Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1915-09-29
SCHWAB DEFIES
MORGAN GROUP
IN STEEL WAR
Huge War Contracts and
Control of Plants Make
; Him Master Of
Situation
SUPPORTED BY Du POINTS

BETHLEHEM. Pa. Sept a.-As II In
dlvidual1y interested. all the people Of
bethlehem are talking about the great
steel night that Il on between Charles M.
schwab ana J. p. Morgan, and all are
betting on Mr.. schwab.-
II Is common talk here that schwab not
only owns the cramp shipyard. but. to-
eether with the du Ponte. controls the
baldwin Locomotive Works.
schwab long ago had a 'fall-out" with
Mr.. Morgan's father. That. at the time.
meant the retirement Of schwab as pres
,dent of the United States Steel Corpora
tlon. william Ellis Corey succeeded him.
schwab soon became master OF Bethie-
hem, and when he broke the bank at
Monte Carlo, Andrew Carnegie made such
a fuss about Il that the Scotch seer said: /:
Charley, IL you don't give up your Riv-
erside Drive house and stick to the Job
AZ Bethlehem, there will be trouble. %
schwab took the hint, moved here, and
when the war broke out last year was
In better shape than any other iron ana
steel man in the world to do business.
scHwAB BEATS MORGAN.
schwab, right after hostilities began.
tackled Lord Kitchener and came back
with S5O,O00000 worth OF contracts. Very
soon after that the war developed on
such a big scale that England had to
turn to the house Of Morgan as its Amer
ican fiscal agent. Young J. p Morgan
did not, and does not, like Schwab, but
by the time Morgan woke up, Schwab
had him tied up. Schwab had the fore
sight OF the Germans, from whom he
sprang. to make his plant the same per-
feet engine OF war that the Krupp plant
is in Germany. 1t Is now recognized
that Schwab was lawfully smart in
making contracts with the Du Points.
within the last few weeks Mr.. Morgan
has shown his hand In trying to check
schwab. Morgan and 'Schwab are not
personal enemies, but bitter business
rivals. Schwab, by reason OF his master
fui business foresight and executive abil-
ity, has been in a position to command
his own price for the munitions Of wal
that Morgan needed as the agent OF this
Allies In America. Morgan has been get
ting only his bankers commission, put
none Of the profits that come from manu-
facture-
GAIN CONTROL OF BALDwIN'S.
Therefore, Morgan has determined Il
establish rival plants, and his first move
has been to buy the Midvale plant In
philadelphia. There Is also fght fol
control of the Baldwin plant, which, In
addition to locomotives. is finely equipped
for the production Of shells and othei
things needed by the warning nations
For the last two weeks Schwab has beer
in Philadelphia every day. His excellent
humor and the remarks he mas been max
ing Indicate he feels that Morgan will no
get the Baldwin plants. Schwab and thu
Du Points and. of course, their hackers
and associates, have now bought up 81
much Of the Baldwin stock that they n,
longer fear Morgan can gain control.
AN ANECDoTE.
The reappearance of Mr.. Corey as al
active steel manufacturer, through hi
connection with the Midvale purchase
recalls an incident which has never beeI
forgotten by Mr.. Schwab's friends. whel
he and Mr.. Corey were chuns In the oil
Pittsburgh dayb. At a reception one nigh
Mrs Schwab said to Corey: "Ellis, pleas
tell me II rumor is true that you wan
to divorce your wife and marry a
actress. II II be true. Ellis, you shal
never darken my doors again."
That WIS the first intimatlon tina
Corey wanted to break away from TN
wife Of his youth and marry Mabel GIL
man. To the direct question OF Mrs
schwab at the time he made an evasiv
answer. but her question was prophetic
The men of the steel crowd probabl
would not have cared much. but tn
women, aroused by the indignation o
Mrs Schwab, ostracised Ellis and tn
new Mrs. Corey, who, until lately, hav
lived in France.
Corey according to family gossip Il
steel circles, has linked his hatred Q
Schwab who, of course, stuck TO his Ioy
able vide. with the dislike OF Morgan
and now the fight is on TO get the wa
profits through a rival oraanizatiou