The Newport miner. [volume] (Newport, Wash.) 1899-current, 1911-06-01
INVESTIGATION OF
STEEL TRUST IS ON
Committee Begins Inquiry Into
Huge Corporation; Gates is
Principal Witness.

mony OF John w. Gates, the first wit
ness to appear before the House COM
mittee investigating the United States
Steel Corporation. Gates told the
committee the history of the United
States Steel Corporation. Present at
its birth. he described how it was the
natural outcome of what he described
as the refusal of Andrew Carnegie to
be bound by the "gentlemen's agree
ments" that marked the early days of
open competition in the steel bust
pess.
Plans made by Mr. Carnegie in 1899
and 1900 to circle his steel interests
with a railroad of his own and to
compete with the National Tube Com
papy. organized by Mr. Morgan, by
the erection of tube works at AS
tabula, O.. were factors that led 10
the birth of the steel combine.
Mr.. Gates revealed how Mr.. Nor
gan, alarmed by Mr. Carnegie's plans,
had sought the advice of himself and
James ]. Hill, how Charles M. Schwab
who, he said, was the only man who
had influence with Mr.. Carnegie, was
called in to suggest way to stop
Carnegie" and how the pioneer steel
king was curbed, though greatly to his
financial gain.
How Trust Was Born.
Characterizing Mr.. Carnegie as a
bull In q china shop" Mr.. Gates told
OF midnight conference between
himself. Charles M. Schwab and ]. P.
Morgan. at which the Steel Corpora
ton was conceived and said that it
resulted in Carnegie's getting $780,
100000 in the corporations securities
for his interests. which he had of
fered for sale for $4,000, 900 cash.
With John W. Gates testimony to
work on, the committee Is convinced
that it will have no trouble in evolv-
ing the facts concerning the great ag-
gregation of capital.
Opponents of the steel trust de-
clared that Gates testimony formed
q prima facie case against the steel
trust, on which the investigators can
build the ground work of a strong re-
port.
congressman Tire Of Session.
Congressman are beginning to- talk
about adjournment. Republicans N
both branches have been limiting that
g. recess during the hot months would
not interfere with legislation at all,
while many Democrats in the House
are beg ming to believe they will be
through with all they care to enact
OF their leg slative program within
another month.
High temperature served to stimu-
late in the minds of the representa-,
tiVess more interest in summer resort
matters than in tariff questions. For
several days they have been consider
Ing the possibility of getting through
for the summer by the first of July.
Though the Democratic free list bill
will probably not be passed by the
Senate-it may not be considered at
all-the Democratic leaders insist
that they have demonstrated to the
people that in passing that measure
their Intentions were good, and that
1t Will not be necessary for them to
insist upon remaining in session to
await action on it by the Senate.
The reciprocity bill they expect the
Senate to pass within a month, and
t-en all that President Taft asked OF
the extraordinary session will have
been disposed OF.
No Prosecution Planned.
In response to q resolution asking
for information on the subject, At
torney-General Wickersham sent word
to the House that the Department OF
Justice had undertaken no criminal
prosecution of the officers of the
Standard Oil Company as a result OF
the recent supreme court decision.
1t Is understood that Senator
Pomerene, author Of the original reso-
luton, will introduce another direct
ing criminal prosecution against the
Standard Oil and constituent com
panies
Restrict Prediction Promises.
Senator Jones has offered an
amendment to the. campaign publicity
Dill requiring every candidate for
election to the House of Representa-
uves to make affidavit ON the day of
election that he has not promised, di-
eectly or indirectly, to appoint or rec
onmends for appointment to any Of
nee OF trust rany person who has aided
u bringing about his nomination. or