The Pensacola journal., 1912-01-11
$42O, ,OO0, 900 All Received
For My Steel Properties

five-sixths of the Oliver Mining Com
pany's stock In the nineties
Mr.. Stanley asked him why the final
sixth was purchased on a valuation
basis OF 81. .00e, 900 for the whole tract.
though originally the company was
capitalized at only s1.2Oo.00o
He WAS SURPRISED.
Mr.. Carnegie expressed surprise 1T
this question.
At that rate" he exclaimed, I'VE
would have paid $4,000, 900 for the
whole tract. I'm not surprised at any
thing nowadays. II. that IFS true. what
fools we We're to sell our property to
the United States Steel Corporation .
It was then explained that the S17,-
600, 900 valuation basis was that of the
whole tract and not the sixth.
Even then Dir. Carnegie said that if
such q sum as indicated by those fig
ures was paid he was surprised th:st
he IVES such q fool to sell our prop
erty to the steel corporation on the
basis OF s430. .O00. 900"
Then, after a moment, Mr.. Carnegie
turned to the chairman:
Ny friend, he said, you will have
to ask someone who knows about those
figures. have never heard of them
before
When Mr. Carnegie took the witness
stand he furnished the committee with
statement regarding steel industry
conditions and told of his career In the
business.
STARTED IN 1862.
Mr.. Carnegie says he began his steel
career in November. 1851. with the firm
of Miller & Small, and that in 1862 he
borrowed $1,000 from the National
Bank of Pittshurg to engage in part
snership in the keystone Bridge Com
pany in Pittsburg
Five or six Of US" he said. were
engaged in this. In 1863 we built an
other mill in Pittsburg and in 1864
was one Of the organizers of the SUI
perior ore mill and furnace In 1866
we built the locomotive works in
Pittsburg and in 1857 we united two
other mills in Pittsburg. That was the
beginning of the Carnegie Steel Com
pany, limited
In interesting other men in these
early days" Chairman Stanley asked,
did you do so BY selling stocks In
Wall street or other exchanges, or did
you get men OF experience in the iron
business 2''
.Ch. no / did not 1oe8s for men who
had no experience in the iron business.
was one OF the youngest Of these
men and We had err little capital.
At different times we would put II
$4,000 or s30.0C0 each
What was the capital Of your prop
erty in the sixties %
MY dear sir, have no more idea
than YOU have''
It have an idea replied Mr.. stan
ley. Was 1t as much as $500000?"
~Oh. yes. The Superior mill alone.
was worth that. but do not want 10
guess. Give me time and / will give
you all the figures. I have had 50
much to think about for forty years,
and In the last eleven years have not
engaged in the steel business, and so
much has faded from my memory.s
DENouNcEs BANKS.
Mr.. Carnegie denounced the banking
system ef the United Statesaass e dis
grace to ciyiiizatfon
When panics come in this country.
he said, they are due to the fact that
we have tho worst banking system in
the world. Panics spread ruin and If
the bill now before congress is passed.
you viii have some ming to preven.
such panics.''
Mr.. Carnegie, in the written state
ment fled with the committee. pointed
out that the steel committees task had
arisen from the fact that the law of
competition in business has seemed
recently to be impaired in certain
fields, notably those OF natural oil and
steel and tobacco. Even now sigan
tic railway system, embracing nearly
one half Of the worlds railway mile
age, has been affected and several re-
tail companies have been tried and
convicted under the Sherman law.
I'VE are in transition" Mr.. Carnegie
said, "and naturally suggestions are
numerous and divers for effective COM
pliance with the Sherman act as in
terpreted by the supreme court. That
a satisfactory measure viii finally oe
evolved is certain. one which does not
go further than actually necessary 10
prevent restraint of trade and mo-
nopoly.
These two uncomfortable evils pre-
vented the government and courts may
well rest from further action until ex-
perience dictates any necessary modi-
ficatfons. There is no cause at present
for either alarm or haste, on the part
OF the courts, congress, or producers
or consumers. whose interests viii be-
come mutual wherever freedom of
trade from monopoly are established.
Nothing revolutionary is required
Continuing the story of his life. Mr..
Carnegie said that during the civil
war he suffered sunstroke and was
ordered to spend his summers in a
cooler climate.
ALWAYS WATCHING.
Il went to my native land, Scotland,
and there I watched the Bessemer
process of making steel. There, too. l
met a Mr.. Dodds who had invented a
patent for hardening the face of steel.
purchased the patent and brought
Mr.. Dodds to Pittsburg. where we built
a furnace and made the first hard
surface rails in this country
Mr. Carnegie referred to that great
mechanical genius, Charlie Schwab,'
as the greatest man / ever knew iii
that line"
Mr. Carnegie said he suggested to
Schwab that he test process for
making ore in open hearth furnaces
and then build an open hearth furnace.
Charlie" according to Mr.. Carnegie.
said he would try and it wasn't more
than a week later that he came to me