The Birmingham age-herald., 1912-01-11
Chairman Stanley Isues Subpoenas for Inti-
 mate Papers
ANDREW CARNEGIE
 BEFORE COMMITTEE
Former Iron King Laughs Like School Boy as He Tells of Out witting Rockefeller in
 Ore Deal

l washington, January 10,-1ntimate DOCKS and napers of the United States Steel corporation are to be examined by the government. Chairman Stanley of the House "steel trust Investigating com mittee tonight issued subpoenas duces teeum for all the documents which thus far the Steel corporation had not pro duced, although the committee expressed It's desire to examine them
 The subpoenas are served directly on ] J. Farrell, as president of the United states Steel corporation, but there is no disposition on the part of the committee to force him to take the stand. The subpoenas are made returnable January %, and the corporation is commanded to turn over the documentary evidence to Expert Accountant McRae of the com mttee.
 Chairman Stanley who prosecuted a successful campaign yesterday for an ad- ditlonal appropriation to carry on the in vestigation in the steel situation, an nounced then that he proposed to cease temporizing. He declared he would sub poena hereafter such witnesses as he cited to committee, and would seize, by the authority of Congress, such docu- mentary evidence as he deemed import ant. Additional subpoenas. it is under stood, will be issued within few days egt does my heart good to think that l got ahead of John D. Rockefeller, my fellow millonairs, in that Lake Superior ore deal.'
 GlOats Over Victory
 Andrew Carnegie, former ruler of the steel industry of the United States, gloat- ed thus, in testifying today before the House committee inquiry into the United States Steel corporation. Mr. Carnegie had just told the committee about his deal with MT. Rockefeller, whereby he obtained control of MT. Rockefeler's iron ore holdings in the Lake Superior re- zion at a rate of 15 cents a ton, hold ings which, when turned into the Steel corporation later, formed large part of the. assets valued at 500, ,ooo ooo-. -s-se. MT. Carnegie laughed like a schoolboy as he referred ito the business triumph hc had achieved oyer his fellow million aire." As he spoke of MT. Rockefeller he took the committee into his confidence and told of a New Years call he and Mrs. Carnegie had made on the oil king and Mrs. Rockefeller.
 we had an enjoyable chat. but in our conversation I never referred to that ore purchase" and MT. Carnegie chuckled l while his auditors enjoyed the laugh with him.
 Throughout the inquiry to be continued Tomorrow, MT Carnegie declared he had come to tell all he knew, but he was If unable to supply many facts which the icomrnitte- desired stating that h9 had Xtneyer paid any attention to the books iof the Carnegie company before its ap- lsorption by the Steel corporation.
 He was particularly emphatic in his ltestimonv relating to the sale of his .propertv to the United States Steel corr XIporation at the behest of J. P. Morgan and Hold the committee that he wanted to end igossip that he had held out for an un- Unreasonable price. He also declared that iwhen his partner H. c. Prick asked him Ifor an option for persons unknown to ihim on the Carnegie Steel company that ihe demanded s2,000,000 as an earnest or 1.-the intentions of the prospectives ves.owners 1and that when the deal fell through ana lhe learned that the Moore's of New York Iwere behind it he was surprised.
 Had I known that the Moores were 1behind that option, which made on a Valuation of S320000,O00,' said MT. Car fnegie, 'I never would have given it.'
 When you gave that valuation of the Icarnegie properties asked Representa- Hive Sterling, Did you consider that the learning power of the concern justified it?"
 Company Worth Valuation ! "Yes" replied Mir. Carnegie, "and I'll Nell you why. was asked to give an op- ttion on our property by my partner. MT. frrick. I gave an option of s250,000. GOO. but 3that did not include the Prick Coke com 1bany which we later included at S70,000 }boo. making the total $320.000,000. For such m option I demanded s2.O0o0oo as an ear hest of good faith and $1,0o.000, my share bf the s2,0oOoo0. was deposited to my ac- Eount, while was in Europe but the ibther million never was raised.
 aI never heard until now,p he said, in Lesronse to a question, that MT Prick had anything to do with it. That he was 1pterested with the Moores is romance so ftar as know.
 MT. Carnegie was asked about the Steel xslate association and other pools the f,-srr egie Steel company was party to in thl the late nineties, and which continued Hlnti 1904 He said he had known of the #xlstence of the pools. but did not know &Ihat they were unlawful until many years II fterwards.
 q never knew anything about the de- Rails of those pools." he said. T knew That such pool sexsted, but left the bus Rness to my young men. l was abroad Hluch of the time.
 "If I could not trust my young men, fghat could I have done myself? As I Remember it, the pools were not declared Unlawful under the sherman law until {. cry recently. Senator Hoar, who had zhuch to do with the framing of the Sher- Than law, wrote a statement after the f,assage of that law that pools were not Prohibited by 1t.
 H .As a matter of fact it was surprising <io mo when I learned few years ago f,n3t N1 0herman law was passed so long Ek04G<Dp It certainly was not much tA&G@1k funtil long afterward."
 Tells of Retirement
 6 about the option valuation of 1I 70 and the final disposition of the <y to the Steel corporation in 1901 huch larger sum, MT. Carnegie re- be history of his retirement from N Eel business. He told how Charles Ehwab, then president of the com- had come to him with a message
 J. P. Morgan. asking him if he de-
 to retire from business and how
 <h he wanted for his properties
 told MT. Schwab that 1t would de- XAd entirely upon my partner" said Mr. t6rnegie T was ready to go Already
 
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