Staunton spectator and vindicator. [volume] (Staunton, Va.) 1896-1916, 1911-06-02
ruE OCEAN LINER AND THE FISH,
ING SMACK

GuIf Stream in the North Atlantic, lie
the greatest fishing beds known to ex-
list in the world, and to them hshlng
boats from every maritime nation on
the Atlantic shores resort to reap Inc
harvest of the sea. The fishing boats
are comparatively small, and at night
are very inconspicuous. Unfortunate
lv through these "banks" pass the
ulanesu of the great ocean liners, and
the swift enormous vessels, driven at
speed of twenty-five to thirty-hve
miles an hour dash through the fish
ing fleet. A day or so later the wives
and mothers of Gloucester learn that
the .Lucy Foster" is missing with all
hands on board.
This is a parallel to what happens
when the small company or the lndl-
yidual attempts, voluntarily or lnvol-
untary, to get in the diane" OF the
great corporation. The whole story or
a Iarce part of it was gotten out OF
John w. Gates few days ago when
he was interviewed by the Stanley
committee of Congress, in regard, 10
the operations of the Steel Trust. Inc
particular fishing smack that had
been run down was the Tennessee Coal
and Iron Company, itself concern Of
no small size, during the "Roosevell
panicn of 1907, and Mr.. Gates averreo
that this deal was contaminated WIFE
the knowledge and consent of the ther
President.
Mr.. Gates stated that Mr.. Carnegie
was the moving spirit OF the Stee
Trust, but that "He would not stay
hitched;. he would break gentlemen
agreement and cut prices" and ther
he gave an instance.
He told of a conference held by him
self, J. L. Morgan, and G. M. Sch wal
after consulting with j. J. Hill, a
which, the. United Steel Corporation
was formed. 1t seems that in 1885,
and 1900 Carnegie made plans to circl
his steel interests with railroad o
his own and then to compete with tn
National Tube Works, just established
by the erection of plant at Ashta
bula, Ohio. The United States Stee
Corporation was formed to keep Car
negie from demoralizing railroad in
terests and steel prices, and Carnegie
properties were taken over by frs
mortgage bonds of the Steel Corpora
ton.
Gates was a stakeholder, directo
and pIesidentsof the executive boar
of the Tennessee Goal and Iron &c
In 1904 or,.1905 while Gates was il
Texas, syndicatesof some twelve o
fifteen persons, Including Gates, wa
formed to buy majority of the stock
Gates left for Europe IN July, 1907, re
turning on November 6 of the sam
year. The stock of the Tennessee
Company was quoted at from 12O
100. No one knew the exact value
but it producedEiron--at-two dollars les
than it could be produced anywhel
else in the world, except in the Ri
mingham, (Ala.), region.
A basis of 119a, was accepted for Ii
stock, and it was paidifor in the Uni
ed States per cent. sinking fund.
ga certain New York banking hou.
was told," said Gates, twas in di
tress, and it held quantities of the S
curities of the Tennessee Coal and Ire
Company. 1t was for the purpose
helping this concern that our cor
pany was forced to sell. In the chan!
of the securities, however, not doll
changed hands," Gates said furth
that in his opinion, the Tenness
stock was worth $50, and he reiterat
that it was forced sale.
By this statement it can be Sc,
that the common stockholders of t
stock were forced by ''high financier
to sell for less than 120 stock wor
$50, and this with the knowledge al
assent of the great President TIT
Buster, who wrote Attorney Genel
Bonapart on November 4, 1907, II
the Tennessee Company would
taken over, not because the absorb
concern wanted it, but to avoid
panic that the failure of the gre
concern might .pacipitate-in otf
words to permit the Sherman law