The Olneyville times. (Olneyville [Providence, R.I.]) 1887-1917, 1912-01-19
ANDREW CARNEGIE TELLS
STEEL TRUST SECRETS
Says He Was a Fool to Sell Out for
Only s43o,ooo, ,ooo-Derides
the Sherman Law.

Washington. Andrew Carnegie
faced the Stanley Steel Committee
during has relations 10 the iron and
steel industry In America. 1t was
characteristic narrative which the re-
tired "Ironmaster" gave TO the COM
mittee-graphic, and at times drama
! tic.
Throughout the ordeal, which be-
came grueling in the afternoon, Mr..
| Carnegie professed to be "blissfully
! ignorant of the details" of the Carne-
gle Steel Company. Probably the most
striking part in his testimony was his
story Of how, through the mediation
OF Charles M. Schwab he sold the Car
negie Steel Company, under the super
vision OF j. p. Morgan e. Co, for
$42O, 100000 to the syndicate which
formed the United States Steel Cor
! poration.
What a fool was to sell out to the
! Steel Corporation for only S420,OOO,-
000!" exclaimed Mr.. Carnegie with
mingled feelings of emotion. 81 have
since learned from the inside that we
could have received $100,000,000 more
| from Mr.. Morgan If we had placed
that value on our properties"
A glimpse into some OF his relations
with the Vanderbilts, Goulds, and the
pioneers in the Pennsylvania system
was given, and when he reached what
he regarded as his clever acquisition
OF vast ore rights, under reasonable
royalty payments from John d. Rookie
| feller, Joy frightened the eyes OF the
witness, and he exclaimed:
do you know, it makes my heart
! feel good to feel that | was such a
man as to be able to get ahead of
! John ID. Rockefeller on that deal. That
! is the one time | managed to get the
best of my fellow-millionaire"
Mr.. Carnegie had just told the com
mittee about his deal with Mr.. Rookie
feller whereby he obtained control of
! Mr. Rokefeller's iron ore holdings in
the Lake Superior region at a rate of
Is cents a ton-holdings which, when
turned over TO the Steel Corporation
later, formed a large part of the as
sets valued at $7OO,OOO,OOO, or 81 a
ton.
Carnegie declared, in relation TO the
celebrated $2,000,000 option in 1899 on
his holdings, which was lost by the
givers, that he did not then realize
that his partners. Henry c. Frick and
Henry Phipps, were trying to get con-
troll of the properties.
Carnegie denied vehemently that he
! had ever in his life received rebate
from the railroads.
For the hrst time definite revela
ton was made of the cause that led
to the famous break between Carnegie
and his partners, Frick and Phipps
Carnegie kept S1,170,000 of the option
money in May, 1899. On Dec. 4, 1899
Frick in a court action declared that
Carnegie suddenly and malevolently'
demanded his resignation. Frick al
legged that Carnegie was trying to con
fscate Frick's interest in the Carne
gle Company at about 80 per cent. OF
its value or not over S6,OOO.OOO foI
what on the basis of Carnegie's option
was worth $l6,23S,000.
A crowded committee room greeted
the ironmaster Many women were
in the audience, and some OF them
stood for hours as the Laird OF Skibo
half rouched in the witness chair
stroking his gray beard and banging
the table alternately, told the story
of how $1,5O0. borrowed in 1868, had
grown to $42O,OO0.OOO in thirty-ods
years. Mr.. Carnegie INDUCED in pleas
antries, was quick at repartee, used
many epigrams and otherwise gave an
exhibition of a remarkably active anC
alert mind.
Carnegie told the committee that III
never bothered his head about th'
Sherman antitrust act. II had more
engaging subjects" said Carnegie.