New-York tribune., 1912-01-11
CARNEGIE On THE STAND
continued from first page.

ala or b.s rropcrty TO the United states
c., ,,ornoration at the behest o. j.
pi,ruont Morgan. and told the committee
,,at no wanted TO end the gossip that ne
hod hold out for An unreasonable price
H. olso declared that when his partner
II = Frick. asked him for an option ior
,,,,l<nown ncrsons on the Carnegie steel
,or,,.apv he demanded S2,OOONp as an
earnest OF the Intentions Of the pros
nective owners. and that when the deal
fou through and ho learned that the
,toores NJ New York, were behind it, he
was surprised.
Had I known that the MooTes were
behind that option which 7 made on
valuation Of 500. .G0000o," said Mr.. car
nocic, Il never would have given it,
when YOU gave that valuation OF the
rarncaie properties" asked Represent
atiye Sterling. "did you consider that the
earning power Of the concern justlh'i
it,"
Yes" said Mr.. Carnegie, and III
tell you why. | was asked to give an
option on our property by my partner
ur Frirk gave an option Of 800. GOD
OOn. but that did not include the Fr.cN
core Company, which VIC later includel
N $4,000 goo, making the total S"2o'-
coo. 900. For such an option ! demanded
50 OnO 600 as an earnest Of good faith'
and 81 900. 600, my share of the S2.oOo'-
NNO. was deposited 10 my account WHO
was in Europe. but the other SloOO'p~
never was raised
"I never heard until now" he said n
responsc to A question, that Mr.. FricH
had ANYTHING to do with it until heard
II referred To here. That he was inter
ested with the Moores is romance, so
far as ] know
MIR. Carnegie was asked about the
steel Plato Association and other roofs
which tho Carnegie Company was a
marty TO i'm the late 90s and which con
Timed until 1894 He said he had known
Of the existence of pools, but did not
know that they were unlawful until
many years afterward.
81 never knew anything about the details
Of those pools" he said. II knew that such
poo!s existed but left the business 10 my
Young mon. I was abroad much Of the
time If could not trust my young men
what could | have done myself? As ! re-
member IT, the pools were not declared un-
lawful under the Sherman law until very
recently. Senator Hosr. who had much to
do with the framing OF the Sherman law.
wrote a statement after the passage or that
law that pools were not prohibited by ~
As a matter Of fact II was surprising
Thing to mo when I learned few years
ago that the sherman law was passed so
long ago as 1890. II certainly was not
much heard of until long afterward
| Asked about the option valuation Of S32n.-
| o0o. .O0o and tho final disposition Of tho prop
! crtv To the Steel Corpora ton In 1901 Tor
much larger sum, Mr.. Carnegie related the
/ history of his retirement from the steel
/ business. lie told how Charles NJ. Schwdb,
| then president OF the company, had come
to him with a message from j. PieTpoht
! Morgan. asking him IL he desired to retire
/ from business and how much nc wanted for
| his properties.
! II told Mr.. Schwab that it would depend
! entirely upon my partners" said Mr.. Car
]
/ become engaged in arduous work trying TO
/ dispose Of surplus wealth. and | was VIII
| ing 10 retire. Mr. Schwab said tho partners
were willing. and nc went back 70 sec Nor
! gan. When no returned he said Morgan
| wanted a figure. We went over the estl-
mate and considered the former option or
| t320On0.0O. Schwab had figures to show
! that since that was given. about two and
/ half years before, tho property had grown
! I'm value about 800, ,000Oo0. He thought we
ought to add that. and agreed with him,
! Mr.. Morgan accepted that figure"
But you sold for more than that TO the
/ Steel Corporation?' he was asked.
That is not true" Mr.. Carnegie SAID
! cmphatically. That was our valuation,
/ and Mr.. Morgan accepted It as fair. l have
/ since been told that | could have mad
/ SlO0.O0o.OoO more IL l had asked Il. once and
| for all | want to put a stop TO this talk
| that | was holding out for an excessive
price We fixed a fair valuation of $40,
| COo 600 and got IT, There is the truth. gem
! tlemcn. and am here TO tell you the truth
But the Steel Corporation" said Mr..
/ Gardner. ISSUED bonds of Si92, ,0O6, l60 against
| the Carnegie steel Company when II was
/ absorbed"
That's very surprising to me-" said Mr..
! Carnegie Il never knew that TINS was
done and was not party TO such thing.
When asked by Mr.. Gardner about the
statement made by Senator Oliver that the
| Carnegie company received railroad rebates
! Mr.. Carnegie declared:
ITS astonishing how suspected an nom
est corporation can he. | never received a
! rebate that I know of I'm all my life