The citizen. [volume] (Berea, Ky.) 1899-1958, 1912-01-18

Washington. Andrew Carnegie
took the witness stand here IN the
congressional inquiry into the steel
trust and tod how he formed the com
binatlons OF capital that brought him
great wealth. incidentally be de-
nouneed the american banking sys-
TEN as "a disgrace to civilization and
sought To boost the Aldrich currency
bill now at issue.
MI Carnegie. who was nrst re
quested to appear and who declined.
had been peremptorily summoned
When he took the witness stand he
furnished the committee with a state
ment regarding steel industry condi-
tons and told OF his career In the
business from the outset.
Mr.. Carnegie said he began his
steel career In November, 1861. with
the firm of Miller Il Small, and that
in 1862 be borrowed $500 from the
National bank OF Pittsburgh TO en-
gage In a partnership In the Key
stone Bridge company at Pitts
burgh.
Mr. Carnegie, in denouncing the
banking system OF the United States
as a disgrace TO civilization" said:
When panics come in this coun.
try they are due TO the fact that We
have the worst banking system In the
world Pauics spread ruin and II the
bill now before congress Is passed you
will have something to prevent such
panics."
In the written statement tiled with
| the committee, Mr.. Carnegie pointed
out that the steel committees task
had arisen from TIE TACT that the
law OF competition in business has
seemed recently to be impaired Nj
certain fields, notably those OF natural
ell and steel and tobacco. Even now
a gigantic railway system. embracing
nearly one-half OF the worlds railway
mileage. has been effected. and sew,
eral retail companies have been con.
victed under the Sherman law"
Continuing the story OF his life.
Mr.. Carnegie said that during the
Civil war he suffered a sunstroke and
was ordered to pass his summers In
a cooler climate.
Il went to my native land. Scot
land. and there ! watched the Bes-
semer process OF making steel There.
too. I met a Mr.. Dodds. who had IN
vented a patent Tor hardening the
face of steel. purchased the patent
and brought M. Dodds to Pittsburgh,
where We built furnace and made
the first hard surface rails In this
| country"
Mr. Carnegie referred TO tina;
| great mechanical genius" Charles
Schwab, "as the greatest man ! ever
knew in THAI line" lie said that be
suggested to Schwab that tie test a
| process for making ore in open hearth
furnaces, and then build an open
hearth furnace"
Witness explained how the Carnegie
Steel company had purchased i've
sixths OF the Oliver Mining com
panys stock in the '9Os Mr.. stan.
! ley asked him why the final sixth
was purchased on a valuation basis
| of $4,000. 900 for the whole tract
though originally the company was
capitalized at only sl.200.O0O. Mr.
Carnegie expressed surprise at this
question
AT any rate" he exclaimed. we
would have paid ss5.OOO0OO Tor the
whole tract I'm not surprised al
| anything nowadays"
It was explained that the $1,000
! 900 valuation basis was that OF the
whole tract and not the sixth. Even
then Mr.. Carnegie said that II such a
sum as Indicated by those figures
was paid he was surprised that ne
was such a fool TO sell our property
To the steel corporation on the basis
Of $3.50. zoe, O00"