Evening star. [volume] (Washington, D.C.) 1854-1972, 1907-04-07

good, although Outlines the cause is in
direct. The reformation-all great re
forms have been brought about by agita-
ton. The agitation causes hardship at
first. just as the present agitation is in
juring business"
,,s And md he hoy ahogt the financial future of
Il think it is secure. This Is only a
furry
And how about watered stocks?''
He smiled serenely
I'm the future he said, there will be
Observation-Disclosures over-capitaliza-
ton. We have passed the stage of over
Rothschild when he says that American
railroad owners are fighting with one an
other. That is not the tendency of the
corporations
quainted with Baron Rothschild's views
on American corporations, as he knows
him personally. About a year ago there
| schwab and Rothschild were partners in
a game of bridge in London where the
| stakes We're SIS point. The story goes
| on the part of the baron. and that Schwab,
| who is good bridge player and bold
was considerably put out. But this Is a
| DEPRESSION.
| TT is true" continued Schwab, that
| some of the corporations are over
| capitalized, but 1t is mainly due to the
| exigencies of the times when they were
| formed or recognized. Now, when ].
| Pierpont Morgan took hold Of the United
| States Steel Corporation it was over
| capitalized. 1t was that way when he got
| control of it, and he could not remedy the
matter but he did the best he could for
it. You will admit he did we'll 1 was
glad to learn that he had spoken out in
London the other day on the present sit
uation in this country. What he says We
may well heed. l consider him the great
est fnancier in the world today. But the
present agitation will result in one thing
that l believe is certain and that is there
will be understanding between capital
and investors. To bring about this good
faith there must be more publicity. When
| was at the head Of the United States
Steel Corporation / advocated publicity.
My policy was to have everything open to
the stockholders. l still believe that pol
icy should be pursued In all corporations
With such a policy generally in force will
come tranquility in all lines of business
Then our restored tranquility will be only
the beginning of great industrial and
commercial expansion in the United States
First we must restore confidence at home
and then we must adopt new methods in
order to compete with our rivals abroad
For instanCe?"
First of all, We must pay more atten-
ton to the quality of our goods. In the
past we have been paying more attention
to quantity. Two years ago l was in Ger
many looking INTO the manufacture OF steel
there. After going through the great Ger
man plants | returned to America, thor
| oughly convinced that the ideal of the man.
ufacturers over there was quality, while
| the ideal of the manufacturers here was
| quantity. Here in America we have solved
! the problem of vast economical output ;
| but in Germany, our great Industrial rival
| they have, in their technical way, solved
| the problem of manufacturing the higher
| grades of goods. We have been concerned
/ in producing quickly and cheapy. and, in
| a measure, we have overlooked how to
( produce well. In the future, l believe, we
| shall take the leadership in both lines Of
| endeavOr. and beat all our rivals, not only
/ in quantity, but in "uality also. In the
/ future of American manufacturing indus
| tries no standard will be too high for u.s.
/ One may say disagreeable things obout
! Schwab. One may recall the numerous pic
. turesque tales that followed in his wake
, from Broadway to the Bots de Bologne.
One may recall the story of the series of
games of bridge whist In certain New
York club In which he and Harry Thaw
| and John A. Drake and John W. Gates
and other high rollers were said to sit
about three nights week. and where
/ Thaw was reported to have lost $3.50, coo,
frequently standing his partners losses.
| One may recall that diverting little yarn
! about Schwab tossing his money about at
the bazaar Of the Waterloo Hospital, in
London. last year, spending $500 in a few
minutes at the American stall. and taking
the entire corps of pretty women stationed
| there-and there were good many of
them-out to luncheon, winding up the fun
by buying 500 worth Of kisses Tan oscuIa-
tory hifh-ding that Andrew Carnegie even
IN his widest moments OF abandon never
| dreamed of from the infant Princess Mary
of Teck without knowing her identity till
long after the transaction was closed. One
may recall the stories of money-throwing in
the streets OF foreign capitals, the gaming
! spurts at Monte Carlo, which We're denied
The political ambition for a senatorial toga
I with Nevada as background, also denied
and numerous other alleged peccadiIlos OF
high and low degree, some denied and some
| unans wered. One may recall all these
| things and one, may think and say what
| one pleases. But one thing is certain
| Schwab is the master on steel. He knows
steel from the start to the finish. He has
made steel a study from the day ne was
taken out of that grocery store at Brad
dock, Pa, and put to work In the Carnegie
| shops until the present time
There Is a good deal worth the recalling
| In the early sforv Of Schwahs fife Hs