The Richmond Virginian. (Richmond, Va.) 1910-1920, 1912-01-08
CARNEGIE TO LAY
BARE STEEL TRUST
Stanley Committee Serves
Him With Summons to
Appear Before 1t
WEDNESDAY Is DAY
SET FOR TESTIMONY
Probers Expect lronmaster to
Reveal Facts That VIII
Expose Gigantic
Morgan Merger

WASHINGTON, Jan. I.---Cornereo
on the steps of his great stone man
sion Ia Fifth avenue, New York, An
drew Carnegie. steel master and
philanthropist, who knows more
than any other living human being
about the real value OF the giant
plants that form the Steel Trust. on
Saturday afternoon was served with
subpoena. commanding him to APP
pear before the Stanley Investigating
committee In washington on Mcunes-
day of this week.
1t Is the purpose of Chairman
Stanley to force MIR. Carnegie. how
ever, against his Will, to tell how
muuk. OF the Steel Trust stock Is COW
cred by actual value, and how much
= water. --
Tho drastic and dramatic action
taken by Chairman Stanley followed
. long distance telephone converse
ton with MIR. Carnegie. In which the
Laird OF Skibo possitively refused TO
accept the invitation extended TO him
BY the steel investigating commit
tee to appear before II al volun-
4tary witness In stating that he
would not come to Warrington. MIR.
Carnegie. who for months mas assert
I'd that he was perfectly willing to
testify, gave AZ q reason. that his
personal counsel at the last moment
had advised against II.
Stanley Is Surprised.
Mr.. Stanley expressed his great sur
prise, and brought argument to bear
upon Mr.. Carnegie. outlining to him
the character OF Testimony he would
be asked to give. and stating his
doubt that the evidence would supply
the government with facts for Its suit
against tho Steel Trust. uhich 1t could
not ret easily from other sources. But
M. Carnegie WAS pndurAte.
Fearing that Mr.. Carnegie might
EoaiOw the example OF }. r. Morgan,
Whs, On the eve Oe = subpocaa has1sn-
I'd nsgAY w Egypt. Chairman atanlcy
drew up a legal document. secured
me signature oil Speaker Clark, arous-
cd Sargeant-At-Arms Jackson out OF
he'd. secured the AGrxiceA- Of Qepnty
SogHeant-at-Arms White, and hurried
him to New York on the midnight
train Friday night. Mr.. carnes~
cepted service A.acefuiiy enough. He
promised to come to Washington
Tuesday night. and viii appear b.Aore
the committee at 1880 O'Clock the
following morning.
What Stanley Wants.
Chairman Stanley " anxious to in
terrogate Mr.. Carnegie on the exact
physical value OF the properties
merged by the Steel Corporation
when the corporation WAS organized
with a capitalization of moreIhan u
billion dollars. 1T is this informa-
ton that Mr.. Carnegie. under advice
Of counsel. Is unwilling to give. Mr..
Carnegie received more, than $780,
100000 in Steel Corporation bonds In
payment for the Carnegie steel plant
Chairman Stanley Is II the opinion
that this plant WAS worth more than
all the other properties In the Steel
Corporation put together. In the
opinion Of Mr.. Saniey more than
$500. 100000 Of the original capitali-
xation Of the Steel Corporation IL wa
ter. More than one year before MIR.
Carnegie sold out to the trust q lib
cral valuation OF his paint was $780,
00O, 900.
Mr.. Carnegie Is wanted also to tell
how Mr.. Morgan, who financed the
Steel Corporation, was paid for his
services. On this point all previous
witnesses have been very haxy. 1t
has been admitted that the amount
was very large, but that Is all.
carnegie II Projected.
It In the suspicion of Chairman
Stanley that Mr.. Carnegie must have
thought the capitalization Of the steel
Muak greatly inflated or he would ndt
have insisted on bonds Of the Steel
Corporation in payment for his prop
erty. These bonds form q first mort
sage on all the plants Of the Steel
Corporation. and would be good no
matter what the capitalization. His
lntersst must be paid before any
other disbursements to bond and
stockholders.
Il Il Mr.. Stanley's purpose to show
through Mr.. Carnegie that no matter
what the physical value of the prop
i 05G3e6 row held by the Steel Corpora
ton may now be. they were ortgi-
naily worth nothing like their pres
ent pitalixation. and that II the
properties are now intrinsicaily worth
the total capitalization the difference
In value II due to excessive prices
charged the American people for
products of the corporation.