Thursday, June 14, 2012

January 10, 1912, Carnegie Disapproves Our Banking System,

January 10, 1912, Amsterdam Evening Recorder, Carnegie Disapproves Our Banking System,
Worst in the World, He Tells Investigators,
Measure Pending in Congress Would Prevent Panics.

Peremptorily Summoned to Washington, Steel Magnate Tells of the Organization and Operation of So-called Trust and Its Domination of an Industry In Which He Was Long a prominent Figure.

Washington, Jan. 10.--Andrew Carnegie was an involuntary witness to-day before the house committee probing the affairs of the United States Steel corporation. Mr. Carnegie, who was first requested to appear, and upon declining that invitation, was peremptorily summoned to Washington, was wanted to elucidate many of the details of the organization and operation of the "steel trust" and i ts domination of an industry in whi ch he was for so many years a predominant figure.

When Mr. Carnegie took the wltness stand he furnished the committee with a statement regarding steel industry conditions, and told of his career in the business from the outset. He was accompanied by J. H. Reed, of Pittsburgh, his counsel. The committee room was crowded with spectators, including many women. He was sworn by Chairman Stanley.

Mr. Carnegie said he began his steel career in November, 1861, with the firm of Miller & Small, and that in 1862 he borrowed $1,500 from the National bank of Pittsburgh to engage in a partnership in the Keystone Bridge company, at Pittsburgh.

"Five or six of us," he said, "were engaged in this. In 1864 we built another mill in Pittsburgh, and in 1864 I was one of the organizers of the Superior ore mill and furnace. In 1866 we built the locomotive works in Pittsburgh, and in 1867 we united two other mills in Pittsburgh. That was the beginning of the Carnegie Steel company, Ltd.

"In Interesting.other men with you in these early days," Chairman Stanley asked, "did you do so by selling stocks in Wall street or other exchanges, or did you get men of experience in the iron business?"

"Oh, no. I did not look for men who had no experience in the iron business. I was one of the youngest of these men. and we had very little capital. At different, times we would put in $20,000 or $30,000 each"

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