The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1911-06-09
JUDGE GARY TELLS OF A SUN
DAY DISCUSSION OF STEEL
WITH J. PlERPS PARTNER.
MORGAN PROMISED TO BACK It
Following That Was a Meeting Of
Federal Stockholders with J. p.
Morgan, and the Carnegie Company
Was Bought.

Washington, June N.-Judse Ebert
Gary, head of the steel trust, told
the house investigating committee to-
| day how the great monopoly was
formed. Judge Gary said he wanted
to tell the circumstances because OF
recent statements upon the subject
with which he did not agree.
THE Federal Stecl Company h.
said had been in existence about
two years and hall | was its pres
ident. That wSs some time in 1900,
and Mr.. Frick came 10 my Office and
suggested that the Federal Steel
Company could be mucn improved
and he believed the Carnegie steel
interests were for sale. | spoke to Mr.
Morgan about it and he suggested
that other directors of the Fedora
S.eol Company be consulted
Gary Turned it Down.
The next ! heard was that W. II.
Moore and others had got an option
from Mr.. Carnegie for the sale of his
steel plants. | had nothing to do
with that option. but ! knew that
th, AInnrog ooncultod .u.ith tbn L'iret
Nat>onal Banl, of New York, regard
ing the option, and that officers OF
the bank had consulted wi h Mr.
Morgan. Mr.. Morgan sent repre-.
sentative Of his firm to me to dis
cuss the question Of utilizing the
option on The Carnegie interests. |
did not think much OF It. and the
matter was dropped. Soon after that
Charles H. Schwab suggested to me
that the Carnegie Steel Company
might be acquired by the Federal
Steel Company.
About that time. J. Edward Sim
cons, president Of the Clearing
House Association of New York, gave
a dinner, at the request OF Mr. Frick,
to bankers of men interested in the
steel business. Mr. Schwab, Mr.. Nor
gan and others were present and Mr..
Schwab made statement which
made an impression on Mr. Morgan
concerning the Carnegie Steel Com
pany.
Discussed it One sunday.
- he next. thing | heard about it
was one Sunday morning, not long
after this dinner, when Robert Ba-
con, then a partner in the firm of j.
Pierpont MOI gan 4 Co., came to my
home. lie said the night before, Mr.
Schwab had surprised Mr.. Morgan
Carnegie, stating that he would sell
his steel property and take bonds in
payment for it. There had been
conference AT Morgan's house. Mr.
Bacon did not tell me anything about
John w. Gates having been there
| never heard that he was there un-
til | read his testimony before this
committee in which he said he was
at Mr. Morgan's house and that the
plan of the United States Steel Cor
poration was formulated there. ! can
not see how it could be that such
plans were made that night
Mr. Bacon said Mr. Schwab had
submitted the Carnegie letter which
fixed a price for the steel plants.
and that Mr.. Morgan lad told him
to submit the whole matter TO me.
We went over the whole matter until
lunch time, and Mr.. Bacon went to
see Mr.. Morgan and came back and
spent ths entire evening going over
the matter.
Il told Mr. Bacon then that if
/ through the acquisition of the Carne-
| gle Company corporation could be
/ completed large enough and rich
| enough to furnish adequate finishing
mills and increase the export bust
ness, | believed his proposition was
worth considering and ! agreed to
meet Mr.. Morgan the next day. Mon
day. | met Mr. Morgan, explaining
( my ideas and the details of the bus
iness reasons for entertaining the
/ proposition. | said TO him:
1t seems to me that if you think
consolidation OF steel interests on
this line Is practical that We should
start with the Federal Steel Com
/ pany.
Morgan Promised to Back il.
we decided to call in the men in
/ terested in Federal Steel and tele.