The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1912-01-11
Andy 6. Laughs at John d.

Andy G. Laughs at John ID.
1T does my heart good to think that
I got ahead of John d. Rockefeller, my
fellow millionaire. in that Lake Supe-
rior ore deal"
Andrew Carnegie. former ruler OF
the steel industry of the United States
gloated thus In his testimony before
the committee.
Carnegie had Just told the committee
about his deal with Rockefeller. whereby
he obtained control OF Rockefeller's iron
ore holdings in the Lake Superior re-
gion at q rate of Is cents ton, hold
ings which. when turned into the steel
corporation later, formed part of the
assets valued at $7oo.ooo.ooo.
Carnegie laughed like schoolboy
as he referred to the business triumph
he had achieved over his fellow mil
lionaire."
Carnegie declared he had come tc
tell all he knew. but he was unable tc
supply many facts which the commit
tee desired, stating that he had never
paid any attention to the books Of the
Carnegie company before It's absorp-
tion by the steel corporation.
He was particularly emphatic in hi.
testimony relating to the sale OF his
property to the United States Steel cor
poration at the behest of J. PierponI
Morgan, and told the committee he
wanted to end the gossip that he had
held out for an unreasonable price. He
also said that when his partner, H. C
F'rick. asked him for an option for un-
known persons on the Carnegie Steel
company. that he demanded $4,000. .00l
as an earnest OF the intentions OF the
prospective owners. and that when the
deal fell through and he learned that
the Moores of New York were behind
it, he was surprised.
Nothing for the Moores
Had known that the Moores were
behind that option which 1 made on a
valuation OF $780, 100000" said Car
negie. II never would have given it,
when you gave that valuation OF
the Carnegie properties" asked Repre-
sentative Sterling, did you consider
the earning power of the concern JUS
titled itT'
Yes" said Carnegie. "and Til tell
you why. I was asked to give an op-
ton on our property to my partner.
Mr.. Frick. / gave an option OF $780,
900, 900. but that did not include the
Frick Coke company, which we later
included at $7o.000.000. making the to-
tai s32o.ooo.ooo. For such an option /
demanded s2.Ooo.00o as an earnest OF
good faith. and $1,o0o.ooo. my share OF
the $2.oo0,ooo. was deposited to my ac-
count while I was In Europe. The
other million never was raised.
81 never heard until now" he said. in
response to a question, that Mr. Friclx
had anything to do with it until /
heard II referred to here. That he was
interested with the Moores is romance,
as far as / know
plate association and other pools, to
which the Carnegie company was a
party in the late nineties and which
continued until 1904. He said he had
known Of the existence OF pools. but
did not know that they were unlawful
until years afterward.
Il never knew anything about the de-
tails Of those pools" he said Il knew
that such pools existed, but / left the
business to my young men. I was
abroad much of the time. II could not
trust my young men. what could have
done myself? As remember 1t. the
pools were not declared unlawful under
the sherman law until recently. Sem
ator Hoar. who had much to do with
framing the Sherman law. wrote 4
contfnued on Page ?. coIumn