Evening journal. [volume] (Wilmington, Del.) 1888-1932, 1901-06-20
TBW IIKR SCHW ABB
DECLARES CARNEGIE
Story Explains the Alleged
Sl,OOO,OOO Salary Of Steel
Trust President

Cincinnati. O., June lS-The following
story vas published here yesterday.
An extraordinary series OF circum-
stances was encountered by J. Pierpont
Morgan when he set about the organiza-
lion of the billion dollar steel trust, and
one Incident. which has just come 70 light
displays Charles NJ schwab. president OF
the combination. in an attitude which Is
unioue IN the worlds history cf finance,
Mr.. schwab entered the employ Of Mr.
Carnegie as an office boy He gained the
absolute confidence Of his employer and
was intensely loyal TO him, even when
enormous financial inducements tested
that loyalty. Recently, during casual
discussion OF business affairs with afriend
Mr. Morgan was called upon TO eNpfesf
an opinion al to the sincerity Of Mr.. Car
negie's declaration that he believed Il
wrong for a man to die rich.
81 believe said Mr.. Morgan. that Cars
negia is absolutely sincere In what he
says on that point and think his ae-
fions prove IT, Let me tell you one thing
he has done.
sWhen the organization of the United
states Steel Corporation was about TO be
enected. met Mr. schwab at my office 70
discuss the status OF the Carnegie hold
iugs II was then expected that Mr.,
schwab might be elected president OF the
corporation. but there was no definite con-
clusion on that point
"Mr schwab astounded me by telling
me that was receiving salary Of one
millions dollars per year as president Of
the Carnegie Companies
"'l know no man can be worth that
much salary said he. but ri tell
how q happened that such salary was
given me- About a year before the reor-
ganizail0n OF the Carnegie interests, or
about two years ago. / was offered aston
ishingiy liberal terms to sever my connec,
tion with the Carnegie interests and take
charge OF some manufacturing Interests
In Germany.
~ was receiving what I regarded to
be a liberal salary from Mr. Carnegie, but
Il was small as compared with what the
Germans offered me In the way OF salary
and interests IN prospective profits New
ertheless. / declined the German Offer IN
order TO continue my connection with the
interests ] had so long been Identified with.
p" I said nothing to Mr. Carnegie about
the matter. However, Il came TO his ears
and one day | was astounded TO receive
from him a blank contract. which needed
only my signature TO assure me of sal.
airy OF 100000 year for FIVE years
a" 4 went to see Mr. Carnegie about the
matter and said that in my option Il was
impossible that the services of one mar
IN any business, however profitable. cOult
De worth 100000 year. lie reptile,
that that was not the point; that his chic
purpose IN lie was TO distribute nj;
wealth according TO the plan he believe,
proper.
" lie Insisted upon my signing the con
tract. and that is how I came TO receive
salary of $i,0o00oO year"
Il told Mr. schwab continued Mr.
Morgan that had never heard OF an,
suoh salary az that, and that to sssbin,
the contract along with the other obi ga
lions OF the Carnegie interests might II
all probability be impossible TO the new
corporation.
"lie drew a paper from his pocket an,
said Mr.. Morgan, here is my contract
a. oalls. as you will see, for 100000 {
year for 1--WE years II has been In fore
for Two years, and I'm that time ! hav
NioNh 'Htf N-'of''V AtAAiHA NY o"A"i9 ~
count. / am fully aware of the fact tina
sentiment and not business. led Mr Car
negie to draw that contract
appreciate now that IL offers an ob
stacle to this project, which is vastly 4
the Carnegie interests and directly In n
with the personal desire Of Mr.. Carnegi
to be relieved Of business responsibility
You need not hesitate ON account OF thi
contract. There is an easy way 10 settl
the natter
'rhereuponr continued Mr.. Morgan
''Alr. Schwab tore the contract 60 piece
before my eyes lie remained In the offic
FOR half an hour after that talking owe
the details OF the proposed organization
] felt Il my duty to detail to Mr.. Carnegi
the scene In my office when the contrac
was destroyed. lie smiled. and said tina
there were few men In the world Tx
Schwah.
i don't propose that he shall lose an
thing by what he has done" said he.
shah send him my check for the amour
he lost when he destroyed the contract
AIR. Carnegie drew his check for 81
Soo0Do and sent It to Mr.. schwab, with
note explaining his understanding Of IN
transaction IN my office That. ! believ,
iS the basis for the stories we hear OF N
enormous salary paid to Mr.. schwab b
the new corporation As a matter Of fac
his salary as president Of the corporate
Is not larger than that Of good man
railroad presidents"