Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1911-06-01


Representative Stanley, the chairman,
and other members of the committee,
but stirred them somewhat when he
declined to tell what he thought was
the value OF the common stock of the
stccl corporation
After he had described the oblisn-
lions of the steel trust" and told Of
tie bonds of the concerns taken over,
the first mortgage bonds paid to Ca
negie and bonds to cover purchase
mortgages and prior liens, Chairman
Stanley asked him.
What is the tangible property be-
Lind these bonds and behind the COM
mon and preferred stock?'
80, anywhere from s500,00o.oo0 to
81 900 coo. 900" Mr.. Gates replied.
40 you believe there Is any tangible
value in the common stock you hold?"
was the next question.
THAT decline to answer" sard Mr.
Gates.
NO THREATS MADE, HE SAYS.
Mr. Gates was asked many hypothet-
ical questions relating to the power OF
the steel corporation to dictate prices
and to command business.
Asked IL he. as an Independent man
ufnoturer of tin plate, selling below
tie trust" price. received n suggestion
from the trust" that the price OF his
ore and transportation might be adj
vnnced he would attach weight to the
suE estion. he replied:
"I would consider Il n bluff. There
,s a law of equity in the land You
cant give ono man one freight rate
aid different rate to another. If
I've got the cash l can buy ore as
| cbeaply as anyone else. such threat
wouldn't deter nc n particle. I don't
believe the steel corporation makes
any such threats. If they did no one
would pay any attention to them"
Representative McGillicuddy asked
Mr.. Gates what was the benefit of the
holding company. the United States
Steel corporation. He answered that
tho big financial men behind II exerted
a Grent influence in injecting stability
into the steel market. One result Of
t. he explained. was ito convert q lot
oc doubtful assets into cash" by broad
ening the market for corporation
STARS
TENNESSEE COAL & IRON DEAL
The Tennessee Coal 6 Iron deal,
which Is said to have been approved
by Colonel Roosevelt, was the first
subject taken up Mr.. Gates was
asked by Mr.. Stanley II tho deal with
the United States Steel company was
not prompted by the embarrassment
Of the Trust Company OF America. Mr..
Gates declared he had heard that j.
| hoI tad
t,arsactron. to relieve a distressed con-
di,ion Of a banking house.
ct has been stated on apparently
good authority" said Mr.. stanley
that at the time the Tennessee Coal
e. Iron company was acquired by the
United states steel corporation GER
tain business firm. the name not given
would have failed If help had not been
given, and that this firm had among
It's aGsets the majority of the stock OF
the Tennessee Coal & Iron company
and that advances were made to the
United States Steel corporation to
rn;chase this stock In order to avert
panic. What do you know about
that"
I'm the exchange of this stock" Mr.
Gates replied, mot a dollar changed
hands No bank gained any assets b!
-"
"pid any member of a firm or banl
, make n proposition to the United States
steel company to accept the Tennessee
Coal & Iron company as a comparativei!
=. or,hlees pronertv?" asked Mr.. Stanley
, ON other words, who flew the signal o
distress"
q "There are n great many underground
( wires in New York Mr.. Gates replied
3 1T yvos told that n certain bank in Novem
= rer ,anC. apn,ied TO the clearing house 70
assistance A committee was appoints
10 examine its assets, They discovers
,eyerol millions of the banks funds on
~ stock of the Tennessee Coal & Iro
: ,. ,r,o, re,orted 10 the clearin
" ,,,,so +bo, too much had been loaned OF
. To,rosseo Coal G. Iron collateral
; ..C,oa,, ,ro,,a,s ,oid me that as a result
=, RI this Investigation n gentleman was in
= ,.,.od 10 NJ Norqan's house. Mr. Nor
80, sr,,oe,ed IN him that TO relieve tn
i, t,,,o.;or tbo United States Steel cor
7 rnrat,or ,r,en, acquire the Tennessee
+, roaI 6. iron conrauy That led up to tn
,oao,,a,ions ,f,orvard concluded"
e syNDICAT,
J. HloiOHi or M ~,
y Mr., Stanley wanted 70 KNOW ! Ava
= Morgan and Others had ever ,r'eu W q.
a ouire the Tennessee company peiore' W.,
; Il view to securing monopoy' ."
Gates said he could not tell Wha' was
n the mind OF the purchasers
He outlined the sale Of the STOCK
X the United States steel company ~
n said that in 1901 or 1876 during ms at