The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-03-01
"SCARECROW" OF
STEEL INDUSTRY
Rockefeller Was Feared by His
Rivals OF the Carnegie
Company.
BOTH SOUGHT MONOPOLY
Witness Describes Fight for Con-
troll, Fought In Late
Ninctics.
BOTH SOUGHT MONOPOLY

New York. February 3s-.Iohn %.
Rockefeller and Andrew Carnegie
fought each other In the late nincties
TO monopolize the Lake Superior ore
lands. and Mr.. Rockefeller caught Mr.
Carnesie's company violating an agree"
ment and forced 1t 10 give up ore pro
perties containing 100000 tons, ac-
oording to testimony at the hearings
to dissolve the United Statos Steel
Corporation under the Sherman anti
trust Law. roaumed here to-day
James Gayley, former Vice president
OF the corporation and q director OF
tho Carnegie Steel Company. previous
to it's acquisition by the corhpration In
1901. was tho witness through whom
the testimony was adduced. While
Mr. Gayleys memory had TO be fire.
auently refreshed by reference to
minutes of the Carnegie Company. he
told of Mr.. Rockefeller having been
pictured as "soarecrow'' OF the steel
industry because OF his control OF vast
Iron orc properties IN the Lake Superior
district. He testified also to efforts
OF the Carnegie Company 20 obtain
new properties In the district as the
result of representations that MIR.
Rockefeller had proposed to Join with
the Federal Steel Company, the Carne-
gie's big rival. TO control the manu-
facture of steel tho same az he does
oil"
Describes Competition.
Mr.. Gnyley described orc property
acquired by the Carnegie company
Glring the period when tho alleged
competition between tho two big in
tercsts was on. From the minutes Of
the Carnegie Company. read into evil
dcnce by counsel for tho government,
It appeared that tho Consolidated Iron
Mines Company. controlled by Mr.
Rocltefeller, made an agreement with
tho Minnesota iron Company, whereby
the latter company was to purchase
10 more Iron mines. leasing It's mines
from the Consolidated. a similar
agreement was made between the Con-
solidated and the Carnegie Company.
1t then developed, according to Mr..
Gayley's testimony. that the Carnegie
Company In 1900 purchased properties
containing 73.0oo,0Oo tons OF ore
This. said the Witness resulted In n
meeting In New York between himself
and another official OF the Carnegie
Company and John y. Rockefeller. Jr,,
and the Rev. Frederick I. Gates. Mr..
Rockefcller's orc agent.
Did Mr.. Gates demand of the
oliver Mining Company that there
should be turned over to the Consol-
tdated Company without condition
I5.000,0o0 tons OF ore acquired by the
Oliver Iron Company in contravention
OF the agreement between the two
companies" asked Jacob NJ. Dickin-
son. attorney for the government.
MFR. Gates did make such demand
at tho time. but we explained that
under the agreement Mr.. Rockefeller
"a nj ,lNsir ~ !,
lands we needed
Did your contention prevail~'
We'll, We turned the properties over
to them, which may he construed as
an admission that their claim was cor
rect" smiled Mr.. Gaylcy. They
agreed To make new deal. however,
under which we were to receive larger
tonnages."
Judge Dickinson read from letter
written by Ciayley to the directors OF
the Ca}'negie company, in reference to
the meeting.
IiluT Gnne Difficult.
IT Is difficult to play game of
cards and YOU know it," the letter
read. Nevertheless, we have retained
10000, 900 of the 5000, 900 tons"
The 60,00o.000 tons. Mr. Gayley ex-
planned. were obtained by agreeing to
lease the lands from the Consolidated
Company.
Another passage from the minutes
expressed the fear that 10 turn the
properties over 10 the Consolidated
Company would DO tho same as turn
ing them over 10 tho Federal Steel
Company.
Judge Dickinson tried to bring out
from the witness that "Rockefeller's
people had an interest I'm the Fed
erals subsidiary, the Minnesota com
pany, but Mr.. Gaylcy professed igno-
rance OF such "a thing.
Other passages from tho minutes re-
lerred to properties bought FOR fear
ihey VIII he taken up by the Federal"
The witness was able to throw little
light on these transactions
me hearing was adjourned TO next
Wednesday and Mr.. Gayley Will con
tinue his testimony