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Show CARNEGIE TEEL8 OF BEAT SCORED ON ROCKEFELLER , 4- WASHINGTON, Jan. 10. -- "It does my heart good to -f think that I got ahead of John -f f D. Rockefeller, my fellow ml- lloualre, In that Lake Superior -f ore deal." Andrew Carnegie, former ruler of the steel In- -f dustry of the United Statcb, gloatod thus In testifying to- -f day before the house commit- -f tee of Inquiry into the United States Steel corporation. 4- M.r. Carnegie had just told the committee com-mittee about his deal with Mr. Rockefeller, Rocke-feller, whereby ho obtained control of Mr. Rockefeller's iron ore holdings hold-ings in the Lako Superior region at a rate of 15 contB a ton, holding which, when turned into tho steel corporation cor-poration later, formed a largo part of tho assessed value of 700,000,000. Mr. Carnogio laughed like a schoolboy as he, referred to the business bus-iness triumph -he Jiad achieved over his "fellow millionaire." Mr Carnegie declared he had come to toll all ho knew, but ho was unable un-able to supply many facts which the committee desired, stating that ho had never paid any attention to tho books of the Carnegie company before its absorption bv tho steel corporation. Told of Sale of Property to U. S. Steel Ho was particularly emphatic In his testimony relating to the sale of his property to tho United States Steel corporation at tho behest of J. Plerpont Morgan, and told the committee com-mittee ho wanted to end gossip that he had held out for an unreasonable price He also declared that when his partner, H C Frlck, asked him for an option for unknown persons on the Carnegie Steel companj. that ho demanded $2,000,000 as an earnest of the Intentions of tho prospective owners own-ers and that when the deal fell through and he learned that tho Moores of New York were behind It, he was surprised ' Had I known that the Moores were behind that option which I made on a valuation of $320,000,000," said Mr. Carnegie, "I would novor have given It," "When you gave that valuation of the Carnegie properties," asked "Representative "Rep-resentative Sterling, "did you consid er the earning power of the concern Justified if" $2,000,000 For the Option. "Yes.," said Mr. Carnegie;, "and I'll tell you why I was asked to give an option on our property by my partner, Mr. Frick. I gave an option of $250,000,000, but -that did not Include In-clude the Frlck Cke company, which we later included at $70,000,000, making mak-ing the total $320,000,000. For such nn 'option I demanded $2,000,000, ns nn earnest of good faith, and $1,-000,000, $1,-000,000, my share of the .$2,000,000, was deposited to my account while I was In Europe. The other million never was raised. "I never heard until now," he said, InVosponBe to a question, "that Mr. Frfck had anything to do with It until un-til I heard It" referred to here" Mr Carnegie was asked about the steel plan association and other pools, to which tho Carnegie company was a partv in the late nineties, and which continued until 1904 Ho said he had known of the existence of pools, but did not know that they were unlawful until years afterward. Never Heard ofjthe Sherman Law. ' I never know anything about the details of those pools," he said "I knew that such pools existed, but I left tho business to my young men I was abroad much of the time. If I could not trust my young men, what could I have donem.solf7 As I remember re-member t, the pools were not declared de-clared unlawful under the Sherman law, until recently. Senator Hoar, who had much to do with the framing fram-ing of tho Sherman law, wrote a statement after the passage of that law that pools were not prohibited by it. "As a matter of fact, it was a surprising sur-prising thing to me when I learned a few years ago that the Sherman law was passed so long ago as 1890 It certainly was not much hoard of until un-til long afterward." Mr Carnegie said that Charles M Schwab, president of the Carnegio company in 1901, had come to him with a message from J. P. Morgan-asking Morgan-asking him If he desired to retire from business and how much he wanted for his property Sale to the Trust for $320,000,000. '"I told Schwab that it would depend de-pend entirely upon my partnors," said Mr Carnegie. ' I was ready to go Already I had become engaged In the arduous "work of trying to dispose dis-pose of surplus wealth and I was wlllkng to retire Mr Schwabsald tho partners were willing, and he went back to see Morgan When he returned, ho said Morgan wanted a figure. We wont oor the estimate and considered tho formol option of 5320,000,000 Schwab had figures to show that since (hat was given about two and a half years before, the property prop-erty had grown In value about $100,-000,000 $100,-000,000 lie thought we ought to add that and I agreod with him. Morgan accoptcd tho figure." "But you Bold for moio than that to the steel corporation9" ho was nnlfnrl "That is not true," Mr Carnegie stated emphatically. "That was our' valuation and Mr Morgan accepted It ns fnlr. I have since been told that I could have had $100,000,000 more If I had asked It Once and for all, I want to put a stop to thi3 talk that 1 was holding out for an excosslvo price Wj fixed a fnlr valuation of $420,000,000 and got 1L There Is the truth, gontlemen, and I am here to "toll ou the truth 'But tho steel' corporation.' snld Mr Gardner, "Issued bonds against the Carnegio Steel compnny of $-192,-006.1G0" "That's very surprising to mo," said Mr Carnegie. "I never knew this was dono, and was not a party to such a thlng.". Never Received a Rebate 'n His Life. Whon asked by Jfr. Gardner abour a statement of Senator Oliver that the Carnegio company rocelved railroad rail-road rebates, Mr. Carnegio declared "It'n nstonlshing how suspected an honest corporation can be. I novor received a rebate that I know of in my Hfo." Mr Carnegie then said he had fought the Pennsylvania railroad bo-' bo-' cause of rate discrimination against him, (hat he had Interested tho Van-derbilts Van-derbilts In a projoct to build a competing com-peting road to the cast, and that the Vanderbllts had gone over to the enemy, en-emy, ending the project, "Whon this fell through, I went to Georgo Gould and told him that years ago, his father, Jay Gould, had told me he would furnlBh me the money to buy the Pennsylvania railroad and would put me In charge of It if I would devote all my tlmo to It I did not tako tho job "Then I said to George Gould that inasmuch as his father had given me that opportunity, I wanted to give Jay Gould's son an opportunity, and I offered to give him the Carnegie business if ho would run his railroad Into Pittsburg, and It was at my suggestion sug-gestion that the GouldR went to Pittsburg with the Wa?sh ralhoad." Mr. Carnegio declared that Instead of the Carnegio company having received re-ceived rebates he had forced the Pennsylvania to agree to give hlra rates as low as those given competitors. |