The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1911-10-31
BIG SUIT IS NO
PERIL TO GIFTS
Carnegie Endowments of
United States Steel Bonds
Will Still Stand

Pittsburg, Oct. 31.-When the con.
cussion caused by the filing Of the
equity bill to dissolve the United
States Steel corporation subsided,
many began to wonder what the ef-
feet OF such disintegration would be
upon the numerous endowments by
Andrew Carnegie Of institutions and
projects with the gold bonds Of the
gigantic company. how the stockhold-
ers would be compensated, and. in
general, just how the reconstruction
would be made. These questions are
iraught with SO much Importance and
interest that a statement has been
obtained from an authoritative source
which may not follow the procedure
precisely, in event Of the government
winning, but which is based upon the
court orders, In the settlement of the
Northern Securities merger, the to-
bacco trust case and the Standard
oil readiustment.
Mr. Carnegie owned $305, 200, 900 in
United States Steel bonds bearing s
per cent interest in gold. A substan-
tial portion Of these bonds he has
donated from pure philanthropy to IL
braries, foundations for research, COL
lege professors pensions, hero funds,
american and European. the latest in
Italy and numerously otherwise.
There will be no break In any one of
these endowments. The business of
the great corporation will proceed,
the interest be regularly paid until
the final court gives. If the decision
be for dissolution. sufficient time for
readjustment.
Must Liquidate Bonds.
Then these bonds must be paid off.
or In some way taken care of. No
court can destroy property. and bacl,
of the bonds is property. So the
American Tobacco company is now
discharging its bonded obligations and
the Standard Oil company has vir-
tually completed preparing its script
to wipe out preferential liabilities. So
none OF these cherished endowments
OF MIR. Carnegie will financially feel
the pendency of the big suit.
How about the recompense of
stockholders in the giant corporation?
The process will in all likelihood be
that employed under court decree in
the famous Northern Securities merg-
er dissolution. The stock Of the hold
Ing company for the merged lines
OF the Northern Pacific and Great
Northern was prorated. each stock
holder receiving stock Of each Of
these companies Of aggregate value
equal to his stock in the merger.
1t will be recalled that the late e,
H. Hartman petitioned the court that
he be returned entire the stock Of the
Northern Pacific which he contributed
to the merger. But the court said:
mo. That would give you control
of the Northern Pacific. and you must
accept portions of stock in each Of the
two roads lilsa all the other parties
to this illegal merger. In a court of
equity no man can profit by his own
An Instance Stated.
So II some stockholder, having. for
instance $1,000 worth of certificates
in the United States Steel and the
court decree dissolution. he will re-
ceive the equivalent Of his $1,000.
not likely in the parent company with
which he was at first affiliated, hut
blocks in several of the companies
now constituting the big corporation.
This answers also the curious query
that has been heard about how the