The Forest Republican. [volume] (Tionesta, Pa.) 1869-1952, 1912-01-17
ANDREW CARNEGIE TELLS
STEEL TRUST SECRETS
Says Re Was a Fool to Sell Out for
Only $43o,ooo, ,ooo-Derides
the Sherman Law.

Washington. Andrew Carnegie
faced the Stanley Steel Committee
during his relations to the iron and
steel industry in America. II was a
characteristic narrative which the re.
tired 'Ironmaster" gave to the com.
mittee-graphic, and at times drama
tic.
Throughout the ordeal. which be
came grueling in the afternoon, Mr..
Carnegie professed to be "blissfully
ignorant of the details" of the Carne
gle Steel Company. Probably the most
striking part in his testimony was his
story of how, through the mediation
Of Charles NJ. Schwab, he sold the Car
negie Steel Company. under the super
vision of ]. p. Morgan & Co., for
$420,000,000 to the syndicate which
formed the United States Steel Cor.
poration.
What fool was to sell out to the
Steel Corporation for only $420,0O0,.
000!" exclaimed Mr.. Carnegie with
mingled feelings of emotion. II have
since learned from the inside that we
could have received $100,0O0,000 more
from Mr.. Morgan II we had placed
that value 'on our properties"
A glimpse into some Of his relations
with the Vanderbilts, Goulds. and the
pioneers in the Pennsylvania system
was given, and when he reached what
he regarded as his clever acquisition
Of vast ore rights, under reasonable
royalty payments from John d. Rookie,
feller, JOY frightened the eyes of the
witness, and he exclaimed:
do you know, it makes my heart
feel good to feel that | was such
man as to be able to get ahead OF
John d. Rockefeller on that deal. That
is the one time | managed to get the
best Of my fellow-millionaire."
Mr.. Carnegie had just told the com.
mittee about his deal with Mr.. Rocke.
feller whereby he obtained control OF
Mr.. Rokefeller's iron ore holdings in
the Lake Superior region at a rate OF
10 cents ton-holdings which, when
turned over to the Steel Corporation
later, formed a large part of the as.
sets valued at S700.000,00O, or 81
ton.
Carnegie declared. in relation to the
celebrated S2,O0O,00O option in 1899 on
his holdings, which was lost by the
givers, that he did not then realize
that his partners, Henry c. Frick and
Henry Phipps, were trying to get con.
troll of the properties.
Carnegie denied vehemently that he
had ever in his life received a rebate
from the railroads.
For the first time definite revela-
ton was made of the cause that led
to the famous break between Carnegie
and his partners, Frick and Phipps.
Carnegie kept $1,170,O00 of the option
money in May, 1899. On Dec. 4, 1899,
Frick in a court action declared that
Carnegie suddenly and malevolently"
demanded his resignation. Frick al
legged that Carnegie was trying to con-
fscate Frick's interest in the Carne-
gle Company at about 80 per cent. Of
its value or not over $6,000,000 for
what on the basis of Carnegie's option
was worth $16,23S,000.
A crowded committee room greeted
the ironmaster, Many women were
in the audience, and some of them
stood for hours as the Laird Of Skibo,
half rouched in the witness chair,
stroking his gray heard and banging
the table alternately, told the story
of how $1,000, borrowed in 1863 had
grown to $42O,000,OO0 in thirty-odd
years Mr.. Carnegie INDUCED in pleas
antries, was quick at repartee, used
many epigrams and otherwise gave an
exhibition of remarkably active and
alert mind.
Carnegie told the committee that he
never bothered his head about the
Sherman antitrust act 81 had more
engaging subjects said Mr.. Carne-
gle.