New-York tribune., 1908-12-22
CARNEGIE ON TARIFF
URGES REPEAL OF DUTIES
ON STEEL:
Insists Industry No Longer Needs
Protection Cracks Jokes 9th
Committeeman.
Committeeman
Lrro,a Tie rrlhune Rureaa.!


Washington. Dec 21-Andrew Carnegie sp-
peared before the Ways and Means Committee
to-day and reiterated his already published
views on the steel duties Of the Dingley tariff
law in a hearing which lasted about seven hours
/ He advocated a repeal of the duties, and based
} his argument on the ability Of the United States
+ steel interests to manufacture their product
more cheaply than can be done in any other
/ country and the facts that there are practically
no imports and that exports are Increasing an
nually
( If the American manufacturer Of steel, after
+ forty years Of nursing. cannot now stand with
/ out protection. then our policy of protection
/ must be declared a failure" Mr. Carnegie said
/ He attempted TO give no accurate figures, and
/ explained this by saying that he was not now
! connected with the business. but he assured the
/ committee that any figures submitted by Judge
I E. H. Gary were sure to be accurate, but wanted
/ so.le allowance made as TO Judge Gary's testi-
/ mc2y on the ground Of interestedness. He told
/ the committee that they could never hope to
/ frame creditable tariff bill until they learned
/ the exact costs at home and abroad. and he was
evidently not much impressed with the progress
which had been made in ascertaining those
/ figures.
one Of the most interesting phases Of the
hearing was the way in which Mr.. Carnegie
F handled those members of the committee who
Z
buffed Chairman PAYNE several times and caused
that gentleman to give him his constant atten-
ton and he commented jocoseIy upon the asides
/ which are usual between the chairman and Rep
| resentative Dalzel When Mr. Dalzeu tntimated
/ that he himself knew something about the steel
business Mr.. Carnegie laughed. and when Rep
resertative Cochran propounded series Of
| questions as to the early history Of the steel
business the laird forced him to come TO the
l-
Mr.. Carnegies. He gave no specific informa-
ton. but retreated not a step from his position,
nor was he at any time harassed by his ques-
/ TONERS.
His soIfcitude for his weaker brethren is sub
lime said Mr Carnegie late in the hearing
referring to Judge Gary's contention that the
smaller steel manufacturers could not stand
the abolition of the duty steel
CARNEGIE TELLS OF HIS CAREER
one of the most interesting features Of Mr.
Carnegfe's testimony was his account Of his
remarkable rise in the iron and steel business.
He said that his first venture was in the manu-
facture of castiron bridges for railroads TO re-
place the wooden structures which they we're
then using. With six others he invested $500
in the venture getting his share Of the money
by means Of a loan from a bank. Mr. Carnegie
said that his capital was increased through the
earnings Of the company and through the sale
of Pennsylvania Railroad bonds
He also told of the Edgar Thomson Steel
Works which he started with several partners
with a capital of 100000 or 100000.
Was there any additional capital put into
it. or did it expand itself by its own earnings
by the reinforcement of its earntngs?" asked
Mr.. Cochran.
I think the Edgar Thomson works did" was
the reply. There may have been 5000 or
$4,000, or something of that kind. put in.
And as the money was earned, after the part
ners took out what was necessary for their sup
port the surplus was reinyested, and the work
expanded"
"Religiously," replied the witness. The part
ners were not then miIlionaires; they had in
terest in the firm, but they hoped for it.
But they lacked for nothing" interrupted Mr..
Cochran. "and they were putting back their
surplus earnings into the company"
Yes, sir
After the Edgar Thomson works started the
Carnegie Iron and Steel Works were started -
asked Mr.. Cochran.
The Edgar Thomson started, and none Of
my partners would go into it," replied Mr.. Car
negie.
That is. none of your old partners in the iron
business? ,"
Yes"
Mr.. Carnegie said that the Union Iron Mills
soidated with the Edgar Thomson Steel works,
becoming the Carnegie Brothers & Co. Thus Mr
Carnegie brought together his iron and steel
business.
Mr.. Cochran continued to question Mr.. Car
negie closely regarding his early ventures, ask
ing If the vast property created by Mr.. Carnegie
and his partners did not represent almost en-
tirey profits earned
Mr.. Carnegie was somewhat evasive upon this
point.
SALE OF HIS STEEL INTERESTS.
Mr Cochran then wanted to know what
amount was paid Mr.. Carnegie when this en-
terprise was sold.
My partners, young partners, received an Of
fer for the mills to convert them into this
great new company consolidate with the others.
and sent my cousin out Pittsburg, who was
a partner himself. to ask the young men il
they were all in favor Of making this change:
that If they were I would acquiesce. because I
had made up my mind when I was younger
that l would never spend my old age grabbing
for more dollars" Mr.. Carnegie continued:
There is a phrase that you know, Mr.. Cock
ran. very we'll, when an old man says he re-
tires for the making of his soul. Well. made
up nv mind that I would retire early, and then
I said to these young men. I will do whatever
YOU wish and they ali wished TO sell out.
Now I had nothing whatever to DO with the
negotiations. They made their bargain and
came TO me and asked what I would sell for.
and l said I would sell for the same amount Of
bonds as they to receive in 8 per cent pre-
ferred stock You see. they were continuing in
the business and they took ! per cent stock
and l took : per cent bonds Then they got
81 800 a share more Of common stock, and I