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Show SCHVABTHE FATHER OF STfflJliUST Is Glad of Chance to TeU Story of Its For. .nation. CONVINCES MORGAN OF ITS ADVANTAGES Then, as Morgan's Agent, Gets Price on Carnegie Steel Plants. NXWyOBK, Aug. . Charles M Schwab, president of toe Bethlehem Steal company and former preeldsnt of tha TJnlted States Steel corporation. 1 CHAELEi M. SCHWAB, Prasldsnt Bethiehem (teei oompaay and former president United States Stool corporation. faced tha bouse committee of Inquiry Into too steel corporation today. Mr. Schwab recently return sd from Boropo, where bo attended the International conference of steel manufacturers at Brussels. He was queetioaed 6rst about the ia-corfioration ia-corfioration of tho United States Steel eorporatioa; just prior to that ho said he was president of the Carnegie Steel company. The chairman asked Mr. Schwab to tell tbe wkole story about Andrew far ncgie's desire to dispose of his prop- (Continued on page I-.) SCHWAB (Continued from page 1.) erty, the preliminary conference with J. P. Morgan A Co. and Morgan 'a part in the plans which developed into tbe formstion of Ue United Btates Steel corporation. That First Dinner. "I am very glad of the opportunity," opportu-nity," Mr. 8chwab began, "once and for all definitely to tell the story about which there have been so many misstatements mis-statements and so mock misinformation. In tbe falllof 199 J. Edward HimmnnB, a New York banker, and Charles Stewart Stew-art Smith tendered me a dinner at the 1'niversity club. There were present Mr. Morgan, Mr. Carnegie and seventy or eighty prominent New York financiers. finan-ciers. - "There I made an address and ehose as a -subject for my remarks the future development of manufacturing steel in the United States. I explained the great advantage to be gained bv the organization organ-ization of such a comoratioa as the United States Steel. There' I outlined what later became tha steel corpora tion. "I gar my reasons la detail," Mr. Schwab continued. "I showed, first, bow I thought that, instead of many companies manufacturing manufac-turing the same line of goods, by or ganixatioB many companies eonld get together and manufacture different items. That would resnlt in great economy. econ-omy. "I showed, secondly, bow by such an organisation there would be great economy econ-omy ia distribution. In my proposal there waa no thought of limitation of production or the maintenance of price. 1 The possibility of ninety blast furnaces coming together in that way. In prodneing economy, proved so great that recently at tha Brussels conference confer-ence I advocated th idea of all independent inde-pendent manufnetnrers exchanging their cost sheets for ths ultimata benefit bene-fit of th steel industry. "Could they do that without injury to each other I" asked Chairmea Staa-ley Staa-ley "Ob, yes. they caa and do." Mr. Schwab then resumed his atory of th organixatioa of th United States Steel corporation. "Some time after that dinner, I was at Pittsburg and received a message from Joha W. Gatea, asking m to meet J. P. Morgan," he said. "As boob as I met Mr. Morgan he asked me to go over again in detail the anggestioa I made at the University Univer-sity club dinner. I talked with him on the eubject for several hours, expanding expand-ing my ideaa of forming ths organize-tioa organize-tioa of tha steel manufacturers. Mr. Morgan told me that he was eosvincsd of the advantages of such aa organixatioa organi-xatioa and he asked ma if I could get a price from Mr. Carnegie for hi steel ylants. I told him I wouM see. Ha Talk With Camegl. "About a week later I spent the day with Mr. Carnegie and when a favorable favor-able opportunity presented itself, I told him what waa in my mind and that Mr. Morgaa had requested me to get a , price for his steel plsnt. 1 advised Mr. Carnegie that In view of his advanced age and his nhilaathropie idea of life, that he ouftbt to sell. I told him I thought he would be bene fited by such a sals. Mr. Caraegie received re-ceived tha proposition with a great deal of reluctance, but Anally be agreed to sell. It is mv private opinion that shortly afterward he very mneh regretted re-gretted it. "I got a pries from Mr. Caraegie aad took It to Mr. Morgaa." - "At the time of th ergaaizatloa of the at set trust," Mr. Stanley naked, "did you oppose tba idea of restricting competition t ' ' "I hare aaid there waa no such idea ia tha stsei organixatioa, ' ' Mr. Schwab replied. |