The Dillon herald. [volume] (Dillon, S.C.) 1894-????, 1911-06-01
RELATES STEEL HISTORY
DECLARES TRUSTS" OBJECT TO STIFLE
COMPETITION
TELL HOUSE COMMITTEE HOW
Cnrnegie'S Interests Taken Over at
Double Appraised Naluc.-Rocke-
Teller Forced to Sell at Loss


/ Gates revealed to the House Steel
| Trust" investigating committee to-
day the history OF the United States
/ Steel Corporation. Present at the
committees session were some of
thc leading steel men of the coun-
/ try.
| Mr.. Gates told of millions lost and
created almost in a breath, how the
/ Carnegie mills, appraised at $780,
! 900, 200, were recognized as "Ir,h
| $500 100000 almost within the
time required to make the transfer
to the corporation; the grim clash
III the formative days, when John ID.
Rockefeller was dissuaded from
| joining the corporation, and the
manner in which others were pre-
vented from engaging in the steel
trade
Oil King Forced Out.
! Relating how Carnegie had been
! forced to abandon plans for eX-
! tending his steel business Mr..
Gates frankly admitted that the gi-
Santic industrial combination was
:ormed to throttle competition. and
Ec surprised the committee with the
further information that when John
ID. Rockefeller had sought to enter
the steel business. Il deal had been
put through by which the Standard
Oil magnate was forced to sell out
for forty cents on the dollar
Eh"racterizing Mr.. Carnegie as IA
bull in china shop" Mr.. Gates
told OF Il midnight conference be-
tween himself, Charles NJ. Schwab
and }. +. Morgan, at which the to-
tai corporation was conceived and
how it resulted in Carnegie getting
100000 in the corporations Sc
curltles for his steel interests,
which he previously had offered for
100000 cash.
Tennessee Company Acquired.
Mr.. Gates also told the commit
Tee OF the taking over of the Tenn
essee Coal and Iron Company by
the United States Corporation dur
ing the 1907 panic, deal in which
he was interested as a stockholder
of the Tennessee. This, he said,
was a forced transaction carried out
by Mr.. Morgan and other financial
leaders TO save from ruin the Trust
Company of America, threatened by
the financial upheavel because il
had loaned too much money on the
stock of tho TpnnaSSao rornnr,t;nr
Plans made by Mr.. Carnegie in
1893 and 1900, to circle his steel in
tereStS with railroad of his own
and TO compete with the Nationoal
Tube Company just organized by
Mr. Morgan, by the erecting of a
tube works at Ashtabula, Ohio, were
the factors that led to the birth Of
the steel combine The story of
the steel combine. The story OF the
negotiations which led up to the
combination now the subject of Cor
gressional inquiry were entertain
ingly told by Mr.. Gates.
Wanted to "Stop Carnegie"
H. revealed how Mr. Morgan,
alarmed by Mr.. Carnegie'S plans,
had sought the advice of himself
and James j. Hill; how Charles II.
Schwab. who, he said, was the only
man who had influence with Mr..
| Carnegie, was called in to- suggest Il
way TO stop Carnegie" and how
the pioneer Iron and Steel King Of
/ I'll" country was curbSd in his pur-
pose, though greatly to his financial
gai'r. He explained that the steel
business was threatened with sev-
eral demOraliZing forces when Car
negie plans became known and
that Mr.. Morgan and others be-
came alarmed, fearing that Carne-
gle would demoralize both railroad
interest and steel prices.
/ !his was the siLuation as desC.rb-
/ ed by Mr Gates. himself a director
at nreScI I IN the kepublic Iron and
! Steel Company when Mr. Morgan
sent word to him through James
Hill seeking a conference to de-
termine what could be done Mr.
Gates said he told Morgan that
Chas. NJ. Schwab was the only man
who could influence Mr.. Carnegie.
Out of that came an all-night con-
terence at Mr.. Morgans New York
home. The Outcome of which was
the United States Steel Corporation.
Silent on Stock Value.
Mr.. Gates stirred members OF the
committee when he declined to state
what he thought was the value of
the common stock of the Steel Cor