Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-01-11
REMEDY LIES IN CONTROL
BY GOVERNMENT, HE. SAYS
Points to Benefits Wrought in Rail-
road Situation.
TRUSTS SURPRISE TO HIM
Never Believed American People
Would Allow Them to Grow
So Great Without On
cial Regulation.

andrew Carnegie, continuing his festi-
inony before the House steel trust com.
mittec today, declared that the dav of
competition had passed because OF the
ability of manufacturers TO fix and main.
tain prices.
Men," he said, have been able to
sit down and agree to fix prices and
maintain them
DO you believe that situation today
destroys competition? he was asked
Certainly"
That men in these corporation meet
somewhere today to fix and maintain
prices?"
L think that is obvious"
Mr. Carnegie was asked IL he agreed
today with views he expressed two
years ago. urging government control
of corporations and regulation of prices.
His Views Unchanged.
Il still adhere to them" he answered
i believe the government should regu-
late maximum prices"
Don't you think 1t an unfortunate
condition.
Il think the time has arrived when
that is necessary, and point to the inter-
state commerce commission. which hat,
brought order. peace and justice out OF
chaos In the railroad business
Mr.. Carnegie declared that he never had
any idea the American people would per-
NIT the organization of such trusts as
have grown UP In this country, without
government regulation The ironmastel
sand he did not know the Sherman law in
terrered with his company IN engaging la
pools. He said he would not punish mil
iionaires. as examples to other Million
ar1es, because they had done something
in ignorance Of the law.
That would be vindictive," he said.
Growth of Steel Industry.
Representative Beall Of Texas began
the questioning Of Mr.. Carnegie.
You were connected with the iron and
steel business altogether Tor about forty
years, were you not?' he asked
Yes, SIR. said Mr.. Carnegie
You found it At the beginning a small
BUSINESS
Yes, very small
And you Ieft business dominating
the business of the wor,d?
Yes, In steel, said Mr.. Carnegie.
I'm the carry years You found the busi-
ness dlsintegrateo. did you not?'
Yes
And you left ii a business greatly
improved. greatly extended, with all It's
attributes, the ore, the transportation,
the coal and other facilities, ASSEMBLED
practically dominated by one great cor
poration..'
admirably stated" said Mr.. Carnegie
Partnerships the Best.
Has there been the same grade Of
progress in the steel business since the
United States Steel Corporation got hold
of the Industry"
Il don't believe that any corporation
can manage a business like a partnership.
could run arouns corporations You take
thirty-five young men interested in watch
ing even leak IN spisOt-no corporation
can compete with such an organizatIon
In any business.
George Perkins came to me one day
and said. Mr.. Carnegie, you once told
me about your partnership Organization
and 1 thought it was foolish. Now l
know you were right
Made Him Love Iowa.
1T is the same thing with the man who
owns the land and tilis. Take Iowa. for
instance. When a young man went to
Iowa on a holiday. There I saw those
beautiful farms, those homes OF a trium-
phant democracy. Those young men
owned their lands, their MONIES. Great
Caesar. what can a big farming corpora
ton do against such a condition as that?
All the big farms experimental In have.
been given up In this country.
The man who owns the land Is free
man. the equal of any other man in a
triumphant democracy. Why. have
loved Iowa ever since l saw that Pic
ture."
Mr.. Carnegie gave the committee sew
eral illustrations Of his power to get busi-
ness when he was in the steel market.
Why, take rails. for instance" he con-
tinued. Il had many close friends in
the railroad business. remember once
sss bs. un1n Faq 7ec psse tans nas asked .s for
and the bids were TO be opened
at Omaha. All my competitors were out
there. ] walked over to Sidney Dillon OF
the Union Pacific, in New York. I had
done the Union Pacific a favor once; got
them loan of something like $6DO.0u0 in
Philadelphia and they elected me and
George NJ. Pullman directors.
He Got the Contract.
Il told Dillon about the bids and asked
him IL the Carnegie rails were satisfac-
tory. He said they were. l said, Il want
the Union Pacific to do business with me
and I'll give you the lowest price. He
said All right. Carnegie and l got the
0,00O-ton contract.
Now. what's the use OF corporation
fighting against such an influence al
that?"
Mr. Carnegie also related how he had
given q credit to Coils p. Huntington.
president of the Union Pacific. at q time
when Huntington was hard up" .'fie
was my friend" said Carnegie What
chance had a paid agent 10 compete
under those conditionsT'
MIR. Carnegie was questioned at length
about the price of steel rails, the COM
mittee seeking to establish, IL POSSIBLE.
whether SIS ton for rails Is q fair or
unfair price, the price for which they
have sold since the organisation OF the
steel trust. Mr.. Carnegie referred to =
time In the SOS when John ~. Gates