The Birmingham age-herald., 1912-01-11
BOOKS OF STEEL
 CORPORATION ARE
 TO BE INTRODUCED
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  I had become engaged In a work trying to dispose of surplus wealth and I was willing to retire. MT. Sehwab said the partners were willing, and he went back to see Morgan. When he returned he said Morgan wanted a figure. We went over the estimate and considered the for mer option of S32O 100000. Schwab had figures to show that since that was giv- en- about two and half years before, the property had grown in value about s100.OCO.0oo, he thought we ought to add that. and I agreed with him. MT. Mor- gan accepted that figure"
 But you sold for more than that to the Steel oorporation?" he was asked.
 That is not true" MT. Carnegie stated en. phatically. That was our valuation and MT Morgan accepted 1t as fair. I have since been told I could have had SlO0.O00000 more if I had asked for it. Once and for all I want to put stop to this talk that I was holding out for an excessive price. We fixed a fair valuation of $420000,O00 and got it. There is the truth. gentlemen, and l am here to tell you the truth"
 Bond Issue
 But the Steel corporation,' said Mir Garner" issued bonds worth S492 561 ,160 against the Carnegie Steel company when it was absorbed
 That was very surprising too me- said MT. Carnegie. T never knew that this was done and was not party to such a thing"
 When asked by MT. Garner about the statement made by Seantor Oliver that the Carnegie companp received railroad rebates Mr Carnegie declared:
 "Its astonishing how suspected an honest corporation can be. I never re- ceived rebate that l knew of in all my life"
 MT. Carnegie then related how he had fought the Pennsylvania railroad be- cause of discrimination in rates against him; how he had interested the Van derbilts In a project to erect a com peting road to the east, and how the Vanderbilts had ."gone over to the enemy" ending the project
 When this fell through, I went to George Gould and told him that years ago his father Jay Gould, had told me he would furnish me the money to buy the Pennsylvania railroad and would put me in sdarge of it if l would devote all my etime to it. l did not take the job. Then I said to George Gould that inasmuch as his father had given me that opportunity, wanted to give Jay Goulds son an opportunity and | OIGfeQ io BlNt IllD lnt DuS- mess if he would run his railroad into Pittsburg, and 1t was a [ my suggestion that the Goulds went to Pittsburg with the Wabash railroad"
 Mir Carnegie declared that instead of the Carnegie company having received rebates, as matter of fact, he had forced the Pennsylvania by threats to build competing roads, to agree to give him rates as low as those given com petitors.
 An Involuntary Witness
 Andrew Carnegie was an involuntary witness today before the House steel in- vestigating committee MT Carnegie, who was first requested to appear and, upon declining that invitation. was perempto- rily summoned to Washington, was want ed to elueidate many of the details of the organization and operation of the steel trust and it's domination of an in dustry in which he was for many years a preponderant figure
 MT. Carnegie reached the hearing room ahead of time He talked commonplace subjects with Chairman Stanley and the other members of the committee at first Mir. Carnegie had once expressed willingness to appear but recently de- clined to testify on the ground that he was named as defendant in the goy- ernments suit against the Steel corpor- ation.
 When Mr. Carnegie took the witness stand he furnished the committee with a statement regarding steel industry con- ditions and told of his career fin the business. MT. Carnegie said he began his steel career in November, 1861, with the firm of Miller & Small, and that in 1862 he borrowed sl500 from the National Bank of Pittsburg to engage In a part nership in the Keystone Bridge company at Pittsburg.
 2 Five or six of us, he said. "were en- pa red in this. Tn 1863 we built another mill in Pittsburg. and in 1864 I was one of the organizers of the Superior ore mill and furnace In 1866 we built the locomotive works in Pittsburg and in 1867 we united two other mills in Pittsburg. That was the beginning of the Carnegie Steel company. limited"
 Rapid Fire Questions
 "1n interesting other men in the early days, did you do so by selling stock in
 .n street or did you get men of ex- perlence in the iron business?" asked Mir. 5tauiey.
 ''Oh, I did not look for men who had no experience in the iron business I was one of the youngest of these men and We lad very little capital. At dif- ferent times we would put in $20,O00 or $3O,o0O each,'' witness replied.
 bat was the capital of your prop critics in the 60s?"
 g aea. sr. have no more idea than you have"
 T have an idea" retorted Chairman Stanley.
 .'was it as much as s5oo,ooO?" asked the chairman
 "Oh. yes: the Superior mill alone was worth that, but I do not want to guess: give me time and I'll give you all the figures" wiD Dess replied. Tive had so much to think about for 30 years, and especially in the last Ii years, | have not engaged in the steel business, and so