Las Vegas optic. (East Las Vegas, N.M.) 1908-1921, 1912-01-10
TESTIfIES BEFORE COMMITTEE
AGED GOLFER AND STEEL MAN.
+ UFAcTURER GIVES TEsTI-
MoNv TO TRUST PRoeERs
TELLS The STORY OF HIS LIFE
cHARAcTERlzEs scHWAe AS
ATHE GREATEST MAN LEVER
KNEW"

Washington, Jan, 10.-Andrew Car
negie was an involuntary witness to
day before the house committe prob
ing the affairs of the United States
steel lcorpoAation. When Mr.. Car
negie took the witness stand he fur
nished the committee with a state
ment regarding steel industry con
ditions and told of his career in the
business. Mr.. Carnegie said he be
gan his steel career in November
1861 with the firm of Miller and
Small and that in 1862 he borrowed
$1,000 from the National Bank OF
Pittsburgh to engage in a partnership
in the keystone Bridge company at
Pittsburgh.
Five or six of u.s." he said, were
engaged in this. In 1853 we built
another mill in Pittsburgh and in 1864
l was one of the organizers of the
Superior Ore mill and furnaces. In
1866 we built the locomotive works
in Pittsburgh and in 1867 we united
two other mills in Pittsburgh. That
was the beginning of the Carnegie
steel company, limited"
81 was one of the youngest of these
men and we had little capital. At diff
ferent times we would put in $4,000
or $4,000 each"
What was the capital of your
properties in the sixties?"
my dear sir, have no more idea
than you have"
81 have an idea" replied Stanley.
'Was it as much as $5OO,OO0?"
"Oh, yes, the Superior mill alone
was worth that, but do not want to
guess. Give me time and will give
you adj the figures"
Mr.. Carnegie denounced the bank
ing system of the United States as
a disgrace to civilization"
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.
Il went to Scotland, and there
watched the Bessemer process Of
making steel. There, too, met a
Mr.. Dodds, who had patent fol
hardening the face of steel. l pur
chased the patent and brought Mr.
Dodds to Pittsburgh where we bull
a furnace and made the first hard sur
face rails in this country"
Mr.. Carnegie referred to "that
mechanical genius, Charles Schwab,
as the greatest man I ever knew il
that line" Mr. Carnegie said he
suggested to Schwab that he test {
process for making ore in open hearth
furnaces and then "build an oper
hearth furnace"
Charlie" according to Mr.. Car
negie, said he would try and it wal
not more than a week later that h'
came to me in my office in New Yorl
and laid on my desk plans for eigh
magnificent open hearth furnaces. w,
sold open hearth steel for SIS tol
more than other steel"
Mr.. Carnegie explained how tn
Carniege Steel company had pur
chased five-sixths of the oliver Min
ing company's stock in the nineties
Mr.. Stanley asked how the final sixtl
was purchased on a valuation basi
of $17,OO0,O0O for the whole traol
though originally the company wa
cauitalized at only s1,20O,OO0.
cat any rate" Carnegie exclaimed
1--WE would have paid $S5,00O,OO0. In
not surprised at anything nowadays
If that is true what fools we were t
sell our property to the United State
Steel corporation on the basis o
s4sO,OOO,0 ,00O."
Then after moment Mr.. Carnogi
turned to the chairman. my freinj,
he said. you viii have to ask some