Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1912-05-24
TALE OF SCOTCH thrift
HuHT AND SOLD ll\Lf \ DOZEN
STEEL PLANTS AT \
PROFIT.
Was A UNIQUE WITNESS
In a Characteristic Scotch Accent lie
Calmly Told of Dealing In
Many Millions.

NEW YORK, May 23.--Johu
Stevenson, Jr, "A relative Of Robert
Louis stevenson, eullyened the hear.
ugs In the federal suit to dissolve tho
United tSates Steel corporation today,
when ne told In rich Scotch accent
of the various deuls by which he sold
cut half "a dozen steel properties 10
thc Reid Moore syndicate, John W..
Gates and the steel corporation itself
each time striking a profitable bar
gain. All OF stevenson Former prom
critics now are constituent parts ot
the so-called trust
Entering the employ OF the Carnegie
Steel company In 1875, when his fell
low Scotsman, Andrew Carnegie, was
making his reputation as an iron mas
ter, Stevenson in 1892 established ct
New Castle, Pa, the first successful
tin plate mill In this country, he said.
!, was capitalized AT $4,000, 900. Ten
years later, after selling out this ANA
four other plants which he subsG'
quenty built, he started the Sharon
steel company, merged IT with the
Union Steel company ana then sold out
To- the steel corporation, taking for
the sharon interests y13, 100000 in the
corporations bonds. he said lie had
built the sharon plant, he remarked,
TO shake the apple tree again
Took Pay In Bonds.
You didn't get shares for your In,
terost2' asked II. IL. Coulton, attor
ney for IN government.
NO. sir; bonds, said Stevenson.
"That seems to be "a Scotch habit.
commented Il. V. Liudabury attor.
uey for the steel corporNion, appar
emily referring to the fact that An
drew Carnegie had taken bonds when
he sold the Carnegie Steel company 10
the corporation.
mo, sir retorted the Witness.
"That was wisdom. I'd been betting
too much common stock in other deals
and there was too much gambling
about that
Stevenson told how he sold bis
Shenango Valley steel plant.
Same Old Crowd.
Lets see," he said. There WAS
$500 600 stock I'm the company, $780,
coo bonds and the cash profits brought
1t up to an even million. | was lying
In bed with a broken leg and my wife
and children were begging me to sell
It, ! told w. II. Rice, my president
TO sell. He sold it to the same old
crowd that was bobbing up every
where about that time for $500 900
in common and preferred stock Of tho
National steel company.
"Who was that crowd"
"Oh. Judge Moore. Dan Reid nnd
W. b. Leeds"
His Shenango Valley tin plate he
sold to the American Tin Plate com
pany for $4,000 preferred and lhc
same amount of common stock Of the
latter company he said.
could you have got the CASH"
IF we had all demanded money
from that crowd in those days ! have
my doubts If we could have got It,"
Was competition keen in those
days?"
1T got worse and worse the longer
] was In the business
IT was because of there being too
many wire mills in the business, the
witness said, that he surrendered his
New Castle wire and nall plant to
John w, Gates, who had organized
the Consolidated Steel and wire corr
pany. In 1892 there were - wire
plants and competition IN two or
three years had driven all but eleven
out Of the business, he declared lie
said there had been a meeting Of wiro
nais manufacturers in Cleveland,
whore IL was agreed to fix prices at
S1.50 a keg. /
"Whcn the meeting was adjourned .
for lunch Frank Baael1es went down
and sold by wire $1,000 kegs at $1.4O.".
said Stevenson. g.! was going down
for the same purpose and the tele-
graph operator handed me Baackes'
telegram by mistake. [ stuffed It in
my pocket and took it back to tho
chairman Of the meeting What
shall we do with him? | said Kick
him down stairs, said the chairman.
4 can't ! said, he's a bigger man
than | am
"This was Frank Baockes. now
vice president Of the American Steel
and Wire company
Yes, and a very decent fellow
Mr. Lindsbury brought out from the
witness q statement that demorallzed
e. nditlons in the wire and tin plato
trade during tla late 90's had directly
led 90 the consolidation Of humorous
plants into the National steel. tho
American Tin Plate aud the American
sheet steel companies, and that many
Df the manufacturers had gone 10
Judge Moore ard asked to be talor.
INTO the consolidation.