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Show LAYS BARE TRUST SECRETS Sartllng Revalations Made by John W. Gates Before Steel Trust Investigating Investi-gating Committee. Washington. John W. Gates, under oath, on Saturday, laid bare before the Stanley steel trust Investigating committee these startling facts concerning con-cerning the steel trust anil the steel Industry of the I' nlted States: The steel trust was born at an all-night all-night meeting at the home of J. P. Morgan In New York and had Its Inspiration In-spiration in threats by Andrew Carnegie Car-negie to go Into railroad construction and steel tube mauuracture. Carnegie had been a demoralizing In- , fluence in the steel Industry and it was feared he would become trouble- some In the railroad busiucss. Carnegie was paid IX'O.OOO.OOO In bonds for his controlling Interest In ttie Carnegie Steel company, for which ho had given an option one year be- fore for $1(10,000.000. Incidentally he i pocketed tho $I,0(io,oou option forfeit t posted by V. II. Moore and C. H. i Frlck. The Tennessee Conl and iron com- i pany was acquired by the steel cor- i poratlon after a squeese of the syndicate syndi-cate controlling the majority stock i without the transfer of a dollar in 1 cash. J. Plerpont Morgan and bia partner, George. W. Perkins, arranged the shifting of securities. The majority ma-jority stockholders In the Tennessee Coal and Iron company received about I $iG value In steel corporation securl- i ties for the atock which they had re- 1 fused to sell to Morgan a year before I for $150 per share. 1 Gates made It quite clear that the acquisition of Tennessee Coal and Iron ' by the f el trust was by no means an ' altruistic effort to prevent the spread 1 of the panic of 1907, aa has been re- 1 peatedly asserted. That was a mere 1 blind, he asserted. Morgan wanted 1 Tennessee Conl and and Iron, regarding regard-ing the time aa propitious, he applied the screws, according to Gates. ' A year before Morgan tried to buy ' stock In the concern. Gates charges, 1 and was turned down. 1 The steel corporation cannot con- 1 trol the steel Industry In the tnited Slates, according to Mr. Gales, except 1 In special lines. Artltr.iry abuse and power gained through ownership of transportation companies, however, 1 would enable the steel strust to crush Indepi ndent operators forced to u-te 1 the Iake Superior region ore. ' Galea, controlling stockholder In the Itepubllc Coal and Iron 'mp:iny. told the co mm It tee that he favjied an o;ien market with competition and the aurvival of the fit teat. " |