New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-08-05
SCHWAD GAVE MORGAN
IDEA OF STEEL TRUST
Also Persuaded Carnegie to Sell
Out and Devote Himself to
Philanthropy, He Testlfles.
FaVoRS HIGHER RAIL PRICES
First President of Big Corpora
ton Says There's No Chance
for Newcomers in the Bust
ness as Ore Is Bought Up.

charles NJ. Schwab. president of the
Fethlehem Steel Company. who. accord
irr 10 the words of Andrew Carnegie
i,,,,,vs more about the steel business
than any other man in #. gave the
House committee which is investigating
the United States Steel Corporation the
f,,u benefit OF his knowledge on the sub
tort Yesterday when he appeared as
witness before that body. He was under
examination by Chairman Stanley and
other members Of the committee during
the entire period Of both sessions. and
VIII return 10 finish his testimony to-
day
Mr.. Schwab expressed some decided
opinions on the economic and industrial
rbases az the steel business. and his
frank assertion that II would be for the
hest interests Of the industry as well as
those Of the ultimate consumer II all Of
The independent steel concerns would
regularly compare prices and cost Of
production seemed 10 fairly startle some
Of the committeeman.
I'm his opinion competition should give
way to cooperation for the sake OF
economy. and In that way the best gen
oral results would accrue 10 the pro-
Queer and consumer alike. He advo-
Gated a still higher tariff on steel rail-
IN order 10 afford the manufactures
what he termed a fair profit
Mr.. Schwab did not attempt to con-
coal his eve TO business in many OF
his frank answer 10 questions. and fire.
ouentIv a good natured passage at arms
ensyed between the witness and his in
o1isitors. which afforded general laugh
for. Chairman Stanley and the witness
became so felicitous on some Of these
occasions that II led Mr.. Schwab 10 say:
'.vou are paying so many compliments
am inclined 10 be confidential"
NJ. Stanley observed that it was a
good thing 10 get the confidence Of the
witness and have him tell all he knew.
Saws Day Of Trusts Is Passed.
Mr. schwab told the inside" story OF
,-e formation Of the United States Steel
CORPORATION. Rcmarking that Schwab
was president of the Carnegie Steel
COMPANY at the time the Steel Cor
roratiou vas formed 70 buy tho prop
e~tv. and afterward the first president
If the steel Corporation. the chairman
asked the witness 10 tell all he knew
hour IL. The witness said he would not
consider that he was the first one TO
suggest the idea of the big corporation,
rrt he did not appear reluctant to &C
cept the credit for ii.
Chairman Stanley blurtly approached
the subject OF trusts" with the re-
mark,
.. IT want Won to lay gre trust on this
table and help me to dissect this ami
NAL
NJ Schvab said that the steel Cor
rorstion had never been formed with
any trust idea attached 10 IL, in the
earee that the word is conventionally
Understood. He was strongly opposed to
tre idea Of restricting production. and
-ra day Of the so-called trust had
~aesed he said.
NV definition Of the word trust he
said. els an organization that will con-
trrt ITS affairs In some artificial manner.
had always said that any organization
founded on the idea Of restricting output
md fixing prices could never prosper.
The plan 90 which the formation Of
r-a Steel Corporation was based was
essentially one Of economy. Of a general
and systematic reduction Of the cost or
reduction. the witness said.
chairman Stanley asked the witness
sror+ the "renuemeu's agreements in
the steel trade. Ife wanted 70 know II
such agreements had not bound the
steel manufacturers TO regulated prices.