YALE UNIVERSITY LIBRARY YALT. UillVERSIT" A 1 ^ ' MAR inm Andrew Carneg-ie His Methods with His Men I ::¦.- t '; •: I Chaeles M. Schwab J MH.'iJb ^- Andrew Carnegie His Methods with His Men Chables M. Schwab an address delivered at the Memorial Service, Caknegie Music Hall , pittsburgh , November 25, 1919 Andrew Carnegie IT is nearly forty years since I first knew Mr. Carnegie. As a boy I met him when he sojourned on the Alleghany Mountains for his summer outings, and I little thought at that tinie, when I held his horse and did trivial services for him, that fate in later years of life would so intimately throw our lives together, and that I would become the friend and associate of such a great man. As I reflect on those early days, a thought occurs to me that I heard ex pressed by an eminent gentleman who came here this morning and who is past seventy years of age; he said to me, "No man has had a greater influence upon my life than Mr. Carnegie." Even in those early days, when I was a boy, his personality was such as to inspire one, whatever his station in life, to better efforts and to an appreciation of the finer things in life, not by what he may have said to you, not by what he may have written or spoken, but just by the tender attitude of a strong personality that existed and lived with him through his whole life. So as I look back upon those days of boyhood, when I loiew Mr. Carnegie only by my service to him, I feel now the strength of that personality and the in fluence it had upon me in after life. Now, the world knows — and it is use less for me to speak of them on this occasion — of the great events in Mr. Carnegie's life — the building up of his great business, his philanthropies, and the many interesting things that the world at large is thoroughly familiar with. Those are a part of history and are i i 1 within the knowledge of everybody, and it seems to me out of place to speak of them to-day; so I wiU speak only of that inward personaUty and soul of the man upon which those great commercial enterprises and those great philanthropic acts have been based and which could never have been accomplished without such a soul. Mr. Carnegie was an illuminating ex ample of what strong personaUty will do in the world — of what loving personality, interesting personality, will do. Never before, perhaps, in the history of industry have you known a man who, not ; himself understanding the business in its working details, making no pretense of being a technical steel manufacturer or a special engineer, was yet able to build up such a great and wonderfully successful enterprise as Mr. Carnegie did. It was not because he was a skilled chemist or a skilled mechanic, a skilled engineer or a .skilled metallurgist; it was because he had the faculty of enlisting Llie jjcople who were skilled in those .arts. And while it may be an easy Uiing to enlist the intcircst of .such men in an enterprise, it is quite a different thing to get tlieir best cfforLs and loyal support. And in that Mr. Carnegie was para mount over all men that I have ever known. I wonder liow many of you have ever reflected that these tremcndoii.s results wliicli Mr. Carnegie secured were always obtained through ajX)inLafLappjoval aiul ncvcr_flL_ttit'ci.sm? Mr. Carnegie was always one to take you by the hand and encourage and approve. It was the rarest tiling in the world to hear liira criticize the actions of others, esijccially in a business sense. I wonder if you reflect how you your- .sclves — Iiow every other man rcspimds. witli his best eirorts under f^^i(^}_con- ditions? i\i my wide association in life, meeting witli many and great men in various i)art3 of the \vorId, I have yet to find the man, however great or exalted liis station, who dill not do better work and put forth greater effort under a spirit of ajiproval than he would ever do under a .spirit of criticism. NoAV, Mr. Carnegie understood tliis great tiling early in life, and it was this fine philosophy, which he practiced always, tliat made him a great commercial success. If I may be pardoned in giving you an illustration of the truth of this by relating a personal experience, I would like to call attention to the fact that during the war, when ships were so badly required by our nation and the world, and I was en trusted with the direction of that affair, the only thing that I did was to follow the example that Mr. Carnegie taught me many years ago, which was to stop criticism and to give the people who were doing the work encouragement and approval for what they were doing. The response that we had from the country speaks for the success of that theory in life. Mr. Carnegie believed in that, theory and practiced it more constantly and successfully than any other man I have ever known. That was one of the personal traits that made him great. I have seen him often in times of stress and disappointment, but he was always encouraging. S r-n To illustrate that, I am going to relate a little incident that occurred many years ago, v/hen I was manager of the Braddock works — and many of my associates here to-day on this platform, Mr. Morrison, Mr. Clemson, Mr. Pea cock, and the rest, will remember it. It was at a time when money was not too plentiful in the Carnegie Company, and I had asked permission to put up a new converting mill, and it had been built. It was everything I expected it to be, everything I promised Mr. Carnegie it should be, and he came out to Braddock to see it. As I was showing him around the works and explaining the new mill, he looked into my face and said, "Charlie, there is something wrong about this; I can see by your expression that you are disappointed. There is something wrong with this mill." I said, "No, Mr. Carnegie, it is just exactly what I told you it would be, and we have reduced our costs to the point that I said we would. But if I had it all to do over again, there is one thing which has just recently been discovered that I would introduce here, and that I am sure would result in further economy." He said, "Well,- what does that mean? Can you change this work?" I said, "No; it would mean tearing this down and rebuilding it." "Why," he said, "then that's the right thing to do; it's only a fool that will not profit by anything that may have been overlooked and discovered after the work is done. Tear it down and do it over again." And although that converting mill had been running only two months, we did tear it down and we did build it over 10 T t I- 4 again, and the return upon the capital thus expended repaid the great firm many fold. |{ That spirit was characteristic of Mr. Carnegie. He did not say in criticism, "Why didn't you think of this before?" If he had been the type of man who would say that sort of thing to me, or to any manager, he would never have learned of this new idea that had developed, and as a resiflt the firm would not have reaped the benefit of the better mifl. But that is the way Mr. Carnegie inspired us all. Another phase of his character .was thoroughness, and that may be illustrated in a way which shows how his mind worked all. around la subject. In those golden days when, p'erhaps, we had made a profit statement which showed that the firm had made five or six hundred 11 thousand dollars in a month, or possibly more, and I would go to him with pride and say, "Mr. Carnegie, we have made five hundred thousand dollars this month," it would not be a spirit of gratification alone that he manifested, but he would say, "Show me your cost sheets. It is more interesting to know hov/ cheaply and how well you have done this thing than how much money you have made, because the one is a temporary result, due possibly to special conditions of trade, but the other means a perma nency that will go on with the works as long as they last." Mr. Carnegie used often to scold me in a good-natured sort of way for what he caUed my extravagance with money. He would say, "Charlie, I don't under stand you; here you are, a poor boy, born in the country, and you don't realize the 12 I value of money, and you spend and spend for new work extensions, all the time, as if we had money unhmited." I always protested that he was wrong, that I was only spending for the good of the firm, until one historic day when I was going to see Mr. Carnegie. Mr. Curry, one of our dear departed partners, went first, and a little later I took a carriage from the HoUand House, and when I arrived at Mr. Carnegie's home as I expected to remain for only a short time I told the cabman to wait. We started talking, and our interest waxed keen; time fiew on until the luncheon hour, when I accepted an invitation to remain, and our discussion continued. This old question of economy came up, and again there was an arraignment of my extravagance, against which I pro tested; but just then the butler stepped 13 in and asked, "Mr. Schwab, do you want that carriage to wait any longer?" Mr. Carnegie always seemed to have the faculty of getting the best of an argument of that sort. It was useless for me, after that, to protest that his con clusions with reference to my extravagance were not correct. One other thought occurs to me about Mr. Carnegie which perhaps others may not have expressed, and I wish to refer to it. During the Great War the one. spirit that seemed to animate every man, no matter how great his station in life — and, indeed, the greater his station the more he tried to emulate it — was the spirit of democracy. This is an age when a man, be he prince, king, philanthropist, merchant, manu- u I . A- facturer, politician or plain citizen, can have nothing better said of him than that he is truly democratic. That describes Mr. Carnegie. We are all striving for that spirit of true democracy. When the heir to the Enghsh throne visited this country recently, what was the one predominating thing that was said about him everywhere and that attracted such universal admiration ? It was the fact that he was a true democrat. And, by the way, the true aristocrat of to-day is not the man of birth or wealth, but the man who has done something for humanity. That was no new theory with Mr. Carnegie. He was the simple democrat that we preach of to-day, all the years of his life. He never had a, particle of snobbishness in his character, nor could he tolerate it in others. He was a true 15 example of democracy, and he practiced that, virtue all his life. He numbered among his friends not alone the great and the rich and the powerful of the world, but the honest working man or woman in any capacity who was truly doing the best possible in a straightforward way to accomplish something in hfe. I see a man in this audience to whom I heard Mr. Carnegie say, "Morgan, I am glad to see you. You are one of the best workmen and one of the most straight forward men it has ever been my pleasure to know, and I am honored to have you associated with me." That was Morgan Harris, the old forgeman who sits in the front row. [At Mr. Schwab's request Mr. Morgan Harris stood up and was warmly greeted by the audience.] 16 I have known Morgan Harris for thirty years; he was forgeman at the Braddock works, but I did not know he was going to be here this afternoon. He loved Mr. Carnegie just as much as Mr. Carnegie loved him— and I appeal to you, ladies and gentlemen, can there be a stronger appreciation of the true worth and demo cracy of Mr. Carnegie than that bis old and favorite, workman comes here to do him honor to-day? Now, my friends, naturally you ex pected that anything I would say of Mr. Carnegie must be as a tribute of the highest possible character; nothing less could do him justice. But this to me is not a day of grief and sadness. Of course we feel lonely and regret that our old chieftain is not here to join with us in celebrating his birthday. 17 We miss him more than any one can ever say, especially those of ua who have been closely associated with him. No man saw more of him in his later life than I, and oh, my friends, if you could know the happiness of that later life of Mr. Carnegie you would realize that it was the true consummation of a fine, strong life. His very soul seemed to be reflected in those later years, in his old age, and it shone forth in his every action and animated his thoughts more markedly than at any other period of his hfe. Everybody, to Mr. Carnegie, in those later years, was his best friend and the dearest man in the world. Now when a man has that within his soul, his soul has been right throughout hfe. Mr. Carnegie never knew anger and never knew revenge. He never had that feeling in his heart. No matter how deep la the hurt, he carried no resentment or iU- feeling. I remember, once, a man who had done Mr. Carnegie a great injury came to me and told me that things were going badly with him, and spoke of the wrong to Mr. Carnegie. I said to him, "You mustn't tell me about it; go and teU Mr. Carnegie." "Oh," he said, "Mr. Carnegie would not receive me." I said, "Yes, he wfll; just go and tell him what you have told me." And he went to Mr. Carnegie and told him. the truth, and Mr. Carnegie put his arms around that man's shoulders and said, "I am glad to see my old friend back here again, and we will be better friends than ever before," and as a matter of fact they were. Among Mr. Carnegie's best friends / 19 were those he made in business. He had no weak sentiment as to business, but he believed that it was best accomplished under happy conditions. Those of you who have visited the old Carnegie mill will remember the picture of tlic old monk that used to hang on the wall in the directors' room. It seems that some criticism was made that it was not sufficiently dignified for the place. That reached Mr. Carnegie's ears, and he sent the picture to me and said, "Hang this in your room." It was a picture of a jolly old monk who owned nothing but the robe on his back; and Mr. Carnegie added, "Any time that you feel blue or inclined to be despondent, just look at this old monk's happy countenance and your depression will disappear." He used to say, too, "Always remember ( ',1 / ' l-'Y that good business is never done except in a happy and contented frame of mind." That was Mr. Carnegie's philosophy; that is the way he acted with all of us boys, and tliat is the reason we loved him so much. It was my pleasure, each year, at the old Carnegie reunion, to propose his health, and I think I always used the same words, and I think I will use them again this year: "Each year that rolled by made us but love him the more." Mr. Carnegie has not departed, except in the body. Ilis influence and the imprint that he made on the minds of all of us live with us to-day just as strong as ever b^sfore, and when we propose his health at the annual banquet, as we have in years gone by, if it comes to me, I shall use just the same words, that "each succeeding ye.ar 20 21 makes us love him and admire him more and more." He was a great man amongst men. He has left his influence and the force of his personal philosophy upon thou sands — yea, millions — not because of his great business ability nor his vast philanthropies, but because of the ideals that he practiced and that he set for every man who has his life to live. As the years went by, Ufe brought to him all the happiness any man could ever hope to have. And I must not neglect on this occasion to pay a tribute to the one who contributed more than the world could believe to his wonderful career and to bis success and character; that is, his very dear wife, Mrs. Andrew Carnegie. In her quiet, unostentatious way she was a tower of strength, and we boys who 22 knew Mr. Carnegie best and most inti mately were wise enough to know that if we had a doubtful cause our strongest ally was Mrs. Carnegie. Now, that is not an un-American precedent. It seems to me to exist in most American famiUes, and I thank God that it does, because with these hustling, masterful American men, plung ing forward always for material gain, the refining and restraining influence of a good woman by the side of a strong man is the finest thing that God ever created. Mrs. Carnegie occupied that position with her distinguished husband. My friends, we have not, as you see, endeavored to make this an occasion of sadness, but rather one of appreciation of our good old, dear friend, Mr. Carnegie. I am sure if he were here he might object to some of the things that were 23 said, thinking they were extravagant, or at least over-stated, but he would agree that his birthday should be celebrated in just the way we are doing here — not to stand up and express our deep regret at his death and at the loss the world has sustained, but rather an appreciation of the legacy of his good life to all of us. The influence of his life will live many times longer than the age of a normal man. If he could realize that we love and revere his memory, and that his influence is a benefit to thousands, that would cause him great joy and be a supreme satisfac tion; and if I have added anything to the thoughts of the friends of Mr. Carnegie in the praise which I have justly given him, then indeed am I honored by the opportunity to speak of my old, my be loved, my greatest friend — Andrew Carnegie. 24 YALE UNIVERSITY a39002 002222082b