Manchester Democrat. [volume] (Manchester, Iowa) 1875-1930, 1912-01-17
CARNEGIE j At QUIZ.
ATTACKS u. s. 4 BANK SYSTEM
AND TELLS STORY OF
STEEL.
PAYS TRIBUTE TO sc (: ! w l'E'
Ironmaster Forced Before Stanley In
vestigation Committee Relates
How He Got Hot5 OF
l Bessemer Secret.

WaSlinRtOn.-AnQ Carnegie APP
reared before the house COMMITTEES
Investigating the United States Steel
corporation He reviewed his start
in the steel industry, explained how
sunstrolSe he suffered brought about
the introduction OF the Bessemer pro-
cess, attacked the banking system and
paid a great tribute to the genius OF
Charles NJ. Schwab.
Il Mr. Carnegie, who was first re-
quested to appear and who declined,
had been peremptorily summoned.
When he took the witness stand he
furnished the committee with state
ment regarding steel industry condi-
lions and told Of his career IN the
business from the outset.
Mr.. Carnegie said he began his
steel career In November. 1861, with
j the firm OF Miller & Small, and that
i. in 1862. he borrowed $1,000 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. Panics spread ruin and II the
bill now before congress is passed. you
will have something to prevent such
panics."
In the written statement filed with
the committee, Mr.. Carnegie 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
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 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, met a Mr.. Dodds, who had IN.
vented a patent for hardening the
face Of steel purchased the patent
and brought Mr.. Dodds to Pittsburgh
where we built a furnace and made
the first hard surface rails in this
country 81,
Mr.. Carnegie referred to that
great mechanical genius" Charles
schwab, "as the greatest man ! ever
knew in that line" He said that he
suggested to Schwab that he test 8
process for making ore in open hearth
furnaces, and then build an oper
hearth furnace"
Witness explained how the Carnegie
Steel company had purchased five
sixths of the Oliver Mining com
pany's stock In the '90s. Mr.. Stan
ley asked him why the final sixth
was purchased on a valuation basis
of SIT 100000 for the whole tract
though originally the company was
capitalized at only $1,2OO,OO0. Mr.
Carnegie expressed surprise at this
question.
"At any rate" he exclaimed, we
would have paid sS5,00O,OOO for the
whole tract, I'm not surprised a.
anything nowadays"
It was explained that the $4,000,
900 valuation basis was that OF the
whole, tract and not the sixth. Ever
then Mr.. Carnegie said that II such {
sum as indicated by those figures
was paid he was surprised that HI
was such fool to sell our property
to the steel corporation on the basi,
of $43O, 00O, 900" 5s=3 Res;