The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1912-01-10
CARNEGIE TELLS STEEL
PROBERS OUR FINANCIAL
SYSTEM is A DISGRACE
Ironmaster Says Aldrich Money
Plan Would Do Away
With Panics.
PROVES Willy WITNESS.
Says He Had Dreams of Plant
At Conneaut That Would
Have Astonished World.

WASHINGTON, Jan. 10.-The Lit
tie father of the steel business An
drew Carnegie-waggled his struggling
white beard and discoursed on bust
ness, economics and philosophy be-
fore the Stanley steel investigating
committee today.
Among a myriad of other things
the iron master attacked the financial
system of the country and Endorsed
the Aldrich money plan.
when panics happen in this coun-
try" he said, with flashing eyes and
bristling beard. they are due to our
banking system, which is a disgrace
TO civilization. Panics are all wrong.
II congress passes the bill now before
IL a way will be made for preventing
them"
Full OF vigor and energy, the iron
master faced the nine representatives
and throughout his examination an
swered back smartly to their ques-
tions. He absolutely declined to dis
cuss anything OF which he was not
perfectly certain and several times
during the session reproached Chair
man Stanley for asking questions
which called for the use of Judgment
or opinion. In this way he evaded
several points, declaring he had left
a great part OF his business TO his
partners and knew nothing of many
transactions. After reviewing his
early connections with the steel bust
ness, Carnegie was asked what his
plans were when he sold out to the
steel trust.
n
table before him, IF had remained
in the steel business, | would have
had plant at Conneaut, Ohio, that
would have astonished the world and
would have absolutely crushed out all
competition In the steel business
Charlie Schwab told me that he
could build a tube mill at Conneaut
that would save ten dollars ton on
tpbes," Carnegie continued. II told
him to 20 ahead"
Having the harbor at Conneaut,
we bought what has since become
the Bessemer & Lake Erie railroad.
That gave us direct freight line
from the lakes to Pittsburgh.
81 had always been opposed to any
mining enterprises, but my good
friend Harry oliver had secured a
vast amount Of ore lands in Mime
sofa. | went up TO look them over
and when | had seen the prospects
said We will own our own ores.
and we bought five-siXths OF divers
holdings"
II developed that this land had
been turned over TO the steel trust
for a few hundred thousand dollars
by Carnegie. The remaining one-sixth
Stanley said, had been sold to the
trust by the Oliver estate at a price
based on a valuation OF $l7,000,O0O
for the entire tract. Carnegie almost
leapeG from his chair in establishment
AT this statement.
Gentlemen, am not surprised at
anything after that, am certainly
surprised though that | should have
sold so cheaply,"
Carnegie and Stanley engaged in
several witty sallies. One OF these
followed Stanley's propounding OF a
Hypothetical question
You should not ask me that sort
of a question: said Carnegie, reprov-
ingly. II do not want to guess"
Stanley said he wanted to thank
the witness for appearing and de-
Clared that he regretted the necessity
of issuing a subpoena.
I'm delighted to have that official
document TO hand down to my heirs"
retorted Carnegie. The signature of
Chairman Stanley will be worth some
thing"
II en- glad someone values il" said
Stanley, pensively.
You must have quantity OF bills
payable out for collection" laughed
the ironmaster.
No, am but poor man. retort-
ed Stanley. Head over heels in
debt"
"Will YOU accept a library?' Of
fered Carnegie. amid roar OF laugh
ter
Then the millionaire digressed 70
discuss the payment of public ser
wants, asserting that 1t was "A dis
grace to our country that we pay our
public servants so poorly
In 1868" continued Carnegie, Eve
Continued on p-uEe Two.
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