Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1911-06-10
CARNEGIE NOT
BUFFER SAYS
one WITNESS
Vice President Gayley Of
Steel Corporation Denies
Andy's Threats lie dto Or
ganizing Trust

"a WhSuluStCu, -. Va JuH0 S.--DculAl
that Andrew Carnegie by threats COM
PEELED the formation OF the United
States steel corporation, and an &C.
Acknowledgement that the steel compan-
les before that organization counsel
led with the railroads as to the price
of steel today marked the testimony
OF James Gayley, vice president Of the
corporation and an officer Of the Car.
negie concern for many years. before
the house steel trust" investigation
committee. Mr.. Gayley said such un-
derstanding with the railroads were
necessary to prevent monopoly In
the steel business, and denied that Mr..
Carnegie, as charged by John w.
Gates. had held up' J. p. Morgan and
In SO doing had forced steel manufac-
turers to combine.
Tells Of Old Steel Wars.
Mr.. Gayley, questioned by Repre-
sentative Young Of Michigan, gave the
history OF the Carnegie Steel COM
pany from 1885 to 1901, when the steel
corporation was formed. He describ-
ed periods of destructive competition
between different companies and the
ultimate passage and development OF
the Carnegie company. He also de-
scribed new methods of manufacturing
steel and dwelt upon their effect In ad.
vancing the values OF steel property.
Asked as to the price of rails in the
early period, Mr.. Gayley declared that
the price was fixed In conference with
railroad officials chiefly those OF the
Pennsylvania railroad.
Were there any agreements % to
prices In those days?" asked Mr..
Young.
I'm those days all the steel com.
panies were independent" said Mr..
Gayley, "and there were periods OF
war SO destructive that agreements
were necessary in order to recupseate.
Then would come other destructive
wars. Agreements were necessary
from time to time or ultimately one
company would have secured q mon
opoly of the business"
Mr.. Gayley said he had no PERSONAL
knowledge that Andrew Carnegie J.
had threatened to build a tube milia
Conneaut for the purpose of forcing
the Morgan interests to buy out the
plant, as charged by John w. Gates.
Denied Carnegie Tried Bluff.
There has been statement, or a
rumor," said Mr.. Young, that Mr.
Carnegie's proposal to build a tube
mill was not In good faith; that 1t was
really threat to aid him in acqulr-
ing other property. or to force others
to buy him out. DO you know the
facts?"
There was no proposal to anyone"
Mr.. Gayley said, land there was GER
tainly no threat to build tube mill
The Carnegie plant went ahead to car
ry out plans 1t had determined upon;
but it had never been decided whether
a tube mill or wire mill would be
constructed"
Mr.. Gayley was asked If any addi-
tions had been made to the Carnegie
steel company's property after 1t had
$76 100000 and before 1t was sold to
100000.
"The company was always building
and expanding it's works and acquiring
more property" he replied.
Percival Roberts, Jr., director OF
the United States steel corporation,
was a witness before the committee
after the noon adjournment.
Pittsburg Probe Continued.
Pittsburg, Pa, June 9.-The federal
grand jury today continued it's investi-
cation into the affairs of the Pitts
burg Coal company and the Monon-
gahela River Consolidated Coal and
Coke company, relative to the trans
fer of coal and coking properties valu-
ed at $17,s00,000 to the H. G. Frick
Coal company, subsidiary of the
United States steel corporation, to az
certain whether there has been any
to create monopoly in the
coking industry.
The transfer negotiations were offi-
cially approved late yesterday, not.
the fact that the govern.
ment probe into the matter had start.
I'd by the hurried reassemblying Of the
May grand jury. E. J. Taylor, chief
engineer of the Pittsburg Coal com.
oany, was the first witness called to.
lay. He was thought to have testi.
led to the location OF the coal CON
,ernin1 the deal and IN t1e, aynn1v NJ