Show CARNEGIE t REVIEWS REVIEWS' CAREER CARER Steel King Tells Committee Commit I Itee tee of His Start Stan in Iron Business CALLS SCHWAB GREAT AT MECHANICAL GEN GENIUS US USTa Ta TaKes s Occasion Vigorously ly to Denounce the U. U S. S Sr BanKing System WASHINGTON Jan 10 Andrew Andrew Andrew Carnegie was was an U involuntary witness today before the tho house committee probing probing ing the tho affairs or of Ute the United ni ed States States' I ISue Steel Sue corporation Mr Carnegie W who 10 was first requested to appear and on OD declining that invitation was peremptorily peremptorily pet summoned to Washington n was was expected ted t to elucidate many of ot the details de do tails of the organization and operation of the steel steal trust and its domination of or an industry Mr 1 Carnegie had bad once expressed expressed- a a willingness to appear but rece recently t 1 de do cUned to testify on tho the ground that he was named as a a. defendant defendant in jn the tho governments government's suit against a the tho steel cor cor- cor When Mr Carnegie took the witness st stand md he furnished 1 the c committee co Wi with witha 3 a statement r regarding ga lI g 8 steel eel ind industry irY conditions and told of of- his c career reer in th tho business Mr r. r Carnegie io said zid ll be be began a hi b ste steel elect l career in November l 1861 ISOL 61 jtb tic the firm i Small SlUr and Mud that in jn 1862 86 lie bo ho borrowed 1300 from the the National l Hank of Pittsburg to in in- ina nCr engage naJe a a. partner partner- la partnership partnership ship in in time the Kc Keystone company at It Pl Pittsburgh Pittsburg Build Loco Locomotive o 1 e Works f 1 cor fJ T-ctt T ct on a t in iii tb In ic o bu Fi 1 was OnO bno n of the organizers of tile thc SUp Supe Superior rioT Or Oro ht Mill and Furnace l rn ce 1866 we we tuilt the locomotive c works AU in u rg r. r and d in in 1867 1861 T O united tm two other mills nulls in Pittsburg Thit 35 1 was the beginning of th tb the Carnegie Steel corn con x limited u Jn lim other men muon you yoa in those those days Chairman Stan Stanley o asked did you rou do so by I selling stocks stock's iu in W Wall street or other c OT did diel you ou set et muon mau of experience i in the tho ir iron iron n business Ob Oh no no- noI I did not look look foT for mon men who bad barf no experience in the iron busi bust bust- JJ ness nes I i was as one of the voun A m men n and wo we had bud capital dif At-dif- t different dif dif- ferent tunes times we wc would pu put in OO or Oooo emb What hat was the tho capital ot or your our p prop pop in time sixties s My My r dear sir I have bao DO no more idea ea than you hare hwe I HI have c idea Stanle I an replied replica Stanley Was as it as au much as Oh yes tho the Su Superior mill aJ alona n was wort worth orth that t but I do not want to Juo guess Gl Give Gi-c mo mc time tim and I 1 will give gl you all time tho fl figures Denounces Banking Banking S System tem Mr rr Carnegie ic denounced the tho banking sy system t m of the tho United States as a It disgrace disgrace dis dis irl grace grace- cC to civilization When hn panics come into this coon coun- country try he lie Mid Ie they are arc due to th tho fact t that ut wo we 0 ha c tho the wout wort bankin banking I system in iii the world Panics s spread ruin and if the bill biU now before beloro cou- cou gross resI i is is passed you JOU will have something something some some- thin thing to tnt prevent such finch panics Mr Nr Carnegie In lime ilio written statement flied filed i with Ith the ti-ic committee pointed out that the steel committees committee's task talk hud had arisen from th the thc fact act that th time law of or competition tion In business s has lias seemed Tec recently tobe to tf toc be 00 c Impaired in certain OeMs fields notably those thos of oC natural oil steel el and tobacco co Even now a 1 railway h f nearly one half of tho the worlds railway ay mileage Sc ben Cn art affected 1 HIM lid several retail companies have v ben been trIed an and convicted under th the tho law We uie ui-c in a R. transition stage sta 5 said sai lt Mr Jr C Carnegie i and naturally 1 suggestions 11 Continued on page paJO 10 10 of CARNEGIE CI REVIEWS l a from pt page o 1 are Bre numerous and devious loUR for tor effective compliance with th the Sherman act as In interpreted in- in by hy tb the supreme court That it a satisfactory measure will finally b be evolved is certain one certain one which does doc no nogo not go further than Actually 1 r to pro pre vent vont restraint of ot trade and monopoly These two unendurable evils prevented pre vented the go government nt and courts ma well rest from further r action until experience ex ox- dictates tos an any necessary ar lions thons Industrial Freedom Needed There Is hi no cause at ai present for either alarm alan or haste on tho the part of the courts congress or producers or 01 consumers consumer Interests will become mutual wherever r freedom of trado trade from monopoly i Is established Nothing revolutionary re I Is rc required d. d Continuing the story I tOr of or his hi life 1110 Mr Carnegie said that during the tho civil war wa he suffered a 1 lIun sunstroke and was WM ordered to spend pen 1 hI his summers In a n cooler ell mateI mate I t went to Scotland and there I 1 watched the he Bessemer mer process of or making steel ll There too I mot a it Mr Dodd Dodde who had a patent for fo or hardening the fa taco fao o o of steel tp lee l. l I purchased the tho patent am and brought Sir Mr Ir Dodd Dodds to where here w WA built a furnace and made the lie first hard surface rails In this country Mr lr Carnegie referred d to that pica rent mechanical Charlie Schwab a athe as the greatest rC man nina I ever er knew In that tha line linn Mr Ir sail said lie he suggested to Mr Ir Schwab nh that ho test tent a n. process for makIng mak Ing steel 1 In open hearth furnaces and then lien build an alt open hearth furnace Charlie according to Mr 11 Carnegie said laid he would tr try and It was not more than a week later hater that he ho came canie to me In my toy office In New Ne- Y York rk and laid on 01 ona a m my desk delc plans for or eight magnificent open h hearth arth furnaces We e sold old open hi h sti steel el for 5 5 a S1 ton more than other steel sLed Groat Greatest st Mills s In World MI tr Carnegie said that In tile the open h hearth arth mills at nt Homestead the greatest great great- est eat in till tho world the he committee would hid find no restraint of or trade Mr Ir Carnegie frequently pounded the table with Ills hits hand Why Vh he lie said ald we we were wore going to build at O. O an enormous tube mill that would astonish the I world orld and outdistance comp competition thou That's where here Charlie Schwab comes conies In again Ho lie told n mp me ho lie was wall satisfied h he ho had hind a plan where by br we could build a tube tuba mill that would would save sa SJ 10 Jo a tl ton on In th the cost of manufacture turn ture over an any other r tube mill In the world orld 1 Figures Now New to Carnegie Mr II Carnegie C. ex explained lion how the Carnegie Car- Car negie Steel company compau had purchased d f five five- c six of or the Olive Mining compan company's stock lock In the tho Mr r. r Stanley asked him wh why the tho final sixth was purchased on a R valuation basis of for tor th lie th whom whole tract though originally lI th the company was v capitalized at only Mr Clu Carnegie le expressed surprise at nt this lila question I f I I I At that lint rate rale he lie exclaimed we tse would have o paid for the tho whole tract tt I Im I'm m not surprised at al anything nowa If Ie that t Is lit true rile what t fools fols wo were wars to I sIll sell our prop property rt to the United States Stated St Steel 1 corporation It was as then ther explained that thin I valuation basis was WIlS aa that flint pf f the tle Whole tract tr anti and not the on one sixth Even 1 lieu Mr Sir Ir said that if Ir su suh h a sum sm sum ns as h by tho those o n figures urt wn was Vill paid he lie was vas surprised that lint lie he was such uch a foul fool a sit MM to 10 sell stoll our property properly to the the- steni- steni orf cur cor- on the bay ba basis I Is of ot Then rhion after arler a n moment Mr lo Corne-lo U H IO lo turned 10 to the tue chairman My h friend ho lie said you ou w will ll e have to 3 ask aaK k eom somebody who knows known about thos thosa figures I never h heard rd of them before |