he American
Bridge Company, the Republic Iron and Steel Company, huge and complete,
were dictators each in its field.

[Illustration: Portrait.]
John W. Gates.

The Carnegie Steel Company long remained independent. Determined not to
enter a "combine," Andrew Carnegie sought to fortify his position. He
obtained a fleet of ships upon the lakes, purchased mines, undertook to
construct tube works at Conneaut, Ohio, and planned for railroads. A
battle of the giants, with loss and possible ruin for one side or the
other, impended. Carnegie was finally willing to sell. Hence, the United
States Steel Corporation capitalized for a billion dollars. Carnegie and
his partners were said to receive about $300,000,000 in bonds of the new
corporation, while the other trusts and the promoters absorbed the stock
for their properties and services. The underwriting syndicate probably
realized $25,000,000.

[Illustration: Portrait.]
Copyright. 1902, by Rockwood. N. Y.
Andrew Carnegie.

The trust creators extended their operations abroad. In 1901 J. Pierpont
Morgan and associates acquired the Leyland line of Atlantic
steamships. British nerves had not recovered tone when a steamship
combination, embracing not only American and British but also German
lines and ship-building firms at Belfast and on the Clyde was announced.
Of the great Atlantic companies, only the Cunard line remained
independent. Parliamentary and ministerial assurances of governmental
attention only emphasized the strength of the association.

[Illustration: Portrait.]
Copyright, 1901. by Pach Bros., N. Y:
J. Pierpont Morgan.

One effect of this organization at home was to place the Ship Subsidy
Bill, which passed the Senate in 1901, for the time, at least, on the
table. The sentiment of the country, especially of the Middle West,
would not permit the payment of public money to a concern commercially
able to defy Britannia on the sea.

The Yankee Peril confronted Londoners when they saw American capital
securing control of their proposed underground transit system. At their
tables they beheld the output of food trusts. One of these, the
so-called Beef Trust, called down upon itself in 1902 domestic as well
as foreign anathema.

The failure of the corn crop in 1900, together with a scarcity of
cattle, tended to raise the price of beef. In 1902 outcry became
emphatic. Advance in meat values drew forcibly to view the control held
by six slaughtering c