Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1911-05-27
HOUSE COMMITTEE EXAMINES
JOHN w. GATES AS TO METH
OBS OF ASSIMILATION.
TENNESSEE COAL COMPANY
SECURED AT FORCED SALE
Committee Also Probes Attorney Con-
eraps Office and Postoffies Depart
smsnt-los Angeles Times Dynamit-
ing Case Occupying Attention of
Another Committee.


fore the special committee elected by
the house of representatives to deter
mine whether the United States Steel
Corporation is operating in violation Of
the Sherman antitrust law, the inter-
state commerce laws, or the national
banking laws began today. The first
witness summoned. John w. Gates. was
called to enlighten the members re-
garding the amalgamation Of the
United States Steel Corporation and
the Tennessee Coal and Iron Company.
The committee also proposed question
ing Mr.. Gates concerning the steel cor
poration's relation with the American
Steel and Wire Company.
F Gates declared that the accumulation
by the Trust Company of America of
New York in 1907 Of a great block OF
the collateral Of the Tennessee Coal
and Iron Company made possible the
acquisition Of that company by the
United States Steel corporation. Mr..
Gates said he regarded the transaction
as forced sale.
Formed to Beat Carnegie.
How w. H. Moore and n. C. Frisk
lost 100000 to Andrew Carnegie in
1897 thru the forfeiture Of an option on
the Carnegie steel works and the man
ner in which J. p. Morgan. Charles M.
Schwab and himself conceived the idea
Of the United States Steel Corporation
in 1899, to head off mt. Carnegie from
engaging In the railroad and tube
manufacturing business, were revealed
today by Gates before the house '.steel
trust" investigating committee.
THE price Of finished Steel" he said.
became badly demoralized in 1896 or
1897. MT. Frisk ana Judge Moore con-
sceived the idea Of securing an option
from Carnegie for his steel plant. They
got the option and paid $1.o0o.Ooo for
1T. Soon afterwards Generalization Of
the business became SO great that they
could not put the deal thru. The price
I think was 100000, 600. They had to
forfeit that option and they were not
particularly pleased. Soon afterwards
the Federal steel Company was formed
with the consolidation Of the Lorraine
Company, the Minnesota Iron Com
pany, the illinois Steel Company and
Morgan Into Game.
I'm 1899 or 1900 ]. P.- Morgan organ
lied the National Tube Company and
was making money. Mr. Carnegie then
took it in his head to build a railroad
from Lake Erie around his plant. Mr..
Morgan heard of it and consulted with
James J. Hill, Of the Great Northern
road. Morgan expressed fears that 1t
Carnegie went into the railroad busi-
ness he would demoralize the railroad
situation as he had the steel business,
and II he built tube mill he would
demoralize steel prices.
"After considerable talk Mr.. Hill
suggested to Mr.. Morgan that he talk
to me about it. went to see Mr.. Nor
gan, who asked me how to stop Mr..
Carnegie, and told him the only man
who had any influence with Carnegie
was Charles NJ. Schwab."
Two Other Investigations.
The committee on expenditures in
the department of justice was busy to-
day with it's inquiry into the affairs Of
the attorney-generaPs office and was
making the investigation Of the post
office department.
Committee Takes Up Dynamite Case.
The arrest of j. J. Mcnamara. in
connection with the Los Angeles Times
explosion received official cognizance
thru consideration by the committee on
rules Of resolution by Representative
Berger, Of Wisconsin, providing that
the house conduct an inquiry into the
arrest and extradition Of the prisoner.
The senate rested from its labors,
ho,,;pr n jourro1 until