Evening star., 1928-03-23
SCHWAB SAYS COAL
ILLS MUST CORRECT
SELVES NATURALLY
Tells Senate Committee Conf
binationS viii Not Affect
Permanent Cure.
SAYS HE NEVER MADE
CENT IN STEEL COMPANY
Rockefeller and R. B. Mellon Are
Present, Ready to Take Stand
in Investigation.

J liS lhc ASsotiatCA fFPeS.
The Senate committee investigating
the btuminous coal situation heard
from one of the three leaders in the
| American financial world 1t called today
declaration that the trouble in the
fields between labor and capital must
correct itself by natural means"
| The testimony came from Charles
NJ Schwab, the steel magnate, who pre-
ceded TO the stand in the crowded COM
mittee room John d. Rockefeller. jr.,
/ and r. b Mellon, brother of the Secre-
| tary of the Treasury
II mean" said Schwab. that many
miners must find employment in other
industries. Combinations will help,
but they will not be PERMANENT as
cure"
Retorts Bring Laughter.
Some of the sharp retorts Of the steel
man frequently sent the crowds in the
committee room into gales OF laughter,
but at another point Schwab's voice
broke as he confessed that he had
never made cent of money out OF
the Bethlehem Steel Corporation" OF
whose board of directors he Is chairman
You might be surprised" he said,
but in the 40 years have been in the
| steel business. have not made penny
out of the Bethlehem steel. II has been
work of love and all / have tried. to
do is TO drive a peg to mark progress
! IN human relations"
Schwab was persistently questioned
about conditions at Ellsworth. Pa. but
he said he knew nothing of them. He
told the committee he was willing to
help all he could in solving the bitumi-
nous problem.
At the afternoon session the commit
tee called Rockefeller and Mellon. They
were present at the morning session
and posed with Schwab for pictures,
AT one point Schwab said he wanted
to tell the committee that nobody had
done so much for industry as Rocke-
feIier and his father
Sehwab First on Stand.
Before Schwab took the stand he
shook hands with John L. Lewis, presi-
dent of the United Mine Workers. who
has testified before the committee that
deplorable conditions exist among idle
miners In the coal fields. n
He termed this modification of
collective bargaining" and pointed out
that agreements his organization had
maintained with It's employees all pro-
yided for arbitration in case Of differ
ences OF opinion on wages or working
conditions
1T is provided that IL arbitration
does not work out" he added, "the case
| shall be referred 10 the Secretary OF
| Labor
Workers Own Stock.
| "The most important stockholder OF
| the Bethlehem Steel Corporation is its
workmen." said Schwab in emphatIcally
supporting the principle OF direct bar
| gaining between employer and employe.
| Schwab's voice broke as he completed
| his statement with declaration that
/ he had never made a cent of money out
OF the Bethlehem Steel Corporation.
| Questioned by Senator Gooding. Re-
publican Idaho. the steel executive said
that too many men are employed in
| the mining industry, and that no pallia-
tive remedy can be applied TO help that
situation. He declared that consolida-
| ton OF selling units might be a good
thing TO meet the economic difficulties
of the industry.
Doubts Pact Abrogation.
Turning TO the Jacksonville mine
wage agreement Senator Wheeler,
Democrat, Montana, interfogated the
steel~magnate on the abrogation of that
pact by the Bethlehem Mines Corpora
| ton. which Schwab admitted was con-
nected with his organization
Il don't know anything about It"
| Schwab said but ! never would admit
that our company abrogated any agree
ment"
Schwab said that the mines would be
! shut down in preference 10 violation OF
an agreement IL that were the only
course open 10 prevent loss of money.
He ad d. however, that he could
imagine situation whereby the mines
might soon be opened again To give
employment to men who could not
otherwise find work.
SchWab said he could not answer as
10 details of recent affairs OF his COM
nany. as he was now too old 10 be
Competent or feel called upon To be
actively engaged IN business
Promises 10 Assist.
Il could give you no intelligent
answer about details concerning the
Jacksonville agreement" he declared,
MY course has been 10 follow the
highest moral and business integrity
that IL possible. and | cannot believe
that our people violated this agree
mel.t."
Wheeler asked Schwab II he would he
willing to attend a meeting To try 10
reach a solution OF the bituminous prob
lem.
You can count on me 10 help in any
way | can returned the steel mag
nate. Gooding asked Schwab whether
he vas familiar with conditions al the
Ellsworth. Pa, mine OF the Bethle~
hem Mines Corporation, but the steel
magnate said he had never visited Els
worth He said he was familiar with
otf T mines and that he Vouched for
their healthy atmosphere.
Denies Zig Steel Return,
"The United States Steel Co did not
earn per cent on their investment
last year" 8chwab declared, denying a
statement by Wheeler that the public
needed 10 be protected from such huge
industries.
schWab informed the Montanan that
he was In hearty sympathy" with the
, view that consolidation should be all
lowed IN the coal industry, at The same
time maintaining that consolidation r~r
without Government supervision ~v In
the steel industry would beneiit atabil"
iZati0n,
when came down here" said
schwab j was afraid Of YOU"
As the crowded COMMITTEES rDOif broke
INTO laughter, the steel magnate went
, on II WAS told that ynn we're going 10
give me the deVil. But nov, hooking
into your faces, ! am not afraid At all !"
Senator Wheeler, 10 whom he spoke,
smiled broadly sud remarked, "You
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