f AK ii
TIIK CITI7.HN, KHIDAY, JANUAKY 20, 1018.
CAUSES OF HiGH
COST OF LMNb
International Commission I.
Study Tiiem Is Proposed,
MIGHT SUGGEST REMEDIES.
Presidont Taft Is to Bm Asked b
Economists to Invito Other Coun
tries to Join In Croating an, Invest
gating Board.
President Taft Is nbout to bo asked
by distinguished public men and ccon
omlsts to invite the powers of th.
world to Join in the creation of nn In
tcrnatlonal commission to study the
questions Involved in the high cost of
living. A decision to this effect was
reached at one of tho rucotlngi of the
American Economic association.
The proposal for the establishment
of an International commission to study
the causes for the high cost of living
and to suggest remedies to the various
governments was made by Professor
Irving Fisher of Yale university. It
was upproved by Senators Lodge of
Massachusetts, Stnoot of Utah n u i
Crawford of South Dakota, all of
whom expressed the belief that cou
gress undoubtedly would concur in tin.,
recommendation the president might
make looking to the creation of such
a body.
Those who discussed the nubju' t
gave various causes for the present
high rango of prices. All agreed that
prices of the ntcessaries of Ufo were
relatively high In all countries and
that all available data pointed to still
higher prices tlie world over.
The Increase in the cost of produc
tlon, higher wages, expansion of credit,
the increased output of gold and n
material Increase in the volumo of otli
cr forms of circulating medium, lndu
trial combination, organizations of mi. I
dlemen, waste in production, military .
and the universal demand for n)i
luxuries and comforts by people p u
orally wen ntnoni; tho causes assign
ed for tlio present high cost of llvlnti.
"The rie In prices is not poculiar to
the United States," said Senator
Lodge. "It is a phenomenon that -iv
scuts Itself wherever wo turn. To
bennte lominittee of which I wn
chairman Investigated the subject a;
great lemgth. We found It was a pn'i
lem too complex to be treated wiMi
uu hope of results by a single body
reprcMMiting only one state or ni'
country.
"As the farts were revealed to u
we came to the coti'-lusion that hi, ''
Irl es presented a world problem. I
therefore eamo to the conclusion Omi
It should be made tho subject of lii
nu.iy by an international commission
"It i Important to ascertain tl.tr
cause or causes and to find out If n
remedy Is to be had. There Is n grenl
temptation always when people nr
hurt by anything like prices to nttfili
ute It to something they easily rati
reach. It only does harm to apply the
remedy In the wrong place. No com
mission of one country, no body of in
vestigntors of a single state, can com
mund the attention and the accept
unee which any report on this great
subject ought to have. I am in favor
of the appointment of an International
commission as proposed. I hope thin
movement soon will take the form of
appropriate legislation In congress. I
feel very certain that In congress those
who have given attention to this sub
Ject will feel It Is important to secure
an International commission for the
Investigation of this phenomenon of
advancing prices."
"I approve of the formation of such
n commission, " said Senator Smoot.
"and such investigation should be cdl
clul. The lead should be taken am'
the means provided by our govern
nient. Kvery civilir.ed nation should
be represented in this commission.
every civilized nation is affocted b
this problem."
SCHOOLKOUSES FOR DANCES.
Boston's Mayor Would Combat "Tur
key Trot" by Opening Buildings.
In order that dances and other for
of entertainment may be enjoyed w ;h
out the moral dangers sometimes pi -ont
In the cheap halls of the city May
or Fitzgerald of Hoston urgos the us
of the HPhoolhousos for clean entertaie
)K'ius. social and athletic.
In this plan he has the support of
various social working organizations,
including the Public Recreation leagti"
and the Hoston Social union.
Mayor Fitzgerald saw need for Ini
mediate action, he said, when the
"grizzly bear" and tho "turkey trot"
dances came Into favor In certain (lain u
halls whero for a small amount young
lioys and girls were admitted.
"The schoolhousea should be thrown
open for nightly entertainment. It
would bo to the advantage of our boys
and girls to gather In such a place," iie
said.
Japanese In Woolen Industry.
The Japanese are making great
Htrides in the woolen Industry and by
Importing the lateit modern machinery
nre striving to manufacture all elaspes
of woolen goods that find a market In
Japan. This they will probably do In
a few years, with the exception o.
-oods Intruded for men's outside wenr.
but at present the mills are making
shirtings, both plain and fancy, and
lidips' dres goods of various kinds.
i
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How Carnegie
On John D.
Ironmaster's Willy and Surpris
ing Testimony Before tho
Stanley Steel Committee.
Representative Gardner picked up
a memorandum, read It to Mr. Car
ntgle and asked;
"Would It be advtaable for con
cress to anaot such a law as 1 have
Juat read to you?"
"Sueh a law would be ridiculous,"
promptly responded Mr. Carnegie.
"Well," replied Mr. Gardner,
"what I have Just read la the drat
section of the Gharman antl-truat
law that has been on the statute
booka slnee 1JS0."
THE testimony of Andrew Carno I
gle before the Stanley commit
tee was quite as racy as that
of the late John W. Gates. It
brought out that in organUIng the stee'
trust J. P. Morgan had paid $420,000,
000 for the Carnegie properties, ol '
which the laird of Skibo himself re
celved f213.000.000. Although this was
$100,000,000 more than a previous op
tlon called for, Mr. Carnegie said he
was a fool to have taken it, for the
t Mi? - -Mm
Photo copyrlcht by American Press
ANDREW
reason that he afterward learned Mr.
Morgan would hnve given another
,100,000,000. This reminds one of tho
ioctor who made out what he con-
lidared a fair sized bill and when this 1
was chcerfuilv paid kicked himself be-
h n '''ir mcl1-
Another human note o. ihe samo toue .
was struck whcri Carnegie gleefully
ihucklcd nbout having got tho lietterof
John D. Rockefeller In an ore deal.
Human nature seems much tho same
whethor In a horse trader driving a
sharp bargain with his neighbor or one
millionaire dealing with another. ,
"What a fool I was to sell out to the '
Bteel corporation for only J420,OO0,
000!" exclaimed Mr. Carneglo with
mingled feelings of emotion. "I hnvo
ilnce learned from the inside that we
could have received $100,000,000 more
from Mr. Morgan If we had placed that
value on our properties."
How He Beat Rockefeller. !
The thought that he had been able
ko outwit John IJ. Rockefeller in a
business deal plearcd Mr. Carnegie im
mensely. He rcforred to it several
limes. The transaction involved the
sbtainlng by Carnegie of ore from
Uockefolier on a royalty basis of from '
15 to 20 cents per ton. The Steel cor
poration has since capitalized the samo
property on a basis of $1 a ton. Mr.
Carnegie said that when ho conceived
Ihe idea of lensing these cro beds he
lummoned James Gayley, one of his
partners, and said to him:
"You go to New York and don't you
tome back until you have thoso leases."
Mr. Gayley went and conquerod.
"1 did Mr. Rockefeller on that
trade," said the Ironmaster, smiling
broadlr. "and I have to langh every
Put it Over
Rockefeller
Thinks Now He Was a Fool
Tor Selling to Morgan
So Cheap.
tlmo I think of It. It's quite a Job
you know, to get the best of a man
with a bend like Rockefeller."
Mr. Carnegie felt bo good over the
recollection of this transaction that he
went on to tell the committee about a
call that he and Mm. Carnegie had
made on the Rockefellers on New
Year's day.
"When we arrived at the Rockefel
ler home," said Carnegie, "we found
Mr, and Mrs. Rockefeller seated on
the porch. Mrs. Rockefeller is a One
woman and a fine wife, but (the is do
ing poorly now. The old gentleman
was In good fettle. There he was
tnll, lean and spare smiling and
lieamlng ns happy as conld be. lie
(old us that cold weather did not af
fect him much, as he wore a paper
(acket that kept out the weather. lie
gave each of us one, andalt really la
a fine thing to keep the body warm.
AVe had a chat over old times, and
(here Mr. Carnegie Indulged In an-
Association.
CARNEGIE.
other chuckle) I didn't mention tho
ore transaction wherein I got the bet
ter of him."
"That was one time at lenst," he
added, "that I took In my fellow mil
lionaire." Schwab "There's a Man For You."
Mr. Carneglo began his testimony by
telling of his humble beginnings in tho
steel business. lie startiKl in 1SG1
with $1,500 which he had borrowed
from the Third National bank of
Pittsburgh and which he Invested In
the Keystone Bridge company.
"That $1,500," he said, "was my
start in business,"
Mr. Carnegie told how early in Hfo
he had learned that a large part of
success In business depended ujKin
having the right sort of men to help
and how he had drawn to himself
ambitious young men of great capaci
ty. He Insisted that the Carnegie in
terests were built up by practical men
in the trade and not by speculators.
Charles M. Bchwab and many others
who have since become independent
factors in the steel liusine.vs did not in
the beginning put a dollar Into the
trade, according to Mr. Carnegie. The
entire Investment of these men was
In the form of brains and Industry.
"There Is a mnn for you," said Car
negie, referring to Schwab. "He's tho
rreatest man I ever met in his line.
I mean."
Mr. Carnegie put a damper on the
asking of hypothetical questions by
throwing up his hands and remark
ing: "Why nsk a poor Innocent man to
give an answer to If? "
Throughout his narrative the retired
pioneer of the steel Industry refused
ami. jWtEt f$3mfM&mttis&
to enter Into dctntls of many trr.ui
actions.
"I am fre to confess." declared m
"that I never saw the Inside of a book
of the Carnegie Steel company. I nl
wais loft the details to my partners .
Pittsburgh. 1 lived mostly In New
York or nbrond. If my twenty-live
partners wire not nble to take enre of
the details I don't nee how I could
change the situation or Improve It."
All "He Got" Was $420,000,000.
Some of the striking declarations
with which Mr. Carnegie's testimony
fairly bristled were
That P. C. Knox was nppointed at
torney general on his recommendation.
That the government's suit ngainst
the Steel corporation "blundered" and
was "silly" In its declaration that the
book value of the Carnegie Steel com
pany was $84,000,000, because this did
not begin to represent the real vnlue
of the Carnegie Interest.
That they had a "showdown" with
the Pennsylvania In the matter of bet
ter rates and was sure he got the low
est fates, but apropos of rebating was
unable to state whether the rates ho
obtained were lower than those grant
ed to other shippers.
Thnt the price of $2S n ton on stand
ard steel rails was flxed by conferences
between the three leading railroad
presidents of the eastern trunk lines
the Pennsylvania, Baltimore and Ohio
and New York Ccntrnl and n commltee
representing the pnyments like $100,-
000 were made. In pool profits under
the old Carnegie regime that was n
"small matter" In a $5,000,000 account.
Didn't Bother About Sherman Law.
That he had never heard of the rail
road rate law of 1007 until recently.
That he did not bother nbout the
Sherman law, leaving legal details to
the counsel, and was too busy attend
ing to other business to worry about a
statute which had not been finally
construed by the courts.
That never before had be heard
of the famous Addyston pipe case, the
first Sherman law cane In which Mr.
Taft, now president, had rendered a
great decision, although the name
"sounded familiar and reminded him
of the Eddystone light."
That it wns at bis suggestion in re
turn for recognition by the late Jay
Gould that the Litter's son was urged
to build the Wabash connection into
Pittsburgh.
That he had been told by Judge Gary
recently that there is in existence a
letter written by the late Senator Hoar
immediately nfter the passage of the
Sherman law declaring that the law
was not Intended to apply to pools.
That no tariff should be collected on
products protected by pooling arrange
ments. That the cost of Iron and steel ore Is
going "to go higher" nnd that the sup
posed ore fields of the Lake Superior
district nre going to be depleted be
fore many more ten year periods roll
around.
That so far as the law is concerned
there are so "many sides of tho law,"
and he supposed lawyers could defend
either side according to the way they
are paid.
"You continually complained of high
rates on the Pennsylvania. Did the
Pennsylvania make you any special
concessions?" asked Mr. Gardner.
Unsuspecting In His Honesty.
"Never tliat I knew of," replied Car
negie. "I notice Senator Oliver has
.spoken that we received rebates. It
is startling how unsuspecting an holi
est person can be. I was the one man
in all Pittsburgh that fought the Penn
sylvania on Its rates. I bought tin
P.essemer road to the lakes. I Joined
hands with Vanderbllt. Vnnderbllt
sent for me and told me his son-in-law,
Mr. Twombly, had advised him to
build a road out of Pittsburgh.
" 'What do you think of It?' Vander
bllt asked. 'I'll put up $3,000,000, I
think so much of It,' I said. He said.
'So will I.' Hostetter, a wealthy mnn
of Pittsburgh, went In on It. We
agreed to build the road. I went to
Europe. In my absence the Pennsyl
vania went to Vanderbllt and urged
him to nbandon the project. I return
ed from Europe to find that Vander
bilt had been captured by the enemy.
1 then went to young Gould nnd said
to him. 'Your father once came to
me at the old Windsor hotel in New
York nnd said' 'Young man, I've been
hearing about you. I'll put up the
money to buy the Pennsylvania road
If you will manage It nnd devote your
relf to It.' I thanked him and refilled.
'I hnve been n faithful clerk and friend
of Thomas A. Scott of the Pennsylva
nia. Nothing on earth can induce me
'o take a step against him.'
"When I went to George Gould I told
iflm this and offered hi in a chance to
;ome to Pittsburgh. It was at my sug
gestion thnt (ieorge Gould went Into
Pittsburgh with the Wabash, whl.-h
lias been frightfully mismanaged.
"The Pennsylvania rates from Chi
?ago to tho Huntington yards at New
port News on a large shipment of stee'
were higher than the rates from Pitts
burgh to New York. I showed this to
Roberts of tho Pennsylvania and told
him, 'I can't stand It any more.' It
did not seem to Interest him, and I dp
dared, 'All right, Roberts; you will
tend for me the next time.' Then I nr
ranged to build the road to tho coke
ovens. 1 got a note from President
Roberts saying, 'I want to seo you.' I
pent to McCren nnd said I must have
rates our competitors are getting.
"Thomas sent for mo nnd snid: 'An
dy, you nro a Pennsylvania man. Why
X you fight usr I replied: 'I thnnk
you for asking that. Look at that,' and
I showed him my plain for the road to
the coke ovens. He said, 'I want you
to quit on that coke oveu road.' I said,
'I'll quit when you give us the lowest
rates.' We made a little memorandum.
Thomas and Roberts carried It eut
We got no rebates otheri did not get."
OUT TO SEA BY TRAIN.
Line to Key West Jusl Opened Forty
six Miles From Mainland.
Key West. Pin., Jan. 23,-Au unusu.il
achievement In railroad construction
was turned over to the world when a
passenger trnln steamed across ncas
from Knight's key to Key West. The
terminus is forty-six miles from Flor
ida's mainland.
The trip christened the over water
extension of the Florida Enst Coast
railway nnd opened n three days' cele
bration. In which one of the foremost
figures wns Heiry Flagler of New
York, to whom Is given credit for the
engineering feat. For great distances
between keys the rails are supported
by stretches of steel and masonry.
Wnrshlps from Portugal and Cuba
and vessels of the fifth division of the
American Atlantic fleet nre here for
the ceremonies. Assistant Secretary of
War Oliver represents President Tuft.
BY WIRELESS 3,000 MILES.
Messages Received at Norfolk From
Mare Island Navy Yard.
Norfolk. Vn.. Jan. 23. Breaking all
former records for distance overland,
a wireless message wns received at the
Norfolk navy ynrd from Mare Island
naval station. The message was re
ceived by Operntor Dempsey ef the
government wireless station direct
from Mnre island. The message rend:
"Wireless communication with the
roast and west coast Is improving
Sig. Mayo."
This message Is the first the gov
ernment ever received direct from
Mare island, a distance of 3,000 miles.
The message was sent entirely over
land, and the distance is greater by
several hundred miles than any other
message ever sent.
Shuater at Paris.
Paris, Jan. 23. W. Morgan Sbuster,
who recently occupied the post of
treasurer general of Persia, from
which he was dismissed on the de-
,nd of Russia, has arrived here from
:uin.
A Strategist.
"My baby cries nil night and I don't
know what to do with it"
"I'll tell you what 1 did. As soon as
our baby commenced to cry 1 used to
turn on all the gas. That fooled him
ne thought it was broad daylight and
went to sleep." Tlt-Ults.
In the Pis Belt.
Tou talk about your broakfast foods-
'Most all of 'cm are fine
But give me any kind o jile.
It's good enouch for mine.
Yonl'ers Statesman.
Their Habit.
"If a telephone concern were to go
Into bankruptcy I would not like to be
one of the receivers."
"Why notV"
"Recause in telephone operation;
they always hang up tho recelver."
Ualtimore American.
Encouraging.
"If I were your Hps to kiss
Would yiiu tell your ma, swet mlssT
"I am not, sir," answered she.
"A bureau of publicity."
Boston Transcript
A Parental Sarcasm,
"Your daughter says she will marry
me or nobody," said Parou Hucash de
flantly.
"Yes." replied Mr. Cumrox. with
slight Irritation, "and I reckon she's
going to do both." Washington Star.
The Ideal
Ml
i1 , " f
of the estates of your minor
mmm,
rr.entand re investment of the princi
pal and accrued mcome -The Scranton Trust Co.
BIO Spruro Street.
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