The Savannah morning news., 1901-06-21
HOW SCHWAB GOT A MILLION.
PicrPont Morgan's Description of
Conditions Under which II Was
Paid.

Paid.
From the Philadelphia Inquirer.
Cincinnati, o., June l6.-An extraordi-
nary set of circumstances were encoun-
tered by Mr.. J. Pierpont Morgan when
he set about the organization of the bill
lion dollar steel trust, and one incident
which has just come To light disclosed
MT. Charles NJ. Schwab, president OF the
combine, in an L,titude which is unique
in the worlds history of 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 a
casual discussion OF business affairs with
friend, Mr.. Morgan was called upon
to.exDress an opinion as 10 the sincerity
of Mr.. Carnegie's declaration that he be-
lieved it wrong for a man to die rich.
Morgan's story.
Il believe" said MIR. Morgan, that
Carnegie is absolutely sincere in what
he says on that point and I think his
actions prove 1t. Let me tell you about
one thing he has done. When the organ
ization Of the United States Steel Cor
poration was about to be effected, 1 met
Schwab at his Office to discuss the status
of the Carnegie holdings.
1T was then expected that Mr. Schwab
might be elected president Of the corpor-
alton, but there was no definite conclusion
on that point. Mr.. Schwab astounded me
by telling me that he was receiving a sal
airy of 100000 per year as president of
the Carnegie Companies.
4 know no man can be worth that
much salary, he said. but tell you how
IL, happened that such a salary was given
me. About a year before the reorganiza-
ton of the Carnegie interests. or about
two years ago. was offered astonishingly
liberal terms to sever my connection with
the Carnegie interests and take charge
of some large manufacturing interests in
Germany. ! was receiving what regard
ed to be liberal salary from Mr.. Carne-
gle, but 1t was small as compared with
what the Germans offered me in the way
OF salary and interest In prospective
profits.
Carnegie's oncr.
Nevertheless I declined the German
offer in order to continue my connection
with the interests | have been 20 long
identified with. ! said nothing to Mr.. Car
negie about the matter However II came
to his ears and one day was astouished
to receive from him a blank contract
which needed only my signature TO Assure
me Of a salary of 81, 10000 a year for
FIVE years. went 10 see Mr.. Carnegie
about the matter and said that in my
opinion II was impossible that the SER
vices of one man In any business, how
ever profitable, could be worth 81 600 900
a year He replied that that was not the
point; that hts chief purpose I'm life was
to distribute his wealth according to the
plans ne believed proper. He insisted up
on my signing the contract, and that's
how ! came to receive a salary OF s, Oo0,-
600 a year
Tore I'D Contract.
IT told Mr.. Schwab." continued Mr. Nor
gan, THAT / had never heard OF any such
salary as that and that to assume he
contract along with the other obligations
of the Carnegie interests might. in oil
proba bility, be impossible 70 the new cor
poration. He drew a paper from his
pocket and said:
mfr Morgan. here Is my contract. II
calls, as you see, for 81 10000 a year for
i've years. II has been In force for two
years. and in that time I have drawn only
$4,000 against my salary account I am
fully aware OF the fact that sentiment
and not business led Mr. Carnegie 10
draw that contract ! appreciate now
that II offers an obstacle 10 this project,
which IL vastly favorable TO the Carnegie
interests and directly IN line with the per-
sonai desire o. Mr.. Carnegie 10 be re-
iieved OF business responsibility You
need not hesitate on account Of this con-
tract There IL an easy way to settle that
matter
"Thereupon." continued Mr.. Morgan.