New-York tribune., 1912-01-11

Mr.. Carnegie then rs;ated how he had
roucbt tho Pennsylvania Railroad because
Of discrimination in rates against him, how
hc had interested tho Nanderbilts In
prolec, To erect competing road To the
East. and how the Vanderbilt had gone
over to the enemy" ending the project.
When this foil through ! went to George
Could and told HIM that years ago. his
father jag Gould. had told me- he R1uld
furnish me tho money 70 buy tho Penrfyl-
yanla Railroad and would put me IN charge
OF il Il would devote oil my time 10 &C. l
did not take the job Then said 10 George
Gould tiat iassmTch AS his father mad
given ne that opportunity, ! wanted to give
jay GoUld's son an opportunit% and ! or
feIe1 20 give him the Carnegie business
# he would run his railroad into Pittsburgh,
and it WAS a. nv suggestion that the Goulds
went to Pittsburgh with the wabash Rail-
road"
Mr.. Carnegie declared that. instead Of the
Carnegie company having received rebates.
as a matter If fact. he hsd forced the Penn
syIyania by threats 20 build competing
roads to agree 10 give him rates as lcg as
those given 10 competitors
Mr.. Carnegie said he began his steel
career i'm Novembor, 1851 with The firm OF
Miller & Small. and thar in 1852 he hor-
roued 81 500 from the National Bank or
Pittsburgh TO engage in a partnership in
the keystone Bridge Company, at Pitts
burrh.
Five or six of US" he said, were en-
gagged in this In 1868 We built another
mill in Pittsburgh and in 1854 was one
Of the organizers of the Superior ore mill
and furnace. In 1865 We built the loconno-
tive works in Pittsburgh. and in 1861 we
united two other mills in Pittsburgh That
was the beginning Of the Carnegie Steel
Company. Limited"
I'm interesting other men with you In
these early days" Chairman Stanley
asked did you do so by selling stocks In
Wan Street or other exchanges. or did
You get men Of experience I'm the iron
business?'
ooh. no. did not look for men who
had no experience in the iron business. T
WIS one of the Youngest Of those men and
We had very little capital At different
times We would put in $4,000 or 100000
each"
What vas the capital Of your proper
ties in the sO's?"
My dear sir have no more idea than
you have" Hf
81 have an idea" replied Mr. Stanley.
WAS II az much rs $500, oOO?"
"Oh yes: tho Superior mill alone was
worth that. but l do not want TO guess.
Give me time and | will give YOU all the
figures I have had so much 10 think
about for forty years, and in the last
eleven years I have not engaged In the
steel busineSs. and so much has faded
from my memory"
Mr.. Carnegie explained how tho Carnegie
steel Company had purchased nve-sixths Of
the Oliver Mining Company's stock In the
9Os. Mr.. Stanley asked him why the final
sixth was purchased on valuation basis
OF sl7,Oc0,0o0 for the whole tract. though
originally the company was capitalized at
! only 81. .3D0oo0.
Mr.. Carnegie expressed surprise at this
question.
AT that rate" he exclaimed, I'VE would
have paid sSj.0oO.Cc0 for the whole tract
I'm not surprised at anything nowadays
! II that is true. what fools We were TO sell
| our property to the United States Steel
! Corporation"
IL was then explained that the slI,oooO00
valuation basis was that OF the whole
| tract, and not the sixth Even then Mr..
! Carnegie said that II such a sum as indl-
| Gated by those figures was paid he was
| surprised that he was such fool TO sell
our property TO the Steel Corporation on
! tho basis of si$OOOoOoo"
/ Chairman Stanley tonight issued SUBJ
pcenas duces tocum for all the documents
which thus far the Steel Corporation had
not produced. although the committee eN-
dressed its desire to examine them
The subpUnas are served directly on J. A.
| Farrell as president Of the steel Corpora
ton. but there is no disposition on the part
| of the committee to force him to take the
stand. The subpUnss are made returnabie
January %, and the corporation is COM
manded to turn over the documentary eVi-
dence to Mr.. McRac the expert accountsn.
! of the committee