Evening star., 1912-01-10
RU|NSST|LL GLOWING CARNEGIE A WITNESS
Securities Of Vast Value in ronmaSter Outlines His On,
Equitable Buildings Vaults. erations in Steel
UNDER TONS OF DEBRIS lBEFORE HOUSE Committee
Femen Fighting Their Way the Says Couny
Papers Disgrace to Civilization
POUR ON WATER ALL NIGHT CAUSE OF PANICS AND Rim
Early Estimates Gives History Industries
Too areat-No Additions to the With Which Was Long
4 Casualu rdenti6.d
lronmaster Outlines His Op-
erations in Steel.
BEFORE HOUSE COMMITTEE
Says Country's Banking System Il
Disgrace to Civilization.
CAUSE OF PANIcs AND RUIN
Gives History Of the Industries
With Which He Was Long at
Identified.

Andrew Carnegie told the House steel
investigating committee today the story
OF his steel operations and denounced ths
banking system of this country as a ..dts-
grace to civilization"
when panics come i'm this country =.
they do" said he. they are due TO the
fact that we have the worst b.nktn~
system in the world. Panics spread ruin.
ana II the bill now before Congress- 4.
passed you will have something 70 pre-
vent such panics as we frequently haye-
Mr.. Carnegie's reference was IN the ps-
tioha' monetary commission bill soon TO
be considered by the Senate finance com.
mittee.
Mr.. Carnegie. in an exhaustive written
statement. pointed out that the steel
committees task arises from the fact
.nat the law OF competition In business
certain fields. notably those nf nst,rai
OIL and steel and tobacco. Even now !
sisdnuc railway system embrac,nv
nearly one-half Of the worlds railway
ra.e, ,mnease. mas been affected. and several
retail companies have been tried and
convicted under the Sherman law.
Satisfactory Legislation Certain.
We are In transition stage" said
MT. carnegie. "and naturally suggestions
are numerous and divers for effective
compliance with the Sherman act as IN
terpreted by the Supreme Court. That a
satisfactory measure will finally be
evolved is certain-one which does not 90
Iurtner than actually necessary to pre-
vent restraint OF trade and monopoly
Inese two and unendurable evils prevent.
eo, government and courts may well rest
from further action until experience dic
tates any necessary notifications There
- no cause at present for either alarm
or haste upon the part OF the courts.
congress or producers or consumers
whose interests will become mutuaf
Wherever freedom Of trade from monopoly
are established Nothing revoiutionary
Is required"
Mr.. Carnegie was an Involuntary Wit
ness. He was first requested TO appear.
and upon declining that invitation he was
peremptorily summoned to Washington
tie was wanted with q view to elucidat-
ing many Of the detAils or the oreaniza-
tion and operation Of the so-cailed steel
trust and its domination Of an Industry
In which he was 50 many years a pre-
dominant figure.
Chats With Committee Members
Mr.. Carnegie reached the hearing room
ahead Of time. He talked commonplace
with Chairman Stanley. who has fretted
over the committees inability to obtain
certain information from the steel cor
poration. and with other members Of the
committee. Mr.. Carnegie had once ex-
pressed willingness to appear. but re-
Gently declined to testify on the ground
that he was named as defendant i'm the
governments suit against the steel cor
poration.
AS witness he furnished the commit
tee with a statement regarding the steel
industry conditions. and told Of his career
in the business from the outset.
Mr.. Carnegie was accompanied by j. II.
Reed of Pittsburgh, his counsel. The
room was crowded with specta-
tors, including many women. The witness
was sworn by Chairman Stanley. He said
he began his steel career I'm November.
1861. with the firm Of Miller & Small. and
that in 1862 he borrowed 81, 800 from the
National Bank of Pittsburgh to engage i'm
q partnership in the keystone Bridge
Company at Pittsburgh to erect railroad
bridges.
Business Progress Outlined.
Five or six of U.s." he said, were en-
gagged in this In 1883 We built another
mill in Pittsburgh and in 1894 / was one
OF the organizers Of the Superior ore
mill and furnace. In 1865 we built the
locomotive works In Pittsburgh. and I'm
1897 we united two other mills in Pitts.
burgh That was the beginning of the
Carnegie Steel Company, limited"
I'm interesting other men with you ia
those early days. Chairman Stanley
asked, did you do SO by selling stocks I'm
Wall street or other exchanges. or did
you get men Of experience in the iron
business?' -
.Oh, no. I did not look for men who
had no experience In the iron business. Il
was one Of the youngest Of these msn.
ent times we would put in $4,000 or
$3O. 900 each.'
"what was the capital Of your proper
ties In the sixties?'
my dear sir. have no more idea than
you have"
II have an idea," replied Mr.. Stanley.
WAS II as much as $500
"Oh, yes, the Superior mill alone was
worth that. but do not want to guess.
Give me time and I will give you all tho
figures. / have had much TO think about,
for forty years, and In the last eleven
years I have not engaged i'm the steel
business. and so much has faded from my
Associates Furnish No Money.
did your business associates, those
whom you picked to conduct your early
steel affairs, bring any capital into the
works?'
Not a dollar. When we began making
refined steel, that was different propo-
sition.'
Mr.. Carnegie related how when he was
of the Pennsylvania rail-
-oad he had seen rails taken up every
Fix weeks, and had sought to find some
process for hardening steel.
Mr.. Carnegie said that during the war
ne suffered q sunstroke and was ordered
% spend his summers in q cooler ell
nate.
II went to my native land. Scotland.
Ind there / watched the Bessemer proc
.ss OF making steel. There, too. I met
i Mr.. DOdds, who had invented q paf-
mt for hardening the face of steel +
purchased the patent and brought Mr..
0odds to Pittsburgh. where we built a
ails in this country"
schwab o Mechanical 0eniuA
Mr.. Carnegie referred TO that great
Mechanical genius. Charlie Schwab.'' as
he greatest man I ever knew In that
me-"
Mr.. Carnegie said he suggested to
,harles NJ Schwab that he test process
or making steel In open hearth furnaccs
nd then build an open hearth furnace" /"
Charlie" according to Mr.. Carnegie.
sid he W0uld Try, and u wasn't meee