The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1911-05-30

Gates said, became badly democrat.
lied in 1896 or 1897. Mr. Prick and.
Judge w. H. Moore conceived the idea
of securing an option from Mr.. Car.
nasie for his steel, plant. They got
the option and paid $l.00O,000 for II.
Soon afterward decentralization of The
business become SO great that they
could not put the leah through. The
price | think. was 100000, 900. They
had to forfeit that option and they
were NOT particularly pleased Pretty
soon the General Steel Company was
formed with the consolidation OF the
Lorraine Steel Company, the Mime
sofa Iron Company the Illinois Steel
Company and the Elgin Joliet ami
Eastern Railroad.
In 1899 or 1909 Mr. j pierpont
Morgan organized the National Tube
Company and was making money Mr..
| Carnegie then took il INFO his head to
build a railroad from Lake Erie
around his plantsand also erect tube
| works at Ashtabula, Ohio. Mr.. Nor
gan heard Of it and consulted with
James j Hill Of the Great Northern
| Railroad. Mr. Morgan expressed
fears that ii Carnegie went into the
railroad business he would dcmorali2c
the railroad situation he had the
| steel business and llai ii he built a
| tube mil, he would demoralize steei
prices
After considerable talk, Mr.. Hill
suggested to Mr. Morgan that he talk
| TO me about IT, went to see Mr.
| Morgan who asked me how to stop
| LMr. Carnegie tod him the only man
| wao had any influence with Carnegie
| Was Charles VI Schwab.
| Get Schwab' Mr. Morgan toll
me, Tor conference. got SchwaD'
and that night We went to Mr.. Nor
| gh's house We conferred with MIR.
Morgan all night until o'clock he
next morning, and wnen we left we
had formed the tentative plan to
\ merge the steel corporations into one
concern, the United States Steel Cor.
| poration. Thereupon the plan for the
United States Steel Corporation was
| drafted
Tells of $5o,ooo,ooo Aold-up.
seen after that time Judge Moore
wtnt to see Mr. Carnegie and said to
| him: If you are going to take bonds
Tor your property. make them cover
the National steel Company as well.
| Nr. Carnegie followed this advice
thereby getting for the National Steel
Company $50,OOO,oC0 more than it was
worth ;"
Mr Gates said the Steel Corpora
lion paid $4GS00 600 for the American
Steel and Wire Company. of which
ne was the presiding genius.
The property for which Mr.. Carne-
sic had given an option at sIGO. 900.
600 was turned into the steel Cor
poration al $32o030920, said Mr.
Gate2
The obligations of the steel trust
ne continued, were more than he could
estimate. First, he said, were tlle IN
DERIVING bonds of the companies thar
| md been turned in, next the firsr
mortgage bonds, issued by the United
states Steel Corporation to nav of
| carnegie, then bonds to cover pur
chase mortgages, prior liens and tht
| like
what is the tangible property be
hinh these bonds, and this common
ana preferred stock?" asked Chair
man Stanley.
oh anywhere from $500, 900 900 te
$l000 100000"
do You believe there is any tangi
Die value behind the common stocl
y'a hoid?' asked Mr.. Stanley.
I decline to answer" said Mr.
Cites
Mr.. Gates said Carnegie had nj.
WAYS been like a bun in n china
SHOP overthrowing every agreement
tnaE was made between the compan.
lo7 He thought it was Carnegie's
general attitude in threatening the
while line of the steel industry that
n'F hastened and brought about the
ORGANIZATION of the United States
Steel Corporation. sg 7