Perth Amboy evening news., 1911-08-05
SAYS TRUST
HIS IDEA
So Says Schwab at the
Hearing.

New York, Aug. 3. - Probably the
most interesting witness yet to appear
before the committee Investigating the
steel industry is Charles N. schwab,
FIRST president of the United States
Steel corporation, now head OF the
Bethlehem Steel company. Chairman
Stanley opened the examination Of the
witness.
81 believe you made the first sug-
gestion concerning the formation Of
the corporation, did you not?"
Il can't answer that positively" said
Mr.. schwab, but the matter was in
my mind, and I discussed it with
others"
The chairman told him her to go on
and tell the story of how the steel
corporation came into existence.
"Well, Mr.. Chairman" said Mr..
Schwab, II am very glad of the op-
portunity to once and for all tell the
definite story about which there have
been so many Misrepresentation and
misstatements, and, If you will be pa
tent, I will do so with such details as
l can remember at this time.
"In the fall Of 1899, and while l Was
president of the Carnegie Steel COM
pany, ]. Edward Simmons, a banker
Of New York, and friends Of mine
rendered me a dinner at the University
club and invited to that dinner some
seventy or eighty Of New York's most
distinguished ff1nanciers and business
men.
II made some remarks on my idea
of the future development of the
manufacture Of steel In the United
States. I explained at thai meeting
the great advantages that would re-
suit from such an organization as the
United States Steel corporation, and
l gave reasons in detail to them. First
of all that, instead Of manufacturing
steel as It then was manufactured by
a number Of companies, each Of whom
manufactured the same lines, it was
my Idea that the organization to be
truly successful and to control the
business of the world-f mean to have
eminence in the business Of the world
should be made of such a character !
that one mill could be run on one prod
uct and not one mill on fifty products
as was then the practice.
Mr.. Schwab said that at the dinner
MFR. Morgan sat on his right and that
Mr.. Carnegie and e. Il. Hartman
among those at the table.
SfT warf AonIy 70 pSS Aub y,r1 y b. 49,,
tnued, "and thought no more about
y Thgn n a2yy4~recelzea a long
distance telephone call from Mr.
He asked me wt~thof could
meet Mr.. NORGE N Philadelphia the
day. l went to Philadelphia, but
Morgan was Ill, and on the follow
ng day, I think, l saw him at his
He asked me to go over In
more detail the substance of what l
spoken of at the dinner.
within a day or two Mr.. Morgan
old me that he was convinced and he
lsked me If I could get a price from
Carnegie. l had not spoken to
Carnegie about 1t, but a little
alter, when l vas spending the day
With him, a favorable opportunity ar
lived. I advised him that at his time
# life, with the ph~ilanthropic ideas
he had, he should sell. Mr.. Car
was very reluctant, and I know
hat soon afterward he regretted It
H eve wanted to sell, and | can
you that a week after he had
sold the properties he regretted It,"
Il want to take this opportunity of
saying" Mr.. Schwab went on, when
he said that he had completed his mar
of the formation, that any
based on the false prin-
of restricting prices and re-
straining the output Is wrong"
you were opposed, then" asked the
chairman, "to restriction of competi-
ton, making territorial boundaries |
and fixing prices-the three weapons
of the trust2"
Mr.. Schwab is a witness again this
afternoon.