Arizona republican. [volume] (Phoenix, Ariz.) 1890-1930, 1912-01-11
Carnegie Rejoices to Think
He Put One Over on
His Fellow Mill
lOnaire.
TOLD STORY
OF BIG SALE
Former Steel King Says He
Is Prepared to Tell All
About Corporation
Deal.
| associated Press DiSbdtchl

|
WASHINGTON. Jan. lO.-"It does
my heart good 10 think that | got
ahead of John T. Rockefeller. my fell
low millionaire. in that Lake Superior
ere deal"
Andrew Carnegie, former ruler or
the steel industry, gioated thus i'm
tostifying today before the house
committee of inquiry into the United
States steel corporation. Carnegie
had just told the committee about his
deal. whereby he obtained control Of
Rockeferers iron ore holdings in the
Lake Superior region at the rate Of
fifteen cents ton. The holdings
when turned into the steel corpora
tion later formed a large part of the
assets and were valued at seven hun
dred million dollars.
He laughed over it like a school
boy. He declared he had come To
tell all ne knew He was particularly
emphatic in his testimony relative To
the sale of his property To- the United
States Steel corporation at the be-
hest Of J. =. Morgan. He told tho
committee he wanted To end the gos-
reasonable figure He also declared
when his partner II g. Frick. asked
him for an option for unknown per
sons on the Carnegie Steel company.
that he demanded two millions as an
earnest OF the intentions Of the
prospective owners. and that when
the deal fell through AMI he learned
that the Moores, of New York. were
behind il. he was surprised.
Had / known the MoOreS were be-
hind the option. which was made on
a valuation OF S320.000,00O, never
would nave given it, said Carnegie
When you gave that valuation Of
the Carnegie properties" asked Rep
7, sentative Sterling. did You con-
slider the earning power Of the con-
Germ justified it?"
Yes" said Carnegie. and I'll tell
YOU why. | was asked To give an
option on our property by my part
ncr. Frick. | gave an option of $3.50
0O0. 600 but that did not include the
Frick Coke company. which was later
included at $70.G00.000. making $320.-
100000 for such option. demanded
s. 100000 as earnest money in good
faith. ard the million OF my share of
the S2.00O.C0O was deposited To my
account while | was in Europe The
other million was never raised That
Frick interested the Moores IS a ro-
nance. SO far as | know"
Mr.. Carnegie was asked about the
steel plate association and other pools
to which the Carnegie company was
q party in late in the nineties ana
which continued until 1904. He said
he had known of the existence of
pools. but didn't know they were
unlawful until years afterward
Il never knew anything about the
details of these pools" said Carnegie. |
Il knew such pools existed but eft
this business to my young man. |
was abroad much ct the time If |
couldn't trust the young man what |
could | have done myself? As | re- |
member it, pools were not declared |
unlawful under the Sherman law till |
recently. Senator Hoar, who had !
much To do with framing the Sher- !
man law, wrote statement after the |
passage of the law that pools were |
not prohibited by it, AS Il matter of |
fact it was a surprising thing to me. |
when | learned a few years ago the !
Sherman law was passed so long ago |
rs 1890. Certainly not much was heard |
IF il until long afterward"