Evening star., 1901-05-11
President of the Great Trust Before
the Industrial Commission.
TELLS ABOUT The CORPORATION
Unusually Frank in His Statements
and Views.
0 r g A n 4 E d L A B O r

Mr.. Charles NJ. Schwab, president of the
United States Steel Company, the greatest
corporation in the world, and which is
| familiarly known as the "Billion Dollar
| Trust" was a witness before the Industrial
| commission today. He was present by invi-
tatfon. and his appearance naturally at
tracted an unusual audience. To those who
We're strangers to Mr.. Schwab his personal
appearance was in the nature of surprise
He had none of the earmarks of a magnate
about him. His splendidly proportioned
| figure was the personitication of the athlete
and the ruddy glow of his cheeks height
ened this impression. Business cares had
made no wrinkles on his strongly chiseled
face, nor put a thread of gray in his black
hair. Beardless a youth. he did not look
to be as old as he is, and he is but forty
two.
His full-lipped mouth was genial in it's
lines, and his bright. black eyes danced
with humOr became scrutinizing with
inquiry as he was witty or studying ques-
t1onS propOunded that required slight con-
slderation. He wore a dark sack coat and
| vest, and over the latter was SimrIe
! strand of gold links scarcely larger than
| an eyeelass chain. His trousers were dark
striped, his shoes patent leather and his
dark scarf bore no pin. The favorable i'm
preston he made was accentuated by his
manner in acquainting the commission with
the tremendous affairs with which he has
been and is identified He was frank and
free in his statements to an extent alto
gether unexpected by members of the COM
mission and other listeners alike.
Alter being sworn by Mr. Phillips. he
stated his name and gave his place of bus
mess at No. II Broadway. New York. He
said, by way of Introduction, that his ap-
pearancc before the commission had been
most unexpected, and he hoped it would be
1nduisent if he had not made sufficient
preparation.
The United States Steel Company" he
remarked, lis new, being really un-
organized and in a state of formation. that
perhaps it will be difficult to fully describe
its workings, but l desire to be frank
and fun to the extent of my ability
Scheme of the Carnegie Company.
In reply to questions by Prof jerks, the
expert, of Cornell University, Mr.. Schwab b
said he had been president of the Carnegie
company for the past five years. Describ-
ing the operations of that company, he
said it had mined all required for it's
purposes, amounting to about 6,O0OU0O
tons year, had maintained a fleet of boats
on the lakes to transport it from the mines
IN the northwest, and owned railroad 1856
miles long to carry the ore from the lakes
to Pittsburg. The company manufactured
a great variety of iron and steel articles,
including rails, billets and armor.
Il mention armor remarked the wit
Il
well known.
The Carnegie manufactures embra ce
about % per cent of the structural. about
80 per cent of the rails and about half of
the armor outpot of the whole country.
Proceeding, he related how the twenty-six
subsidiary companies under control of the
Carnegie company had been taken in under
the parent company.
The consolidation was effected in order
to bring about greater harmony. Mr. Car
negie's idea was that partner conducting
the coke business, for instance, should be
more In touch with one managing the ship
ping business. He retained control of all.
The stock was placed at 81 600 a share and
was never listed, and it may interest you
to know that there was only one sale Of
the stock, and that was of ten shares to
close partnership.
The United States Steel Company.
Coming down to the formation of the
United States Steel Company, Mr.. Schwab
said 1t was different from the Carnegie
company, in that it had taken in numerous
plants devoted to different purposes such
as tubes, wire, tin plate and so forth. 1t
had never before been the rule to consoli-
date such divergent interests. Asked by
Prof. jerks to indicate what advantages
he thought would accrue from such con-
solidation Mr. Schwab said they were many
and great.
ITO start with" he said there is the
one which Is the basis of all iron and steel
manufacture. The United States Steel
Company now controls by ownership 50
per cent of all the known ore in the north
west. These mines were formerly owned
by separate interests, and the ore of one
company frequently was traded for that
Of another, because it was not applica BILE
to it's owners purposes. The ore question
has been always a complicated one, but it
Is clearing now, because by consolidation
of interests we can get the very best COM
binatons of ore by which to most econom-
icaliy manufacture iron.
In the matter of shipping the ore another
great advantage will be gained. Formerly
when contracts for carrying ore had to be
made, in addition to the vessels owned by
the Carnegie and other companies, there
| were frequently delays that were expen-
sive. We now own a fleet of 112 115
vessels and the first to reach dock will
be first loaded and then its destination
will be determined"
Proceeding, Mr.. Schwab gave an interest
ing view of the policy of his company. He
said it was the intention to make the
United States Steel Company virtually a
great clearing house for it's subsidiary COM
panies. Each of the latter would have a
directorate that would control it's particular
business. The parent company would, Of
! course. place such men as 1t deemed proper
on such directorates. but the directors
would have absolute control
I'm case the directors did not conduct af-
fairs to suit the parent company. what
would be the result?" inquired Mr.. Far
quhar.
AT the end of the year new directors
would probably be elected" returned Mr.
Schwab, with meaning laugh.
Other Advantages Cited.
Returning to the consideration of the ad-
vantages to be derived from consolidation
| the witness laid stress upon the improved
| facilities that would be made in distribut-
| ing the work. Manufacturing now carried
| on at one plant that can be more econom-
| ically conducted at another would be trans
| ferred thereto. as for instance the work
conducted at Youngstown, Ohio, would be
done at Johnstown. Pa. There would be a
| large saving in the cost Of superintendent
| and direction. For instance certain skilled
| men were needed at furnaces where there
were two in a plant or fifty, and each SUBJ
sidiary company formerly had to have a
! skilled chemist and other specialists. Under
| the new order of things single specialist
| In each line would suffice for all the works.
| This would simplify and cheaper produc-
! tion. Then again the same methods and
the best would be followed at all works.
| There would be saving, too, in offices.
Where each big company formerly main
| tanned separate office in New York with
l on aed xzyiro fola