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Show CARNEGIE ADMITS HIS OPPOSITION 10 HlilALISNi WASHINGTON, Jan. 12 4- Andrew Carnegie concluded UIb -t- testimony today before the . house '"Btoel trust" Invcstlgat- -h ing committee. He admitted -t- that In 1900 he 'contributed $15,000 to oppose tho policy -f of Imperialism and the annexa- tlon of tho Philippines, that ho assailed Wall street and branded "stock Jobbers" as "parasites," urged the Roose- -f velt trust policy in preference to that of President Taft, and asked congress to consider carefully that problem. 4- 4- After a day of examination on many subjects, Mr. Carnegie wbb subjected to a Are of questions which put him on his mettle. Chairman Stanley elicited elic-ited from him an attack, on stock jobbing job-bing -which" would probably influence legislation to be proposed by tho committee, com-mittee, and Representative McGilll-cuddy McGilll-cuddy of Maine took the Ironmaster over some unexpected political jumps. "Mr Carnegie," asked Chairman Stanley, 'In the organization of the Carnegie Steel company of New Jersey, Jer-sey, why did you divldo your stock Into $1,000 shares?" "To keep them off ihe stock exchange," ex-change," was Mr. Carnegie's quick roply. "Why did jou want to keep tiieni off the stoek exchange?" Keep Employes From Speculation. "Because I did not bollevo in stock jobbing. Becauso I did not wish to have my partnors in business tempted to speculation I never in my life bought or sold a share of stock on the speculative markot. I was roared differontly. I had a grandfather ruined In Scotland by stock speculation; 1 resolved that it was ruinous, wbon a young man. Throughout my business careor I never bought long nor sold short." Chairman Stanley, producing an old document, read from a statement made by Mr, Carnegie many years ago in which the ironmaster said: "Stock gamblors aro parasites feeding feed-ing on values and creating none " "Are you still of that opinion?" "Mr. Stanley, the other day yoa referred to something I said about competition, and you ald you would like to have it engraved on a memorial mem-orial tablet." Mr. Carnegie answered. "I wish you would take the quotation you have juBt read, engrave it on a tablet and put it in tne stock exchange." ex-change." "Do you bellevo that a corporation should by law bo given the right to sell and buy Its own stock ?n the stock exchange?" "That Is a now question. Mr. Carnegie Car-negie answorcd, hesitatingly 'Tvq never heard It raised before. I should liko to think that over and write you a note of my views." Agalnot Stook Gambling. "Do you bollevo It la a safe policy in the Interests of shareholders who do not gamble and do not bollovc In It, for it to bo posBlblo that any cor- poratlon might gamble in its Btocks?" "I am against all stock gambling." "If thero haB to be gambling, would not It be better for men to gamble at cards or on horses instead of on broad and meat and industrial stocks?" asked thp, chairman "It would be bolter for you, Mr. Chairman, not id gamblo on anything." any-thing." Mr. Carnegie replied, pointing his finger at tho chairman. " don't like to draw any distinctions." Representative McGIllicuddy confessed con-fessed Mr Carnegie with a fire or questions seeking to show that a plan was formed to organize the United States Steel corporation before Mr. McKlnley was elqctod President in 1900 and that thei()deal waa consummated consum-mated soon after', his election. Ho brought out the fact that Carnegie had told McKlnley to have nothing to do with Imperialism or the acquisition acquisi-tion of the Philippines. "Were there any negotiations between be-tween you and J. P. Morgan prior to 1901 regarding the formation of the steel corporation?" asked tho statesman states-man from Maine. "I never hoard of any till Mr. Schwab camo to mo In 1901 with Mr. Morgan's offer to buy my property, ' Mr, Carnegie answered. "Wero thero not some negotiations as early as 1900?" "I never heard of any." Opposed to Imperialism. "In 1900, wore you not vory much opposed to tho policy of imperialism ?" "Yes. I was; and I asked Mr. McKlnley not to have anything to do with It. I was opposed to tho acquisition ac-quisition of the Philippines." "Is It not also true that In early in 1900 you were opposed to William McKlnley for President?" 'iSo," Mr Carnegie replied, giving evidence of confusion. "I do not know of anything that yould "have made mo oppose Mr McKlnley." "Is It not a fact that In January, 1900, you attended a meeting of antl-lmporlallsts antl-lmporlallsts at which you pledged vourself to contribute $2.000 to pro-ent pro-ent tho nomination and re-election of William McKlnley If they would raise a llko amount?" Mr. McGllllcud-dy McGllllcud-dy asked J. H. Reed, attorney for tho Steel corporation, objected to this question. Chairman Stanley overruled the objection, ob-jection, Mr. Carnegie looked at his counsel nervously and replied "I can't tell vou about that. I do not recollect that I over did nnythiug to opposo thc nomination or re-olcc-tlon ef Mr, McKlnley 1 was deeply opposed to the Phllipplnos, but cannot can-not beliovo I opposed McKlnloy for presldont" "Don't you remember that you actually ac-tually did contribute $15,000 of that ?25.000 to thlp fund?" "I do not recollect, but It may be so If you know the facts. I am sure It was not agnlnat McKlnley that I gave tho money, hut against' tho acquisition ac-quisition of the Philippines." "Why, after contributing $15,000, did you not contlnuo with tho othor $10,000?" Mr Gllllcuddy asked. 'I do not recollect." " "Didn't some of the Morgan people come to you and tell you that It wa3 necessary to elect McKlnley In order to form this United States Steel corporation?" cor-poration?" "No such thing ever occurred?" Mr. Carnoglo answered sharply. "After McKlnloy was Inaugurated in March, 1901, and Philander C Knox, who had boon attorney for your company, was made attorney genoral In his cabinet, is it not true that within 30 days your steel corporation actually was formed?" Mr. Gllllcuddy pershted. "Why .do you say 'your sleol corporation?' cor-poration?' " Mr. Carnogle retorted Impatiently. Im-patiently. "I had nothing to do with the stool corporation. Never Invested Invest-ed a cent In it I merely sold my proiHjrty," Morgan purchased Property. Mr. Carnegie again related thc story of tho plan of his company to extend its business and erect an enormous en-ormous tube plant nt Conneaut Harbor, Har-bor, which plan aroused Mr Morgan and led to tho immediate negotiations negotia-tions for the purchase of his property prop-erty and the formation of tho corporation. cor-poration. Ho described in dotal! how Charles M Schwab had figured thit tubes could bo made for $10 a ton loss than any mill In the country could make them. This led Mr Carneglo to the observation that the steel corporation cor-poration made a mistake In not carrying car-rying out his plan Chairman Stanley told Mr Carneglo Carneg-lo of intimations that ho was about to be enmeshed by Morgan, Gary, Gates and a gigantic competitive company Just before tho steel corporation cor-poration proposal was mado and suggested sug-gested that there wero reports current cur-rent that ho was a sick man who could be easily Induced "Well, I sttjl was able to take sustenance," sus-tenance," said Mr. Carnegie "But they approached me at a good time I had determined that I would not spond my old age in making raoro dollars dol-lars I had all tho money I wanted and I demonstrated that somo tlmo before -when the Moores sought an option of tho works and I had left it to my partnors to doclde " Dealings With Moore Brothers. Tho committee led Mr Carnoglo Into a discussion of the time tho Moore brothers, W. H. and J B., sought an option on his plant when his partner, H. C Frlck, conducted the negotiations and Mr Carnogle demanded de-manded $2,000,000 for the option, becauso be-causo tho names of thc prospective purchasers wore not disclosed it was brought out that his partnors. Frick and Phipps, wore Interested In the option, which eventually failed. Mr Carnogle told the committee all that he learned afterwards about tho deal He said ho heard that Frlck and Phipps -were Interested In It and, if thev had succeeded In putting it through, each was to get $5,000,000 in stock of the now company Ho testified that ho accepted tho forfoit of $1,180,000 deposited to hl3 credit when tho negotiators failed to raise the rest of tho $2,000,000 deposit de-posit "If Mr Frlck and Mr Phipps entered en-tered Into a contract w-lth the Moore brothers, by which each was to get $5,000,000 in stock of thc now company com-pany and never told me anything about It." Bald Mr Carnegie, "you don't think I am obligated, do von, to pay them anything now of the forfeit money mon-ey of that option?" oo llnw2urafll closely thc proceedings of parliament and thus make it Impossible for him to devote himself exclusively as has been hla custom, to the work of the department of marine M. Polncarc, when the office was tendered him, roquosted of President Fallleres time for reflection. Ho will not give a definite answer until to-monow to-monow Personallv ho Is in favor of a member of the chnmber of deputies depu-ties holding thc reins of the govern -mont, and If he refuses to accept tho post It seems llkclv formor Premier Briand may be recalled. t A striking feature of thc present crisis Is thc emphasis on the official communications of President Fallleres, Falller-es, who had particularly discussed with statesmen tho foreign policies of France, especially tho Franco-Ger- ' man accord and Its status boforo tho senate Mny Be Offered to Briand. Thc suggestion of M. Dolcasse for tho premiership created the greatest Interest throughout Franco. It might be said that the country was divided Into two camps, one earnestly desiring desir-ing to see M. Delcassc premier, or In tho foreign office as a lcSBon to Germany, and the othor opposing his occupation of an office which deals with foreign relations, through the fear that ho might bring about Gorman Gor-man complications All groups of the majority aie united in the belief that tho present crlsi9 demands a cabinet headed by a man strong and canablo enough to command tho confidence and support of both houses of parliament. par-liament. It Is understood that M. Bourgeois In refusing tho premiership assured President Fallleres of his readiness to support any one ho might choose for thc position, Bourgeois taking tho foreign office In event of M. Polncaro Poln-caro becoming primo minister, it is understood his cabinet will Include in addition to M Bourgeois, M. Dolcasse Dol-casse and Alexander Miller and ex-Mlnlstcr ex-Mlnlstcr of Posts and Telegraphs, nnd that a portfolio clso will be. offered to M Briand. |