The Birmingham age-herald., 1913-05-27
EFFICIENCY LESSON
(. TAUGHT BY SCHWAB
IN HIS TESTIMONY
Remarkable Impression Is
Made by His Recent Ap-
pearance on Witness
Stand
MILLIONS SAVED BY
PROPER ECONOMIES
Row Formation of Steel Corporation
Was First Suggested and Inter-
est Shown by Mr.. Morgan
From Beginning
RY ROLLAND

New York May 26.-- Especial. y
Charles NJ Schwab testified at one ol
the recent hearings in this city, by
which the department OF justice a
Washington expects 20 obtain evidence
which will show that the United States
Steel corporation was organized and il
now directed in disob edience to th'
Sherman law, that within two years
after the corporation was organized GER
tain newly established efficiency anc
systematic study had made possible
saving of S4,000,000 a year in blast fur
mace operations. Mr.. Schwap was speak
ing by the book, since ne had persona
knowledge of the matter The presen
executive officers of the corporation ex
pect 30 show that since the time tC
which Mr.. Sohwab referred the saving
in blast furnace operations amounts II
about 100000 a year.
1t has been observed while these
hearings have been in progress that ths
United States Steel corporation is al
most always spoken of as THE Corpo-
ration" That is the name by which
this organization is now commonly
known not only in the steel and iror
affairs. and of all American industry
1t is always spoken of as THE Corpora
ton"
A saving of s4,000,000 a year repre-
sents nearly 6 per cent on $70,000,000
A saving of $7O0O,O00 a year represents
per cent, approximately, on $120,000,-
600. Therefore, unless the accuracy OF
these statements is successfully contest
ed, the corporation has in the 12 years
of it's existence been efficient enough
to save in the operation of one depart
ment alone an. amount which will rep
resent on the average per cent Oh
$100, ,000,0 600.
Mr.. Schwab, as a witness, both in his
personality and in his manner, and es-
pecially in the testimony which he gave,
was of unusual, even extraordinary, in
terest. Unlike his predecessors ON the
witness stand, the president of the cor
poration, James A. Farrell, Mr.. Schwab
is of world wide reputation. He has
been acclaimed the ablest steel and
iron manufacturer on either hem
isphere. Yet his appearance on the wit
ness stand was that of a man wholly
unconscious that he had established
world wide notoriety. He impressed
those who saw and heard him as a
man who not only was willing, but anX-
ious. to tell all he knew, or at least
to answer fully every question put to
him His freedom from self conscious
ness was quite as noticeable as was
that of President Farrell himself. In
personal appearance he would have sug-
gested to anyone who did not know him
no more than a fairly prosperous busi-
ness man. There were, however, eX-
traordinary flashes of intelligence oc-
casionally from his eyes, and through
his eyes alone he revealed the posses
sion of wonderfully acute and equally
wonderful constructive intellect.
He was on the witness stand in a
double attitude-first as one of the or
ganizers and, in fact, the chief in
spirer of what became the United States
Steel corporation. But he also sat upon
the little platform as a representative
of a leading Independent steel and iron
manufacturing organization in some re-
spects the leader among the independ-
ents
The Object Lesson
Whether or not the department of