Democratic messenger. [volume] (Snow Hill, Md.) 1869-1973, 1912-01-13
CARNEGIE DENIES
H0LD-UP IN STEEL
Asserts Selling Price 10 Trust
Was Not Excessive.
FAvORS INDUSTRIAL COURT
Ironraster Also Raps Banking System
az a Disgrace to Civilization" and
Breeder Of Panies.


Andrew Carnegie was an involuntary
witness before the house committee
| investigating the United States Steel
corporation In Washington, and he set
forth In vigorous terms his idea of the
American banking system and OF the
need of an industrial court TO solve
the trust problem.
Mr.. Carnegie had been requested to
appear voluntarily before the probers.
but had declined because he was nam.
ed as a defendant in the governments
| suit to dissolse the steel corporation as
a trust. Then the committee peremp.
torily summoned the iron master and
he appeared.
In his direct testimony he denounced
the banking system in the United
States as disgrace to civilization"
He said:
when panics come In this country
they are due TO the fact that we have
the worst banking system in the world.
Panics spread ruin. and II the bill
now before congress Is passed you Will
have something to prevent such pan.
les"
Mr. Carnegie emphatically denied
that the United States Steel corpora.
| ton was the victim OF commercial
''hold.up" when II took over the Carne-
gle interests. lie declared that once
and for all he wanted the people OF
the country TO know that the price
paid by the Steel corporation for his
interests was fair one.
This was brought out when Repre-
sentative Sterling asked him whether
he thought the United States Steel
corporation could have organized with
any success had II not required the
Carnegie holdings.
| IL prefer not TO answer that and
praise our own organization. said Car
negie. but by Judging by today. II any
man bought the steel interests which
I sold for si20.O00.OO0 he would be
safe"
Carnegie told how the Morgan in
terests approached Charles NJ. Schwab
with proposition to purchase the Car.
negie Steel company. He said in deter
mining the price TO be asked on the
option. the steel interests were con.
sidered worth $250.00v.U00: that the
II. c. Frick Coke company was added
to that amount at s70.O00.000. and
| 800. 100000 was tackled on to that as
the amount which the Steel corpora.
tion had gained in value.
81 had determined that my old age
was TO be spent not in accommodating,
but in distributing. | told Schwab that
all depended on my partners. but that
was ready to go at any time.
Right here let me say that ask
ed s42O.001.0 900 for the Carnegie in
terests. and of that received s2l3.-
ing out for high price has no foun-
dation. I considered what was fair. |
never saw Morgan. I have been told
that I should have asked 100000. 900
more and that could have got il. But
I want to stop all this talk about my
forcing high prices.
"If we had not sold out IL (the Unit
ed States Steel corporation would
have been n considerable concern. II
paid $4,000. 900 the year before II was
sold and II was on the road to paying
| $50, 900. 900 next year"
Mr.. Gardner asked Carnegie whether
he knew that the Steel corporation is
sued s492 .006. 100 in securities 10 pur-
chase the Carnegie Steel company for
which only s420. 100000 was received.
Il didn't know that said Carne-
gie that Is another surprise that !
have had"
Mr.. Carnegie declared ne never re-
membered attempting n pool, and that
he knew nothing about the steel plate
pool organized in 1867, until after his
return from Europe.
III we're legislating against pools"
he added. II would except rails"
Mr.. Carnegie said he was still Of
the opinion there should be no tariff
on any article which could be made Il
subject OF pool.
His ideas OF the trust problem. the
Sherman antitrust law and the need
OF an Industrial court were set forth
in a written statement addressed TO
the investigating committee.
Mr.. Carnegie told OF the incorpora-
ton OF the Carnegie Steel company.
with capital OF $500. 100000. which
he said included all iron, coke. steel
and ore interests He added even at
that time earnings justified this CAPT