The San Francisco Call. Newspaper, April 14, 1901, Page 8

MAZEMENT has been expressed In FEurope at the gigantic proportions of the most recent of our commer- cial ventures, “the billion-dollar steel combine.” Foreign commen- tators have likewise been astonished at the youth of the man selected to preside over its destinles. Charles M. Schwab is only 39 years old, yet he has been selected as the head of the biggest commercial he world. Indeed, he had no compe s for the place. As soon as the first announcements of the combine were made Mr. Schwab was expected to become utive officer. He draws the big- gest sal on earth, unless some of the crowned heads be excepted. As a gentleman closely allled with these great interests recently sald, “Mr. Schwab is the only one by genius and tempera- ment fitted for the office.” Another man prominent in the steel business said that Mr. Schwab is greatly admired abroad, that the greatest iron master on the Con- tin told him that he knew no ten men who, combined, had the knowledge of the stee! Industry that Mr. Schwab possesses, As of the Carnegie Steel Com- pe ted, he had under him 50,000 men; ent of the United States Steel Corporation he will be in control of 500,000 m Twenty-one years ago Charles M. Bchwab, a stalwart lad of 18 years, left his adopted town, Loretto, Pa.—he was born in Willlamsburg, Pa., February 1§, 1862—to egek fame and fortune in the more prosperous town of Braddock. His father was a weaver by trade and was engaged for a time in the woolen manufacturing business in Willlamsburg, Pa. When Charles M. Schwab was 5 years old his father old out the woolen manufacturing business and opened a hotel in Williams- burg. Of gourse, the boy had been too young to learn weaving, but he made the factory his playground. At about this time he showed great aptitude for musie, $n which his brother instructed him, and so0 small that his feet could the treadles he played the organ in the little church. E John A. Schwab, his father, was not a man of erudition, although he was excep- y clever at mathematics, for which early showed a great taste. That en might receive a thorough ed- ation he removed to Loretto, a little town founded by a Russian Prince, Deme- Av whose father was Ruselan Embassador to France. He came to this count ith letters of in- uction to John Adams. a frfend of his father. But, meeting Bishop Carroll of Itimore, he decided to enter the priest. 1an be hefr to estates ahd on his family by the concern in its ex B stine Galitzin, rather nore conferred ¥ ¥ « He became a recluse and practically an He was the first missionary to es- n on the far frontier. In n Indian trafl that led to 'd belng of a poetical nature ressed by the beauty of the prim- on the summit of a ridge of ere established a 100 years after, there 200 inhabitants there, who, almost Catholies. The jail and but one tav- 1 is so seldom patronized that s a living. extle ow. exce are rely m: I over this ce that this Russian Prince lorded in a priestly manner for many years, recel z a competency from father's ates, but having severed connection with the orthodox Greek n th er years of his life by some unexplained manipulation this com. withheld, and he was com. d to ask aid from his devoted flock, For ht years after the founding of Loretto & small band of monks, brothers of the Regular Third Order of St. Francis, erected with their own hands a monastery & mile away from the village, which in a petency w pel few years afforded an education that could mot be excelled in the Bastern Btates. John A. Schwab in 1872 moved from Wil- lamsburg. to Loretto and established a livery business there, which was support- ed principally by traveling salesmen, whom he met at Cresson station, five miles distant, and drove to the outlying towns and hamlets, then unconnected by raflroads. He Lad eighteen horses, which assured him a comfortable living. He had the contract for carrying the mails from Cresson station to Loretto, and nine miles farther to St. Augustine. When he moved to Loretto the now head of the billion-dollar combine was a chub- by faced boy of 10 years. It was his duty to drive the stage for the mall twice a day, and to carry students from the mon- astery to the station. The town was well patronized during the summer months by sojourners, and his father told me that Charlie bad such a winning way that he could go to the summer resort, Mountain House, Cresson, and persuade the guests to take drives. He was a “money win- mer,” he sald, and many a day he made as much as $%. The surrounding hills of Loretto are wooded with hemilock, beach, pine and maple, and the road lesding to Cresson station winds over hill and down dale, through a thick forest where the wood- man's ax is often heard. Once, late at night, on his return with the mail he was held up by two men, who, thinking the boy was unarmed, led his frightened horses into the woods. But young Schwab, equal to any emergency, gave show of fight, encouraged by & sngle barreled pis- tol of such small caliber that it was al- most & toy, and the men retreated. He attended & country school at Loretto for three months during winter, where he early displayed a great love of mathema- tics. His affabllity and earnestness were two of his great traits. Although perfect. 1y able to take care of himself, he never got into & fight. The nearest he came to being disorderly was on a St Patrick's day, when the master, although an Irish- man, declared it would not be a holiday end required the puplls to report for study. The whole school rebelled, the boys taking the initiative. They secured & ladder and climbed to & loft above the room of learning, and from the trap door yritated the master by occasionally well- elmed paper balls. He ordered them down, but they displayed no desire to obey, so he told Mr. Schwab, who was in the liv- ery stsble, of his predicament, and that gentleman, seizing & stout whip, hastened to the scene of conflict and ordered them down. Without any besitation the present head of the billion dollar combine obeyed by lowering the ladder, which, when he reached the fioor, was quickly pulled up. And then the father gave his boy probably his first thrashing, which he now delights in telling. When two vears had passed he went to St. Francis’ College. and for four years regularly attended that place of learning. He was always at che head of his class, and in mhthematics he surprised the monks. He seemed to have an innate THE SUNDAY CALL. — PERSONALITY OF CHARLES M.SCHWABD ONEE A COVNTRY GROCERY BAY, NOW AT THE AGE OF THIRIY=NMINE EXECUTOR ©F THE BILLION DOLLAR STEEL COMBINGE~ AND GENERAL OF AN 5&%&&?0@%@@5&?}? j’ knowledge of figures and an aptitude fot solving the most intricate problems witn- out study. Brother Bowen, a mnoted re- cluse and priest and a man of -vast mu- sical knowledge, instructed him in music, and Charlie on certain occasions played publicly. There was a half-witted eccentric char- acter in the town named Michael Molloy, & wheelwright by trade, whom the boys delighted in annoying and calling “Mick- ey.” Mr. O'Donnell, now proprietor of the only hostelry in the village, told me that Charlie Schwab, even at that early age, showed the consideration for others that he still retains, and always called Michael Molloy by his baptismal name. He was never known to be impudent or to make an ungentlemanly reply. It was “Yes, sir,” or “No, sir.” His cheerfulness of manner so won ihe hearts of his townsmen that when A. J. Spigelmirs moved from Loretto to Braddock, where he established & grocery store, he encour- aged the boy to fill a position in his em- ploy, which indirectly led to his engaging in the iron business. He had declared his intention of going Into the outer world, and he had dresms of prosperity. He re- celved $3 50 & week and board, he slept in the store as watchman, and swept it out morning and evening. On the summit of a hill in Loretto, ‘where now stands his summer homs, there was & clump of pine trees. Often of an afternoon, when returming from St. Fran- cis College with his books under his arm, he squatted on the wnine mneedles and studied. Once his mother, a gentlewoman, who always encouraged him, found him there on a Sunday afternoon diligently reading. Turning to her he sald: “Moth- er, when I become a man and become rich I'm going to build a house on this spot.” When the house was completed, twd years ago, his mother’ reminded him of his remark, which he had forgotten as baving made publicly. While he was in the grocery store in Braddock he made & fast friend of a Mr. Rinard, a department superintendent of the Bdgar Thomson Steel Works, belong- ing to the Carnegls Interest. And that gentleman often took him about with him at night through the works. One day, after he was about twc months in Mr. Spigelmire’s grocery store, W. R. Jones, who was superintendent of the Ed- gar Thomson Works, stepped in to buy some tobacco. It happened that he had occasion to question the boy on a matter of figures, which led to a little discus- sion, and young Schwab displaying a mar- velous knowledge of mathematics Mr. Jones questioned him further. Meeting the eyes of the boy, he said, ““Charlie, this raamiy ‘Q’“"‘— o= is no place for you. You can make better use of your knowledge in our works.” His first job was driving ¥:akes at $6 a week. This was an increase of $3 50 over the sal- ary he received in the store. He proved himself so valuable that within six months he became assistant engineer. When the chief engineer wag called awav to attend to some work in the mines young Schwab was promoted to his position. Some other shops of the Carnegie Steel Works were constructing a steel bridge for the Baltimore and Ohilo Railroad, the charge of the construction for the rail- first bridge of the kind ever built in America. Captain “Beb” Evans was in road. It was an engineering feat of some magnitude, and the gentiemen of the Car- negie works who were in charge met with difficulties which they were unable to sur- mount. Then was a signal compliment paid to the young engineer, although in different works his skill was called into use, and he successfully met all obstructions. This was one of the feats which brought Mr. Schwab at an early age into prominence, and another was the metal mixture pro- cess. By the metal mixture process molten iron, instead of cold pig Irom, is used in steel making. The molten metal is run into large mixing reservolrs and quickly carrfed by rafl to its destination. Formerly it was run into sand beds and made into pigs, which of course required remelting before it could be mixed. This was a great saving of labor and of money, and the rallway which Mr. Schwab constructed for the quick carrying of the hot metal from a difficult elevation to its proper destination was a feat of engineering. Just seven years after he entered the Carnegle concern he was sent as chief en- gineer to rebuild the great Homestead steel plant. Previously he drew more at- tention to himself by his construction, as an engineer, of eight of the nine mammoth blast furnaces of the Edgar Thomson works, which were the largest in this country. In 1887 he became superintendent of the Homestead works. Five years later, in consequence of the tragic death of his fast friend, W. R. Jones, he was made general superintendent of the Edgar Themson works. It was he who built the great steel rail mill. He practically re- bullt the works, and Mr, Carnegie’s ap- preciation of his services may best be told by a little story. One day he and three of his partners drove from the Mountain House, Cresson, where they were stop- ping, to Loretto. He pulled up his horses in front of the livery stable which John A. Schwab kept. “Gentlemen,” he said, “this is our young engineer’s father. “‘How old is your son, Mr, Schwab?” he asked. ““Thirty vears.” cated?” k7 i, C;?fiéfia %///m “At St. Francis College,” Schwab. _ “Nowhere else?” “No. ““Well, he's a bright boy. You ought to come down to the works and see what he is doirg. He Is spending a great deal of money. “Well,” rejoined Mr. Schwab, “that is easy to do if you have plenty *o spend.” Mr. Carnegie laughed. “Tell your son when you see him,” he sald, “that if he'll stick to us we'll make a man of him.” Once Mr. Carnegie was approached by a conductor in a railroad train, who seated himself beside him. “Mr. Carnegie,” he said, “I see you have e boy from our mountain town in the Thomson works." ““You mean young Schwab?”’ asked Mr. Carnegle. “Yes,” replied the conductor. “I knew him when he drove a stage.” “Well, that didn’t hurt him,” sald Mr. Carnegle, dryly. ‘Many years back ‘“Charlie” Schwab drove the great iron master in his hack over the mountains. But that did not lead to a friendship between Mr. Carnegie and the boy, as some biographers delight in saying. The memory of that chance meet- ing remained in the mind of the boy mere- ly, and did not lead to his entering the steel works, As general superintendent of the Edgar Thomson works young Schwab received $35000 a year. While under W. R. Jones, that gentleman showed his appre- clation of the young man’s value by see- ing that he recelved on Christmas day an additional sum of $250 in gold from the company, and each succeeding year this litle gift was increased. Once W. R. Jones remarked to Mr, Spigelmire, his brother-in-law, that if he had the knowledge of mathematics that Charlie had he would not be fllling a posi- tion worth but $35,000 a year. Prior to the effort to make armor plate a success, Charles M. Schwab began the study of chemistry, and set apart an upper room in his house for a laboratory, which he fitted with the necessary appliances for analysis of iron, steel and ores. His wife, who was Miss Emma Dinkey, his land- lord’s daughter, whom he married when he was 21 years old, er.couraged him in his work in the laboratory, and, unknown to him, often compounded certain elements for him to solve. So it was that step by step he learned chemistry, which he early realized would be necessary for his suc- cessful advancement. ‘Wken the Carnegie officlals were wor- rled about the armor test, Mr. Schwab told Henry Phipps that if he had a laboratory properly fitted up he was sure he could be of great service, “How much would you need?’ asked Mr. Fhipps. “One thousand _dollars,” sald Mr. Sckwab, and Mr. Phipps gave him that sum. Some years before Mr. Schwab's ad- vancement became a matter of course Mr. Jones once answered the query as to who wouid succeed him at the head of the replied Mr. ’ of THE HEADg S ORI LA, TN NTER (e IN TE DISTE \\\ \ i ¥agar Thomson works by saying “The young engineer, Schwab, is the only man theroughly fitted for the piace.” Afier his fatal accident there were twenty-one applicants Tor Mr. Jones’ position. Mr. Schwab did not apply, and was surprised to receive a letter from the officers of the Carnegle works: appointing him superin- tendent, an almost overwhelming honor for a man so ycung. - During the Homestead strike, after the strikers had been out two months and there was no prospect of an early settle- ment, he went to the Homestead works, and on account of the great fondmess of the men for him, in three weeks, through his individual efforts. the strike was de- clared off. At that time he directed both the Edgar Thomson works and the Homestead works from Homestead. His most remarkable feat was the construc- tion of the armor plate department. Every Saturday in the Carnegie build- ing, Pittsburg, where the main offices are located, ‘a banquet is held, which all the heads of the departments attend. Noth- ing of a business nature is discussed dur- ing the meal, but after cigars are light- ed, every one has a free volce to sug- gest improvements and to discuss the business in general. A record is kept of all guggestions, and if they are good they are acted upon. Mr. Schwab sald this proved to be a very good plan, as no man ‘would make idle suggestions before a con- gregation of skilled mechanics and finan- clers, while he might if he were talking to but two or three. Every man in the concern is encouraged to make valuable suggestions, and it is on account of these and inventions that one acquires a standing. A man who thus proved himself to be Invaluable un- der the old regime was given outright by Mr. Carnegie some stock, which was in- creased according to his further worth. It was at one of these banquets that Mr. Schwab was requested to leave the room, and behind closed doors the re- maining gentlemen elected him vice president of the company, which he de- clined, saying he preferred the position of general superintendent of the Home- stead works rather than that of the vice presidency of the grat concern. During the armor plate discussion at ‘Washington a number of prominent men in the Carnegie works went to that city to pgesent an argument in their defense of tle accusations made against the ar. mor plate turned out at Pittsburg. J. G. A. Leishman, then president, later Minister to Switzerland and now in Tur- key, the gentleman assigned to make the defense. Mr. Leishman, who was stricken with stage fright, requested Mr. Schwab to make the argument, which he did so ably that on his return to Pitts- burg Mr. Leishman was asked to resign, and Mr. Schwab was made president, al- though he had not served as vice presi- dent During the past four years he filled that position so ably that he gained the entire confidence of Mr. Carnegie, so much so that that gentleman stipulated that if he sold out his interest in the works Mr. Schwab must be made president. It was 7 hardly necessary for Mr. Carnegle to make this stipulation, as Mr. Morgan and the other gentlemen were equally im- pressed with Mr. Schwab’s ability. One might imagine that one acquainted with such success would be changed to a degree in manner, but to-day he is as un- assuming as when he was a ruddy- cheeked schoolboy in Loretto. He has a great respect for his workmen. It was only lately that he remarked to me that “the greatest satisfaction I have is that all my men seem to bear a great love for me."” “You cannot fool a workman,” he con- tinued. ‘You cannot make believe to be his friend and at the same time browbeat him. He's a man above being fooled. In my opinion workmen are more honest as a class than capitalists.” In his office he is like a great dynamo. Indeed, he is the generator of all great movements of the Carnegle people. Although his manner over his desk Is one of strict and exacting application, he 1s still affable. The workmen know that at any moment he may appear rapidly walking through the works and noting things as he passes. He is a man of gen- erous and progressive thought—one who belleves in the active encouragement of every man in his employ. While superin- tendent of the Homestead works, for the betterment of the young he established the Homestead Industrial School, at a cost to himself of 24,000, and for three years pald all the expenses thereof, in- cluding the salary of the teachers. Nor is this the dnly industrial school In Pitts. burg ‘to which he gives personal and financial ald. He gives lberally to tne institutions for the benefit of the sick, but unostentatiously. It is rational to suppose that a man of such prominence would be satisfieq witn himself and his conditions. It was not so long ago that I had the pleasure of breakfasting with Mr. Schwab, in the Holland House. He was speaking about his early struggles and experiences, and glancing out of the window dreamily, re- marked: 4 2 “You see, T've a great many cares, I cannot say that I am satisfleq with life. I should like to be a 15 e 1dpat 1. Professor—that He is unpretentious and unassumt: Last week he turned to me and .._';':; “Upon my word I do not understand why all this fuss is being made over me.” “Well, Mr. Schwab,"” I said, “this is the first time in the history of the world thai there has ever been a company of such large capitalization; is it not?* “I know,” he simply replied. He is a man of great hospitality. He has a beautiful home in Pittsburg and ob- serves there the same custom that he did in Braddock of keeping open house. All of his friends in the neighboghood have latchkeys to his front door. If when he returns in the earlv evening there are no guests in his house he goes out and gath- ers them in, and they adjourn to the bil- liard-room or have an informal musicala. On such occasions he apparently throws all care aside. He Is as jolly as a school- boy; but he told me that his subconscious ana my the j mind is continually on his work. One winter Mr. Carnegie and he wers spending a few days In Florida, and as & lark went to a colored church. After the sermon the minister asked for a collection for rewhitewashing the church. When the basket was passed to Mr. Carnegle and Mr. Schwab they dropped in a coup's of crisp bills of large denomination. ‘When the basket was placed on the desk in front of the colored divine, that worthy put on his spectables and with astonish- ment stamped on his face closely exam- ined the bills, and then addressing tha congregation, sald: “De whitewashing of dis church will begin to-morrow, providin’ that thevs here notes dat de gen'lemen In de rear ob de church dropped in de basket are not counterfelts.” In Loretto, his schoolboy home, he is known simply as Charlie. He addresses his friends by their first name and shakes hands with them all. His manner, an old resident said, 1s just the same as when he ‘was a boy and drove the hack. He never visits Loretto without going to see Michael Malloy, the wheelwright. When he was a schoolboy he assisted Malloy's son, who had cut his foot badly, all the way home. When young Malloy grew older and young Schwab was working his way up in the Carnegle works, the Malloy boy said he would lke to leave Loretto and study medicine, which wish Mr. Bchwab facilitated by bearing all the ex- penses. Recently he showed his kindness of heart toward a girl of that mountain vl lage, who was on her sick bed for ten months with blood poisoning, by sending her to a hospital in Pittsburg and defray- ing all the expenses. And although pressed by duties of his office he found time to frequently call on the daughter of his home town till she passed beyond. The people in the community of Loretto are comparatively poor and when the pas- tor found it necessary to tear dewn the old church Mr. Schwab came forward and offered to build another at a cost of $150,- 000. It is mow In course of erection and 18 of great beauty. In front of the church he erected a monument of Prince Galitzen. Some time ago he bullt a church for a community in Braddock. Probably no man has acquired such vast wealth at such an-carly age and in such a short space of time as Mr. Schwab. ‘When asked to explain his success he stm- ply replied: “A man should always stand on his own feet, take adwvantage of op- portunities and be honest and diligent. To succeed you must make yourself in- dispensable and not set a limit to the time of your working hours, but do your work to the best of vour ability and let pleas- ure be of secondary importance. “The right type of man finds pleasure in his work and employers are looking for such. Men who compel recognition by their work cannot be restrained from torg. ing ahead. It Is not always the man who is smartest who makes the greatest ad. vancement: it is he of bulldog tenactty, he who cannot be discouraged and never gives up.” . A