Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1912-01-11
CARNEGIE IS
A WITNESS IN
STEEL PROBE. B !.
Ironmaster Tells Of Early
Career in Industry and
Takes Occasion to Attack
U. S. Banking System.
BELIEVES BUSINESS
ILLS WILL BE CURED

That a Satisfa tory Measure
Will be Evolved to Pre1
vent Restraints Of Trade,
He Thinks is Certain,
Washington, d. G., Jan. 1o.Andrsvy
Carnegie was an involuntary Witness
today before the house committees
probing the laffairs .of the United
States steel corporation. Mr.. Carnegie
who was first requested to appear and
on declining the invitation, was pers
emptorily summoned to Washington,
was wanted to elucidate many Of the
details Of the organization and opera
tion Of the steel trust" and his DON'T.
nation of an industry in which ho was
TOR 20 many years q predominant
figure. J,
Mr.. Carnegie reached the hearing
room ahead of time. He, talked com.
monplaces with Chairman Stanley
and other members OF the committees
Mr.. Carnegie had once expressed :
willingness to appear, but recently de-
clined to testify on the ground that
he was named as a defendant In the
government suit against the steel cor
poration. NJ
Gives Early Career In Steel Business
When Mr.. Carnegie took the Witness
stand he furnished the committee with
a statement regarding steel industry
conditions and told Of his careersin the
business from the outset. Il
Mr.. Carnegie was accompanied by
J. H. Reed Of Pittsburgh, his counsel.
The committee room was crowded
with spectators, including many
women. He was sworn in by Chairman
Stanley. Mr.. Carnegie said he began
his steel career in November. 1861,
with the firm OF Miller & Small, ana
that in 1862 he borrowed $1,000 from
the National bank Of Pittsburgh to
engage in partnership In the Key
stone Bridge Co., at Pittsburgh.
Five or six of u.s." he said, were
engaged In this. In 1853 we built an
other mill in Pittsburgh and In 1864
/ was one Of the organizers Of The
Superior Ore Mill and Furnace. In
1865 we built the locomotive works In
Pittsburgh and in 1867 we united two
other mills in Pittsburgh. That was
the beginning Of the Carnegie Steet
Co., Ltd"
I'm interesting other men with you
in those early days." Chairman StAn.I
ley said, "did you do so by selling
stocks In Wall street or other ex.l
changes, or did you get men Of sx.E
perience In tho iron business!'
"Oh, no l. did not look for men who
had experience in the iron business.
I was one of the youngest Of these
mon and we had very little capital. AZ
different times We would put In 320,.i
900 or $4,000 each.'
what was the capital Of your prop.l
critics in tho sixties?"
my dear sir. have no more idesl
than you have"
II have an idea," replied Stanley
"Was it as much as $500,000.
"Oh, yes, the Superior alone was
worth that but do not want to guess.
Give me time and will give you all
the figures.
Denounces Banking System.
Mr.. Carnegie denounced the bank.i
ing system Of the United States AZ
a disgrace to civilization"
"When panics come in this
country" he said, "they are due to the
fact that we have the worst banking
system in the world. Panic spreads
ruin and IL the bill now before con.
gress is passed you will have some
thing to prevent such panics."
Mr. Carnegie, in the written state-
menr filed with the committee, pointed
out that the steel company's task had
arisen from the fact that the law OF
competition in business has seemed re-
Gently to be impaired in certain fields.
notably those Of natural oil, steel and
tobacco. Even now a gigantic railway
system, embracing nearly one half OF
the worlds railway mileage, has been
affected and several retail companies
have been tried and convicted under
the Sherman law.
Predicts Solution Of Troubles.
1--WE are in transitional stage"
said Mr.. Carnegie, "and naturally sug-
gestions are numerous for effective
compliance with the Sherman act as
interpreted by the supreme court.
That a satisfactory measure will
finally be evolved is certain--one
which does not go further than ac-
tually necessary to prevent restraint
of trade and monopoly.
There is no cause at present for
either alarm or haste on the part of
the courts or congress. Nothing revolu-
tiOnary Is required"
Mr.. Carnegie said that during the
civil war he suffered sunstroke and
Continued on Page A.