The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1903-11-25
CARNEGIE
VS.. MORGAN.
Wilt Aid John D. Rockefeller to
Take U. S. Steel Corpora
ton From Him.
CAUSE OF HIS A Al ~ los
Mr.. Carnegie Said to be Angry Be-
cause Morgan Syndicate Became
Enriched to His Detrilnent.

\
According to the New York American,
Andrew Carnegie has now Joined hands
with those who are fighting J. P. Nor
gan. The American says that Mr.. Car
negie has Joined John D. Rockefeller IN
the work Of taking the United States
Steel Corporation from the hands OF Nor
gan. and that the combination means the
retirement Of MIR. Morgan eventually
from all shadow Of control
The American further states that the
stockholders OF the steel trust are de-
lermined Is force by legal action shortly
an explanation OF the methods OF the
first Morgan syndicate. which was form
ed to promote the company. and OF the
second formed to convert the stocks into
bonds II declares that the profits made
by the first syndicate amounted 70 ABOUT
saG,OO ,oo0. The syndicate agreed to fur
Lish to the steel Corporation saOo, ooO,Ooo,
that more than 200 pei. cent. was made IN
profits by /, the /, syndicate. The second
syndicate made nearly 49, 900. 900. advan-
tagging the corporation nothing.
CAUSE OF 4ANIMOSITY.
on the other hand. members Of the syn
ditate are dlsgruntled because oy Mr..
Morgan's surrender they feel that they
have been cheated out OF very handsome
profit The reason OF Mr.. Carnegle's an
imosity Is thus explained by the Ameri'
can: n
.The bond conversion scheme OF George
w. Perkins, ably operated by Mr.: Morgan
and his syndicate. had two effects. II
enriched the Morgan syndicate ana
.interposed a stratum OF second mortgage
bonds between MIR. Carnegie and the prop
critics he formerly owned
This do not I'M can that his first mort
gage pol.us would be seriously affected,
but the situation was certainly com Pill
Gated, and these S per cent. second mort
gage bonds were framed with clever
provision providing that interest mlsnt
be defaulted for two years before tore-
closure proceedings could be brought.
h "Any attempt at foreclosure by the
holders Of the first mortgage bonds would
have to thread Its way through q weird
tangle OF connlications caused by these
preferred stocks meta m tol, p9ss INTO
..Mr. Morgan. after gathering complete
control Of the situation, IN this way was
in a position to defy Mr.. carnegie and to
take what action he wished with regard
to Charles M. Schwab. action was
tc force Mr.. schwab out OF the prcsi'
dency of the steel trust a45
"Mr. Carnegie has never forgiven ME-
Morgan for this. The opportunity to join
forces with Mr.. Rockefeller and tear from
the grasp of Mr.. Morgan every svest'ge
of control and Influence In the steel
Corporation was not to DC lightly neg
lected." -.
The American thinks that the $4,000
stockholders In the. United. States Stee!
Corporation ares becoming restless any
will institute proceedings Ito make g., me
Morgan syndicate disgorge the millions
they took from the corporation. a
DRIVE OUT CAsSAT'T.
The American further informs US that
the same forces. which have been ope.
rating against Morgan to drive nm oul
OF the steel Corporation, have also oee eI
operating against the Pennsy1Van'aa t,aa.,
road Company with a view to driving
a 7, Cassatt out Of the presidency Of that
road. The price Of United States steel
shares was driven down. according 70
these reports, until the Rockefeller crowd
were able to 4buyra controlling interest,"
Then came, the. attack on Pennsy!Vunih
stock. which drove 1t down praeucaHS
LOO, when It was on a S per cent. hasls'
The question Is ralseu as to why Mr.
Rockefeller got into the fight on cas-.
,satt-why he was the r!ght-bower OF
George Gould. The .ner!can says tnat
the enm!ty between Rockefeller ana NOR
gan dates back to the time when eeo,se
Gou.. began his career. It seems that
soon after the death OF the elder -ould,
Morgan sent for George Gould and Oh
Tered to purchase from him a small rail-
road in Harlem. Gould did not think
tina price a fair one and toQk -Hle to con-
siuer He conferred with some or n's
friends VINO advised him to be careful
how he Incurred the enm,ty o. MI.
gan but Gould subsequently, conferred
with rockefeller and Rockefeller was
nleased that the young flnancier had ask
I'd his advice He advised him to re-
fuse the Morgan offer and gave him some
ether advice, which Gould took. Gould
subsequently saw Morgan and tod MN
ne Mad decided not to sell, incidentally,
ring with Rockefeller. whereupon morgan
tJared up and remarked that he did not
care a hang for Rockefeller, and that u
could thought the alliance with Rocke-
fellar would be to his advantage. he wou'd
sooner or later find himself IN error.
GOULD AND RoeKEFELi,.ERs, ,,s,,
can began the alliance between Gould
and Rockefeller. and tho fight petwean
this combine and Morgan. Cassatt got
into the fight later and finally enras eo
Gould by cutting down the poles OF the
Western Union Telephone Company along
the limo OF the Pennsylvania road
AMERICAN thinks that It will not end un'
iii Rockefeller and Gould have driven
Cassatt from the Pennsylvania road. ana
obtain control OF the property.
In this connection II may be mentioned
that an interesting statement was gwen
gfut In Philadelphia last week by Samuel
Rea, fourth v!ce-president Of the renn'
s,lyanIa road, In which he said:
Nothing has happened to change or
,r oddly our convictions that extensions
and improvements undertaken and ar'
ia ngeu are necessary, The management
n! Tie Pennsylvania Railroad Is Just as