This Mr. Phipps did in the New York Herald, January 30, 1904, in the following handsome manner and without Mr. Carnegie’s knowledge: 

Question: “In a recent publication mention was made of Mr. Carnegie’s not having treated Mr. Miller, Mr. Kloman, and yourself properly during your early partnership, and at its termination.  Can you tell me anything about this?”

Answer: “Mr. Miller has already spoken for himself in this matter, and I can say that the treatment received from Mr. Carnegie during our partnership, so far as I was concerned, was always fair and liberal.

“My association with Mr. Kloman in business goes back forty-three years.  Everything in connection with Mr. Carnegie’s partnership with Mr. Kloman was of a pleasant nature.

“At a much more recent date, when the firm of Carnegie, Kloman and Company was formed, the partners were Andrew Carnegie, Thomas M. Carnegie, Andrew Kloman, and myself.  The Carnegies held the controlling interest.

“After the partnership agreement was signed, Mr. Kloman said to me that the Carnegies, owning the larger interest, might be too enterprising in making improvements, which might lead us into serious trouble; and he thought that they should consent to an article in the partnership agreement requiring the consent of three partners to make effective any vote for improvements.  I told him that we could not exact what he asked, as their larger interest assured them control, but I would speak to them.  When the subject was broached, Mr. Carnegie promptly said that if he could not carry Mr. Kloman or myself with his brother in any improvements he would not wish them made.  Other matters were arranged by courtesy during our partnership in the same manner.”

Question: “What you have told me suggests the question, why did Mr. Kloman leave the firm?”

Answer: “During the great depression which followed the panic of 1873, Mr. Kloman, through an unfortunate partnership in the Escanaba Furnace Company, lost his means, and his interest in our firm had to be disposed of.  We bought it at book value at a time when manufacturing properties were selling at ruinous prices, often as low as one third or one half their cost.

“After the settlement had been made with the creditors of the Escanaba Company, Mr. Kloman was offered an interest by Mr. Carnegie of $100,000 in our firm, to be paid only from future profits.  This Mr. Kloman declined, as he did not feel like taking an interest which formerly had been much larger.  Mr. Carnegie gave him $40,000 from the firm to make a new start.  This amount was invested in a rival concern, which soon closed.

“I knew of no disagreement during this early period with Mr. Carnegie, and their relations continued pleasant as long as Mr. Kloman lived.  Harmony always marked their intercourse, and they had the kindliest feeling one for the other.”]

CHAPTER XIV