New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-05-28
Cows Morqan Organized United
States Corporation to Head
Off Carnegie.
ROCKEFELLER BOUGHT OUT
purpose of Organizers Was to
Check Competition-T. G.
and I. Deal Was a
Forced Sale"

attempted 10 explain 10 the special in
stcotinr committee Of the House to-
~ certain questions of high finance
,oncerni1g the birth and operation of the
rr,ea states Steel Corporation. which
!. declared by the House Democrats to
r. the steel trust
NJ Gates furnished some highly in
,resting sdelights on financial opera
sops He juggled the names of Morgan.
carneefe. Prick. Gary and others and
,bp,klef because Judge Moore and Frick
,sd forfeited a million i'm the original
.t,enpt 10 absorb Mr.. Carncsie's COM
,snv. bgt the House committee learned
Wfe from Nj Gates that has not been
told before and adjourned this afternoon
without knowing whether or not such a
thing - q steel trust" exists.
Mr.. Gates testified that midnight
eanfercnca between himself, j. 2. Morgan
and Charles ~ SchWab had been the
BEGINNING Of the Steel Corporation.
The mporary invasion Of the realms
n finance by The members of the House
eommittes seemed 20 amuse the astute
New YORK. hnaucicr He had some diff
erultv in explaining the difference in the
nsrk4, value If q stock and a bond, so
hat tho difference might be grasped by
sane o. the farmer" members Of the
/ committee. and was also harassed con-
aieraby by long wirded Hypothetical
cu4stions. p~cpoundcd with view to
showing that the United States steel
Corporation can dictate steel prices.
lailioa rates and everything else.
NraIr ar Gates observed: you
us NJ rh-t would happen To the indie
pnients II the corporation 'hinted' that
freight rates should bc so and so In
ID, first place I don't believe the cor
Jorsii,u would attempt it; i'm the second
Jls.e would say that they would be
G1frg' r they dii You have power
70 summon The president Of the corpora
ton VIZ don't you ask him some of
these Hypothetical questions when he
gets hare instead Of asking me to ex-
pess mere opinions"
Chairman Stanley said perhaps that
Ess good suggestion. and he would
lsopognd these questions TO the men I'm
orrol ot The United states Steel cor
efation
Tennessee Coal and Iron Zeal
Nr Gates volunteered much informa
tn and the committee extracted a little
By random questioning He told how the
Tgntssce coal and Iron Company had
sssn taken over by the United States
sts Corporation after a conference at
P Morgan house. between himself
tni other representatives. Of the Tennes-
sts company and Mr.. Morgan. r. II.
Gary and n c. Frick, the latter three
'spfssentns tho purchasing syndicate.
Nr Gates denied that the danger Of
Ianic had made the absorption neces-
ssTy Not dollar had changed hands.
As said Il had been merely the shift
hg q securities Yes. ne thought the
pe Of the Tennessee company had been
fcrct1 sale and that the buyers had
Driven the better bargain
The committee seemed inclined 20 ask
esestions about Nj Gates's own com
lany the Republic Iron and Steel.
I thought YOU We're investigating the
United States steel Corporation" sug-
tss'ed NJ Gates What has the Re
public to Do with it?"
oh, You are all mixed up ! will ex-
lan once more" frequently observed
Nf Gates when he was asked about
ve stock and bond transfer between the
.scressee company and the United
sta'es Steel Corporation Then he would
explain again, and members Of the com
nI''ee afterWard prOfessed that they saw
ne light. Mr.. Gates smiled as though
ne doubted il, and there were others who
tsred his skepticism.
The Birth Of United States Steel.
Telling Of the organization cf the
'nted States steel Corporation. Mr..
0a'es described il as the natural out
Vme Of what ne called the refusal Of
andrew Carnegie 10 be bound by the
eehuemen's agreements" that marked
Ne early day Of open competition in the
reel buslness
ne told also Of millions lost and Gre
'eu almost in a breath how the Car
sse mills, appraised at S160.0OO0OO.
,ae recognized as worth $500. 100000
''iiost within the time required 10 make
~' transfer 20 the corporation. the grim
Ssn IN the formative days when John
rockefeller was dissuaded from join-
"s IN the creation Of the corporation
'D' 'he manner in which others were
hsde
"slsung how Mr. Carnegie had been
~ 10 abandon plans for extending
Neel business. Mr. Gates frankly
''ed that the gigantic industrial
y'hation was formed 10 check com
,NNoh' ard he surprised the commit
win the further information that
IN John d. Rockefeller had sought 10
b, , the steel business deal had been
t., through by which the Standard on
" the dollar. ''' 'oi ~ cents
'ne9'e a Bull in a China sho7
.1facterizing Nj Carnegie a. go buu
ma emma shop \u Gates toll Of a
chs"t conferene, lctwccn himself
pr a. schwab and } Pierpont Nor
:o,,,l "Hich the steel Corporation was
c,''o and how it resulted in Mr..
,,aae getting S320O00OOO in the cor
ss securities for his steel inter
hba"anieanl onien ne previously had offered for
4 e'""oO) in cash
ncgie in 1899
ftre