Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1911-06-10
GAYLEY ON PRICE OF STEEL
Former Vice President of Combine
Tells of Destructive Wars.
DISASTROUS
CUTTING
All Companies Would Lose Money,
Then There Would BE an Agree
nent Until Losses Were
RecOuped.


WASHINGTON, June s.-James Gayley.
former vice president OF the United States
Steel corporation was interrogated today by
the Stanley Steel trust committee OF in
quiry- Mr.. Gayley, whom Mr.. Gary told
the committee was a practical steel man
gave information on many technical mat
ters relating to the steel business MT
Gayley was formerly in the Carnegie Steel
company.
Mr. Gaflegs questioned by Representative
Young OF Michigan, gave the history Of
the Carnegie Steel company from 1856 to
1901. when the steel corporation was formed
He described periods of destructive com
petition" between different companies and
the ultimate progress and development Of
the Carnegie company. He also described
new methods of manufacturing steel and
dwelt upon their effect in advancing the
values of steel properties.
Asked as to the price OF rails in the early
period, Mr. Gayley declared that the price
usually was fixed in conference with rail-
road officials, chiefly those OF the Penn
sylvania railroad.
Were there any agreements as to prices
in those days?" asked Mr. Young.
In those days all the steel companies
were independent" said Mr. GayIey. "and
there were periods pf war so destructive
that agreements were necessary in order
for all to recoup. Then would come other
destructive wars Agreements were neces-
sary from time to time or ultimately one
company would have secured a monopoly
OF the business"
GayIey Denies knowledge.
Mr.. Gayley said he had no personal
knowledge that Andrew Carnegie had
threatened to build tube mill at Conneaut
for the purpose Of forcing the Morgan in
lerests to buy out the plant as charged by
John w. Gates.
The Carnegie company had purchased
land at Conneaut, he said, for the Iocst ton
OF a new plant, but it was not determined
whether tube works or a wire mill would
De erected. The purpose Of building, he
said, would have been 10 furnish an outlet
Tor the steel of the Carnegie works near
Pittsburg, which steel had formerly been
taken by the National Tube company,
Morgan enterprise.
There has been a statement or rumor.'
said Representative Young Of Michigan.
that Mr.. Carnegie's proposal 10 build a
tube mill was not in good faith; that II
was really threat to aid him in ACQUIRING
other property OF to force others 10 buy
No PrODOsRI, ~ Threat.
There was no proposal TO anyone Mr.
Gayley said, and there was certainly no
threat 70 build tube mill The Carnegie
' ID carry out plans II
il had never
been decided whether a tube mill or a wire
uOy company had ceased
10 re a customer OF the Carnegie works.
having constructed its own blast furnaces.
The witness added ahAt IL was not known
that Mr.. Morgan was interested in the
National Tube company until after the
United States Steel corporation was or
gained
Mr.. Gayley was asked II any additions
had been made 70 the Carnegie Steel c1u-
pany's property after IL had been appraised
at bank value OF t76. 900. OC0 and before Il
was sold 10 the Steel corporation for nearly
StO00O0.OO0
The COMPANY was sswsys building aad
expanding its works and acquiring more
property" he replied
Mr.. Gaylsy sad he aad no active part
In the negotiations wh ch resulted in the
formation OF the United States steel cor
porauen- He knew only the dsveIopnsats
In the transaction from hearsay. bat ap-
proved the deal whereby the CA-negie com
psny was acquired whey M Carnegie
submitted his terms 10 the board OF direc-
tors.
Percivsi Roberts. IT a director OF the
United States Steel coFporason, was Wit
Ness before the comnittee toIay