Bridgeton pioneer., 1912-01-18

Il am free TO confess deslared he.
that never saw the inside Of ! book
of the Carnegie Steel company. 4 al
ways left the details 10 my puTnefs az
Pittsburgh. | lived mostly in New
York or abroad. If my twenty-five
partners were not able 10 take care OF
the details | don't see how | cOuld
Change the situation or improve it."
All "He Got" Was S42o.000,0o0.
Some of the striking declarations
with which Mr.. Caruegies testimony
fairly bristled were
That T.. c. Knox was appointed at
torney general on his recommendation
That the governments suit against
the Steel corporation "blundered" and
was silly in its declara ton that the
book value of the Carnegie Steel com-
pany was SS4.GG1000. because this did
not begin to represent the real valua
of the Carnegie interest.
That they had a 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 $2S ton on stand
ard steel rails was fixed by conferences
between the three leading railroad
presidents of the eastern trunk lines
the Pennsylvania. BaltiAiore and Ohio
and New York Central-and a COMMITTEES
representing the payments like $780,
600 were made in pool profits under
the old Carnegie regime that was n
small matter" in $5.0O0.00O account
Didn't Bother About Sherman Law.
That he had never heard of the rasb-
road rate law of 1907 until recently.
That he did not bother about the
Sherman law, leaving legal details to- y
the counsel. and was 100 busy attend
ing to other business to worry about a
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 n
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 N
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
arolnd.
| 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 off, replied Car
negie II notice Senator Oliver has
spoken thai we received rebates. Ik
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. l bought thu
Bessemer road to the lakes. | joined
hands with Vanderbilt. vanderbHk
seLt for me and told me his son-in-Fawy
Mr.. Twombly, had advised him To-
build road out of Pittsburgh. Is
"'What do you think of iti' Wander
bilt asked. I'll put up $5.a0o.O0O. q
think so much of it. l said. He saidv
so will L. Hostetter. wealthy man
of Pittsburgh. went in on it Wa-
agreed to build the road. went TO
Europe. In my absence the PennsyB-
vania went to Vanderbilt and urged
him to abandon the project. | return
bilt had been captured by the enemy
I then went to young Gould and said
to him: Your father once came tR
me at the old Windsor hotel in New
York and said: Young man. I've BEEN
hearing about you. I'll put up th&
money to buy the Pennsylvania road
if you will manage it and devote your
self to it. i thanked him and replied
4 have beer faithful clerk and frienE
of Thomas A. Scott Of the Pennsytv&-
MIA Nothing on earth can induce m~
to take a step against him.
When went to George Gould told
him this and offered him chance co.
come to Pittsburgh. 1t was at my sus
gestion that George Gould went into
Pittsburgh with the Wabash. which
has been frightfully mismanaged.
H.