duke L. j.. Berwyn, G, IS Schlcy
A. y Brady, c. ~ Kesslcr. Oakley
Thorne, Il. W. Oglehay. H. S. Black
i. d. stout, G. ". Simpson, &. g. Tip
ping. G. W. French and S, C. Cooper
Stanley: (Which securities were of
the greater valae--your stock or the
Steel Corporation bona.
Gates: Our stock would have sold
from $40 to $3.50 per share. The Steel
4 Corporation securities We're quoted al
$50 10 $50. On the basis or transfer
of the security was quoted at $50.
gave one share OF Tennessee stock for
500"
Bartlett; Doesn't the value back of
7 3 security control in its market price,"
Gates: .'Not always. Second mort
eaSe bonds OF the steel Corporation
arc promises 10 nay. The stock Of the
Tennessee Company represented the
actual property Of the company
Stanley: What is the value OF the.
iron ore owned blythe Tennessee Com
pany -
( An Eng,nous business
+ we estimated il from $500 100000
to SI00,o00.o10 Besides the conpany's
coal acreage was enormous and NO, had
lime mines and a thirty mile railroad
with plan, unexcelled in faciliiies,"
said Gates. sadly.
Stanley: .llow convenient 10 assem-
bic were your ores?'
Gates: Il think in the Birmingham
district we could assemble enough ma
terial to make ton Of pig iron cheap
er Than anywhere in the world"
STANLEY: Schwab said the same
thing"
Did her That has no effect on me.
get my opinions through hard
knocks said Gates, quickly. "a ton
Of pig Iron under modern methods in
tho Birmingham district can be pro-
duced for less than So Nowhere else
IN The uniicd states can 1t be produced
for less than s11 Il ton. based on freight
rates for assembling materials"
Stanley: Had you good business ?"
Gates: When We gave up the com
pany we had just taken over an order
from Hartman for 1907 900 tons az
rails ut 50 over the Bessemcr rails.
We had other small orders which put
US out Of the market for seven
months"
Reai ''Wus the Steel Corpora ton In
sfpa.tion o make The open hearth rail?,.
y.'.ies: Il tthlnk not''
TtHh!ey: WAS thore any other stcc,
ct.Acern situated rs favorably as the
!fAltsssee company with references TO
4rsatetiai?'
GATES TAI thar lime. no. ~ bros.
e!it, the Republic Steel ana IRON Corr
pany. hut II makes pig iron onlv.''
~ this point Chairman Stanley
brought out Tho Roosevelt letter a.
planning the action OF himself ana Al
: torney-Gencral Bonnrarlc approving
me merger. and Gates listened ca ger.
II is stated on high authority said
STANLEY. that ~ the time of the Ton
nessee company's acquisition by ,h,.
steer Corporation. ii certain trust com
pany would have failed It helm had
not been given. Among the assets Of
this company We're stocks OF INC Tar.
nessee company. and application wns
made 10 the Steel Corporation 10 mr.
chase this stock to prevent the wrecl,
OF mo trust company and avert
panic"
In thesexGhange Or securities not a
dollar changed hands replied Gates
who flew that signal of distress Of
me tennessee company" asked stan
Mnny Underground Wires.
M There arc many underground wires
in New York" commented Gates. ~
am told n trust company applied 10
The clearing house for assistance. En-
aminers were sent to the trust com
pany and ascertaincd several millions
mad been loaned on Tennessee com
pany stock. As aresult n gentleman
..-------------------- .-----------