The New York herald., 1921-04-29
.SCHWAB SPURNED
100 MILLION BRIBE
Offered by Berlin to End.
Making Munitions Early
i'm War for Allies.
STRIFE SECRETS TOLD
Britain Countered With
$3.50, ,000,0 900, Not Accepted,
for Fulfilling Contract.
URGES u. s. TO WIN PEACE
Steel Master Honored With
Bronze Tablet by State
Commerce Chamber.
STRIFE SECRETS TOLD
URGES U. s. TO WIN PEACE

Germany lost the war, but if the
laurels Germany will win the peace"
Charles M. Schwab, head of the Beth
lehem Steel Corporation and former
director of the Emergency Fleet Cor
poration, said yesterday in addressing
the Chamber Of Commerce. of the State
of New York, which rendered a recep-
ton to him in recognition of his war
service.
Germany has gone to work, Mr.
Schwab declared. and has gained tre-
mendously over the Allies and this
country in economiZing, sacrificing and
throwing herself into real production.
This country must get busy, he as
serted, If she is to be a world leader
Darwin P. Kingsley, president of the
chamber. in presenting massive
bronze tablet to Mr. Schwab COM
memorating his war services, eulogized
the steel maker. He said that when
Mr. Schwab was making munitions for
Tngland in the early days of the war
Washington. offered to Mr.. Schwab
s10o, 100000 for himself If he would break
his contracts with Lord Kitchener.
Thereupon Great Britain. having
heard CT the proposal offered $50. 900
to Mr., Schwab If he would carry the
contracts to completion. To both offers
he replied that there was not enough
money in England and Germany to-
gether to make him break faith with
Lord Kitchener. Hints of German
attempt to bribe the steel man were
heard at the time, but that Great Brit
ain rendered a bonus of $150,O0O.000 to
him to keep his contracts, both of
which offers he rejected, had never
before been made public, and in telling
the chamber about it Mr.. Kingsley
sprang a real surprise.
Prosperity Now Is I'm Balance.
"Our problem now" Mr.. Schwab said,
lis far greater task than the win
ming OF the war-it Is to win the peace.
We NEE. at one of the most critical
moments in the history of the world.
Out of the decisions which are made
within the next few months there may
arise the greatest prosperity the world
| has ever known.
II have just returned from Europe,
| and | come with renewed admiration
| for the courage. the enterprise. the de-
termination which is being displayed
in Italy. Belgium. France and England.
Those nations, which were wonderful
| as our allies in war; are marvellous
in meeting the tasks of peace.
But II there was one thought above
all others borne in upon ME by my
| observations in Europe it was this:
Germany has gone back to work as
has no other nation In Europe. Her
working people are economiZing, sacri-
! ficing and throwing themselves into
/ .aal production. Believing as do that
tie strength and prosperity of nation
depends upon the efficiency of its labor.
| had something of a shock In con-
templating this thought: Is it possible
that after having won the war we of
the allied nations, with everything N
our hands, will allow Germany to win
the peace through the efforts of her
labor? VIII 1t be possible that the
pressure OF adversely will have taught
the Germans such lesson In the need
Of thrift and hard effort that they will
have gained the permanent benefit
from the war while labor in the allied
countries would have reposed in its
ease and security and let 90 the most
brilliant opportunity in all history?'
Germany UndcrselIs Britain.
Mr.. Schwab pointed out that Ger
many was obtaining a big advantage
over America and the Allies in her in
ternational trade by reason of her low
costs, largely labor costs. Germany
can sell a ton of steel In England, he
said, $50 cheaper than what 1t costs
English producers to make ton OF
steel.
He made It plain that he believed in
rewarding every man as nearly as possi-
BILE for what he does but added that
labor on the whole can only be paid
what labor on the whole earns. and that
II in some sections labor exacts more
than its share, then the labor of other
sections must suffer. He pointed out
that OF every dollar received by rail-
roads co cents goes for labor: that out
OF every dollar paid for making steel
So cents represents labor.
"weformerly sold pig iron at profit
at s14 a ton" he said. "but to-day the
total freight rates in making ton OF
pig iron are more than s14 ton" And
while freight rates are too high, he said.
the roads are not to blame-railroad
costs must come down.
I'm 40 far as our people in America
are prepared to go to work at reason
able wages" Mr.. Schwab continued !;
"in so far as we are prepared quickly to
abandon the artificial extravagances of
the war, will we lay the foundations for
Il new prosperity such as we have never
enjoyed befe-.
Thomas a. Edison, an honorary mem
Der OF the Chamber Of Commerce and an
associate for a time with Mr. Schwab in
his war work, also was a guest, occupy
ing the rostrum with Mr. Sshwab and
Mr.. Kingsley. Mrs. Schwab was pres
ent.