The citizen. (Honesdale, Pa.) 1908-1914, 1912-01-26

tIlNt j never saw tne inside or book
of the Carnegie Steel company. al
ways left the details to my partners o.
Pittsburgh. lived mostly in New
York or abroad. II my twenty five
partners we're not able to take care OF
the details | don't see how l could
change the situation or improve It,"
All "He Got" Was $420,000,000.
Some of the striking declarations
with which Mr.. Carnegie's testimony
fairly bristled were
That p. G. Knox was appointed at.
torney general on his recommendation.
That the governments suit against
the Steel corporation "blundered" and
was silly" in its declaration that the
book value Of the Carnegie Steel com
pany was SS4 100000, because this did
not begin to represent the real value
Of the Carnegie interest.
That they had showdown" with
the Pennsylvania in the matter Of bet
ter rates and was sure he got the low
est rates, but apropos Of rebating was
unable to state whether the rates he
obtained were lower than those grant
ed to other shippers.
That the price Of S2S a ton on stand
ard steel rails was fixed by conferences
between the three leading railroad
presidents Of the eastern trunk lines
the Pennsylvania, Baltimore and Ohio
and New York Central-and committee
representing the payments like $780,
600 were made in pool profts under
the old Carnegie regime that was a
small matter" in a $4,000 account.
Didn't Bother About Sherman Law.
That he had never heard of the rail
road rate law Of 1907 until recently.
That he did not bother about the
Sherman law, leaving legal details to
the counsel, and was too busy attend
ing TO other business to worry about q
statute which had not been finally
construed by the courts.
That never before had be heard
of the famous Addyston pipe case, the
first Sherman law case in which Mr..
Taft. now president, had rendered a
great decision, although the name
sounded familiar and reminded him
of the Eddystone light"
That it was at his suggestion in re
turn for recognition by the late Jay
Gould that the latter's son was urged
TO build the Wabash connection into
Pittsburgh.
That he had been told by Judge Gary
recently that there is in existence a
letter written by the late Senator Hoar
Immediately after the passage OF the
Sherman law declaring that the law
was not intended to apply to pools.
That no tariff should be collected on
products protected by pooling arrange
ments.
That the cost Of iron and steel ore is
going ito go higher" and that the sup
posed ore fields Of the Lake Superior
district are going to be depleted be
fore many more ten year periods roll
around.
That so far as the law is concerned
there are so many sides of the law"
and he supposed lawyers could defend
either side according to the way they
are paid.
You continually complained of high
rates on the Pennsylvania. Did the
Pennsylvania make you any special
CONCESSIONS" asked Mr.. Gardner.
Unsuspecting In His Honesty.
Never that | knew Of" replied Car
negie. 81 notice Senator Oliver has
spoken that we received rebates. II
is startling how unsuspecting an hon
est person can be. | was the one man
in all Pittsburgh that fought the Penn
Sylvania on its rates. | bought the
Besscmer road to the lakes. | joined
hands with Vanderbilt. Vanderbilt
sent for me and told me his son-in-law,
Mr.. Twombly, had advised him to
build a road out Of Pittsburgh.
"'What do you think of itT Wander
bilt asked. IN put up S5,OOO,OOO, |
think so much Of It, | said. He said.
so will L. Hostetter, a wealthy man
of Pittsburgh. went in on it. We
agreed to build the road. / went to
Europe. In my absence the Pennsyl-
vania went to Vanderbilt and urged
him to abandon the project | return.
ed from Europe to find that Wander
bilt had been captured by the enemy.
then went TO young Gould and said
to him; Your father once came to
me at the old Windsor hotel in New
York and said: Young man, I've been
hearing about you. I'll put up the
money 10 buy the Pennsylvania road
II you will manage 1t and devote your
self TO It, | thanked him and replied.
Il have been a faithful clerk and friend
of Thomas A. Scott Of the Pennsylva-
mia. Nothing on earth can induce me
20 take a step against him.
when went to George Gould told
INN this and offered him chance to
come TO Pittsburgh. 1t was at my sug-
gestion that George Gould went into
Pittsburgh with the Wabash. which
has been frightfully mismanaged
THE Pennsylvania rates from Chi
cago to the Huntington yards at New.
port News on large shipment Of steel
were higher than the rates from Pitts
burgh to New York. | showed this to
Roberts OF the Pennsylyania and fold