The Richmond Virginian. (Richmond, Va.) 1910-1920, 1913-06-18
M0RGAN-CARNEG|E
CONNECTION SHOWN
JUDGE REED TELLS OF FINAN-
CIEns' NEGOTIATIONS IN FORM
ING STEEL CORPORATION.
MONOPOLY UNATTENDED
NO MODS, wTNKs OR SIGNS USED
TO FURTHER UNITE COM
PANIEs DURING FAMOUS
GARY DINNERS.

NEW YORK. June IA glimpse
of part of the negotiations between
J. p. Morgan and Andrew Carnegie
In connection with the organization OF
the United States Steel corporation
was presented today by former Judge
James s. Reed. OF Pittsburg. at the
hearing OF the federal suit to dissolve
the steel corporation. Judge Reed,
formerly partner of p. c. Knox.
was counsel to the Carnegie Steel
company when It was an independent
concern and now is a director of the
steel corporation. He was called TO
New York when the arrangements
were made for the formation of the
corporation to draw up the mortgage
of the corporation which secured the
bonds that went to Carnegie and the
Carnegie interests. Then the witness
reached the incident that showed how
glad Carnegie was to sell out his steel
interests.
Il was In and out of Mr. Morgan's
ONCE all the time" said Judge Reed.
1T was the back room in the old
building. Suddenly Mr.. Morgan called
to me and Mr.. Stetson and told us
he had just awakened to the fact
that he was making contracts with
the stockholders OF the Federal. the
National and the other companies. but
he had not a scratch Of the pen from
Mr.. Carnegie under which he could
hold him or hold his estate. He
said:
"'You men go up the street as fast
as you can and get me something We
took the elevated and went UP to Mr..
Carnegie's house and explained our
purpose"
Contract Relieved Morgan.
Judge Reed smiled as he told OF
being taken into a little room where
Carnegie was getting begging letters
by the bushel from people wanting
wooden legs and everything imagina-
ble." Tho witness told Of Carnegie
debating the letter to J. r. Morgan 4
Company. I'VE took the original
down TO Mr.. Morgan" said the wit
ness, "and he seemed relieved"
When questioned as to whether MIR.
Carnegie received an answer from
j.. r.. Margan,s tho witness smiled
reminiscently. and with a wave Of his
ton, but there was no doubt about
its acceptance because we paid
state call on Mr.. Morgan"
Mr.. Reed explained that Mr.. Car
negie was tired Of 80 much commo-
ton" and decided to 20 to Europe.
Before leaving he went to call on Mr..
Morgan. II went along az a body
guard" continued the witness Il
remember" said tho witness. that
as we were leaving Mr.. Carnegie said:
Now, Pierpont, am the happiest
man In the world. ! have unloaded
this burden on your back. and I am
of to Europe to play
In answer to questions put by Rich
ard v. Lindabury the witness denied
that in the course OF the organization
Of the corporation any mention was
made OF a monopoly. Judge Reed
said Ii never was intended to estab-
lish monopoly or to suppress COM
petition.
Taking up the question Of the poll
cies and practices Of the corpora
ton, Judge Reed said that rpoir to the
corporation there always was .
"reticcnce about business conditions"
but that Judge Gary had insisted on
the reverse. a. to the attitude Toward
competitors.
Leading up 70 the Gary dirnsrs,
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