The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1904-09-25
STEEL MAGNATE
IN SALT LAKE
Charles M. SehWab Makes Brief
Stop in City.
MAN WITH VARIED HISTORY
PICTURESQUE CAREER OF FIRST
HEAD OF BIG TRUST.
MAN WITH VARIED HISTORY

Charles VI. Schwab. former president
Of the United States Steel corporation
arrived in Salt Lake over the Oregon.
short Line from Cheyenne at S:3J
o'clock yesterday morning He was &C
companied by party of nine capital.
lists
At the depot they boarded three au-
tOmobiies. sent there by Chief Clerk
Austin of the Knutsford hotel upon
the order Of Mr. Schwab. and rode
around the city for an hour. They
then went to the Knutsford. and dt
1880 "a. ~. left the city on an Oregon
Short Line train. bound for Butte.
Mont, and Yellowstone park. They
expect to return TO Salt Lake in a
week or ten days and 10 go from here
To the mining camps Of TonOpah and
GOldneld. New.
Charles n. Schwab, by reason Of the
high finance" of which he was one Of
the leading opponents, and his cOnneC-
ton with the United States Steel cor
poratiOn, generally known as the steel
trust, and with the United States Ship
building company, obtained a world
wide nOtoriety Of a decidedly unpleas-
ant kind. After being subjected 10 a
prolonged and searching investigation
OF his methods at the instance Of Henry
&. Frick and other stockholders Of the
trust. who were supposed to have beer
egged on by John D. Rockefeller. he
was forced out OF his official position.
High Play at Monte Carlo.
While sojourning in Europe he spent
some time at Monte Carlo. where. It
was reported, he won $4,000 in one
nights play at the gambling tables.
But he was not so lucky while making
mis- outward and hOmebound trips
across the Atlantic. il published re-
ports were authentic, for he is said to
have fallen into the hands of poker
sharks and dropped many thousands of
dollars to them.
The United States Steel corporation
was incorporated in New Jersey Feb. p.
1901. but the articles of incorporation
were amended April 1 Of the same year.
This gigantic trust acquired the stocks
and visible assets of the following cor
poratiors: Carnegie company. Federal
Steel company. American Steel & Wire
company. National Tube company, Ma
tional Steel company. American Tin
Plate company, American Bridge COM
pany. American Steel Hoop company.
American Sheet Steel company. Shelby
Steel Tube company Lake Superior
Consolidated Iron Mines, Union Steel
company Troy Steel Products com
pany. The united plants of the organ
1Zations owned and controlled by the
trust i'm January. 1902. comprised sew
enty-eight blast furnaces. with an an
nual capacity OF about $500. 900 tons Of
pig iron: 149 steel works and six fin
ishing plants. The capacity for steel
products was about 100000 tons. It
also owned and controlled Lake Su-
perior iron mines having an annual out
put of 12.0O0.000 tons of ore. together
with 1890 coke ovens, 70. $50 acres OF
coal lands and 10000 acres of Other
lands and a lake fleet of 112 vessels.
The company's prospectus announced
total stock capitalization of 81 .100.-
100000. divided into $3.50. 900. 600 common
and $3.50 coo. 900 preferred stock. of
which sos, 49,. 200 common and s51O.314.-
100 preferred stock was issued, a total
Of $l.10S. 500. 800. The directorate in
Guided such prominent personages as
J. Pierpont Morgan. John d. Rookie
teller and Henry II. Rogers. of New
ork; Francis H. Peabody of Boston
Peter A. z. Widener and Clement A
Griscom Of Philadelphia. and Marshall
Field and Norman 3. Ream of Chicago.
And the first executive head was
Schwab.
The troubles Of the Trri+ed States
Shipbuildng company. which was
thrown into the hands of a receiver on
June 29. 1908. and with which Schwab
and Morgan. as well as John w. Young.
formerly OF Utah. were also identified.
increased the difficulties of the United
states Steel corporation and caused the
retirement of Schwab from its presI.
deney
Has Risen From Low Position.
Few men have had more unique
career in the financial world than
Charles VI. Schwab. Beginning active
life in a small village near the Ohio
Pennsylvania line as clerk in a grocery
store. he went to Braddock, Pa. 10
work as a labOrer in the Carnegie steel
mill located there. He attracted the
attention Of Captain Jones, who was
Carnegie's head man at Braddock. who
promoted him rapidly until he finally
became superintendent Of the mill.
When the strike Of 1892 in the Carnegie
plant at Homestead, Pa. had been In
progress a couple of months. Schwab
was sent there TO take charge. He
succeeded in winning the strike and
thereby made himself solid With An
drew Carnegie.
IN 1879 Schwab supplanted Henry C..
Prick of Pittsburg as general superin-
tendent of all Of the Carnegie plants.
al salary OF 100000 a year. Wher
the United States Steel corporation was
formed Carnegie refused to 20 into 1t
unless Schwab was made its president
This was done and Carnegie made a
transfer of all his interests in the varf-
Gus plants OF the Carnegie company.
out Kept string tied 10 all of them 50
that ne might not run short Of funds
with which TO buy castles in his native
scotland and found public libraries in
the United States.
1t is not known how much Schwab
contrived to save out Of his earnings
while on salary, or how much net no
made by his manipulations of the
stocks Of the various corporations that
were combined in the steel trust. bur
common report makes him a million
talre many times over.
FUNERAL NOTICES.