The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1911-05-31

b
Trust" investigating committee to-
day the history OF the United States
Steel Corporation. Present at the
committees session were some of the
leading steel men Of the country.
Mr. Gates told of millions lost and
created almost in breath. how the
Carnegie mills. appraised at $780,
100000. were recognized as worth
S32O.e0O,OOO almost within the time
required to make the transfer to the
corporation; the grim clash in the
formative days. when John u. Rookie
teller was disSuaded from Joining in
the corporation. and the manner in
which others were prevented from
engaging in the steel trade.
Relating how Carnegie had been
forced 20 abandon plans for extend
ing his steel business. Mr.. Gates
frankly admitted that the gigantic Ill
dustrial combination was formed To
throttle competition. and he surprised
the committee with the further infor-
nation that when John y. Rockefel-
Ter had sought u enter the steel
business "a deal had been put through
by which the Standard oil magnate
was forced To- sell out for forty cents
on the dollar.
Characterlzng Mr.. Carnegie as "a
Sull I'm china shop" Mr. Gates told
of a midnight conference between
himself. Charles NJ. Schwab and j. J..
Morgan at which the total corporate On
was conceived and how it resulted n
Carnegie getting $500. 900, 900 in the
corporotion's securities for his steel
interests which he previously had OF.
tercd for 100000. 900 in cash.
Mr.. Gates also told the committee
OF the taking Of the Tennessee Coal
and Iron Company by the United
States Corporation during the 1907
panic. a deal In which he was inter-
ested as a stCci holder Of the Ten
nessee Company This ne sIid was
forced transaction carried out lv
Mr. Morgan and other financial Lead
ers To- save from ruin the Trust Conc
pany Of America. threatened by the
financial upheaval because it had
leaned too much money on the stock
Of the Tennessee Corporation.
Plans made by Mr.. Carnegie in 1929
and 1909, u circle his steel interests
with a railroad Of his own and 10
compete with the National Tube Com
pany just organized by Mr.. Morgan.
by the erecting Of & tube works az
Ashtabula, Ohio. were the factors
that led u the birth OF the steel
combine. The story of the negotia-
tions which led up TO the combination
now the subject Of Congressional in
0uiry We're entertainingly told by Mr..
Gates.
lie revealed how Mr.. Morgan.
alarmed by NJ. Carnegie plans had
sought the advice # himself and
James J. Hill; how Charles IL. Schwab
who. he said. was the only man who
had influence with Mr.. Carnegie was
called In TO suggest a way to stop
Carnegie" and how the pioneer Iron
and Steel King of the country Was
curbed in his purpose. though greatly
u his financial gain. lie explained
that the steel business was threaten
ed with several dcmOralizing forces
when Carnegie plans became known
and that Mr.. Morgan and others be-
came alarmed. fearing that Carnegie
would dcmoralizc both railroad inter-
csts and steel prices.
This was tho situation 1, dcscrib-
ed 10y MIR Gates himself a director at
present iu tho Republic Iron ana
steel Company when Mr. Morgan
sent word Q, uim throuel James j.
Hul seeking cpnfcrcnc. to deter
said DE- t.ld Morgan th1t Chas NJ.
Schwah wrs the only man VIII" could
influence Mr.. Co"rcair. out 81 that
came ao 1N.uirht conference ut Mr.
Morgan N,. Yurl home. thc o...
come of which va. d., United State.
Stecl Corporation.
Mr. Gotct y.irrcd member, Of tu.
committee vt.u o., declined to -,,t.
what bc Thought WAS 'hc ,.lI, of rb.
common sf1.k 80 .I, ct..f t'.,,...r.