OCR Text |
Show GARIIEGIE WAS LIKfBUtllll ' CHINA SHOP So the Steel Trust Was Organized Or-ganized to Get Rid f of Him. HOW FRICK LOST MILLION TO THE SCOT Gates Tells Senate Inresti. gating Committee Some Inside Steel History. WAJSHUfOTOirTMarTT. HowW. B. Moon and H. O. rrtck lost 11,000,-000 11,000,-000 to Andrew. Carnsgie in 1897 through tho forf eftore of an optloa on too Carnegie itMl work And lbs manner man-ner In which J. Flarpont Morgan, Charles M. Schwab aad himself eon-eelyed eon-eelyed tha Idea of- tha Vnltad States teal corporation In ISM to bead off Mr. Caxnlgie from engag1r In tha railroad and tuba nanof acturing bual-oats bual-oats war runltd tolday by John W. Gates baforo tha bonae. "steal trust" lnyeetigatliig committee. '.'Tha prica of finished steel," he aid, "beta me badly demoralized' in 1816 "or 1897. Mr. Friek aad Judge W. H. Moore conceived the idea of securing se-curing an option from Mr. Carnegie for hia at eel plant. They got the- option and paid $1,000,000 for it. Soon afterword after-word demoralization of tha buainosl became be-came ao ere at that they eould not pat tbo deal through. Tho price, I think, wa $100,000,000. They bad to forfeit for-feit that option and they were not particularly par-ticularly pleased. Pretty aoon the Federal Fed-eral 8teel company waa formed with theeonaolidation of the Lorain Steel company, the Minnesota Iron company, tbo Illinois Bteel company, and the Elgin, Joliet A Kaatern railroad. Carnegie Goea Into aU.lroada, . "In 180t or 1899 aMr. Morffao or ganiaed 4 ha National Tabo company and waa ma king moaey Mr. Cnrnegie then took it into hia head to build railroad from Lake Krie around his plants and also to erect a tube works at Aabtabuhs, O. Mr-, eiotgaa heard ef it and eonsnlted with J. J.-Hill of the Great Northern. Mr. Morgan expressed, ex-pressed, feara that if Carnegie went Into In-to tha railroad business he would de-forslize de-forslize the railroad situation as he had the ateel business aad if he .built a tube, mill ho would demoralise steel prices . ."After vonaiderable ' talk Mr. Bill suggested to Mr: Morgaa that he talk to me about it: I weat to sea Mr. Morgan who askeA ma to atop Mr. Carnegie. Car-negie. I told him' the only man wha had aay influence with Carnegie was Charles M. Schwab. ''Get Schwab,' Mr. Morgan told me 'for a conference.' I got Schwab and that night wa weat to Mr. Mor- Xan'a house. Wa conferred with Mr. lorgan all night until o'clock' the next morning, aad whea we left wa had formed the tentative plan to merge the steel corporations into one eoneera the United States Bteel corporation. Soon after that time Judge Moore want to se Mr. Carnegie, aad aaid to him: " 'If you are going to take bonds for your property, make them cover tha Nstfoaal Steel company as well.' Stiff Prioaa for Properties. "Mr. Csraegie followed this advice, thereby getting for the National Steel eompanv tSO.OOOMO mora than it was worth." Mr. Gatea said the United States Steel corporation paid 4S,000,000 for the Americaa Steel ana? Wire company, of which ha was the presiding genius. The property for which Mr. Csraegie had. given aa option at gl60,000,000 was turned into the steel corporation at SSO,000,000, aaid Mr. Gates. - "Oh. an vw hers from $500,000,00 to 1.000,000.600." ' 4' Do yon believe there is any tangible tangi-ble value behind the common stock you koldf" asked Mr. Stanley. "I decline to-answer," aaid Mr. Gates. . , Mr. Gates said Carnetfie had always beea "like a bull in a China shop, overthrowing over-throwing every -agreement that waa made between the companies." He thought it was Carnegie's genera) attitude in threatening the whole line of the steal industry that had hastened and brought about the orgaaizatioa of the United Statee Steel corporation. |