The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1912-01-11
CARNEGIE SAYS TRUST
HAS GRIP ON STEEL
Continued from Page Ono

|
ignorant OF the law, and the ironmas-
ter said no.
Don't you think that II the Grim
inal clause OF the sherman law had
been enforced early In its history,
some philanthropist would have open
| ed a night school TO teach million
aires that law" Beall persisted.
That's a rather violent sugges-
tion," replied Carnegie. You might
have suggested a Sunday school"
Despite FIVE hours OF gruelling OF
the :ron master. there were scores OF
points remaining that the committee
wanted cleared up, when the pert.
energetic little figure again assumed
place in the witness chair. Car
negie was more than willing TO handy
words with the committee, and again
he kept the big roomful of spectators
laughing with many a sally at the ex-
pense OF his questioners.
The phenomenal growth In the
value of the Carnegie Steel Co, from
$3.50 200, 900 In 1897 to $3.50, 100000 in
1902, was the first point attacked by
the committee. They had endeavor-
ed TO show that both these prices
were exorbitant, although Carnegie
insisted that either was Three times
too low"
When the committee adjourned yes
terday Carnegie had been confronted
by an affidavit made by himself and
his partners during the suit of Henry
Frick for his share Of the Carnegie
concern, in which they valued the
plant at only $79.0Q0.000. The iron
master endeavored to explain this
away, but did not succeed very well
and finally was forced TO admit that
! he had signed, the affidavit without
paying much attention to its contents
Time after time Carnegie evaded
dangerous questions by declaring that
he had left his business almost en-
tirely to his associates.
Once more the furs and gay millin-
cry OF women were seen in the crowd
that filed the committee room,
Rep. Beall began Carnegies exam
/ ination.
"You were in the steel business
forty years, Mr., Carnegie?" he asked.
"Yes."
You found American manufacture
ers doing but a small proportion OF
the worlds trade and left II with the
steel industry of the world. "---e
yes"
Can you say whether there has
been the same progress and develop
ment in the steel business in the last
decade as there was in any preceding
period?"
claring that he knew nothing of con-
L., .tx
1900. Beall insisted.
Now take the steel corporation"
he said. has there been any improve
ment in the process of manufacturing
iron and steel during the time they
have controlled the business?"
"Oh, there have been improvements
and developments" returned Carnegie,
"but can't say just what they were :"
Again Beall endeavored to pin the
magnate down.
Isn't 1t your opinion" he asked,
that when any business gets into the
hands of single big corporation there
is not the same incentive TO develop
and improve that there is when IL is
mera~ed by smaller competing con-
cerns?"
Carnegie slipped away again and
throwing up his hands with flashing
eyes and excited gestures. he said:
II don't believe that a corporation
can manage any business like q part
nership You take 80 young men and
put each In charge OF department
and each will have an eye on a spigot
TO prevent waste. It's the same as a
man owning the land he tills and lives
on"
| The interest OF this theme aroused
the ironmaster and he swucg around
in his chair until he faced the crowd
OF spectators. With his arms out
spread and his white beard wagging
with earnestness, he related three or
four personal incidents to show the
superior merits of partnership organ
ization as exemplifed by the Carnegie
Steel Co.
"Once when ! was young man l
went out to Iowa n holiday Car
negie continued and i. never saw a
more inspiring sight than the small
farms where each man owned the land
he titled. There, In the little homes,
the men showed me the real tri'
umphant democracy. II was great
And turning again TO the commit
tee. the Laird of Skibo smote the
table before him.
The man that owns the ground
he tills," he said, lis a real man. It's
the same in manufacturing. The
hest corporation ever made would be
beaten by such personal organiza'
ton as we had in the Carnegie com
pany."
do you think corporation with
81, 400, 100000 capital could do what
you did In the early nineties-sell
rails for SIC a ton at dollar a ton
proft?" Beall demanded.
Carnegie declined TO become a
critic OF his successors in business.
II became apparent that the iron
master was playing with the commit
tee turning off every important ques-
4ion with an epigram, flood OF philos-
ophy or a joke.