Los Angeles herald., 1907-10-20
.SCHWAB TO
ENLARGE BIG
IRON WORKS
STEEL MAGNATE TALKS TO
SAN FRANCISCO
LABOR TOO HIGH, PEACE NEcEs-
sARY, HE SAYS
Capitalist Has Faith In the City, but
Urges Its Residents to Drop Fac
tIonaI Strife and Work
Together

Ry Associated Press.
SAN FRANCISCO Oct 19-Charles M.
Schwab. the steel magnate, addressed
large gathering of the most influential
men of San Francisco at noon today IN
the board room of the Merchants ex-
change. His subject was San Francisco
: Industrial situation and her commercial
future.
Most important of the direct state
nents made by Mr.. Schwab was tnat
after looking the ground over careIuiiy
he has decided not only to continue the
Union iron works, but to modernize that
shipbuilding and structural plant at
cost of s1OO0O00 or more and enlarge Its
capacity out output. This announcement
threw his audience into turmoil OF hand-
clapping and cheers.
Mr.. Schwab declared the condltlons OF
Industrial warfare existent In san FRAN
cisco cannot survive; that the urusual
and abnormal scale of prices for labor
imposed by the unions upon capital IN
this city must fall; that confidence as
between themselves and in the integrity
of the courts must be restored among the
reople of San Francisco; that he Is TOT
an enemy of organized labor, but IS op-
posed to the way in which labor unions
are administered today; that San Fran
cisco 'CannOC neip SuCttcuih>, civ e'itNe
this city has before it future greater
in industry and commerce and economi-
cal achievement than in its past.
No Criticism of Nevada
After his address Mr. Schwab. in re-
ply to a question, made the following
statement:
.sMv recent criticisms regarding Me-
vada have been misunderstood. l have
not criticised and do not criticise the
citizens of that state.
..My criticisms were directed solely
against the men who have brought the
mines of Nevada to New York
Mr. Schwab spoke in part as foliows
INV short stay in San Francisco has
NOT nut me In position to offer very
valuable suggestions to those who live
here and know conditions as I cannot
know them: but it often happens that
an unframed but fresh mind absorbs new
ideas and can make some suggestions or
comparative value, / desire as preface
TO saw that no expressions of mine today
should be construed as bearing on the
political situation of this great city. 1t
is INV purpose to speak to you Of San
Francisco as manufacturing city. and
Il is nv spirit to address you as fellow
. citizens. If my very large investment Of
money here gives me that right.
s'I was so worried about industrial
conditions here that I came prepared to
make a long stay to determine what ac-
tion on my part was necessary, not to
make money but to save losing money.
81 have now been over the ground and
have made up my mind. 1t is that which
am going to tell you.
Labor Only Value
.orhe value of steel rail is nothing
more than the value of the labor put
into II. No item enters into the cost
NJ anv product except the item of labor.
Successful mar ufacturing can only be
done where labor conditions are right;
that is, where labor conditions are such
that products can be turned out at the
same relative cost as elsewhere. The
ability to manufacture competltiveiy
must be in this city If this city is to
rehabilitate itself industrially. No one
believes in high wages more than I. /
nav the highest wages, but l want the
best work.
eve can well afford to pay our men
in Pittsburg four times as much as the
steel workers of Birmingham get because
our men do four times as much work.
am not opposed to organized labor. I
am opposed to labor unions as they are
administered today. l am just as Bit
terlv opposcd to the employers who treat
their men as some capitalists do today
.Capital and labor must go forward
hand in hand Labor never would have
organized If it had been properly treated
in. the first place l never nad an or
panized man working for me In all my
experience. Why? Because T. believe
that NV non-union men should be paid
more than union men get. so pay them.
@The union is like the trust in that
il creates artificial prices and restricts
OUTPUT. For that reason, II they are
naintained on that basis. both must fail
~ themselves. The union cannot live
IL II is going to persist in saying to its
good workman: You must do no more
work than our poorest worker
san Francisco All Right
~ have made up my mind that San
Francisco is going 10 pe al risI..
have made UP my mind that the Union
Iron works will proceed with our work
stronger than ever. I'll tell you why.
The location of this great city. at the
gateway of the orient is the same as
New York at the gateway or European
countries. San Francisco WIN get sreae
oriental commerce that cannot by any
thing he checked San Francisco will go
on and ahead in spite of any legislation
that NAV be directed against II orAre-
strictions. that may be placed upon 1t.
San Francisco cannot help growing
THE Union Iron works does NOT nelp
to make money just now, but we VIII
make il after while. The worse the
abnormal conditions are the quicker they
win be righted.
Tine conditions your workmen have
imposed on you cannot last. They are
so abnormal that the same thing Will
follow that happened in England 1t VIII
be impossible to make profits. and then
1t will be impossible to get employment,
Then the conditions will adjust them
selves
I'VE In the east draw the impression
that San Francisco is in state Of po-
litical turmoil that Its courts OF justice