The evening world., 1911-08-04
for N. bssssrmen. o. ~ wAss

was President Of United States Steal
he didn't give away secrets. II wa
not then the policy to DO 20.
Independent manufacturers Ind the
trust do now interchange information
freely. Mr.. schwab said.
Then Mr.. chwab went into the story
Of the building OF the trust and his con-
ferences with Mr.. Morgan and Mt. Car.
negie after the dinner.
After the dinner" Mr.. echwab con-
tinued, Il went home to Pittsburg and
thought no more about Il. A few days
later I rad a telephone message from
MIR. John w. Gates. He said that Mr.
Morgan. who sat at my right at the
the suggestions I had made. He asked
II I would meet Mr.. Morgan At Phila-
ielphia the next day.
Il went to Philadelphia. Mr.. Gates
~as there. He saw me. Morgan was
III. So I went to his house. There I
went over with him the subject Of my
speech at the dinner. Mr.. Morgan
asked many questions. At the end Of
my talk he asked me TO ind out from
Mr.. Carnegie II he would sell and for
what price.
Il did approach Mr.. Carnegie. I tried
10 impress him that at his age. with his
many p~hilanthropic interests IL was
right for him to sell. Al length. after
several days, he agreed to sell. ! must
say that l think MIR. Carnegie was re-
luctant to sell. Indeed, ] know that
later he deeply regretted that he had
done So"
"oENTLEMEN's AGREEMENTS"
DIE AT ONES WILL.
Mr.. Schwab put great stress on his
ideA hat tho combination was for sav-
Ing money IN manufacture and In i'm
proving quality OF product-not for the
fixing OF prices or restricting OF pro-
duction.
II held then, 40 I do now he said.
that any trust founded on tho Idea Of
monopoly OF the steel business was
bound to fail"
Mr.. Schwab discussed the gentle
mems agreements" OF the ''oid days
with Mr.. Stanley.
Il can remember no gentleman's
agreement" said Mr.. sohwab. which
was made for a definite period Of time"
They were made to he broken on
noticef"
usually when any party 70 the agree
ment felt like breaking IL" Uaughter.)
But on noticeT"
Usually without notice" aid Mr..
schwab. with n frank bland smile.
There was more laughter.
Were not %forfeits put up to enforce
theee agreements7"
Yes"
wound not 10000 penalty operate to
maintain such an agreement"
Not IN the steel business"
Mr.. Stanley sat up with an expres-
sion OF establishment.
"Oh. Mr.. schwab." he said. unctu.
ously, cam I get into the steel bust.
nessT" t~Laughter.1
II wouldn't let $4,000 stand In the
way OF a big contract" said Mr.. Schwab
seriously.
my dear fellow" said Mr.. schwab
in answer to another question by the
chairman. II have been in the steel
business since 1880. In all h q time
I heard every few months Of such
agreements. Most were never consum.
mated. Some were. Soma lasted q day,
some a few months some only 20 long
as Il took the gentlemen subscribing to
the agreement to get 10 . telephone"
cANNv CARNEGIE DIDN'T CARE
TO POOL HIS ISSUES.
Wasn't one reason for our friend
Mr.. C~a-negie's unpopuiaT1ty with his
fellow manufacturers At that time the
fact that he would not Join In such
a~greemenetsf"
Yes. Mr.. Carnegie could not build up
his new business without keeping up
the sharpest competition and making
wholesale sacrifices Of prices"
The audience had q lot Of fun over
Mr.. Stanley's reciprocation OF Mr..
schwab's bland ana smooth manner.
II Mr.. Schwab put In . drop Of oil. Mr..
Stanley splashed a cupful back at him
and Mr.. schwab came back with a
barrel OF suavety. A. for instance:
do ! make myself clear7" asked Mr..
schwab.
Not only clear said Mr.. Stanley,
beaminR, but convincing"
"Ah. Mr.. Chairman" said Mr..
schwab. you pay me so many COM
pllments that you incline me to " con-
h%dential."
An, Mr.. schwab." fairly irradiating
the room with his smile, 1T want your
confidence. You know many things I
would like to know"
Mr.. Schwab said that the steel In
dustry to-day had reached n state 40
near perfection that no great improve
ments OF method were to be expected.
New companies would never be organ
lied. TIL future development would he
the extension OF existing Industries,
Also the ore fields In sight are all taken
m and being worked except In Mexico.
This did not mean that the end was
IN sight. For instance, there are ore
bodies In Cuba which will keen our com
pany and the Pennsyivanis Company
going for at least 20 wears"
Littleton c-ross-eNamined the witness
on his theory OF saving money by hav-
ing each mill furnish It's roduct to It's
own neighborhood Mr.. Schwab said
that there must be a certain natural
limit OF product. because 1t IL useless
10 manufacture steel which could not be
sold.
But does not that natural limitation
force you 20 nx prices
prices hx themselves. The price OF