The Honolulu republican. [volume] (Honolulu, T.H.) 1900-1902, 1901-07-04
sT0RI OF s(HHIB's
MILLION DOLLAR SALARY
HOW CARNEGIE IS SAID 70 HAVE
PAID Him OVER FOUR
MILLIONS.
Given Him After Ne Refused sis oHer
-Destroyed His Contrast when
Trust Was Termed. but Steel King
Made Good Amount Sacrificed

CINCINNATI tO-l. June a1.-w When
asked Charles n Schwab TO take the
presidency of the United States Steel
Corporation said ]. Pierponf Morgan
to a friend recently, he astounded me
by telling me that he was receiving a
salary OF 81 DOC, 600 year as president
OF the Carnegie Companies. Il know no
man can be worth that much salary.
said he. but III tell you how II hap
pened that such salary was given me.
About a year before the reorganiza-
ton OF the Carnegie interests. or two
years ago, | was offered astonishing
" liberal terms to sever my connec-
ton with the Carnegie Company ana
take charge OF some large manufactur-
ing interests in Germany I was re-
ceiving what I regarded 10 be a lib
eral salary from Mr.. Carnegie. but il
was small as compared with what the
Germans offered me.
Nevertheless. | declined the Ger
man offer in order to continue my
connection with the concern had
been so long identified with. | said
nothing to Mr.. Carnegie about the mat
NV IL (dllc 10 HIS ears.
and one day | was astounied TO re-
ceive from him blank contract which
needed only my signature to assure me
of salary of 100000 a year for
FIVE years.
Il went to see Mr.. Carnegie about
the matter. and said in my opinion il
was impossible that the services Of
one man in any business. however
profitable. could be worth 81 ,000. 900 a
wear He replied that that was not
the point, that his chief purpose In
life was to distribute his wealth ac-
cording to plan he believed proper.
He insisted upon my signing the con-
tract. and that's how | came to re
ceiye salary of 81 600. 900 year.
Il told Mr.. Schwab." continued Lir.
Morgan, that | had never heard Of
any such salary as that. and that to
assume the contract, along with other
obligations OF the Carnegie Company.
might be impossible to the new cor
poration. He drew paper from his
pocket and said: Mr.. Morgan. here
is my contract. It gals. as You will
see. for 100000 year for FIVE
years. II has been in force for two
years, anu III t0dl Tune nave drawn
100000 against my salary ad,ount
am fully aware of the fact that sen
timent and not business led Mr.. Car
negie to draw that contract | ap-
preciate now that it offers an obsta-
Gle to this project, which is vastly
favorable to the Carnegie interests
and directly in line with the personal
desire of Mr. Carnegie to be relieved
of business responsibility. You need
not hesitate on account of this bust
ness responsibility You need not hes
tiate on account of this contract. There
is an easy way to settle that matter.
"Thereupon, continued Mr.. Morgan.
Mr.. Schwab tore the contract to
pieces before my eyes. | felt it my
duty to detail to Mr. Carnegie the
scene in my Office when the contract
was destroyed. He smiled and said
that there were few men in the world
| like Schwab I don't propose that
he shall lose anything by what he has
done. said he. | shall send him my
check for the amount he lost when he
destroyed the contract"
| Mr.. Carnegie drew his check for
$4,000. 900 and sent it to Mr. Schwab
with note explaining his understand
ing of the transaction in my Office"