Classic Audiobook Collection - The Empire of Business by Andrew Carnegie ~ Full Audiobook [business]

Episode Date: June 28, 2023

The Empire of Business by Andrew Carnegie audiobook. Genre: business This collection of essays by Scottish-American steel industrialist Andrew Carnegie, gathered from various periodicals and first published in book form in 1902, provides insight into one of history’s richest and most notable entrepreneurs/philanthropists. Carnegie shares his outlook on the economic situation in America at the turn of the 20th century, the state of the US oil, coal, rail, and steel industries, the relationship between capital and labour, individualism vs. socialism, the public/private sector partnership, the upward climb of humanity into prosperity, the importance of land and population, trade and the best uses of tariffs, etc. He also discusses the personal rewards of hard work, integrity, thrift, how to accumulate wealth, cultivation of the lifelong reading habit, use of libraries, and other advice for achieving success. Included is one of his most famous little essays, 'The Three Legged Stool' For ad-free listening try our premium subscription Chapters (Approximate) (00:00:00) Chapter 01 (00:25:02) Chapter 02 (00:57:42) Chapter 03 (01:05:12) Chapter 04 (01:43:44) Chapter 05 (02:33:33) Chapter 06 (02:56:20) Chapter 07 (03:29:59) Chapter 08 (03:57:56) Chapter 09 (04:02:29) Chapter 10 (04:20:18) Chapter 11 (04:56:03) Chapter 12 (05:29:02) Chapter 13 (06:13:19) Chapter 14 (06:29:11) Chapter 15 (06:34:10) Chapter 16 (06:53:15) Chapter 17 (07:21:00) Chapter 18 (07:37:20) Chapter 19 (07:52:47) Chapter 20 (08:04:46) Chapter 21 Learn more about your ad choices. Visit megaphone.fm/adchoices

section one of the empire of business by andrew carnegie section number one the road to business success a talk to young men it is well that young men should begin at the beginning and occupy the most subordinate positions many of the leading business men of pittsburg had a serious responsibility thrust upon them at the very threshold of their career they were introduced to the broom and spent the first hours of their business life sweeping out the old business life sweeping out the old business office. I notice we have janitors and janetresses now in offices, and our young men unfortunately missed that salutary branch of a business education. But if by chance the professional sweeper is absent any morning, the boy who has the genius of the future partner in him will not hesitate to try his hand at the broom. The other day a fond, fashionable mother in Michigan asked a young man whether he had ever seeing a young lady sweep in a room so grandly as her Priscilla. He said no, he never had, and the mother was gratified beyond measure. But then said he, after a pause, what I should like to see

her do is sweep out a room. It does not hurt the newest comer to sweep out the office if necessary. I was one of those sweepers myself, and who do you suppose were my fellow sweepers? David McCargo, now superintendent of the Allegheny Valley Railroad, Robert Pitcairn, superintendent of the Pennsylvania Railroad, and Mr. Morland, city attorney. We all took turns, two each morning did the sweeping, and now I remember Davey was so proud of his clean white shirt, bosom that he used to spread it over an old silk bandana handkerchief, which he kept for the purpose, and we other boys thought he was putting on airs. So he was.

none of us had a silk handkerchief. Assuming that you have all obtained employment and are fairly started, my advice to you is aim high. I would not give a fig for the young man who does not already see himself the partner or the head of an important firm. Do not rest content for a moment in your thoughts as head clerk or foreman or general manager in any concern, no matter how extensive. Say each to yourself, my place is at the top.

be king in your dreams. Make your vow that you will reach that position with untarnished reputation, and make no other vow to distract your attention, except the very commendable one that, when you are a member of the firm or before that, if you have been promoted two or three times, you will form another partnership with the loveliest of her sex, a partnership to which our new Partnership Act has no application. The liability there is never limited. The liability there is never limited. Let me indicate two or three conditions essential to success. Do not be afraid that I'm going to moralize or inflict a homily upon you. I speak on the subject only from the view of a man of the world, desirous evading you to become successful business men. You all know that there is no genuine,

praiseworthy success in life if you are not honest, truthful, fair dealing. I assume you are, and will remain all these, and also that you are determined to live pure, respectable lives, free from pernicious or equivocal associations with one sex or the other. There is no credible future for you else. Otherwise, you are learning and your advantages not only go for naught, but serve to accentuate your failure and your disgrace. I hope you will not take it amiss if I warn you against three of the gravest dangers, which will beset you in your upward path.

the first and most seductive and the destroyer of most young men is the drinking of liquor i am no temperance lecturer in disguise but a man who knows and tells you what observation has proved to him and i say to you that you are more likely to fail in your career from acquiring the habit of drinking liquor than any other or all the other temptations likely to assail you you may yield to almost any other temptation and reform may brace up and if not recover loss ground at least remain in the race and secure and maintain a respectable position. But from the insane thirst for liquor, escape is almost impossible. I have known but few exceptions to this rule. First then, you must not drink liquor to excess. Better if you do not touch it at all. Much better.

But if this be too hard a rule for you, then take your stand firmly here. Resolve never to touch it except but meals. A glass at dinner will not hinder you. your advance in life or lower your tone. But I implore you, hold it inconsistent with the dignity and self-respect of gentlemen with what is due from yourselves to yourselves being the men you are, and especially the men you were determined to become to drink a glass of liquor at a bar. Be far too much of the gentleman ever to enter a bar-room. You do not pursue your careers in safety unless you stand firmly upon this ground. Adher to it, and you have escaped danger,

from the deadliest of your foes. The next greatest danger to a young businessman in this community, I believed to be that of speculation. When I was a telegraph operator here, we had no exchanges in the city, but the men or firms who speculated upon the eastern exchanges were necessarily known to the operators. They could be counted on the fingers of one hand. These men were not our citizens of first repute. They were regarded with suspicion.

i have lived to see all of these speculators irreparably ruined men bankrupt in money and bankrupt in character there is scarcely an instance of a man who is made a fortune by speculation and kept it gamesters die poor and there is certainly not an instance of a speculator who has lived a life creditable to himself or advantageous to the community the man who grasps the morning paper to see first how his speculative ventures upon the exchanges are likely to result unfits himself for the calm consideration and proper solution of business problems with which he has to deal later in the day and saps the sources of that persistent and concentrated energy upon which depend the permanent success and often the very safety of his main business the speculator and the business man tread diverging lines the former depends upon the sudden turn of fortune's wheel he is a millionaire to-day a bankrupt to-morrow but the man of business knows that only by years of patient unremitting intention to affairs can he earn his reward which is the result not of chance but of well-devised means for the attainment of ends during all these years his is the cheering thought by no possibility can he benefit himself without caring prosperity to others the speculator on the other hand had better never have lived so far as the good of others or the good of the community is concerned hundreds of young men were tempted in the city not long since to gamble in oil and many were ruined All were injured, whether they lost or won.

You may be, nay, you are certain to be similarly tempted, but when so tempted I hope you will remember this advice. Say to the tempter who asks you to risk your small savings that if ever you decide to speculate, you are determined to go to a regular and well-conducted house where they cheat fare. You can get fair play in about an equal chance upon the red and black in such a place.

Upon the exchange you have neither. you might as well try your luck with a three-card Monty man there's another point involved in speculation nothing is more essential to young business men than untarnished credit credit begotten of confidence in their prudence principles and stability of character well believe me nothing kills credit sooner in any bank board than the knowledge that either firms or men engage in speculation it matters not a whit whether gains or losses be the temporary result of these operations. The moment a man is known to speculate his credit is impaired, and soon thereafter it is gone. How can a man be credited whose resources may be swept away in one hour by a panic among gamesters? Who can tell how he stands among them, except that this is certain? He has given due notice that he may stand to lose all, so that those who credit him have themselves to blame. Resolved to be businessmen, but speculators, never. The third and last danger against which I

shall warn you is one which has wrecked many a fair craft which started well, and gave promise of a prosperous voyage. It is the perilous habit of endorsing, all the more dangerous inasmuch as it assails one generally in the garb of friendship. It appeals to your generous instincts, and you say, how can I refuse to lend my name only, to assist a friend. It is because there is so much that is true and commendable in that view that practice is so dangerous. Let me endeavor to put you upon safe honorable grounds in regard to it. I would say to you to make it a rule now, never endorse, but this is too much like never a taste wine, or never smoke, or any other of the nevers. They generally result in exceptions. You will as businessmen now and then probably become security for friends.

Now here is the line at which regard for the success of friends should cease in regard for your own honor begin. If you owe anything, all your capital and all your effects are a solemn trust in your hands to be held in violent for the security of those who have trusted you. Nothing can be done by you with honor which jeopardizes these first claims upon you. when a man in debt endorses for another it is not his own credit or his own capital he risks it is that of his own creditors he violates a trust mock you then never endorse until you have cash means not required for your own debts and never endorse beyond those means before you endorse at all consider endorsements as gifts and ask yourselves whether you wish to make the gift to your friend or whether the money is really yours to give and not a trust for your creditors you are not safe gentlemen unless you stand firmly upon this as the only ground which an honest business man can occupy i beseech you avoid liquor speculation and endorsement do not fail in either for liquor and speculation are the sylla and coryptus of the young man's business sea an endorsement is rock ahead assuming you are safe in regard to these your gravest dangers the question now is how to rise from the subordinate position you have imagined you in through these successive grades to the position for which you are in my

opinion and I trust in your own evidently intended. I can give you the secret. It lies mainly in this. Instead of the question, what must I do for my employer? Substitute, what can I do? Faithful and conscientious discharge of the duties assigned you is all very well, but the verdict in such cases generally is that you perform your present duty so well that you had better continue performing them. Now, young gentlemen, this will not do. It will not do for, for the coming partners. There must be something beyond this. We make clerks, bookkeepers, treasurers, bank-tellers of this class, and there they remain to the end of the chapter. The rising man must do something exceptional, beyond the range of his special department. He must

attract attention. A shipping clerk, he may do so by discovering in an invoice, an arrow with which he has nothing to do, and which has escaped the attention of the proper party. If a weighing clerk, he may save the firm by doubting the adjustment of the scales and having them corrected, even if this be the province of the master mechanic. If a messenger boy, even he can lay the seed of promotion by going beyond the letter of his instructions in order to secure the desired reply. There is no service so low and simple, neither any so high, in which the young man of ability and willing disposition cannot readily and almost daily prove himself capable, of greater trust and usefulness, and what is equally important, show his invincible determination to rise.

Someday in your own department you will be directed to do or say something which you know will prove disadvantage to the interest of the firm. Here is your chance. Stand up like a man and say so. Say it boldly and give your reasons, and thus prove to your employer that, while his thoughts have been engaged upon other matters, you have been studying during hours, when perhaps he thought you asleep, how to advance his interests. You may be right or you may be wrong, but in either case you have gained the first condition of success. You have attracted attention. Your employer has found that he is not a mere hireling in his service, but a man, not one who is content to give so many hours of work for so many dollars in return,

but one who devotes his spare hours and constant thoughts to the business. such an employee must perforce be thought of and thought of kindly and well. It will not be long before his advice is asked in his special branch, and if the advice given be sound, it will soon be asked and taken upon questions and brought her bearing. This means partnership, if not with present employers, than with others. Your foot in such case is upon the latter. The amount of climbing done depends entirely upon yourself. One false axiom you will often hear, which I wish to guard you against. Obey orders if you break owners. Don't you do it. There is no rule for you to follow. Always break orders to save owners. There never was a great character who did not sometimes smash the routine

regulations and make new ones for himself. The rule is only suitable for such as have no aspirations, and you have not forgotten that you are destined to be owners and to make orders and break orders. Do not hesitate to do it whenever you assure the interests of your employer will be thereby promoted, and when you are so sure of the result that you are willing to take the responsibility, you'll never be a partner unless you know the business of your department far better than the owners possibly can. When called to account for your independent action, show him the result of your genius, and tell him that you knew that it would be so. Show him how mistaken the orders were. Boss, your boss, just as soon as you can. Try it on early. There's nothing he will like so well,

if he is the right kind of boss. If he is not, he is not the man for you to remain with. Leave him whenever you can, even at a present sacrifice, and find one capable of discerning genius. Our young partners in the Carnegie firm have won their spurs, by showing that we did not know half as well what was wanted as they did. Some of them have acted upon occasion with me, as if they owned the firm, and I was but some airing New Yorker, presuming to advise upon what I knew very little about. Well, they are not interfered with much now. They were the true bosses, the very men we were looking for.

There is one sure mark of the coming partner, the future millionaire, his revenues always exceed his expenditures. He begins to save early, almost as soon as he begins to earn. No matter how little it may be possible to save, save that little. Invest it securely, not necessarily in bonds, but in anything which you have good reason to believe will be profitable. But no gambling with it. Remember, a rare chance will soon present itself for investment. The little you have saved will prove the basis for an amount of credit utterly surprising to you. Capitalists trust the saving young man.

For every hundred dollars you can produce as the result of hard-won savings, Midas, in search of a partner, will lend or credit a thousand. For every thousand, fifty thousand. It is not capital that your seniors require. It is the man who has proved that he has the business habits which create capital. And to create it in the best of all possible ways, as far as self-discipline is concerned, is by adjusting his habits to his means.

Gentlemen, it is the first hundred dollars save which tells, Begin at once to lay up something. The B predominates in the future millionaire. Of course there are better higher aims than saving. As an end, the acquisition of wealth is ignoble in the extreme. I assume that you save and long for wealth only as a means of enabling you, the better to do something good in your day and generation. Make a note of this essential rule.

Expenditure, always within income. You may grow impatient or become discouraged when year by year you float on in subordinate positions. There is no doubt that it is becoming harder and harder as business gravitates more and more to immense concerns for a young man without capital to get a start for himself, and in this city especially where large capital is essential, it is unusually difficult. Still, let me tell you for your encouragement that there is no country in the world where able and energetic young men can so readily rise as this, nor any city where there is more room at the top. It has been impossible to meet the demand for capable first-class bookkeepers, mark the adjectives. The supply has never been equal to the demand.

Young men give all kinds of reasons why, in their cases, failure was clearly attributable to exceptional circumstances. which render success impossible. Some never had a chance, according to their own story. This is simply nonsense. No young man ever lived who had not had a chance, and a splendid chance, too, if he ever was employed at all. He is a say in the mind of his immediate superior from the day he begins work, and after a time, if he has merits, he is a aide in the council chamber of the firm. His ability, honesty, habits, associations, temper, disposition, all these are weighed and analyzed. The young man who never had a chance as the same young man, who has been canvassed over and over again by his superiors, and found destitute of necessary qualifications, or is deemed unworthy of closer relations with a firm,

owing to some objectionable act, habit, or association, of which he thought his employer is ignorant. another class of young men attribute their failure to employers having relations or favorites whom they advance unfairly. They also insist that their employers dislike brighter intelligences than their own and are disposed to discourage aspiring genius and delight in keeping young men down. There is nothing in this. On the contrary, there is no one suffering so much for lack of the right man in the right place, nor so anxious to find him as the owner. There is not a firm in Pittsburgh today,

which is not in the constant search for business ability, and every one of them will tell you that there is no article in the market at all time so scarce. There is always a boom in brains. Cultivate that crop, for if you grow any amount of that commodity, here is your best market, and you cannot overstock it,

and the more brains you have to sell, the higher price you can exact. they are not quite so sure a crop as wild oats which never fail to produce a bountiful harvest but they have the advantage over these in always finding and market do not hesitate to engage in any legitimate business for there is no business in america i do not care what which will not yield a fair profit if it receive the unremitting exclusive attention in all the capital of capable and industrious men every business will have its season of depression years always come during which the manufacturers and merchants of the city are severely tried years when mills must be run not for profit but at a loss that the organization and men may be kept together and employed and the concern may keep its products in the market but on the other hand every legitimate business producing or dealing in an article which man requires is bound in time to be fairly profitable if properly conducted and here is the prime condition of success the great secret concentrate your energy thought and capital exclusively upon the business in which you are engaged having begun in one line resolved to fight it out on that line to lead in it adopt every improvement have the best machine have the best machine to lead in it adopt every improvement have the best machine machinery, and know the most about it. The concerns which fail are those which have scattered their

capital, which means that they have scattered their brains also. They have investments in this, or that, or the other, here, there, and everywhere. Don't put all your eggs in one basket is all wrong. I tell you, put all your eggs in one basket, and then watch that basket. Look around you and take notice. Men who do that do not often fail. It is easy to watch. and carry the one basket. It is trying to carry too many baskets that one breaks most eggs in this country. He who carries three baskets must put one on his head, which is apt to tumble and trip him up. One fault of the American businessman is lack of concentration. To summarize what I've said, aim for the highest, never enter a barroom, do not touch liquor, or if at all, only at meals. Never

speculate. Never endorse beyond your surplus cash fund. Make the firm's interests yours. Break orders always to save owners. Concentrate. Put all your eggs in one basket and watch that basket. Expenditure always within

revenue. Lastly, be not impatient. For as Emerson says, no one can cheat you out of ultimate success but yourselves. I congratulate poor young men upon being born to that ancient and honor degree which renders it necessary that they should devote themselves to hard work.

A basket full of bonds is the heaviest basket a young man ever had to carry. He generally gets too staggering under it. We have in this city credible instances of such young men who have pressed to the front rank of our best and most useful citizens. They deserve great credit. But the vast majority of the sons of rich men are unable to resist the temptations to which wealth subjects them and sink to unworthy lives. I would almost as soon leave a young man a curse as burden him with the almighty dollar. It is not from this class you have rivalry to fear.

The partner's sons will not trouble you much, but look out that some boys poorer, much poorer than yourselves, whose parents cannot afford to give them the advantages of a course in this institute, advantages which should give you a decided lead in the race. Look out that such boys do not challenge you at the post and pass you at the grandstand. Look out for the boy who has to plunge into work direct from the common school, and who begins by sweeping out the office. He is the probable dark horse that you had better watch. End of Section No. 1, A Talk to Young Men.

Section 2 of the Empire of Business by Andrew Carnegie. This is a Libre Vox recording. All Libravox recordings are in the public domain. For more information or to volunteer, please visit Librevox.org. This recording is by Michelle Frye, Baton Rouge, Louisiana in August 2020. The Empire of Business, Section 2. The Common Interest of Labor and Capital Address to Workingmen

A Great Philosopher has pointed out to us that in this life, the chief, the highest reward that we can obtain is the purchase of satisfactions. I have purchased a great satisfaction, one of the greatest I have ever acquired. I have been privileged to help some of my fellow workmen help themselves. This library, Braddock, Pennsylvania, will give them an opportunity to make themselves more valuable to their employers and so lay up intellectual capital that cannot be impaired or depreciated. It is very unfortunate that the irresistible tendency of our age, which draws manufacturing into immense establishments,

requiring the work of thousands of men, renders it impossible for employers who reside near to obtain that intimate acquaintance with employees, which under the old system of manufacturing and very small establishments made the relation of master and man more pleasing to both. When articles were manufactured in small shops, by employers who required only the assistance of a few men and apprentices, the employer had opportunities to know everyone,

to become well acquainted with each, and to know his merits both as a man and as a workman, and on the other hand, the workman being brought into closer contact with his employer, inevitably knew more of his business, of his cares and troubles, of his efforts to succeed, and more important than all, they came to know something of the characteristics of the man himself. All this is changed. Thus, the employees become more like human machines, as it were, to the employer, and the employer becomes almost a myth to his men.

From every point of view, this is a most regrettable result, yet it is a very point of view. is one for which I see no remedy. The free play of economic laws is forcing the manufacture of all articles of general consumption more and more into the hands of a few enormous concerns that their cost to the consumer may be less. There is no longer any room for conducting the manufacture of such articles upon a small scale. Expensive works and machinery costing millions are required, as the amount per ton or per yard of what we call fixed charges is so great a factor in the total cost that whether a concern can run successfully or not in many cases depends on whether it divides these fixed charges, which may be said to be practically the same in a large establishment as in a smaller,

by a thousand tons per day or by 500 tons per day of product. Hence, the reason for the continual increase year by year in the product of your, mills, not that the manufacturer wishes primarily to increase his product, but that the strain of competition forces him into extensions that he may thereby reduce more and more per ton or per yard these fixed charges upon which the safety of his capital depends. It being therefore impossible for the employers of thousands to become acquainted with their men, if we are not to lose all feeling of mutuality between us, the employer must seek their acquaintance through other forms, to express his care for the well-being of those

upon whose labor he depends for success, by devoting part of his earnings for institutions like this library, and for the accommodation of organizations, such as the cooperative stores which occupy the lower floor of this building, and I hope in return that the employees are to show by the use which they make of such benefactions that they in turn respond to this sentiment upon the part of employers wherever it may be found. By such means as these we may hope to maintain to some extent the old feeling of kindliness, mutual confidence, respect and esteem, which formerly distinguished the relations between the employer and his men. We are younger than Europe and have still something to see from the older land in this respect, but I rejoice to see that

many manufacturers in this country are awaking to the sense of duty to their employees, and what is even still more important are the evidences which we find among our workmen of a desire to establish societies which cannot but be beneficial to themselves. It is all well enough for people to help others, but the grandest result is achieved when people prove able to help themselves. Another important feature which may be referred to is that, in Pittsburgh, labor generally is paid so well that the workman can save something every month, if only he will make the effort. Nothing can exceed the importance of saving part of his

earnings. The workman who owns his own home has already a sure foundation upon which to build the competence, which is to give him comfort and independence in old age. I have said how desirable it was that we should endeavor by every means in our power to bring about a feeling of mutuality and partnership between the employer and the employed. Believe me, the interests of capital and labor are one. He is an enemy of labor who seeks to array labor against capital. He is the enemy of capital who seeks to array capital against labor. I have given the subject of labor and capital careful study for years, and I wish to quote a few paragraphs from an article I published years ago.

Quote, the greatest cause of the friction which prevails between capital and labor, the real essence of the trouble, and the remedy I have to propose for this unfortunate friction. The trouble is that men are not paid at any time the compensation proper to that time. All large concerns necessarily keep filled with orders, save for six months in advance, and these orders are taken, of course, at prices prevailing when they are booked. This year's operations furnished perhaps the best illustration of the difficulty. Steel rails at the end of last year for delivery this year were $29 per ton at the works. Of course, the mills entered orders freely at this price and kept on entering them until the demand,

growing unexpectedly great, carried prices up to $35 per ton. Now the various mills in America are compelled for the next six months or more, to run upon orders which do not average $31 per ton at the seaboard and Pittsburgh, and say $34 at Chicago. Transportation, ironstone, and prices of all kinds have advanced upon them in the meantime, and they must therefore run for the bulk of the year upon very small margins of profit. But the men, noticing in the papers the great boom and steel rails, very naturally demand their share of,

of the advance and under our existing faulty arrangements between capital and labor they have secured it the employers therefore have grudgingly given what they know under proper arrangements they should not have been required to give and there has been friction and still is dissatisfaction upon the part of the employers reverse this picture the steel rail market falls again the mills have still six months work at prices above the prevailing market and can afford to pay men higher wages than the then existing state of the market would apparently justify. But having just been immersed in extra payments for labor, which they should not have paid, they naturally attempt to reduce wages as the market price of the rails goes down and there arises discontent among the men, and we have a repetition of the negotiations and strikes which have characterized the beginning of this year. In other words, when the employer is going down, the employee insists on going up, and vice versa.

What we must seek is a plan by which men will receive high wages when their employers are receiving high prices for the product, and hence are making large profits, and per contra, when the employers are receiving low prices for product, and therefore small, if any, profits, the men will receive low wages. If this plan can be found, employers and employers, employed will be in the same boat, rejoicing together in their prosperity and calling into play their fortitude together in adversity. There will be no room for quarrels, and instead of a feeling

of antagonism, there will be a feeling of partnership between employers and employed. There is a simple means of producing this result, and to its general introduction, both employers and employed should steadily bend their energies. Wages should be based upon a sliding scale in proportion to the net prices received for product month by month. It is impossible for capital to defraud labor under a sliding scale. End quote. One advantage of this library, Carnegie Library at Braddock, Pennsylvania, will be that it will bring before you every local newspaper and every trade journal, and I beg you all to read these carefully. You will find many misstatements, many blunders.

These are inseparable from the newspaper press, which must work hastily and report even rumors. But by studying the principal journals, the tendency of affairs can be correctly seen. Newspapers will not give you a correct statement of the prices of material. Manufacturers are disposed to give the brightest coloring to the situation to report the highest sales made with a view to maintain prices

and induce customers to purchase. They will probably not report how low they have been compelled to sell in order to meet competition and keep works running. Nevertheless, the careful perusal of the newspapers and trade journals, as I have said, will enable you to form a general opinion of the trend of events in the commercial world. If you read the papers today, you will know that out of 13 mills engaged in the manufacture of steel rails in this country, not more than three are running to their

capacity. Only one mill in all the west is making rails, North Chicago, and I am sorry to say that it seems probable that even that one will not be able to run continuously. The most melancholy feature in all the disputes between labor and capital is that it is scarcely ever capital that succeeds in breaking down the price of labor, but alas, it is labor which stabs labor. Look around you and see labor working for 10, 20, and even 30 percent less in some mills, and at Johnstown and Harrisburg, for less than one-half what we pay for skilled labor in this district, and then in your hearts blame not capital, but consider employers who regret their reductions in wages, who stand out against them, and run for years, and run for years,

higher prices as the best friends of labor, even although at last, they must frankly confess that if they are to give their men steady employment and save their capital and works, they are forced to ask them to work at the rates obtained by their competitors. The first employer who reduces labor is laborer's enemy, but the last employer to reduce labor may be labor's stonious friend. The fatal enemy of labor is labor. not capital. The greatest character in the public life of Britain and the staunchest friend of the Republic in its hour of need,

the radical John Bright, being once asked what was his most valuable acquisition, replied, a taste for reading. I can truthfully say from my own experience that I agree with that great man. Most anxious to give you the best advice in my power, I advise you to cultivate the taste for reading. when i was a boy in my teens in alleghany city colonel anderson whose memory i must ever revere who had a few hundred books gave notice that he would lend these books every saturday afternoon to boys and young men

you cannot imagine with what anxiety some of us who embraced this opportunity to obtain knowledge looked forward to every saturday afternoon when we could get one book exchanged for another the principal partner with me and all our business, Mr. Phipps, equally with myself, had obtained access to the stores of knowledge by means of this benefactor. It is from personal experience that I feel that there is no human arrangement so powerful for good. There is no benefit that can be bestowed upon a community so great as that which places within the reach of all the treasures of the world which are stored up in books. We occasionally find traces. even at this day of the old prejudice which existed against educating the masses of the people. I do not wonder that this should exist when I reflect upon what has hitherto passed for education.

Men have wasted their precious years trying to extract education from an ignorant past, whose chief province is to teach us not what to adopt, but what to avoid. Men have sent their sons to college to waste their energies upon obtaining a knowledge of such languages as Greek and Latin, which are of no more practical use to them than Choctaw. I have known few college graduates that knew Shakespeare or Milton. They might be able to tell you all about Ulysses or Agamemnon or Hector, but what are these compared to the characters that we find in our own classics. One service Russell Lowell has done, for which he should be thanked. He has boldly said that in Shakespeare alone, we have a greater treasure than in all the

classics of ancient time. They have been crammed with the details of petty and insignificant skirmishes between savages and taught to exalt a band of ruffians into heroes, and we have called them educated. They have been educated as if they were destined for life upon some other planet than this. They have in no sense received instruction. On the contrary, what they have obtained has served to imbue them with false ideas and to give them a distaste for practical life. I do not wonder that a prejudice has arisen and still exists against such education. In my own experience, I can say that I have known few young men intended for business

who were not injured by a collegiate education. Had they gone into active work during the years spent at college, they would have been better educated men in every true sense of that term. The fire and energy have been stamped out of them, and how to so manage as to live a life of idleness, and not a life of usefulness, has become the chief question with them. But a new idea of education is now upon us. We have begun to realize that a knowledge of chemistry, for instance,

is worth more than a knowledge of all the dead languages that ever were spoken, a knowledge of mechanics more useful than all the classical learning that can be crammed into young men at college? What is the young man to do who knows Greek with a young man who knows stenography or telegraphy, for instance? Or bookkeeping or chemistry are the laws of mechanics in these days. Not that any kind of knowledge is to be underrated. All knowledge is, in a sense, useful. The point I wish to make is this. that except for the few who have the taste for the antiquarian and who find that their work in life is to delve among the dusty records of the past and for the few that lead professional lives the education given to-day in our colleges is a positive disadvantage

the lack of education in its true sense has done more than all the other causes combined to prevent the universal recognition of labor i remember that the great president the greatest of all railway managers, Edgar Thompson, after whom the works here are called, once asked me to remove from Pittsburgh to be master of machinery of the Pennsylvania Railroad. Well, you may smile, and I said to Mr. Thompson, why, Mr. Thompson, you amaze me. I know nothing whatever about machinery. That is the reason I want you to take charge of it, he replied. I have never known a mechanic with judgment and good sense except one. This was before the time of Captain Jones, so he could not have referred to the Captain. This lack of judgment and mechanics was because, at that day, in this country, they had failed to receive an all-round education. I mean the true

education and knowledge of matters and things in general by which we are surrounded and with which we have to deal. The unprecedented success which has attended the development of the Bessemer works in this country has arisen from this cause, above all others, that unlike the manufacture of iron, it has fallen into the hands of men of great scientific knowledge. The services of these men are recognized throughout the world and receive compensation, which a few years ago would have been considered enormous, and in consequence they have lifted mechanical labor with them and served to dignify it in the eyes of the world.

The mechanic, the mechanical engineer, the manager of steel mills are now titles of honor. If you want to make labor what it should be, educate yourself in useful knowledge. That is the moral I would emphasize. Get knowledge, cultivate a taste for reading that you may know what the world has done and is doing and the drift of affairs. The value of the education which young men can now receive cannot be overestimated, and it is to this education as given in technical schools to which I wish to call your attention. Time was when men had so little knowledge that it was easy for one man to embrace it all, and the courses in colleges bear painful evidence of this fact today.

Knowledge is now so various, so extensive, so minute, that it is impossible for any man to know thoroughly more than one small branch. This is the age of the specialist. Therefore, you who have to make your living in this world should resolve to know the art which gives you support, to know that thoroughly and well to be an expert in your specialty. If you are a mechanic, then from this library study every work bearing upon the subject of mechanics.

If you are a chemist, then every work bearing upon chemistry. If you are at the blast furnaces, then every work upon the blast furnace. if in the mines then every work upon mining let no man know more of your specialty than you do yourself that should be your ideal then far less important but still important to bring sweetness and light into your life be sure to read promiscuously and know a little about as many things as you have time to read about just as on his farm the farmer must first attend well to his potatoes and his corn and his wheat from which he derives his revenue so he may spend his spare hours as a labor of love in cultivating the flowers that surround his home one domain your work the other your recreation In these days of transition and of struggles between labor and capital, to no better purpose can you devote a few of your spare hours than to a study of economic questions.

There are certain great laws which will be obeyed, the law of supply and demand, the law of competition, the law of wages and profits. All these you will find laid down in the textbooks, and remember that there is no more possibility of defeating the operation of these laws than there is of thwarting the laws of nature which determine the humidity of the atmosphere or the revolution of the earth upon its axis. A severe study of scientific books must not be permitted to exclude the equally important duty of reading the masters of literature, and by all means of fiction. The feeling which prevails in some quarters against fiction

is, in my opinion, only a prejudice. I know that some indeed most of the eminent men find in a good work of fiction one of the best means of enjoyment and of rest. When exhausted in mind and body, and especially in mind, nothing is so beneficial to them as to read a good novel. The fact that they know more about a problem than their fellows and are able to suggest the remedy or improvement is what is of value to them and their employer. There is no means so sure for enabling the workmen to rise to the foremanship, managerhip, and finally partnership, as knowledge of all that has been done and is being done in the world today,

in the special department in which he labors. From the highest down to the lowest, a better grade of services rendered by the intelligent man than it is possible for the ignorant man to render. His knowledge always comes in, and whether you have knowledge on the part of the manager who directs or of the man who only handles a shovel, you have in him a valuable employee in proportion to his knowledge of the things being equal. In the course of my experience as a

manufacturer, I know our firm has made many mistakes by neglecting one simple rule. Never to undertake anything new until your managers have had an opportunity to examine everything that has been done throughout this world in that department. Neglect of this has cost us many hundreds of thousands of dollars, and we have become wise. Now I say here to the man who is ambitious to learn, who perhaps thinks that he has some improvement in his mind, here in the rooms of this library, there is, or I hope soon will be, the whole world's experience upon that subject brought right before you down to a recent date. In any question of mechanics or any question of chemistry, any question of chemistry, any question

of furnace practice, you will find the records of the world at your disposal here. If you are on the wrong track, these books will tell you. If you are on the right track, they will tell you. If you are on the right track, they will afford you encouragement. You can go through hall after hall in the Patent Office in Washington and see thousands of models of inventions bearing upon all branches of human industry. And 99 out of every hundred would never have been placed there had the ignorant inventor had at command such facilities as will be yours in this library. I have heard employers say that there was great danger that the masses of the people might become too well educated to be content in their useful and necessary occupations. It is required an

effort upon my part to listen to this doctrine with patience. It is all wrong. I give it an unqualified contradiction. The trouble between capital and labor is just in proportion to the ignorance of the employer and the ignorance of the employed. The more intelligent the employer the better and the more intelligent the employed the better. It is never education, it is never knowledge that produces collision. It is always ignorance on the part of one or the other of the two forces. Speaking from an experience not in consideration, I make this statement. Capital is ignorant of the necessities and the just dues of labor, and labor is ignorant of the necessities and dangers of capital. That is the true origin of friction

between them. More knowledge on the part of capital of the good qualities of those that serve it, and some knowledge on the part of the men of the economic laws which hold the capitalists in their relentless grasp would aviate most of the difficulties. which arise between these two forces, which are indispensably necessary to each other. I hope that those of our men who possess that inestimable prize, the taste for reading, will make it a point to study carefully a few of the fundamental laws from which there is no escape, either on the part of labor or capital. If this library be instrumental in the slightest degree in spreading knowledge in this department,

it will have justified its existence. I trust that you will not forget the importance of amusements. Life must not be taken too seriously. It is a great mistake to think that the man who works all the time wins the race. Have your amusements. Learn to play a good game of whist or a good game of drafts or a good game of billiards. Become interested in baseball or cricket or horses, anything that will give you innocent enjoyment and relieve you from the usual strain.

There is not anything better than a good laugh. I attribute most of my success in life to the fact that, as my partners often say, trouble runs off my back like water from a duck. There is a poetical quotation from Shakespeare that is applicable. It is to wear your troubles as your outsides like your garments, carelessly. Many men are to be met with in this life who would have been great and successful had the world rated them at the value which they placed upon themselves. This class are the victims of an hallucination. Nobody in the world desires to keep down ability. Everybody in the

world has an outstretched hand for it. Every employer of labor is studying the young men around him, most anxious to find one of exceptional ability. nothing in the world so desirable for him and so profitable for him as such a man every manager in the works stands ready to grasp to utilize the man that can do something that is valuable every foreman wants to have under him in his department able men upon whom he can rely and whose merits he obtains credit for because the greatest test of ability in a manager is not the man himself but the men with whom he is able to surround himself. These books on the shelves will tell you the story of the rise of many men from our own ranks. It is not the educated or so-called classically educated man. It is not the aristocracy. It is not the monarchs that have ruled the destinies of the world, either in camp, council, laboratory, or workshop. The great inventions, the improvements, the discoveries in science,

the great works in literature have sprung from the race. ranks of the poor you can scarcely name a great invention or a great discovery you can scarcely name a great picture or a great statue a great song or a great story nor anything great that has not been the product of men who started like yourselves to earn an honest living by honest work and believe me the man whom the foreman does not appreciate and the foreman whom the manager does not appreciate and the manager whom the firm does not appreciate has to find the fault not in the firm nor the manager nor the foreman but in himself he cannot give the service that which is so invaluable and so anxiously looked for there is no man who may not rise to the highest position nor is there any man who from lack of the right qualities or failure to exercise them may not sink to the lowest. Employees have chances to rise to hire work, to rise to be foremen, to be superintendents, and even to rise to be partners, and even to be chairman in our service, if they prove themselves possessed of the qualities required. They need never fear being dispensed with.

It is we who fear that the abilities of such men may be lost to us. it is highly gratifying to know that the hours of labor are being gradually reduced throughout the country eight hours to work eight hours to play eight hours to sleep seems the ideal division if we could only establish by law that all manufacturing concerns which run day and night should use three turns it would be most desirable You know, we try to do so for several years at a cost of some hundreds of thousands of dollars, but we're finally compelled by our competitors to give up the struggle. The best plan, perhaps, is to reach it by slow degrees through state laws. No one firm can do much.

All its competitors in the various states must be compelled to do likewise, for in our days profits are upon so narrow a margin that no firm can run its work except under similar conditions with its competitors. It is necessary, therefore, that laws should be secured, binding upon all. We should be glad to support such a law, but even as at present, if workmen use well the time they have at their disposal, they will soon rise to higher positions. You need not work twelve hours very long. Most of us have worked more hours than twelve in our youth.

the workman has many advantages today over his predecessors a sliding scale for his labor ranks him higher than before as a man and a citizen the proportion of the joint earnings of capital and labor given to labor never was so great and is constantly rising the earnings of capital never were so low i hope the future is to add many more advantages and that the toilsome march which labor has had to make on its way from serfdom when our forefathers were bought and sold with the mines and factories they worked up to its present condition is not yet ended but that it is destined to continue and lead to other important results for the benefit and dignity of labor End of Section 2. The Common Interest of Labor and Capital. Section 3 of the Empire of Business by Andrew Carnegie. This is a Librevox recording. All Libravox recordings are in the public domain. For more information or to volunteer, please visit Libravox.org.

The Empire of Business. Section 3. Thrift as a duty. The duties of rich men. The importance of the subject is, suggest it by the fact that the habit of thrift constitutes one of the greatest differences between the savage and the civilized man. One of the fundamental differences between savage and civilized life is the absence of thrift in the one and the presence of it in the other. When millions of men each receive a little of their daily earnings, these petty sums combine

make an enormous amount, which is called capital, about which so much is written. If men consumed each day of each week all they earned, as does the savage, of course there would be no capital, that is, no savings laid up for future use. Now let us see what capital does in the world. We will consider what the shipbuilders do when they have to build great ships. These enterprising companies offer to build an ocean greyhound for, let us say, 500,000 pounds, to be paid only when the ship is delivered after satisfactory trial trips. where how do the shipbuilders get this sum of money to pay the workmen the wood merchant the steel manufacturer and all the people who furnish material for the building of the ship they get it from the savings of civilized men it is part of the money saved for investment by the millions of industrious people each man by thrift saves a little puts the money in a bank and the bank lends it to the shipbuilders who pay interest for the use of it

it is the same with a building of a manufactory a railroad a canal or anything costly we could not have had anything more than the savage had except for thrift thrift the first duty hence thrift is mainly at the bottom of all improvement without it no railroads no canals no ships no telegraphs no churches no universities no schools no newspapers nothing great or costly could we have man must exercise thrift and save before he can produce anything material of great value there was nothing built no great progress made as long as man remained a thriftless savage the civilized man had no clearer duty than from early life to keep steadily in view the necessity of providing for the future of himself and those dependent upon him there are few rules more salutary than that which has been followed by most wise and good men namely that expenses should always be less than income in other words one should be a civilized man saving something and not a savage consuming every day all that which he has earned the great poet burns and his advice to a young man says to catch dame fortune's golden smile assiduous wait upon her and gather gear by every while that's justified by honor not for to hide it in a hedge not for a train attendant but for the glorious privilege of being independent that is sound advice so far as it goes and i hope the reader will take it to heart and adopt it no proud self-respecting person can ever be happy or even satisfied, who has to be dependent upon others for his necessary wants.

He who is dependent has not reached the full measure of manhood, and can hardly be counted among the worthy citizens of the Republic. The safety and progress of our country depend not upon the highly educated man, nor the few millionaires, nor upon the greater number of the extreme poor, but upon the mass of sober, intelligent, industrious, and saving workers, who are neither very rich nor very poor. Thrift duty has its limit. As he rule, you will find that the saving man is a temperate man, a good husband and father, a peaceful law-abiding citizen, nor need the saving be great. It is surprising how little it takes to provide for the real necessities of

life. A little home paid for, and a few hundred pounds, a very few, make all the difference. These are more easily acquired by frugal people than you might suppose. Great wealth is quite another, in a far less desirable matter. There's not the aim of thrift nor the duty of men to acquire millions. It is in no respect of virtue to set this before us as an end. Duty to save ends when just money enough has been set aside to provide comfortably for those dependent upon us. Hoarding millions is avarice, not thrift.

Of course, under our industrial conditions, it is inevitable that a few, a very few men, will find money coming to them far beyond their wants. The accumulation of millions is usually the result of enterprise and judgment, and some exceptional ability for organization. It does not come from savings in the ordinary sense of that word. Men who in old age strive only to increase their already great hordes are usually slaves of the habit of hoarding formed in their youth. at first they own the money they have made and saved later in life the money owns them and they cannot help themselves so overpowering is the force of habit either for good or evil it is the abuse of the civilized saving instinct and not its use that produces this class of men no one need be afraid of falling a victim to this abuse of the habit he always bears in mind that whatever surplus wealth may come to him is to be regarded as a sacred trust which he is bound to administer for the good of his fellows. The man should always be master. He should keep money in the position of a useful servant. He must never let it master and make a miser of him.

The man's first duty is to make a competence and be independent. But his whole duty does not end there. It is his duty to do something for his needy neighbors who are less favored than himself. It is his duty to contribute to the general good of the community in which he lives. He has been protected by its laws. Because he has been protected in his various enterprises, he has been able to make money sufficient for his needs and those of his family. All beyond this belongs in justice to the protecting power that has fostered him and enabled him to win pecuniary success. To try to make the world in some way better than you found it is to have a noble motive in life. Your surplus wealth should contribute to the of your own character and place you in the ranks of nature's nobleman. It is no less than a duty for you to understand how important it is, and how clear your duty is to form the habit of thrift. When you begin to earn, always save some part of your earnings like a civilized man,

instead of spending all like the poor savage. End of Section 3. Thrift does a duty. Section 4 of the Empire of Business by Andrew Carnegie. This is a Libravox recording. All Libervox recordings are in the public domain. For more information or to volunteer, please visit Librovox.org. Recording by Tina Ding. The Empire of Business.

Section 4. How to win fortune. Labor is divided into two groups. great armies, the agricultural and the industrial. In these, diverse forces are in operation. In the former, everything tends to a further distribution of land among the many. In the latter, everything tends to a concentration of business in the hands of the few. One of the two great fallacies upon which progress and poverty, Mr. George's book, is founded, is that the land is getting more and more into the hands of the few. Now, the only source from which Mr. George

could obtain correct information upon this point is the census, and this tells us that in 1850, the average extent of farms in the United States was 203 acres. In 1860, 199 acres. In 1870, 153 acres, and that in 1880, it was still further reduced to 134 acres. The reason is obvious for this rapid distribution of the land. The farmer who cultivates a small farm by his own labor, is able to drive out of the field the ambitious capitalist who attempts to farm upon a large scale with the labor of others. In Great Britain, nothing has been more significant than that the tillers of small farms have passed through the agricultural depression there far better than those who cultivated large farms. So, in both countries, we have proof

that under the free play of equal laws, land is becoming more and more divided among the masses of the people. In the whole range of social questions, no fact is more important than this, and nothing gives the thoughtful student greater satisfaction. The triumph of the small proprietor over the large proprietor

ensures the growth and maintenance of that element in society upon which civilization can most securely depend, for there is no force in a nation so conservative of what is good, so fair, so virtuous, as a race of men who till the soil they own. Happily for mankind, experience proves that men cannot work more soil profitably than he can till himself with the aid of his own family. When we turn to the other army of labor, the industrial,

we are obliged to confess that it is swayed by the opposite law, which tends to concentrate manufacturing and business affairs generally in a few vast establishments. The fall in prices of manufactured articles has been startling. Never were the principal articles of consumption so low as they are. today. This cheapening process is made possible only by concentration. We find 1,700 watches per day turned out by one company, and watches are sold for a few dollars apiece. We have mills making many thousand yards of calico per day, and this necessary article is to be had for a few cents per yard. Manufacturers of steel make 2,500 tons per day, and 4 pounds of finished steel are sold for

5 cents, and so on through the entire range of industries. Divide the huge factories into smaller establishments, and it will be found impossible to manufacture some of the articles at all. The success of the process being often dependent on its being operated upon a large scale, while the cost of such articles, as could be produced in small establishments, would be two or three times their present prices. There does not appear to be any counteracting force to this law of concentration in the industrial world. On the contrary, the active forces at work seem to do. demand greater and greater output or turnover from each establishment in order that the minimum

of costs should be reached. Hence comes the rapid and continuous increase of the capital of manufacturing and commercial concerns, five, ten, fifteen, and even twenty millions being sometimes massed in one corporation. Has the young men now a chance? This has given rise to a complaint, which is often heard, but which I hope to show has no foundation. The young practical man points to these and says to himself, quote, it is no longer possible for our class without capital to rise beyond the position of employees upon salaries. There is a lion in the path which leads to independent commands or to partnership, and this lion is the huge establishments already existing,

which are an impassable barrier to our advancement. End quote. The men engaged in the agricultural army, as we have seen, has nothing to fear from capital. With a small sum, which is not very difficult for him to save or borrow, he can begin farming. The only competition with which he has to contend, being that of others of his own class situated like himself.

It is certainly more difficult for a mechanic or practical man to establish a new business or to win partnership in one that exists than it is for the young farmer to begin his business. Yet the difficulties are not insuperable nor greater than have hitherto existed. They are not such as to stimulate the ambition. and this is always to be taken into account that if the raise in the industrial and business world be harder to win, the prize is infinitely greater. Before considering the prospects of the mechanic in the industrial, of the clerk in the mercantile, commercial, and financial worlds, let me show that no classes other than these two have had much to do with establishing the factories, business, houses and financial institutions, which are best known in the United States today.

And first, as to the part of trained mechanics, I select the best known industrial establishments in each department, many of them the most extensive works of their kind and of worldwide reputation. Baldwin works for locomotives, sellers and company, ben and doity for mechanical tools. Distance works for sauls, works of the Master Stopson, of Thomas Dolan, Philadelphia, and Gary of Baltimore textile fabrics, Fairbanks for scales, studebakers for wagons who count their wagons by the acre, Pullman of Chicago, Allison of Philadelphia for cars, Washburn and Mowen and Cleveland Rolling Mills, steel wire, etc.

Barlet Iron Founder, Baltimore, Sloans, also Higgins, carpets, Westinghouse electrical apparatus, Peter Henderson and Company, and Landreth and Company, Seeds, Harper Brothers, Publishers, Babbitt for Babbitt's Medal, Otis Works, Cleveland, Boilers Steel, the Raminton Works, and Colts Works, Hartford, Firearms. Singer Company, Whole, Grover, Sewing Machines, McCormick Works of Chicago, Balls of Canton, and Walter A. Woods for Agricultural Implements. Steamship Building, Roach, Kram, Neerfi on the Atlantic, Scott upon the Pacific, Parkhurst, Wheeler, Kirby, McDougall, Craig, Coffinbury, Wallace, the leading of the Pacific, of the Pacific, officials of shipbuilding companies on our Great Lakes, horseshoes, Atterbury works for glass, Grootzinger's, Tanning, Ames works for shuffles, Steinway, Chickering and Canabi pianos. Every one of these great works was founded and managed by mechanics, men who served their apprenticeship. The list could be greatly extended and if we were to include those which were created by men who entered life as office boys or clerks,

we should embrace almost every famous manufacturing concern in the country. Edison, for instance, was a telegraph operator. Corliss of Corlis Engine, Cheney of Cheney Silk, Roblin of Wirefame, sprackles in sugar refining, all and many of many of cheney silk, in sugar refining, all and many more captains of industry were poor boys with natural aptitude to whom a regular apprenticeship was scarcely necessary. In the mercantile, commercial and financial branches of business, which are all under the law, which drives business affairs into large concerns, the poor clerk takes the place of the trained mechanic in the industrial world.

Clevelins, Jeffreys, Sloans, the Lords, the Palpses, the Dodgers, the Dages, the gigantic houses of Jordan and Marsh in Boston, a field in Chicago, Barr in St. Louis, Wanda Maker in Philadelphia, Meldrum and Anderson, Buffalo, Newcomb, Endicutt and Company, Detroit, Taylor, Cleveland, Daniels and Fisher, Denver, Born and Campbell and Dick, Pittsburgh. All these and the corresponding houses throughout the country, as far as I am able to trace their history, have the same story to tell. Wanamaker, Claflin, Jordan, Lord, Field, Barr, and the others, all poor boys in the store, and Phelps and Dodge both poor clerks. In banking and finance, it is an oft-repeated story that are Stanford's, Rockefellers,

ghouls, sages, fields, Dillans, Seligmans, Wilson's, and Huntington's came from the ranks. The millionaires who are in active control started as poor boys, and were trained in that sternest but most efficient. of all schools, poverty. Where is the college-made men? I asked a city banker to give me a few names of presidents and vice presidents and cashiers of our great New York City banks

who had begun as boys or clerks. He sent me 36 names and wrote he would send me more next day. I cannot take the reader's time with a complete list, but here are a few of the best known. Williams, President Chemical Bank. Watson and Lang, Bank of Montreal. Tappin, President Gallican National.

Brinkerhoff, President, Butchers and Drovers Bank. Clark, Vice President, American Exchange. Jewett, President, Irvin National. Harris. President, NASA Bank. Crane, President, shoe and leather bank. Nash, president, Corn Exchange Bank. Cannon, President, Chase National.

Cannon, Vice President, Fourth National. Montague, President, Second National. Baker, President, First National. Hamilton. vice president, Bower Wee Bank, and so on. The absence of the college graduate in this list should be deeply weighed.

I have inquired and searched everywhere in all quarters, but find small trace of him as the leader in affairs, although not seldom occupying, positions of trust in financial institutions. Nor is this surprising. The prize takers have too many years the start of the graduate. They have entered for the raise invariably in their teens in the most valuable of all the years for learning from 14 to 20, while the college student

has been learning a little about the Barbara's and Patty Squabbles of a far distant past, or trying to master languages which are dead, such knowledge as seems adapted for life upon another planet than this, as far as business affairs are concerned. The future captain of industry is hotly engaged in the school of experience, obtaining the very knowledge required for his future triumphs. I do not speak of the effect of college education upon young men training for the learned professions, for which it is, up to a certain point, almost indispensable in our own our day for the average youth, but the almost total absence of the graduates from high position in the business world seems to justify the conclusion that college education as it exists

seems almost fatal to success in that domain. It is to be noted that salaried officials are not in a strict sense in business. A captain of industry is one who makes his all in his business, and depends upon success for compensation. It is in this field that the graduate has little chance, entering at 20 against the boy who swept the office or who begins as shipping clerk at 14. The facts prove this. There are some instances of the sons of businessmen,

graduates of colleges, who address themselves to a business life and succeed in managing a business already, created. But even these are few, compared with those who fail in keeping the fortune received. There has come, however, in recent years, the polytechnic and scientific school or course of study for boys, which is beginning to show most valuable fruits in the manufacturing branch. The trained mechanic of the past, who has, as we have seen, hitherto carried off most of the honors in our industrial works is now to meet a rival in the scientifically educated youth who

will push him hard. Very hard indeed. Three of the largest steel manufacturing concerns in the world are already under the management of three young educated men. Students of these schools who left theory at school for practice in the works while yet in their teens. Walker, Illinois, steel company in Chicago. Schwab, Edgar Thompson Works, Potter, Homestead Steel Works, Pittsburgh, are types of the new product, not one of them yet 30. Most of the chiefs of departments under them are of the same class. Such young educated men have one important advantage over the apprenticed mechanic. They are open-minded and without prejudice. The scientific attitude of mind, that of the searcher after truth, renders them receptive of new

ideas. Great and invaluable as the working mechanic has been and is and will always be, yet he is disposed to adopt narrow views of affairs, for he is generally well up in years before he comes into power. It is different with the scientifically trained boy. He is, has no prejudices and goes in for the latest invention or newest method, no matter if another has discovered it. He adopts the plan that will beat the record and discards his own devices or ideas, which the working mechanic superintendent can really be induced to do. Let no one, therefore, underrate the advantage of education.

it must be education adapted to the end in view and must give instruction bearing upon a man's career if he is to make his way to fortune. Thus, in the financial, commercial, and mercantile branches of business, as in manufacturing, we have to ask, now what place the educated mechanic and practical men occupy, but what these two types have left for others throughout the entire business world. Very little indeed have they left. In the industrial department, the trained mechanic is the founder and manager of famous concerns.

In the mercantile, commercial and financial, it is the poor office boy who has proved to be the merchant prince in disguise, who surely comes into his heritage. They are the winning classes. It is the poor clerk and the working mechanic who finally rule in every branch of affairs without capital, without family influence, and without college education. It is they who have risen to the top and taken command, who have abandoned salaried positions and boldly risk all in the founding of a business. college graduates will usually be found under salaries trusted subordinates. Neither capital nor influence nor college learning nor all combined have proved able to content in business successfully

against the energy and indomitable will which spring from all conquering poverty. Lest anything here said may be construed as tending to decontinent, cry or disparage university education. Let me clearly state that those addressed are the fortunate poor young men who have to earn a living, for such as can afford to obtain a university degree and have means sufficient to ensure a livelihood. The writer is the last man to advise its rejection, compared with which all the pecuniary gains of the multimillionaire are draws. But for poor youth, the earning of a competence is a duty, and duty done is worth even more than university education, precious as that is. Liberal education gives a man who really

absorbs it higher tastes and aims than the acquisition of wealth, and a world. to enjoy into which the mere milliner cannot enter. To find, therefore, that it is not the best training for business is to prove its claim to a higher domain. True education can be obtained outside of the schools. Genius is not an indigenous plant in the groves' academic, a wild flower found in the woods all by itself, needing no care from society, but average men needs universities. Are corporations to disappear? The young practical men of today working at the bench or counter to whom the fair goddess fortune has not yet beckoned may be disposed to conclude that it is impossible to start business in this age. There is something in that. It is no doubt infinitely

more difficult to start a new business of any kind today than it was. But it is only a difference in form, not in substance. It is infinitely easier for a young practical man of ability to obtain an interest in existing firms than it has ever been. The doors have not closed upon ability, on the contrary, they swing easier upon their hinges. Capital is not requisite. Family influence, as before, passes for nothing. Real ability, the capacity for doing things, never was so eagerly searched for as now, and never commended such rewards. The law, which concentrates the leading industries and commercial, mercantile, and financial affairs in a few great factories or firms,

contains within itself another law not less imperious. These vast concerns cannot be successfully conducted by salaried employees. No great business of any kind can score an unusually brilliant and permanent success, which is not in the hands of practical men, pecuniarily interested in its results. In the industrial world, the days of corporations seem likely to come to an end. It has been necessary for me to watch closely most of my life, the operations of great establishments owned by hundreds of absent capitalists and conducted by salaried officers.

Contrusted with these, I believe that the partnership conducted by men vitally interested and owning the works will make satisfactory dividends when the corporation is embarrassed and scarcely knows upon which side the balance is to be at the end of a year's operations. The great dry goods houses that interest their most capable men in the profits of each department succeed when those fail that endeavor to work with salaried men only. Even in the manager, of our great hotels, it is found wise to take into partnership the principal men. In every branch of business, this law is at work, and concerns are prosperous, generally speaking, just in proportion as they succeed, and interesting in the profits a larger and larger

proportion of their ablest workers. Cooperation in this form is fast coming in all great establishments. The manufacturing business that does not have practical manufacturing partners, have better supply the omission without delay, and probably the very men required are the bright young mechanics who have distinguished themselves while working for a few dollars per day, or the youths from the Polytechnic school. Instances constantly occur where the corporation unwilling to interest a promising practical man loses his services and sees an interest given him by some able individual manufacturer or commercial firm who are constantly on the lookout for that indispensable article,

ability. It has not hitherto been the practice for corporations properly to reward these embryo managers, but this they must come to. If they are to stand the competition of works operated by those interested in the profits. Corporations, on the other hand, as I desire to point out to practical young men, have one advantage. Their shares are sold freely. If a worker wishes to become interested in any branch of manufacturing in America today, the path is easy.

For $50 to $100, he can become a stockholder. It is becoming more and more common for workers so to invest their savings. There are many well-managed corporations whose assets and prestige enable them to earn satisfactory returns, and no better evidence of capacity and of good judgment can a workman gift to his employers than that furnished by the presence of his name upon the books as a shareholder in the concern. Working men have a prejudice against showing their employers that the wages they earn suffice to enable them to save, but this is a mistake. The saving workman is the valuable workman, and the wise employer regards the fact that he does save as prima facie evidence that there is something exceptionally valuable in him. It should be the effort of every corporation to induce its principal.

workers to invest their savings in its shares. Only in this way can corporations hope to cope successfully with individual manufacturers who have already discovered one of the valuable secrets of unusual success, that is, to share their profits with those who are most instrumental in producing them, the day of the absent capitalist stockholder who takes no interest in the operation of the works beyond the receipt of his dividend is certainly passing away. The day of the valuable active worker in the industrial world is coming. Let, therefore, no young practical workmen be discouraged. On the contrary, let him be cheered.

More and more it is becoming easier for the mechanic or practical men of real ability to dictate terms to his employers. Where there was one avenue of promotion, there are now a dozen. The enormous concern of the future is to divide its profits, not among hundreds of idle capitalists who contribute nothing to its success, but among hundreds of its ablest employees, upon whose abilities and exertions success greatly depends. The capitalist absent stockholder is to be replaced by the able and present worker.

As to the qualifications necessary for the promotion of young practical men, one cannot do better than, quote, George Eliot, who put the matter very pithily, quote, I'll tell you how I got on, I kept my ears and my eyes open, and I made my master's interest my own, end quote. The condition precedent for promotion is that the man must first attract notice. He must do something unusual, and especially must this be beyond the strict boundary of his duties. He must suggest, or save, or perform some service for his employer, which he could not be censured for not having done. When he has thus attracted the notice of his immediate superior,

Whether that be only the four men of a gang, it matters not. The first great step has been taken, for upon his immediate superior, promotion depends. How high he climbs is his own affair. We often hear men complaining that they get no chance to show their ability, when they do show ability that it is not recognized. There is very little in this. self-interest compels the immediate superior to give the highest place under him to the men who can best feel it, for the officer is credited with the work of his department as a whole. No men can keep another down.

It will be noticed that many of the practical men who have earned fame and fortune have done so through holding on to improvements which they have made. Improvenants are easy, easily made by practical men in the branch in which they are engaged, for they have the most intimate knowledge of the problems to be solved there. It is in this way that many of our valuable improvements have come. The men who has made an improvement should always have an eye upon obtaining an interest in the business, rather than an increase of salary. even if the business up to this time has not become very prosperous.

If he has the proper stuff in him, he believes that he could make it so and so he could. All forms of business have their ups and downs. Seasons of depression and buoyancy succeed each other, one year of great profits, several years with little or none. This is a law of the business work. world, into the reasons of which I need not enter. Therefore, the able young practical men should not have much regard as to a choice of the branch of business. Any business properly conducted will yield during a period of years a handsome return. Dangers to young men.

There are three great rocks ahead of the practical young men who has his foot upon the letter and is beginning to rise. First, drunkenness, which, of course, is fatal. There is no use in wasting time upon any young man who drinks liquor, no matter how exceptional his talents. Indeed, the greater his talents are, the greater the disappointment must be. The second rock ahead is speculation. The business of a speculator and that of a manufacturer, or

men of affairs are not only distinct but incompatible. To be successful in the business world, the manufacturers and the merchant's profits only should be salt. The manufacturer should go forward steadily meeting the market price. When there are goods to sell, sell them. When supplies are needed, purchase them, without regard to the market price in either case. I have never known a speculative manufacturer or businessman who scored a permanent success. He is rich one day, bankrupt the next. Besides this, the manufacturer aims to produce articles and in so doing to employ labor. This furnishes a laudable career. A man in this avocation is useful to his kind. The merchant is usefully occupied distributing commodities.

the banker in providing capital. The third rock is akin to speculation. Endorsing. Businessmen require irregular supplies of money at some periods little, at others enormous sums. Others being in the same condition, there is strong temptation to endorse mutually. This rock should be avoided.

There are emergencies, no doubt, in which men should help their friends, but there is a rule that will keep one safe. No men should place his name upon the obligation of another if he has not sufficient to pay it without detriment to his own business. It is dishonest to do so. Men are trustees for those who have trusted them, and the creditor is entitled to all his capital and credit.

For one's own firm, quote, your name, your fortune, and your sacred honor, end quote. But for others, no matter under what circumstances, only such aid as you can render without danger to your trust. It is a safe rule, therefore, to give the cash direct that you have to spare for others and never your endorsement or guarantee. One great cause of failure of young men in business is lack of concentration. They are prone to seek outside investments. The cause of many a surprising failure lies in so doing. Every dollar of capital and credit, every business thought,

should be concentrated upon the one business upon which a man has embarked. He should never scatter his shot. It is a poor business which will not yield better returns for increased capital than any outside investment. No men or set of men or corporation can manage a businessman's capital as well as he can manage it himself. The rule, quote, do not put all your eggs in one basket, end quote, does not apply to a man's life work. Put all your eggs in one basket. and then watch that basket is the true doctrine, the most valuable rule of all. While business of all kinds has gone and is still going rapidly into a few vast concerns,

it is nevertheless demonstrated every day that genuine ability, interested in the profits, is not only valuable but indispensable to their successful operation. through corporations whose shares are sold daily upon the market, through partnership that finds it necessary to interest their ablest workers, through merchants who can manage their vast enterprises successfully only by interesting exceptional ability. In every quarter of the business world, avenues greater in number, wider in extent, easier of access than ever before, existed, stand open to the sober, frugal, energetic, enabled mechanic, to the scientifically educated youth, to the office boy, and to the clerk, avenues through which they can reap greater successes than wherever before within the reach of these classes in the history of the world. When, therefore, the young men in any position or in any business,

explains and complains that he has not opportunity to prove his ability and to rise to partnership, the old answer suffices. Quote, The fault, dear Brutus, is not in our stars, but in ourselves, that we are underlings. End of Section 4. How to Win Fortune Section 5 of the Empire. of Business by Andrew Carnegie. This is a Libravox recording.

All Libervox recordings are in the public domain. For more information or to volunteer, please visit librovox.org. Recording by Tina Ding. The Empire of Business. Section 5. Wealth and its uses. Wealth, as Mr. Gladstone has recently said,

quote, is the business of the world, end quote, that the acquisition of money is the business of the world arises from the fact that, with few unfortunate exceptions, young men are born to poverty, and therefore, under the solitary operation of that remarkably wise law, which makes for their good, quote, thou shalt earn thy bread by the sweat of thy brow, end quote. It is the fashion nowadays to bewail poverty as an evil to pity the young man who is not born with a silver spoon in his mouth, but I heartily subscribe to President Garfield's doctrine that, quote, the richest heritage a young man can be born to is poverty, end quote. I make no idle prediction when I say that it is from that class from whom the good

and the great will spring. It is not from the sons of the millionaire or the noble that the world receives its teachers, its martyrs, its inventors, its statesmen, its poets, or even its men of affairs. It is from the cottage of the poor that all these spring. We can scarcely read one among the few immortal names that were not born to die,

or who has rendered exceptional surface to our race, who had not the advantage of being cradled, nursed, and reared in the stimulating school of poverty. There is nothing so enervating, nothing so deadly in its effects upon the qualities, which lead to the highest achievement, moral or intellectual, as hereditary wealth. and if there be among you a young man who feels that he is not compelled to exert himself in order to earn and live from his own efforts, I tender him my profound sympathy. Should such and one prove an exception to his fellows, and become a citizen living alive creditable to himself and useful to the state, instead of my profound sympathy, I bowed,

before him with profound reverence, for one who overcomes the seductive temptations which surround hereditary wealth is of the salt of the earth and entitled to double honor. One gets a great many good things from the New York Sun, the distinguished proprietor and editor of which you had recently the pleasure, benefit, and honor of hearing. I beg to read this to you as one of its numerous rays of light. Our boys. Quote, Every moralist hard up for a theme

asks at intervals, what is the matter with the sons of our rich and great men? The question is followed by statistics on the wickedness and bad endings of such sons. The trouble with the moralist is that they put the question wrong end first.

There is nothing wrong with those foolish sons, except that they are unlucky, but there is something wrong with their fathers. Suppose that a fine specimen of an old deer hound, very successful in his business, should collect untold deer in the park, fatten them up, and then say to his puppies, Here, boys, I've had a hard life catching these deer, and I mean to see you enjoy yourselves. I'm so used to racing through the woods and hunting that I can't get out of the habit, but you boys just pile into that park and help yourselves. Such a deer hound as that would be scorned by every human father.

The human father would say to such a dog, Mr. Hound, you're simply ruining those puppies. Too much meat and no exercise will give them the mange and 17 other troubles, and if distemper doesn't kill them they will be a not-mead watery-eyed lot of disgraces to you for heaven's sake keep them down to dog biscuits and work them hard that same human father does with great pride the very thing that he would condemn in a dog or a cat he ruins his children and then when he gets old profusely and sadly obsesely and sadly that he has done everything for them, and yet they have disappointed him. He who gives to his son an office which he has not deserved, and enables him to disgrace his father and friends,

deserves no more sympathy than any Mr. Fagan deliberately educating a boy to be dishonest. The fat, useless puck dogs, which young women drag wheezing about at the end of strings, are not to blame for their condition, and the same thing is true of Richmond's sons. The young women who overfeed the dogs and the fathers who ruin their sons have themselves to thank. No men would advocate the thing, perhaps, but who can doubt that if there could be a law

making it impossible for men to inherit anything, but a good education and a good constitution, it would supply us in short order with a better lot of men. End quote. This is sound. If you see it in the sun, it is so. At least it is in this case. It is not the poor young man who goes forth to his work in the morning

and labors until evening that we should pity. It is the son of the rich man to whom Providence has not been so kind as to trust with this honorable task. it is not the busy man but the men of idleness who should arouse our sympathy and cause us sorrow happy is the man who has found his work says carlyle i say happy is the man who has to work and to work hard and work long a great point has said he prayeth best who loveth best some day this may be parodied into he prayeth best who worketh best an honest day's work well performed is not a bet sort of prayer the cry goes forth often nowadays abolish poverty but fortunately this cannot be done and the poor we are always to have with us us. Abolish poverty and what would become of the race. Progress, development would cease. Consider its future if dependent upon the rich. The supply of the good and the great would cease and human society

retrograde into barbarism. Abolish luxury, if you please, but leave us the soil upon which alone the virtues and all that is precious in human character grow. Poverty, honest poverty. I will assume for the moment, gentlemen, that you were all fortunate enough to be born poor. Then the first question that presses upon you is this, what shall I learn to do for the community which will bring me in exchange enough wealth to feed,

clothes, lodge, and keep me independent of charitable aid from others. What shall I do for a living? And the young man may like or think that he would like to do one thing rather than another, to pursue one branch or another, to be a businessman or craftsman of some kind, or minister, physician, electrician, architect, editor, or lawyer. I have no doubt some of you in your wildest flights aspire to be journalists. But it does not matter what the young man likes or dislikes. He always has to keep and view the main point. Can I attain such a measure of proficiency in the branch preferred as will

certainly enable me to earn a livelihood by its practice? The young men, therefore, who resolves to make himself useful to his kind, and therefore entitled to receive in return from a grateful community which he benefits the sum necessary for his support, sees clearly one of the highest duties of a young man. He meets the vital question immediately pressing upon him for decision and decides it rightly. So far, then, there's no difference about the acquisition of wealth. everyone is agreed that it is the first duty of a young man to so train himself as to be self-supporting. Nor is there difficulty about the next step, for the young man cannot be said to have performed the whole of his duty if he leaves out of account the contingencies of life, liability to accident, illness, and trade depressions like the present.

wisdom calls upon him to have regard for these things, and it is a part of his duty that he begin to save a portion of his earnings and invest them, not in speculation, but in securities or in property, or in a legitimate business in such form as will perhaps slowly but yet surely grow into the reserve, upon which he can fall back in emergencies or in old age, and live upon his own savings. I think we are all agreed as to the advisability, nay, the duty of laying up a competence, and hence to retain our self-respect. Besides this, I take it that some of you have already decided just as soon as possible to ask a certain young lady to share his lot, or perhaps his lots, and of course he should have a lot or two to share. Marriage is a very serious business indeed, and gifts rise to many weighty considerations. Be sure to marry a woman with good common sense, was the advice given me by my mentor, and I just hand it down to you. Common sense is the most uncommon and most valuable quality

in men or women. But before you have occasion to provide yourself with a helpmate, there comes the subject upon which I am to address you. Wealth. Not wealth in millions, but simply revenue sufficient for modest, independent living. This opens up the entire subject of wealth in a greater or less degree. Now, what is wealth? How is it created and distributed. There are not far from us in men's beds of coal, which have lain for millions of years useless and therefore valueless. Through some experiment, or perhaps accident, it was discovered that black stone would burn and give forth heat. Men sank shafts, erected machinery, mined and brought forth coal, and sold it to the community. It displaced the use of wood,

as fuel, say at one half the cost. Immediately, every bed of coal became valuable because useful or capable of being made so, and here a new article worth hundreds. Yes, thousands of millions was added to the wealth of the community. A scotch mechanic one day, as the story goes, gazing into the fire upon which water was boiling in a cattle, saw the steam raised the lid, as hundreds of thousands had seen before him, but none saw in that sight what he did, the steam engine, which does the work of the world at a cost so infinitely trifling compared with what the plants known before involved, that the wealth of the world has been increased one dares not estimate how much. The saving that the community makes is the root of wealth in any

branch of material development. Now, a young man's labor or service to the community creates wealth just in proportion as his service is useful to the community, as it either saves or improves upon existing methods. Commodore Vanderbilt saw, I think, 13 different short railway lines between New York and Buffalo involving 13 different managements and a disjointed and tedious service. Albany, Schenectady, Utica, Syracuse, Auburn, Rochester, etc. were heads of some of these companies. He consolidated them all, making one direct. line, over which your Empire State Express flies 51 miles an hour, the fastest time in the world, and a hundred passengers patronize the lines where one did in Odin days. He rendered the community

a special service, which, being followed by others, reduces the cost of bringing food from the prairies of the west to your doors to a trifling sum per ton. He produced, and is every day producing untold wealth to the community by so doing, and the profit he reaped for himself was but a drop in the bucket compared with that which he showered upon the state and the nation. Now, in the olden days, before steam, electricity, or any other of the modern inventions, which unitedly have changed the whole aspect of the world,

everything was done upon a small scale. There was no room for great ideas to operate upon a large scale and thus to produce great wealth to the inventor, discoverer, originator, or executive. New inventions gave this opportunity, and many large fortunes were made by individuals. But in our day, we are rapidly passing if we have not already passed, this stage of development, and few large fortunes can now be made in any part of the world, except from one cause, the rise in the value of real estate. Manufacturing, transportation, both upon the land and upon the sea, banking, insurance, have all passed into the hands

of corporations, composed of hundreds, and in many cases thousands of share-hound. The New York Central Railroad is owned by more than 10,000 shareholders. The Pennsylvania Railroad is owned by more people than the vast army which it employs. And nearly one-fourth of the number are the estates of women and children. It is so with the great manufacturing companies, so with the great steamship lines, It is so, as you know, with banks, insurance companies, and indeed with all branches of business. It is a great mistake for young men to say to themselves, Oh, we cannot enter into business.

If any of you have saved as much as $50 or $100, I do not know any branch of business into which you cannot plunge at once. You can get your certificate of stock and attend the meeting of stockholders, make your speeches and suggestions, quarrel with the president, and instruct the management of the affairs of the company, and have all the rights and influence of an owner. You can buy shares in anything from newspapers to tenement houses, but capital is so poorly paid in these days that I advise you to exercise much circumspection before you invest. As I have said to working men and to ministers, college professors, artists, musicians, and physicians, and all the professional classes.

Do not invest in any business concerns whatever. The risks of business are not for such as you. Buy a home for yourself first, and if you have any surplus, buy another lot or another house, or take a mortgage upon one or upon a railway, and let it be a first mortgage. and be satisfied with moderate interest. Do you know that out of every hundred that attempt business upon their own account, statistics are set to show that 95 sooner or later fail? I know that from my own experience. I can quote the lines of hudibras and tell you,

as far as one manufacturing branch is concerned, that what he found to be true is still true to an eminent degree, today. Quote, I. Me, what perils do in iron? The man that metals with cold iron, end quote. The shareholders of iron and steel concerns today

can certify that this is so, whether the iron or steel be hot or cold, and such is also the case in other branches of business. The principal complaint against our industrial conditions of today is that they cause

great wealth to flow into the hands of the few. Well, of the very few indeed is this true. It was formerly so, as I have explained, immediately after the new inventions had changed the conditions of the world. Today, it is not true. Wealth is being more and more distributed among the many. The amount of the combined profits of labor and capital which goes into labor was never so great as to day, the amount going to capital never so small. While the earnings of capital have fallen more than one half, in many cases have been entirely obliterated. Statistics prove that the earnings of labor were never so high as they were previous to the recent unprecedented depression in

business, while the cost of living, the necessaries of life, have fallen in some cases nearly one half. Great Britain has an income tax, and our country is to be subject to this imposition for time. The British returns show that during the 11 years from 1876 to 1887, the number of men receiving from $750 to $2,500 per year increased more than 21 percent, while the number receiving from $5,000 to $25,000 actually decreased 2.5%. You may be sure, gentlemen, that the question of the distribution of wealth is settling itself rapidly under present conditions and settling itself in the right direction. The few rich are getting poorer and the toiling masses are getting richer. Nevertheless, a few exceptional

men may yet make fortunes, but these will be more moderate than in the past. This may not be quite as fortunate for the masses of the people, as is now believed, because great accumulations of wealth in the hands of one enterprising men, who still toils on, are sometimes most productive of all the forms of wealth. Take the richest men the world ever saw, who died in New York some years ago, What was found in his case? That, with the exception of a small percentage used for daily expenses, his entire fortune and all its surplus earnings were invested in enterprises which developed the railway system of our country,

which gives to the people the cheapest transportation known. Whether the millionaire wishes it or not, he cannot evade the law which, under present conditions, compels him to use his millions for the good of the people. All that he gets during the few years of his life is that he may live in a finer house, surround himself with finer furniture and works of art which may be added. He could even have a grander library, more of the guts around him. But as far as I have known millionaires, the library is the least used part of what he would probably consider furniture in all his mention. He can eat richer food and drink richer wines,

which only hurt him. But truly, the modern millionaire is generally a man of very simple tastes and even miserly habits. He spends little upon himself, and is the toiling bee laying up the honey in the industrial hive, which all the inmates of that hive, the community in general, will certainly enjoy. Here is the true description of the millionaire, as given by Mr. Carter, in his remarkable speech before the Bering Sea Tribunal at Paris. Quote, those who are most successful in the acquisition of property, and who acquired it to such an enormous extent, are the very men who are able to control it, to invest it,

and to handle it in a way most useful. to society. It is because they have those qualities that they are able to engross it to so large and extent. They really own, in any just sense of the word, only what they consume. The rest is all held for the benefit of the public. They are the custodians of it. They invest it. They see that it is put into this employment, that employment, another employment. All labor is employing. by it and employed in the best manner, and it is thus made the most productive. These men who acquire these hundreds of millions are really groaning under a servitude to the rest of society, for that is practically their condition, and society really endures it because it is best for them that it should be so,

And quote, Here is another estimate by a no less remarkable man, your friend Mr. Dana justly said at Cornell, quote, That is one class of men that I refer to, the thinkers, the men of science, the inventors, and the other class is that of those whom God has endowed with a genius for saving, for getting rich,

for bringing wealth together, for accumulating and concentrating money, men against whom is now fashionable to declaim, and against whom legislation is sometimes directed. And yet is there any benefactor of humanity who is to be envied in his achievements and in the memory and the monuments he has left behind him more than Ezra Cornell? Or, to take another example that is here before our eyes, more than Henry W. Sage. These are men who knew how to get rich because they had been endowed with that faculty,

and when they got rich, they knew how to give it for great public enterprises, for uses that will remain living, immortal as long as men remains upon the earth. The men of genius and the men of money, those who prepare new agencies of life, and those who accumulate and save the money for great enterprises and great public works, these are the leaders of the world as the 20th century is opening upon us, end quote.

The bees of a hive do not destroy the honey-making bees, but the drones. It will be a great mistake for the community to shoot the melanaires, for they are the bees that make the most honey, and contribute most to the hive even after they have gorged themselves full. It is a remarkable fact that any country is prosperous and comfortable in proportion to the number of its millinaires. Take Russia, with its population little better than serves, and living at the point of starvation upon the meanest fare, such fair as none of our people could or would eat, and you find comparative. few millionaires, accepting the emperor and a few nobles who own the land. It is the same

to a great extent in Germany, though in recent years industrial development has produced a few pound sterling millionaires. In Berlin, in 1902, three had more than six millions, and in Prussia six persons had an income of one million. In France, where the people are better off than in Germany, you can count but few millinaires. In the old home of our race in Britain, which is the richest country in the world, save one, our own. There are more millionaires in pounds sterling, which may be considered the European standard, than in the whole of the rest of Europe and its people are better off than in any other. You come to our own land, we probably have more millionaires and multi-millanaires, both in pounds and dollars, than all the rest of the

world put together, although we have not one to every ten that is reputed so. I have seen a list of supposed millinaires prepared by a well-known lawyer of Brooklyn, which made me laugh as it did many others. I saw men rated there as millionaires who could not pay their debts. Some should have had a cipher cut from their reputed millions. Some time ago, I sat next Mr. Everts at dinner, and the conversation touched upon the idea that men should distribute their wealth during their lives for the public good. One gentleman said that was correct, giving many reasons, one of which was that, of course, they could not take it with them at death. Well, said Mr. I do not know about that. My experience as a New York lawyer is that somehow or other,

they do succeed in taking at least four-fifths of it. Their reputed wealth was never found at death. Whatever the ideal conditions may develop, it seems to me Mr. Carter and Mr. Dana are right. Under present conditions, the millionaire who toils on is the cheapest article the community secures at the price it pays for him, namely, his shelter, clothing, and food. The inventions of today lead to concentrating industrial and commercial affairs into huge concerns. You cannot work the Bessemer process successfully without employing thousands of men upon one spot. You could not make the armor for ships without first expending seven millions of dollars as the Bethlehem Company has spent.

You cannot make a yard of cotton goods in competition with the world without having an immense factory and thousands of men and women aiding in the process. The great electric establishment here in your town succeeds because it has spent millions and is prepared to do its work upon a great scale. Under such conditions, it is impossible but that wealth will flow into the hands of a few men in prosperous times beyond their needs.

But out of 50 great fortunes, which Mr. Blaine had a list made of, he found only one man who was reputed to have made a large fortune in manufacturing. Fortunes are most often made from real estate. Next, follow transportation, banking. The whole manufacturing world furnished but one millionaire. But assuming that surplus wealth flows into the hands of a few men, what is their duty? How is the struggle for dollars to be lifted from the sordid atmosphere surrounding business and made a noble career?

Now, wealth has hitherto being distributed in three ways. The first and chief one is by willing it at death to the family. Now, beyond bequeathing to those dependent upon one, the revenue needful for modest and independent living, is such a use of wealth either right or wise? I ask you to think over the result, as a rule of millions given over to young men and women and sons and daughters of the millionaire.

You will find that as a rule, it is not good for the daughters, and this is seen in the character and conduct of the men who marry them. As for the sons, you have their conditions as described in the extract which I read you from the son. Nothing is truer than this, that as a rule, the almighty dollar bequeathed to sons or daughters by millions, proved an almighty curse. It is not the good of the child which the millionaire parent considers when he makes these bequests. It is his own vanity.

It is not affection for the child. It is self-glorification for the parent, which is at the root of this injurious disposition of wealth. There is only one thing to be said for this mode. It furnishes one of the most efficacious means of rapid distribution of wealth ever known. There is a second use of wealth less common than the first, which is not so injurious to the community,

but which should bring no credit to the testator. Money is left by millionaires to public institutions when they must relax their grasp upon it. There is no grace and can be necessary. no blessing in giving what cannot be withheld. It is no gift because it is not tearfully given, but only granted at the stern summons of death. The miscarriage of these bequests, the litigation connected with them, and the manner in which they are frittered away seem to prove that the faiths do not regard them with a kindly eye. We are never without a lesson that the only

mode of producing lasting good by giving large sums of money is for the millionaire to give as close attention to its distribution during his life as he did to its acquisition. We have today, the noted case of five or six millions of dollars, left by a great lawyer to found a public library in New York, an institution needed so greatly that the failure of this bequestion. The only way is a misfortune. It is years since he died, the wheel is pronounced invalid through a flaw, although there is no doubt of the intention of the donor. It is sad commentary upon the folly of men holding the millions, which they cannot use until they are unable to put them to the end they desire. Peter Cooper, Pratt of Baltimore, and Pratt of Brooklyn, and other

Others are the type of men who should be taken by you as your model. They distributed their surplus during life. The third use and the only noble use of surplus wealth is this, that it be regarded as a sacred trust to be administered by its possessor into whose hands it flows for the highest good of the people. Man does not live by bread alone, and five or ten cents a day more revenues scattered over thousands would produce little or no good. Accumulated into a great fund and expended as Mr. Cooper expended it for the Cooper Institute, it establishes something that will last for generations.

It will educate the brain, the spiritual part of man. it furnishes a ladder upon which the aspiring poor may climb. And there is no use whatever, gentlemen, trying to help people who do not help themselves. You cannot push anyone up a ladder unless he be willing to climb a little himself. When you stop boosting, he falls to his injury. Therefore, I have often said, and I now repeat,

that the day is coming, and already we see it's dawn, in which the men who dies possessed of millions of available wealth, which was free and in his hands ready to be distributed, will die disgraced. Of course, I do not mean that the man in business may not be stricken down with his capital in the business, which cannot be withdrawn, for capital is the tool, with which he works his wonders

and produces more wealth. I refer to the men who dies possessed of millions of securities which are held simply for the interest they produce that he may add to his hoard of miserable dollars. By administering surplus wealth during life, great wealth may become

a blessing to the community and the occupation of the businessman, accumulating wealth, may be elevated so as to rank even with the physician, one of the highest of our professions, because he too, in a sense, will be a physician looking after and trying not to cure, but to prevent the ills of humanity. To those of you who are compelled

or who desire to follow a business life and to accumulate wealth, I commend this idea. The epitaph which every rich man should wish himself justly entitled to is that seen upon the monument to pit. He lived without ostentation, and he died poor. Such is the man whom the future is to honor, while he who dies in. old age retired from business possessed of millions of available wealth is to die unwept, unhonored, and on some. I may justly divide young men into four classes. First, those who must work for a living and set before them as their aim the acquisition of a modest competence, of course,

with a modest but picturesque cottage in the country, and one as a companion who maketh sunshine in the shady place, and is the gold angel of his life. The motto of this class number one might be given as, quote, give me neither poverty nor riches, from the anxieties of poverty as from the responsibilities of wealth. Good Lord, deliver us.

end quote. Class number two, comprising those among you are who determined to acquire wealth, whose aim in life is to belong to that much-talked-off and grandly abused class, the millinaires, those who start to labor for the greatest good of the greatest number, but the greatest number always number one. The motto of this class being short and to the point, Put money in thy purse, end quote. Now, the third class comes along. The god they worship is neither wealth nor happiness. They are inflamed with noble ambition.

The desire of fame is the controlling element of their lives. Now, while this is not so ignoble as the desire for material wealth, it must be said that it betrays more vanity. The shrine of fame has many worshippers. The element of vanity is seen in its fiercest phase among those who come before the public. It is well known, for instance,

that musicians, actors, and even painters, all the artistic class, are peculiarly prone to excessive, of personal vanity. This has often been wondered at, but the reason probably is that the musician and the actor and even the painter may be transcendent in his special line without being even highly educated, without having an all-around brain. Some peculiarities, some one element in his character, may give him prominence or fame

so that his love of art or of use through art is entirely drowned by a narrow, selfish, personal vanity. But we find this liability in a lesser degree all through the professions. The politician, the lawyer, and with reverence be it spoken, sometimes the minister. Less, I think, in the physician

than in any of the professions, probably because he, more than in any other profession, is called to deal with the sad realities of life face to face. He of all men sees the vanity of vanities. An illustration of this class is well drawn in Hotspur's address. By heavens, me thinks it were an easy leap to pluck bright honor from the pale-faced moon or dive into the bottom of the deep,

where phantom line could never touch the ground and pluck up drowned on her by the locks. So he that doth redeem her thens might wear without carival all her dignities. Mark, young gentleman, he cares not for use, he cares not for state, he cares only for himself,

and as a vain peacock, struts across the stage. Now, gentlemen, it does not seem to me that the love of wealth is the controlling desire of so many as the love of fame, and this is matter for sincere

congratulations, and proves that under the irresistible laws of evolution, the race is slowly moving onward and upward. Take the whole range of the artistic world, which gives sweetness and light to life,

which refines and adorns, and surely the great composer, painter, pianist, lawyer, judge, statesmen. All those in public life care less for millions than for professional

reputation in their respective fields of labor. What cared Washington, Franklin, Lincoln, or Grant, and Sherman for wealth? Nothing. What cared Harrison or Cleveland? Two poor men, not unworthy successors? What care the judges of our Supreme Court or even the leading counsel that plead before them? The great preachers, physicians, great teachers are not concerned about the acquisition of wealth.

The treasure they seek is in the reputation acquired through their own. service to others, and this is certainly a great step from the millionaire class who struggled to old age and through old age to the verge of the grave with no ambition, apparently except to add to their pile of miserable dollars. But there is a fourth class, higher than all the preceding, who worship neither at the shrine of wealth nor fame, but at the noble list of all shrines, the shrine of service, service to the race. Self-abnegation is its watchword. Members of this inner and higher circle seek not popular applause are concerned not with being popular, but with being right. They say with Confucius, quote, it concerns me not that I have

not high office. What concerns me is to make my self-worthy of office." It is not cast down by poverty, neither unduly elated by prosperity. The men belonging to this class simply seeks to do his duty day by day in such manner as may enable him to honor himself,

fearing nothing but his own self-reproach. I have known men and women not prominently before the public, for this class, not prominence, but who in their lives proved themselves to have reached this ideal stage. Now, I will give you for this class the fitting illustration from the words of a Scotch poet who died altogether too young. I will go forth among men, not mailed in scorn, but in the armor of a pure intent. Great duties are before me,

and great songs. And whither crowned or crownless when I fall, it matters not. So as God's work is done, I've learned to prize the quiet lightning deed, not the applauding thunder at its heels which men call fame. Then, gentlemen, standing upon the threshold of life, you have the good, better, best presented to you, the three stages of development, the natural, spiritual, and celestial, they may fitly be called. One has success in material things of its aim,

not without benefit this for the race as a whole, because it lifts the individual from the animal and demands the exercise of many valuable qualities, sobriety, industry, and self-discipline. The second rice is still higher. The reward salt for being things more of the spirit, not gross, immaterial, but invisible, and not of the flesh, but of the brain,

the spiritual part of men. And this brings into play innumerable virtues which make good and useful men. The third or celestial, The ancestral class stands upon an entirely different footing from the others in this, that selfish considerations are subordinated in the select brotherhood of the best, the service to be done for others being the first consideration. The reward of either wealth or fame is unsought,

for these have learned and know full well that virtue is, its own and the only exceeding great reward, and this once enjoyed, all other rewards are not worth seeking. And so wealth and even fame are dethroned, and there stands enthroned, the highest standard of all, your own approval flowing from a faithful discharge of duty

as you see it, fearing no consequences, seeking no reward. it does not matter much what branch of effort your tastes or judgment draw you to the one great point is that you should be drawn to some one branch then perform your whole duty in it and a little more the little more being vastly important we have the words of a great point for it that the man who does the best he can can whilst do more maintain your self-respect as the most precious jewel of all, and the only true way to win the respect of others, and then remember what Emerson says, for what he says here is true.

Quote, No young men can be cheated out of an honorable career in life unless he cheat himself, end of section 5, wealth and its uses. Section 6 of the Empire of Business by Andrew Carnegie. This is a LibraVox recording. All LibraVox recordings are in the public domain. For more information or to volunteer, please visit Libravox.org.

This recording is by Michelle Frye, Baton Rouge, Louisiana in August 2020. The Empire of Business, Section 6, Anglo-American trade relations. This section contrasts the commercial methods of the two countries, the part the tariff plays in trade, protective tariff in the United States, free trade in Britain, and a comparison of results. Upon the threshold of this great question,

we encounter that evergreen subject of discussion, free trade versus protection. There is only one kind of free trade, but there are two kinds of protection. First, the British kind, and then the American variety, very different indeed in theory and in practice. Protection in Britain simply means that the food of the people should be permanently made dearer to the consumer,

and consequently that the value of land should be permanently and artificially enhanced. Now, the American idea of protection is that foreshadowed by mill. It adheres to Adam Smith's great doctrine that the end to be aimed at is the best supply of an article at the lowest price under the free exchange of commodities. Thus, he keeps ever in view the consumer. If we have reason to believe that the resources of a country are such as only need development to furnish a better and cheaper supply of an article than has ever been or could ever be obtained from other lands, we believe with Adam Smith that it is. is sometimes advisable to pay dearer for that article for a time if the end be the conquest of a greater market adam smith was not a wild dogmatist upon the subject of free trade indeed he has recorded his opinion that he might as well expect utopia upon earth as the establishment of complete free trade even in britain and where changes were to be made in fiscal laws he is clear always upon this point that these must be slowly made and without serious injury to trade as it exists. Here are two examples to illustrate the difference

between protection in England and in America. During the war for the Union, the American people were hurt and incensed by hostility shown, not by the British people, but by the British government. They determined to limit the use of British products as much as possible, and especially to be independent in the supply of iron and steel, the sinews of war, since by England's warlike attitude and the building of the Alabama, it was not as certain as, thank the fates it is now, that war between the two countries could not come.

Thus does wrong done nations or people bring retribution, and every foe created is a danger ready to explode. The Alabama gave us 30 years continuous protection and enables us to invade Britain successfully with our steel. the government asked manufacturers how much duty would be required to induce them to enter the new business of making steel up to that time we had made none successfully thirty per cent duty was asked and obtained all know the result not only is the american supplied with cheaper steel than any nation in the world britain not accepted but it is certain that a large part of the wants of the world is to be supplied by this country it is beyond all question the country which can best produce steel to-day now we think the temporary protection given and which has been reduced to one-fourth its first extent is here fully vindicated take the other case the best men of every nation must ever labor to advance the material progress of that nation by introducing new manufacturers and it was thought that with proper protection for a time the union would grow a full supply of sugar cheaper than it could be brought from abroad. This experiment, however, resulted in failure. We were mistaken. Therefore, protection was abandoned and sugar made free. In the one case, protection was a success,

in the other a failure. I think that what has taken place in the United States may be expected to take place in other nations, one after the other, as they develop. Every nation will try to produce within its own borders an article when there is a probability of its being able to make it cheaper and better than it could be had from abroad, and we must wait patiently the result of these trials. Just as the United States abandoned the protection of sugar, so I believe other nations will come to the American idea of protection, that it is folly to protect forever, that the attempt of a nation to benefit itself by a permanent tax upon any article as a matter of protection is akin to the attempt of a man to raise himself by pulling up his suspenders.

Thorough believer as I am in the theory that sometimes it is wise for a young nation to induce capital and brains to engage in the experiment of manufacturing something new, which is always attended with special risks. I am nonetheless a believer in Adam Smith's great doctrine that the end must be the free exchange of commodities by all the nations of the world subject only to the necessity of revenue but this matter of revenue is important you remember mr chamberlain was at one time carried away with the idea of a zulfurine of the empire you were to have free trade within its bounds as we have within the forty-five states embraced in the union a brilliant idea at first sight but after conferring with the colonials at the Jubilee, Mr. Chamberlain announced that he could not be induced

to touch the subject with tongs. It is well for a statesman to change his opinions when he finds them wrong. The British colonies today feel that they have to raise most of their revenue from taxing imports, and therefore a Zolverine did not seem practicable. And there are other objections. For instance, the United States adds to its duties upon sugar an amount equal to the bounty paid by any nation upon its growth. This is considered only fair to our own producers of sugar. It is probable, therefore, that for the present, probably for our own day, the needs of revenue and the impracticability of collecting it from internal taxes will cause the British colonies to continue high duties upon imports,

especially such as may be classed as luxuries, which mean the finest things of all grades. In other words, things used not by the masses of the poor, but by the rich few. Such is certainly a popular policy, and it is well known how potent votes are to the politician. The same influences will, I believe, prevail in the United States. I know of no mode of raising revenue so easy or one so satisfactory to the voters. It may be a surprise, but I believe it is true that under our present tariff policy, the masses of the American people practically escape taxation. They use almost, indeed, I might say, holy, homemade articles,

home tobacco, wine, spirits, and beer, homemade cotton, and woolen cloths, and silks, serviceable, but not so fine as the foreign, and all these are today surprisingly cheap. I had a proof of that recently. A family in comfortable circumstances, not rich, went to England each year with their five children to visit parents. Formerly, the cost of their passage was saved by the purchase of clothing and other articles. The lady told us she bought nothing on the other side now. She could clothe her children cheaper in New York.

There is much testimony tending to bear this out. We find our servants who pass with us to and fro buying many articles in. new york but pray remember not fine luxurious articles in which people with ample means indulge upon these about which there need be no fear our rich class will ever forego we can by high duties raise a large amount of needed revenue without greatly restricting the demand the rich classes of the republic hesitate little about cost in their luxuries and fine silks fine linen fine lace finest woolen fabrics fine wines fine wines fine wines and fine wines or Scotch Whiskey and British beer are among our luxuries. Pray note this policy will no longer be pursued primarily for protection, but for revenue only. Even if protection as a policy were discarded, it is probable such articles would be taxed. The masses would demand this. It is a great mistake to think that it is the few and not the many

who favor taxing the imported articles used by the few rich. It is my opinion that there can be no abolition of such duties in our day. This is the most popular of all means of raising revenue. There is a new revelation in trade between nations which cannot be overlooked. It may now be taken as established that raw materials in favored parts of the world have now attained the power to attract to them capital and ability, so that they will as a rule be manufactured close at hand. The various peoples display unsuspected capacity for manufacturing. The poor men and women of India, the peons of Mexico, the Negroes of America, make satisfactory meal operatives.

The Chinese and Japanese are becoming so also. Britain and the United States furnish a few heads of departments. Automatic machines need little skill in the mere workers. We must expect great changes to flow from this fact. It behooves Britain long the chief, and at one time indeed almost the sole manufacturing nation of importance, and the United States also to keep our standard of efficiency at the very highest in every department. There may come changes amounting to revolution from this cause. Sir Sutherland of the P&O recently spoke to his shareholders of the probability of ordering steamships in the Far East.

i think however he will first obtain these from britain and america it is a far cry to the far east while we may not look for any great increase in the foreign trade of nations nothing comparable for instance to the growth of their domestic trade since the tendency is for nations to supply their chief wants still i believe that the increase of the population and of wealth creating new wants and extending the field of present wants must be such as to keep the exchange of articles not only at its present volume but with a small ratio of increase. How small foreign trade is at best compared to internal trade. In the case of the United States, notwithstanding its exported manufacturers last year, 1899, to the extent of 80 million pound sterling, $400 million, this was not quite appaltry 5% of the total. It was not quite appaltery 5% of the total value of its manufacturers above 1800 millions. There is little to fear as to the wants of the world. Britain's only concern is to remain and become the country which can best supply them.

So much for Anglo-American trade relations. In these days of bitter partisanship and sectarianism, it seems almost essential that there should arise a body of intelligent men in each center who know neither rank, wealth, party nor creed, in their deliberation. as members of such body, who subordinate all other issues to those which concern the peace and prosperity of their country, which extends its view to all peoples of all lands, rightly regarding men everywhere as a brotherhood, bound together and therefore dependent in greater or less degree in a common prosperity, and which sees in the peace and prosperity of other nations results not antagonistic but tributary to their own,

discarding these narrow conceptions of the ordinary politician who sees in war against other lands benefits to his own, and, I fear, sees even more clearly popularity for himself. It is essentially true concerning commercial nations, especially such as Great Britain long has been and must remain, and such as our newer republic is becoming, which is fast sharing with the mother country the business of the world, that there is no measure of prosperity in any part of the world in which we do not share.

The whole world pays tribute to the nations which supply in any considerable degree its wants. Hence the greatest interest of Britain and of America is peace. Hence also a wise policy to sustain peace, a grave error of policy to disturb it, since we cannot destroy the prosperity of any nation without impairing our own. Any seeming temporary gain from the injury of others is really a loss in the end. This is perhaps what may be called a view for the future, but steps toward its acceptance are being taken even in our own day.

The first step lies in exploding the idea that trade follows the flag. The fact is that trade sense the best to bargain. trade is no respecter of flags. Loyal Canada buys her union jacks in New York. She trades with the Republic to three times the extent she trades with England and to a greater extent than with all other nations combined. In vain does any nation seek political or nominal control

over foreign territory with a view to permanent commercial advantage under free trade or equal laws for all? She secures or holds only the market which she can best supply. to spend millions of money and thousands of lives for the political control of new territory may be considered necessary sometimes for political reasons, but never for the requirements of trade. We shall have gained one step forward then when it is freely recognized that political acquisition is not essential for acquiring the trade of a new territory.

This truth, even America just now needs to relearn, since she is trying to acquire a political political control of the Philippines. British and American interests are safeguarded when equal laws for all nations are secured. Thus, the interests of both countries in foreign trade have become the same and should lead to a common policy, the open door and peace, allowing all nations, all peoples, to follow their own laws of development in perfect freedom. We have had many proofs recently of the familiar adage that blood is thicker than and water, very much thicker, as I believe, between the members of our own race.

In the evident drawing together of the English-speaking race, and all that this implies, we see the dawn of a new sentiment rising, the patriotism of race, a sentiment of pride and devotion in the race, now given by one half of the race to the Union Jack, and by the other half of the race to the stars and stripes, the other of the two flags which unitedly holds sway over all English-speaking men, for no community exists speaking our tongue, which does not owe allegiance to one or the other of these symbols. The silver lining to the clouds of war, in which, alas, the two branches of our race are at present engaged, is that it has so turned out that these now stand closer to each other than at any time since they separated. We may safely, I believe, quite safely, assume that no

question can ever arise between the two nations, but one piece. people which will not be amicably settled that no government can ever exist in either land strong or wicked enough to resist the demand of the best of the people of both that the settlement of differences shall not be by the brutal arbitrament of the sword the day has passed when english-speaking men will ever be called upon to kill each other in battle the sun is never again to shine upon such a spectacle we have passed that stage and turn down the pages of that horrid story forever. What then of the future charged with this potent new sentiment of race patriotism, which seems drawing upon us? Our own race especially is prone to the disease known as land hunger. Great Britain has spread its red spots of sovereignty all over the world. We have stretched from the shores of the Atlantic, 3,000 miles to the Pacific from the St. Lawrence to the Gulf of Mexico, and not content, I fear, following Britain's perilous example, we are trying to annex

foreign territory. The truth is that we have taken the scripture much to heart, which tells us that the meek shall inherit the earth, and which our humorist Mark Twain said, explained it all. Our race is so meek. At all events, we seem to have lost no time in discovering that the true and only reliable proof of the true inheritors was whether they spoke English. this expanding epoch must soon pass it is the law of development that each country shall eventually rule itself canada does so australia is about to assume sovereign sway both have their own fiscal tariffs against even english products the seventeen republics of south america only recently governed by spain are now all independent and self-governing it is only during the periods of development that distant powers can govern and hold sway over a people, but during this stage, such may be the benign effects of the government, that even after practical control has been taken over by the new

community, the ties between mother and child may not only remain unbroken, but stronger than ever before. Of this, Canada and Australia give ample proof. By the wise, kind, peaceful, and conciliatory policy pursued, a race patriotism has been created within the empire, which depends upon moral forces, the most enduring of all, not upon law, but upon love. The success of Britain's colonial policy in recent times is one of the grandest triumphs ever achieved by a nation, perhaps the grandest of all. It has been possible only by peaceful, not by warlike means, a victory much more renowned than any conquest by force, and more enduring as the future is to show.

the flag of great britain floats over canada and australia by the desire of their people they are part of the solid united whole and the question now is whether this federation of the race is to stop within the empire or finally develop into a federal council for the entire race governing international relations which involve the peace of the world and leaving home rule to each country in all other affairs even as to the form of government itself a crowned or uncowned republic. I am on record as having predicted years ago that our English-speaking race would one day be again united. It was not so very long since. Here is a fit field for our Chamber of Commerce to cultivate, for it lies in the direction of peace and goodwill.

For the present, at least, they can exert their influence to strengthen the good feeling, the drawing together of the two branches. I failed to mention one of the two branches. the best perhaps the best of all the results of our temporary policy of protection it has brought to us so many british manufacturers to establish industries and thus develop our resources the clerks and the coateses of paisley the dolens of yorkshire the sandersons of sheffield and last but certainly not least a great prize from halifax who could expect us not to extol our idea of protection if we capture the Firths. We must not line them up for a king's ransom. We need as many of the Halifax quality as can be had. Whenever our tariff's suit, all may take a sweeping revenge, come over and enjoy a

perfect free trade in the 45 nations of the Union, and be happy. The Republic calls them to one, come all. It taxes highest the gems and precious things imported, but these jewels, beyond price are admitted duty-free. It is not only for their value industrially that they should be valued, but as links binding the old and the new lands, the mother and the child together. Some of the younger members of the firm settled among us, their children marry Americans, or when they visit the old home, contract alliances there, and the true Anglo-American is the result, who is not unlikely to prove the coming man, possessed of the virtues and strength of both races, and the vices or weaknesses of neither, and who, at all events, we may rest assured,

will be the foremost disciple of race patriotism and labor for the coming of the day of common citizenship within the wide and ever-expanding boundaries of our race. End of Section 6. Anglo-American Trade Relations Section 7, Business Part 1 of the Empire of Business, Part 1 of the Empire of Businesses. by Andrew Carnegie. This is a Libravox recording. All Libravox recordings are in the public domain. For more information or to volunteer, please visit Libravox.org.

Recording by William Jones, Benita Springs, Florida. The Empire of Business, Section 7, Business Part 1. Business is a large word, and in its primary meaning, covers the whole range of men's efforts. It is the business of the preacher to preach, of the physician to practice, of the poet to write, the business of the university professor to teach, and the business of the college student, one might sometimes think, from the amount of attention bestowed upon it, to play football. I am not to speak of business in this wide sense, but specifically as defined in a century dictionary. Quote,

mercantile and manufacturing pursuits collectively. Employment requiring knowledge of accounts and financial methods, the occupation of conducting trade or monetary transactions of any kind, close quote. The illustration which follows is significant and clearly defines this view of business. It reads, it seldom happens that men of a studious turn acquire any degree of reputation for their knowledge of business. But we must go one step further, more strictly to define business, as I am to consider it. Is a railway president receiving a salary, or the president of a bank, or a salaried officer of any kind in business? Strictly speaking, he is not. For a man to be in business must be at least part owner of the enterprise which he manages,

and to which he gives his attention and chiefly dependent for his revenues, not upon salary, but upon its profits. This view rules out the entire salaried class. None of these men is now a man in business, but many of them have been and most successful therein. The businessman, pure and simple, plunges into and tosses upon the waves of human affairs without a life preserver in the shape of salary. He risks all.

Choice of a career There is no great fortune to come from salary however high, and the businessman pursues fortune. If he be wise, he puts all his eggs in one basket, and then watches that basket. If he is a merchant in coffee, he attends to coffee. If a merchant in sugar, he attends to sugar and lets coffee alone, and only mixes them when he drinks his coffee with sugar in it.

If he mine coal and sell it, he attends to the black diamonds. If he own and sell ships, he attends to shipping, and he ceases to ensure his own chips. just as soon as he has surplus capital and can stand the loss of one without imperiling solvency. If he manufactures steel, he sticks to steel and severely lets copper alone. If he mine iron stone, he sticks to that and avoids every other kind of mining, silver and gold mining especially. This is because men can thoroughly master only one business,

and only an able man can do this. I have never yet met a man who fully understood two different kinds of business. You cannot find him any sooner than you can find a man who thinks in two languages equally and does not invariably think only in one. Subdivision specialization is the order of the day. Every man to his trade or his specialty. I have before me many representatives of all classes of students. If I can look into your hearts, I should find many differing ambitions,

some aiming at distinction in each of the professions, some would be lawyers, some ministers, some doctors, some architects, some electricians, some engineers, some teachers, and each sets before him as models, honored names that have reached the highest rank in those professions. The embryo lawyers before me would rival Marshall and Story of the past, or Carter and Choate of the present, the preacher would be a Brooks or a Van Dyke, the physician, a Janeway or Garmini. The editor would be a Dana, the architect, a Richardson, and, having reached the top of his darling profession, his ambition then would be satisfied.

at least so he thinks at present. With these classes, I have nothing whatever to do directly today, because all these are professional enthusiasts. Nevertheless, the quality is essential for success in the professions, being in the main the same, which ensures success in business, much that I have to say applies equally to you all. There remains among you those who would sail the uncertainty, of business and devote themselves to making money, a great fortune, so that you shall be

millionaires. I am sure that while this may be chiefly in your thoughts, it is not all you seek in a business career. You feel that in it there is scope for exercise of great abilities, of enterprise, energy, judgment, and all the best traits of human nature, and also that men in business perform useful service to society. I am to try to shed a little light upon the path to success, to point out some of the rocks and shoals in that treacherous sea, and give a few hints as to the mode of sailing your ship or rowing your shell, whether, for instance, the quick or the slow stroke is surer to win the long race. The start in line. Let us begin then at the beginning. Is any would-be businessman before me content and forecasting his future to figure himself as laboring all his life for a fixed salary?

Not one, I am sure. In this you have the dividing line between business and non-business. The one is a master and depends upon profits, the other a servant and depends upon salary. Of course you have all to begin as servants with salary, but you have not all to end there. You have some difficulty in obtaining a start, great difficulty as a rule, but here comes in the exceptional student. There is not much difficulty for him. He has attracted the attention of his teachers, who know many men of affairs, has taken prizes, he is ahead of his class, has shown unusual the best,

founded upon characteristics which are sure to tell in the race. He has proved himself self-respecting, has irreproachable habits, good sense, method, untiring industry, and his spare hours are spent in pursuing knowledge, that being the laborer in which he most delights. One vital point more. His finances are always sound. He rigorously lives within his means, and last but not least, he has shown that his heart is in his work. Besides all this, he has usually one strong guarantee of future industry and ambitious usefulness.

He is not burdened with wealth. It is necessary that he make his own way in the world. He is not yet a millionaire, but is only going to be one. He has no rich father, or still more dangerous, rich mother, who can and will support him in idleness should he prove a failure. He has no life-preserver, and therefore must sink or swim. Before that young man leaves college he is a marked man. More than one avenue is open for him, the door opens before he is ready to knock.

He is waited for by the sagacious employer. not the written certificate of his professor, for certificates have generally to be read and are read within the lines. But a word or two spoken to the businessman who is always on the lookout for the exceptional young graduate has secured the young man all that a young man needs, a start. The most valuable acquisition to his business which an employer can obtain is an exceptional young man.

There is no bargain so fruitful for him as this. It is, of course, much more difficult for only the average student. He has generally to search for employment, but finally he also gets a start. Openings to Success. It is the career of the exceptional student which illustrates the pathway to success. We need not render ourselves. anxious about him. He is all right. He has been thrown into the sea, but he does not need any life preserver. He does not need to be coddled. He will swim. He was not born to be drowned,

and you see him breast the waves year after year, until he is at the head of a great business. His start, of course, is not at the head. He is at the foot. Fortunately so, for that is the reason his progress has always been upward. If he had started high, he would not have had the chance to make a continual ascent. It does not matter how he starts, for the qualities in him are such as to produce certain effects in any field he enters. He goes forward upon a very small salary performing certain small uses, indeed, much smaller than he thinks himself capable of performing, but these he performs thoroughly. Someday, in some way,

something happens that brings him to the notice of his immediate superior. He objects to some plan proposed and thinks it can be bettered in some way, or he volunteers to assist in a department other than his own. Or he stays one day, later at his work than usual, or goes some morning sooner because there was some part of the business that had not been entirely settled the night before. Or there was something to start next morning that he was afraid might not be ready or just right,

and he just goes down early to be sure. His employer has been somewhat anxious upon the same point, and he too goes down early that morning and finds his salaried young man showing that he does not work for salary alone. It is not solely an affair of hire and salary with him. He is not that kind of a young man. He is working for the success of the business, or maybe that someday his employer proposes a certain mode of action

in regard to a customer's account. Perhaps a young man has started in the office and has been asked to look after the credits, a most important part. his employers wish to close this credit, which perhaps would embarrass the customer. This young man, known to the customer, has had to visit his place occasionally in the course of business, collecting his accounts or trying to collect them, and the young man modestly says he is a splendid fellow bound to succeed, does his business upon fair and wise methods,

and only needs a little temporary indulgence to come out all right. The employer has faith in the young man's judgment and ability, thinks it a rather strong suggestion for a clerk to make, but says to him, you look out for this matter and see that we do not lose. But of course we do not wish to injure one of our customers. If we can help him without risk, we wish to do it. The young man takes the matter in hand,

and results prove he was quite right, the customer becomes one of the very best of all their customers, and one that it would require a great deal to take away from the firm. Or perhaps the bright young man may have noted the insurance policies upon the works, and their days of expiration, he finds the fact has been overlooked that some of the insurances have lapsed and are invalid. It is none of his business. he is not paid to look after the insurance of the firm. In one sense, the narrow sense, that is the business of some other man, but he ventures to call attention to the fact and suggests that the premiums should be paid.

But now mark the advantage of general reading and education. This young man has read the newspapers and reviews and learns of several sharp business practices by which the insurer is sometimes defrauded of his insurance, and especially as he read of new methods and cheap plans of insurance. He suggests that it would be well to change this and that policy to another and very solid old company. You see, gentlemen, the businessman of this day has to read, yes, and study, and go to the roots of many things that he may avoid the pitfalls

that surround business upon every side. He would not be an employer worth having that did not note what kind of a young man that was, although now in the humble guise of a clerk. The second step upward. Suppose he is an electrician or engineer, and comes from Sibley, which is a good place to come from, in the great manufacturing concern so fortunate as to secure his services,

he has to do with some humble branch of the work, but he discovers that there are a few boilers which are not quite safe, and that the engines or motors are built upon false mechanical principles, and are very wasteful of fuel, and that one of the engines will soon give trouble. There is a foundation under it upon which he finds that the contractor has not done honest work. Or, dropping into the works one night,

just to see that all is going well, perhaps he discovers that a man trusted by the firm has fallen into bad habits and is not fit for duty, or perhaps is not on duty, and that an accident might thus happen. He feels it to be his duty to take action here and safeguard the business from the danger of an accident. He draws the plans which show some defects in the machinery, lays them before his employers with suggestions how to cure these made upon the latest scientific principles that he has been taught in sibling. The employer, of course, is very averse to spend money, and angry to learn that his machinery is not what it should be. But although his anger explodes and envelops the young

man for a moment, he is not shooting at him. When the debris clears, he sets down and learns from the young man what a few thousand dollars now might save, and the result is that he tells the Sibley boy, he wishes him to take up the subject and attend to it, and be sure to make all right. Already that young man's fortune is almost as good as made. He could not hide his light under a bushel if he tried, and the coming businessman is not excessively liable to that sin, and does not want to. He is business all over. There are no affectation or false modesty about him.

He knows his business, and he feels fully conscious. and proud of the fact that he knows it. And that is one of the many advantages Sibley gives him. And he is determined that his employer should not, at least upon that point, no less than he does. You must never fail to enlighten your employer.

You cannot keep such a young man as that back, and this, let me tell you, no employer wishes to keep him back. There is only one person as happy at finding this year, young man, as the young man is in finding himself, and that is his employer. He is worth a million more or less, but of course it would not be good for him to get it while so young. He has now made two steps upward. First, he has got to start, and secondly, he has satisfied his employer

that he renders exceptional service. A decisive step, as the French say, he has arrived, and he is there to stay. His foot is upon the ladder, how high he climbs is his own affair. He is among the few within the very threshold of the whole business. There is a good deal to be done after this, however. The young man has zeal and ability, and he has shown that he has also that indispensable quality judgment. And he has shown another indispensable quality, that his heart is in the business, that no other cause takes him from it, that he pushes aside the very seductive temptations which surround young men and concentrates his attention, his time, his efforts, upon the performance of his duties to his employer. All other studies, occupations,

and all amusements are subordinate to the business which holds paramount sway. His salary, of course, increases. If he had to be a lot of course, increases, if he had happen to engage with an employer who does not fully appreciate such services as he has rendered and is ready to render, other employers have not failed to note that here is that rare article the exceptional young man in a service of their rival, and it is possible that our young hero may have to change employers. It does not often happen, but it does sometimes that a young man has to do so. As a rule, the employer is only too thankful that such a young man has come to him, and he makes it his interest to remain. Confidence is a matter of slow growth, however, and it is a

far cry from a high salary as a hireling into equality as a partner. The crucial question. Let us trace him a little further. This young man's services to the firm, have been such as to render it necessary some day that he should visit his employer at his house. It is not long before many occasions arise, which call the young man to the house, where he is now favored upon his merits by the household, and to whom his nature soon becomes known, and the master soon begins to ask himself whether he might not someday make him a partner, and then comes the question of questions. Is he honest and true?

Let me pause here one moment. Gentlemen, this is the crucial question, the keystone of the arch, for no amount of ability is of the slightest avail without honor. When Burns pictured the genius of Scotland in The Vision, these marvelous words came to him. Her eye even turned on empty space, beamed keen with honor. No concealment, no prevarication, no speculation, trying to win something for which no service is given, nothing done which, if published, would involve your shame. The businessman seeks first in his partner the soul of honor.

One who would swerve from the narrow path even to serve him would only forfeit his confidence. Is he intelligent? Is he capable of forming a correct judgment based upon knowledge, upon distant and far-reaching issues. Young men, yes, and old men also, sometimes marry in haste, which is very foolish in both cases, but there is this to be said for the partnership. It is rarely entered upon in a hurry.

It is not one or two qualities which ensure it, but an all-round character, desirable in many respects, highly objectionable in none, and with special ability in one or two. We often hear in our day that it is impossible for young men to become owners because business is conducted upon so great a scale that the capital necessary reaches millions, and therefore the young men is doomed to a salaried life.

Now there is something in that view only so far as the great corporations are concerned, because an interest in these is only attainable by capital. You can buy so many shares for so many dollars, and as the class of young men I address are not willing to remain forever salaried men, but are determined sooner or later to become business men upon their own account as masters. I do not believe that employment in a great corporation is as favorable for them as with private owners, because, while a young man can look forward to a large salary in their service, that is all to which he can aspire. Even the presidents of these corporations, being only salaried men, are not to be classed as strictly businessmen at all. How then can a young man, under them, be anything but a salaried man his life long?

Where to look for opportunities. Many a business which has long been successful as a partnership is put into a joint-stock concern, and the shares are offered in the market, and professional men, guilelessly innocent of business, and sometimes, women of a speculative term, and, I am sorry to say, many times clergymen, and artists are deluded into purchasing. The public buys the business, but they should have bought the man or the men who made the business. You remember the Travers' story? A friend called Travers in to see a dog that he wished to buy to clear his conservatory of rats. And when the dog fancier undertook to show him how this dog

demolished these pests, one great big old rat chased the dog. Travers' friend said to him, What would you do? And Travers replied, by the rat. the public often buys the wrong thing it would be an excellent study for you to read frequently the stock lists of miscellaneous companies you will find some of the newspapers give the list then note the par value of the shares and the price at which you may purchase them it may be said that this par value is upon fictitious capital that is so only in some instances in manufacturing companies especially i think they reverses the rule the capital does not fully represent the cost of the properties but there are many corporations which are not corporations many instances of partnerships in which the corporate form has been adopted and yet the business continues substantially as a partner's and comparing such institutions with the great corporations whose ownership is here, there, and everywhere, we find a most notable difference. Take, for instance, the great steamship lines of the world.

Most of these, as those of you who read well know, fail to make returns to their shareholders. The shares of some of the greatest companies have been selling at one-half and sometimes one-third their cost. These are corporations pure and simple, but if we look at other lines engaged upon the same oceans, which are managed by their owners, and in which generally one great businessman is deeply interested, and at the head, we find large dividends each year and amounts placed into the reserve fund. It is the difference between individualism and communism applied to business between the owners managing their own business as partners, and a joint stock concern of a thousand shifting owners ignorant of the business.

The same contrast can be drawn in every branch of business, in merchandising, in manufacturing, in finance, in transportation by land as well as sea. It is so with banks. Many banks are really the property of a few businessmen. These soon become the leading banks, and their shares are invariably quoted at the highest premium, especially if the president of the bank be the largest owner, as he is in many of the most remarkable cases of success.

In such partnership corporations, there is every opportunity for the coming businessman to obtain ownership, which exist in pure partnerships, for the owners of both manage affairs and are on the constant watch for ability. Do not be fastidious. Take what the gods offer. Begin, if necessary, with a corporation, always keeping your eye open for a chance to become interested in a business of your own.

Remember, every business can be made successful because it supplies some essential want of the community. It performs a needed office, whether it be in manufacturing, which produces an article, or in gathering and distributing it by the merchant or the banker whose business is to take care of, and invest capital. There is no line of business in which success is not attainable. A secret of success. It is a simple matter of honest work, mobility, and concentration. There is no question about their being room at the top for exceptional men in any profession. These have not to seek patronage. The question is, rather, how can their services be secured? and as with every profession so in every line of business, there is plenty of room at the top.

Your problem is how to get there. The answer is simple. Conduct your business with just a little more ability than the average man in your line. If you are only above the average, your success is secured, and the degree of success is in racial to the greater degree of ability and attention, which you give above the average. There are always a few in business who stand near the top, but there are always an infinitely greater number at and near the bottom.

And should you fail to ascend, the fault is not in your stars, but in yourselves. Those who fail may say that this or that man had great advantages. The faiths were propitious, the conditions favorable. Now there is very little in this. One man lands in the middle of a stream which he tries to jump, and is swept away, and another tries the same feet and lands on the other side. Examine these two men.

You will find that the one who failed lacked judgment. He had not calculated the means to the end, was a foolish fellow, had not trained himself, could not jump, he took the chances. He was like the young lady who was a young lady who was a man. asked if she could play the violin, and she said, she did not know. She had never tried. Now, the other men who jumped the stream had carefully trained himself. He knew about how far he could jump, and there was one thing dead sure with him. He knew he could at any rate jump far enough to land at a point from which he could wade ashore and try again. He had shown judgment.

Prestige is a great matter, my friends. A young man who has the record of doing what he sits out to do will find year after year his field of operations extended, and the tasks committed to him greater and greater. On the other hand, the man who has to admit failure and comes to friends trying to get assistance in order to make a second start is in a very bad position indeed. College graduates in business

The graduates of our colleges and universities in former years graduated while still in their teens. We have changed this, and graduates are older as a rule when they enter upon life struggle, but they are taught much more. Unless the young university man employs his time to the very best advantage in acquiring knowledge upon the pursuit, which he is to make the chief business of his life, he will enter a business at a disadvantage with younger men who enter in their teens, although liking in university education. This goes without saying. Now the question is, will the graduate who has dwelt in the region of theory

overtake the man who has been for a year or two in advance of him engaged in the hard and stern educative field of practice? That it is possible for the graduate to do so also goes without saying. and that he should in after-life possess views broader than the ordinary businessman, deprived of university education, is also certain. And, of course, the race in life is to those whose record is best at the end. The beginning is forgotten and is of no moment. But if their graduate is ever to overtake the first starter in the race,

it must be by possessing stronger staying powers, His superior knowledge, leading to a sounder judgment, must be depended upon to win the race at the finish. A few disadvantages he must strenuously guard against, the lack of severe self-discipline, of strenuous concentration, and intense ambition which usually characterize the man who starts before the habits of manhood are formed. The habits of the young man at college, after he is a man, and the habits of the youngster in the business arena are likely to differ. There is another great disadvantage which the older man has to overcome in most successful business establishments. There will be found in operation. There is a

strict civil service system and promotion without favor. It is therefore most difficult to find admission to the service in any but the lowest grades. One has to begin at the foot, and this is better for all parties concerned, especially the young graduate. The exceptional graduate should excel the exceptional non-graduate. He has more education, and education will always tell, the other qualities being equal. Take two men of equal natural ability, energy, and the same ambition and characteristics, and the man who has received the best, widest, most suitable education, has the advantage over the other, undoubtedly.

End of the Empire of Business, Section 7, Business, part one. Section 8, Business, part two, of the Empire of Business by Andrew Carnegie. This is a Libravox recording. All Libravox recordings are in the public domain. For more information or to volunteer, please visit Libravox.org.

Recording by William Jones, Benita Springs, Florida. The Empire of Business, Section 8, Business Part 2. Businessmen and Speculators All pure coins have their counterfeits. The counterfeit of business is speculation. A man in business always gives value in return for his revenue and thus performs a useful function.

His services are necessary and benefit the community. Besides, he labors steadily in developing the resources of the country. and thus contributes to the advancement of the race. This is genuine coin. Speculation, on the contrary, is a parasite fastened upon the labor of businessmen. It creates nothing and supplies no want. When the speculator wins, he takes money without rendering service, or giving value, therefore. And when he loses, his fellow speculator takes the money from him.

It is a pure gambling operation between them, degrading to both. You can never be an honest man of business and a speculator. The modes and aims of the one career are fatal to the other. No businessman can honestly speculate for those who trust him have a right to expect strict adherence to business methods. The creditor takes the usual risks of business,

but not those of speculation. The genuine and the counterfeit have nothing in common. that ninety-five per cent fail of those who start in business upon their own account seems incredible and yet such are said to be the statistics upon the subject although it is said that figures will say anything still it is a fact that the proportion is very great do not think that i wish to discourage you against attempting to be your own masters and having a business of your own very far from it besides the coming businessman is not to be discouraged by anything that anybody can say. He is a true knight who says with Fitz James, If the path be dangerous known, The dangerous self is lure alone.

The young man who is determined to be a businessman will not be thwarted, neither will he be diverted into any other channel, and he is going to start and have a trial. He will make a spoon or spoil a horn, trying to make it. He must go ahead and find it, it out. Time enough to confine yourself to a lifelong bondage as mere receivers of a salary, after you have tried business and really discovered whether or no you are one of the gifted who possess all the necessary qualities. I have tried to sketch the path of the exceptional

graduate from salary to partnership. It is no fancy sketch. There is not a day passes without changes in many firms which raise young men into partnership, and in every single city no 1st of January passes without such promotions. Business requires fresh young blood for its existence. If any of you are discouraged upon this point, let me give you two stories within my own experience which should certainly cheer you. A Sketch from Life There is a large manufacturer, the largest in the world in his line. I know him well, a splendid man who illustrates the business career at its best. Now, like all sensible businessmen, as he grew in years, he realized that fresh blood must be

introduced into his business, that while it was comparatively easy for him to manage the extensive business at present, it was wise to provide for its continuance in able hands after he had retired. Rich men seldom have sons who inherit a taste for business. I am not concerned to say whether this is well or otherwise. Looking at the human race as a whole, I believe it is for good. If rich men's sons had poor men's necessities, and hence their ambitious abilities, there would be less chance for the students of colleges than there is.

It was not to any member of his family that this man looked for the new young blood. A young man in the service of a corporation had attracted his own attention in the management of certain business matters connected with the firm. The young man had to call upon this gentleman frequently. The wise man did not move hastily in the matter. About his ability he was soon satisfied, but that covered only one point of many. What were the young man's surroundings, habits, tastes, acquirements? Beyond his immediate business, what was his nature?

He found everything in these matters just as he would have it. The young man was supporting a widowed mother and his sister. He had his friends some excellent young man and some older than himself. He was a student, he was a reader, had high tastes, of course. I need hardly say that he was a young gentleman highly self-respecting and soul of honor incapable of anything low or vulgar. In short, a model young man, and of course poor. That goes without saying.

The young man was sent for, and the millionaire told him that he should like very much to try him in his service, and asked the young man if he would make the trial. The millionaire stated, frankly, what he was looking for, a young businessman who might develop and finally relieve him of much care. The arrangement was that he should come for two years as a clerk, subject to clerk's rules, which in this case were very hard, because he had to be at the factory a few years. minutes before seven in the morning. He was to have a salary somewhat larger than he had received, and if at the end of two years nothing had been said on either side, no obligations were given. Each was free. He was simply on trial. The young man proudly said he would not have it otherwise. The business went on. Before the two years expired, the employer was satisfied that he had found that exceedingly rare thing, a young businessman. What a number of qualities this embraces,

including judgment, for without judgment, a businessman amounts to nothing. The employer stated to the young man, and he was delighted with him, pleased with his services, and expressed his joy at having found him. He had now arranged to interest him in the firm. But to his amazement, the young man replied, "'Thanks, thanks, but it is impossible for me to accept.' "'What is the matter? You suit me. Do I not suit you?' "'Excuse me, sir, but for reasons which I cannot explain, I am to leave your service in six months. When my two years are up, and I intend to give you notice of this, that you might fill my place.'

"'Where are you going?' "'I'm going abroad. Have you made any engagement?' "'No, sir.' Do you not know where you are going? No, sir. Nor what you are to do? No, sir. Sir, I have treated you well, and I do think I am entitled to know the real reason.

I think it is your duty to tell me. The reason was dragged out of the young man. You have been too good to me. I would give anything to be able to remain with you. You even invited me to your house. You have been absent traveling. you ask me to call often to take your wife and daughter to such entertainments as they wish to attend, and I cannot stand it any longer.

Well, the millionaire, of course, discovered what all of you have suspected, just what you would have done under the circumstances. He had fallen in love with the daughter. Now, in this country, that would not have been considered much of an indiscretion, and I do not advise any of you to fight much against it. If you really love, you should overlook the objection that it is your employer's daughter who has conquered, and that you may have to bear the burden of riches. But in the land of which I speak it would have been considered dishonorable

for a young clerk to make love to any young lady without the parent's permission. Have you spoken to my daughter? Was the question? The young men scarcely deigned to reply to that. Of course not. Never said a word or led her to suspect in any way? Of course not. Well, he said, I do not see why you should not.

You are the very kind of son-in-law I want if you can win my daughter. Very strange, but somehow other the young lady did not differ from Papa. He was the kind of husband she wanted. Now that young man is a happy businessman today. Romance in Business I have another story which happened in another country. Both the fathers-in-law told me these stories themselves, and proud men they are, and proud am I, of their friendship.

You see, business is not all this hard prosaic life that is pictured. It bears romance and sentiment in it, and the greater the business, the more successful, the more useful in my experience, there is found more romance and imaginative. The highest triumphs, even in business flow from romance, sentiment, imagination, particularly in the business of a worldwide firm. The other story is so similar to the first that successful telling is impossible. You will all jump to the conclusion, and the details in these cases are nothing.

It is as when I began to tell my young nephews about the Battle of Bannockburn. there were the English, and there stood the Scotch. "'Which whipped, uncle?' cried the three at once. Details unnecessary, but there was no battle in this case. I inferred it was all settled by amicable arbitration. I shall not tell it at length, as I did the other, but it is precisely the same, except the young man in this other case was not employed, except in the ordinary manner. Young men's services were needed, and he was employed.

He finally became private secretary to the millionaire, and with equally fatal results. In this case, however, the father asked his exemplary and able young man to look after his sons during his absence. This necessitated visits to the residence at the country house and sports and games with his sons. My friend forgot he had a daughter, and he should not have done this. When you become not only heads of business but heads of families, you should make a note of this and not think your sons everything. The private secretary, who was requested to attend to the sons, somehow or another, getting his instructions verbally, seems to have understood them as having a slightly wider range. The daughter apparently needed most of his attention, but note this.

These two young men won the confidence and captured the judgment and admiration of their employers, businessmen, first, and then fell in love with the daughters. You will be perfectly safe if you take matters in the same order of precedence. Value of a business career Perhaps I may be permitted without going too far beyond the scope of my text to make a few remarks upon the influence of a business career upon men as compared with other pursuits.

First, then, I have learned that the artistic career is most narrowing and produces such petty jealousies, unbounded vanities, and spitefulness, as to furnish me with a great contrast to that which I have found in men of affairs. Music, painting, sculpture, one would think, should prove most powerful in the beneficent effects upon those who labor with them. as their daily vocation. Experience, however, shows against this. Perhaps because of the work or the performance of artists is so highly personal,

so clearly seen being brought directly before the public, that petty passions are stimulated. However that may be, I believe it will not be controverted that the artistic mind becomes prejudiced and narrow. But understand, I speak only of classes and of the general effect, everywhere we find exceptions, which render the average still more unsatisfactory. In regards to what I call the learned professions, we noticed the effect produced by specialization in a very marked degree.

In the ministerial class, this is not so marked in our day, because leaders in that great function permit themselves a wider range of subjects than ever before, and are dealing less with creeds and formulas, and more and more with the practical evils and shortcomings of human life in its various phases. This naturally broadens the mind. It has been held that the legal profession must tend to make clear, but narrow intellects, and it is pointed out that the great lawyers have seldom risen to commanding position and power over their fellows.

This does not mean that men who study the law become unsatisfactory, legislators, or statesmen and rulers, if it did, our country of all others, should be in a bad way, because we are governed by lawyers. But the most famous Americans who have been great men were not great lawyers, that is, they have seldom attained the foremost rank in the profession, but have availed themselves of the inestimable advantage which the city of law confers upon statesmen, and develop to be on the bounds of the profession. We are reminded that the great lawyer and the great judge

must deal with rules and precedents already established. The lawyer follows precedence, but the ruler of men makes precedence. Merchants and professional men. The tendency of all professions, it would seem, must be to make what is known as the professional mind clear but narrow. Now what may be claimed for business as a career is that the man in business is called upon to deal with an ever-changing variety of questions. He must have an all-round judgment based upon knowledge of many subjects.

It is not sufficient for the great merchant and businessman of our day that he knows his country well. Its physical conditions, its resources, statistics, crops, waterways, its finances, and short all conditions, which affect not only the present, but will give him data upon which he can predict, with some degree of certainty, the future. The merchant whose operations extend to various countries must also know these countries, and also the chief things pertaining to them. His view must be worldwide. Nothing can happen of moment, which had not its bearing upon his action.

Political complications at Constantinople, the appearance of the cholera in the east, monsoon in India, the supply of gold at Cripple Creek, the appearance of the Colorado Beatles, or the fall of a ministry, the danger of war. The likelihood of arbitration, compelling settlement, nothing can happen in any part of the world, which he has not to consider. He must possess one of the rarest qualities, be an excellent judge of men. He often employs thousands, and knows how to bring the best out of various characters. He must have the gift of organization, another rare gift, must have executive ability, must be able to decide promptly and wisely.

Now, none of these rare qualities is so absolutely essential to the specialist in any branch or profession. He follows a career, therefore, which tends not only to sharpen his wits, but to enlarge his powers. different also from any other careers that it tends not to specialization and the working of the mind within narrow grooves, but tends to develop in a man capacity to judge upon wide data. No professional life embraces so many problems, none other requires so wide a view of affairs in general. I think, therefore, that it may justly be said for the business career that it must widen and develop the intellectual powers of its devotee.

On the other hand, the professional career is immeasurably nobler in this, that it has not, for its chief end, the ignoble aim of money-making, and is free from the gravest danger which besets the career of business, which is in one sense the most sordid of all careers, if entered upon in the wrong spirit. To make money is no doubt the primary consideration, with most young men who enter it i think if you will look into your hearts you will find this to be true but while this may be the first it should not be the last consideration there is the great use which a man can perform in developing the resources of his country in furnishing employment to thousands in developing inventions which prove of great benefit to the race and help it forward the successful man of affairs soon rises above the mere desire to make money as the chief end of his labors that is superseded by thoughts of the uses he performs in the line which i have just mentioned the merchant soon finds his strongest feeling to be that of pride in the extent of his international operations in his ships sailing every sea the manufacturer finds in his employees and in his work

in machinery, in improvements, in the perfection of his factories and methods his chief interest and reward. The profitable return they make is chiefly acceptable, not because this is mere money, but because it denotes success. There is a romantic as well as prosaic side to business. The young man, who begins in a financial firm and deals with capital, invested in a hundred different ways, in bonds upon our railway systems, in money lent to merchant and to the manufacture to enable them to work their wonders, soon finds romance in business, unlimited room for the imagination. He can furnish credit worldwide in its range.

His simple letter, or carry the traveler to the farthest part of the earth. He may even be of service to his country in a crisis as Richard Morris, the great merchant in Philadelphia, was to General Washington in the revolutionary cause, or, as in our own day, our great bankers have been in providing gold to our government in several crises to avert calamity. The Vanished Prejudice Against Trade If the young man does not find romance in his business, it is not the fault of the business, but the fault of the young man. Consider the wonders, the mysteries connected with the recent developments in that most spiritual of all agents' electricity, with its unknown and

perhaps even unguests of powers. He must be a dull and prosaic young man, who, being connected with electricity in any of its forms, is not lifted from hundrum business to the region of the mysterious. Business is not all dollars. These are but the shell, the kernel lies within, and is to be enjoyed later as the higher faculties of business man, so constantly called into play, develop and mature. There was in the reign of militarism and barbarous force, much contempt for the man engaged in trade. How completely has all this changed, but indeed the feeling was of recent origin, for if we look further back, we find the oldest families in the world proud of nothing but the part they played in business.

The wool sack and the galley still flourish in their coat of arms. One of the most, perhaps the most influential statesman in England today, is the Duke of Devonshire because he has the confidence of both parties. He is the president of the Barrel Steel Company. The members of the present Conservative Cabinet were found to hold 64 directorships in various trading, manufacturing, and mining companies. In Britain today, not how to keep out of trade, but how to get in it is the question. The President of the French Republic, a man with a marvelous career, has been a businessman

all his days. The old feeling of aversion has entirely gone. You remember that the late Emperor of Germany wished to make his friend the steel manufacturer Krupp, a prince of the empire. But that businessman was too proud of his works, and the son of his father, and begged the emperor to excuse him from degrading the rank he at present held as King of Steel. Herkrupp's son, who has now succeeded to his father's throne, I doubt not, would make the same reply to-day.

At present he is a monarch, equal to his emperor, and from all I know of the young King Krupp, just as proud of his position. The old prejudice against trade has gone even from the strongholds of Europe. This change has come because trade itself has changed. In old days, every branch of business was conducted upon the smallest retail scale and small dealings in small affairs breed small men. Besides, every man had to be occupied with the details, and indeed each man manufactured are traded for himself.

The higher qualities of organization and of enterprise, of broad views, and of executive ability, were not brought into play. In our day, business in all princes was conducted upon so gigantic a scale that partners of a huge concern are rulers over a domain. The large employer of labor sometimes has more men in his industrial army than the petty German kings had under their banners. It was said of old that two of a trade never agree. Today, the warmest friendships are formed

in every department of human effort among those in the same business. Each visits to the others' counting house, factory warehouse, and are shown the different methods and all the improvements and inventions, and freely adapt them to their own business. Affairs are now too great to breed petty jealousies, and there is now allied with a desire for gain, the desire for progress, invention, improved methods, scientific development, and pride of success in those important matters, so that the dividend, which the businessman seeks and receives today is not alone in dollars. He receives with the dollar something better. A dividend in a shape of satisfaction, and being instrumental in carrying forward to higher stages of development, the business which he makes his life work.

Rewards of a business career. I can confidently recommend to you the business career as one in which there is abundant room for the exercise of man's highest power and of every good quality in human nature. I believe the career of the great merchant, or banker, or captain of industry, to be favorable to the development of the powers of the mind and to the ripening of the judgment upon a wide range of general subjects, to freedom from prejudice and the keeping of an open mind.

And I do know that permanent success is not obtainable except by fair and honorable dealing, by irreproachable habits and correct living, by the display of good sense and rare judgment in all the relations of human life, for credit and confidence fly from the businessman foolish inward indeed or irregular in habits

or even suspected of sharp practice there may be room for a foolish man in every profession foolish as a child beyond the range of his specialty and yet successful in that but no man ever saw a foolish business man successful

if without sound all-round judgment he must fail The business career is thus a stern school of all the virtues, and there is one supreme reward which it often yields which no other career can promise. I point to noble benefactions which it renders possible. It is to businessmen following business careers that we chiefly owe our universities, colleges, libraries, and educational institutions, as witnessed Gerard, Lehigh, Chicago, Harvard, Yale, Cornell and many others. What monument can a man leave behind him productive of so much good, and so certain to hand his name down to succeeding generations, hollowed with the blessings

of thousands in each decade who have within its walls received the most precious possession, a sound and liberal education? These are the works of men who recognize that surplus wealth was a sacred trust to be administered during the life of its possessor for the highest good of his fellows. If then some business men may fall subject to the reproach of grasping, we can justly claim for them as a class what honest Thomas Cromwell claimed for the greatest cardinal and say, quote, if they have agreed of getting, yet in bestowing, they are most princely as witness these seats of learning, close quote end of the empire of business section eight business part two section nine of the empire of business by andrew carnegie

this is the libravox recording all libravox recordings are in the public domain for more information or to volunteer please visit libavox dot org read by wayne cook the empire of business section nine the three-legged stool there is a partnership of three in the industrial world when an enterprise is planned the first of these not in importance but in time is capital without it nothing costly can be built from it comes the first breath of life into matter previously inert the structures reared equipped and ready to begin in any line of industrial activity the second partner comes into operation that is business ability capital has done its part it has provided all the instrumentalities of production but unless it can command the services of able men to manage the business all that capital has done crumbles into ruin then comes the third partner last in order of time but not least labor if it fails to perform its part nothing can be accomplished capital and business ability without it being brought into play are dead the wheels cannot revolve unless the hand of labor starts them now volumes can be written as to which one of these three partners is first second or third in importance and the subject will remain just as it was as it was before. Political economists, speculative philosophers, and preachers have been giving their views on the subject for hundreds of years, but the answer has not yet been found, nor can it ever be,

because each of the three is all important, and everyone is equally essential to the other two. There is no first, second, or last. There is no precedence. They are equal members of the great triple alliance which moves the industrial world. As a matter of history, labor existed before capital or business ability, for when Adam digged and Eve's span, Adam had no capital, and if one might judge from the sequel, neither of the two were inordinately blessed with business ability. But this was before the reign of industrialism began, and huge investments of capital were necessary. In our day, capital, business ability, manual labor are the legs of a three-legged stool. While the three legs stand sound and firm, the stool stands.

But let any one of the three weaken and break, let it be pulled out or struck out. Down goes the stool to the ground, and the stool is of no use until the third leg is restored. Now the capitalist is wrong who thinks that capital is more important. than either of the other two legs. Their support is essential to him. Without them or with only one of them, he topples over. Business ability is wrong when it thinks that the leg which it represents is the most important.

Without the legs of capital and labor, it is useless. And last, let it not be forgotten that labor also is wrong, wildly wrong, when it assumes that it is of more importance than either of the other two legs. that idea has been in the past the source of many sad mistakes the three are equal partners of a grand whole combined they work wonders separate neither is of much account thus far notwithstanding the differences that from time to time have unfortunately rent them apart they have made the closing century more magnificent than all that have preceded it humanity the world over is better than it is better than it is better than it is better than it is better than it is better than it is better than it is ever been materially and morally and i have the faith that it is destined to reach still higher and loftier plains than even the most sanguine have imagined capital business ability and labor must be united he is an enemy to all three who seeks to sow seeds of disunion among them

End of Section 9. Section number 10 of The Empire of Business by Andrew Carnegie. This is a LibraVox recording. All LibraVox recordings are in the public domain. For more information or to volunteer, please visit LibraVox.org. Recording by Joanne Turner. The Empire of Business, Section 10. Railroads Past and Present

It is a matter of great satisfaction and some pride to me that I began in the railroad service as telegraph operator and rose to the position of Superintendent of the Pittsburgh Division of the Pennsylvania Railroad. Perhaps it would be interesting to contrast in a few particulars the condition of affairs in the railroad world then and now. We are always urged to look well ahead in railroading. It is one of the chief rules, but it is also well to cast a look back and see the progress that has been made. When I had the honor to become a railroad man, the Pennsylvania Railroad was not yet finished to Pittsburgh. By means of some miles of staging between two points and a climb over the mountains, by means of 10 inclined planes, the passenger was enabled to reach Philadelphia by rail.

The rails on the mountains were iron, 14 feet lengths, imported from England, lying on huge, hewn blocks of stone, although the line passed through woods and ties would have cost little. The company had no telegraph line and was dependent upon the use of the Western Union wire. Mr. Scott, the superintendent, the celebrated Thomas A. Scott, who was afterward president, often came to the telegraph office in Pittsburgh to talk to his superior in Altoona, the general superintendent. I was then a young operator and made his acquaintance by doing this telegraphing for him. I was receiving the enormous salary of $25 per month then, and he offered me 35 to become his secretary and telegrapher, which meant fortune.

Let me congratulate you upon the great advance in your own wages and salaries since then. Mr. Scott received $125 a month, $1,500 a year, and my wonder was what a man could do with that amount of money. I hadn't thought then of one use. He might succeed by giving part of it away. What are the advantages a man receives from wealth is often discussed, but the best of wealth is not what it does for the owner, but what it enables him to do for others. I served for some time before I received an advance of salary of $10 per month. That gave me an enormous revenue, compared with the $1.20 a week, at which I started in the Cotton Factory. It is one of the most cheering facts of our day that under present conditions, the wages of labor tend to rise, and the prices of the necessaries of life tend to fall. There never was a nation so splendidly situated as ours is at this moment in regard to labor. Every sober, capable, and willing man finds employment at wages which, with thrift and a good

wife to manage, will enable him to go far toward laying up a competence for old age. Those so fortunate as to be married know how much depends upon a wife who can manage your household affairs, and those who are not yet married will find that out. There is nothing that the success and happiness of a working man so much depends upon, next to his own good conduct, as a good managing wife. and here let one who has, almost without intention or desire, had himself loaded with somewhat more than a competence, tell soberly that what one has beyond this brings little with it, and sometimes nothing desirable with it. What all should strive for is a competence, without which Junius has wisely said no man could be happy. No man should be happy without it. No man should be happy without it. if it be within reach, and I urge everyone to save part of his earnings these prosperous days and put in savings bank at interest, or better still, buy a home with it. But to revert to railroading.

President Thompson one day amazed the community of Pittsburgh by stating that on some future day the Pennsylvania Railroad would transport 100 cars a day over it. Cars then carried eight tons net. We had small locomotives, and the roadbed was something to frighten one. It was laid with light rails and cast-iron joints were used. I have known 47 broken joints found one morning in winter on my division, and it was over such a line that we ran our trains. It is no wonder that breakdowns were frequent. We had no cabooses on freight trains. Trainmen had to be out in all weathers. It was single track, and not having a telegraph line, in case of delays, trains ran curves, that is, a flagman went ahead and the train followed and met when they could,

and sometimes met with considerable force, on the sharp curves. There is nothing apparently take so long to learn by the average railroad man as this proposition that two trains cannot pass each other successfully on a single track. We never did quite learn that lesson, even on the Pittsburgh Division. Being a telegrapher, I took charge of our own railroad telegraph wire when it was constructed, and I believe that I placed the first young woman telegraph student at work on a railroad, so I see it stated. In those days, the superintendent had to do everything. There was no division of responsibilities. It was supposed that no subordinate could be trusted to run trains by telegraph or attend to a wreck, and Mr. Scott and I, his successor, were two of the most foolish men I have ever known

in this respect. We went out to every wreck, worked all night. Often I was not at home for a week at a time, scarcely ever sleeping except a few snatches lying down in a freight car. I now look back and see what poor superintendents we were. But I had a great example in Mr. Scott. It took me some time to learn, but I did learn that the supremely great managers, such as you have these days, never do any work themselves worth speaking about. Their point is to make others work while they think.

I applied this lesson in afterlife, so that business with me has never been a care. My young partners did the work, and I did the laughing. And I commend to all the thought that there is very little success, where there is little laughter. The workman who rejoices in his work and laughs away its discomforts is the man sure to rise. for it is what we do easily and what we like to do that we do well. When you see a president or superintendent or a treasurer loaded down with his duties, oppressed with care, with a countenance as serious as a judge uttering a death sentence,

be sure that he has more responsibility than he is fit for and should get relief. Compare the speed of trains, for instance. On the great Pennsylvania Railroad, we thought that we had reached perfection when a passenger train was put on which ran between Pittsburgh and Philadelphia in 13 hours, about 27 miles an hour. It was christened the Lightning Express. That was not because we thought the lightning was so slow, but because we thought the train was so terrifically fast. Today, the Empire State Express is run at double this speed, which holds the world's record. But do not let us make the mistake again of thinking that we have reached perfection. The next generation will run trains at 100 miles an hour, double the present speed, just as trains are run at double the speed of 30 years ago.

The line will be straight, in the language of Scripture, quote, the crooked places, unquote, that is the curves, quote, shall be made straight, unquote. In the improvements made today on the various lines, I don't think many managers look far enough ahead. They are spending on some parts perhaps half a million dollars, where they ought to spend double, and easing the curves which they should abolish,

and some future president is to say that they wasted a good a deal of money. Nothing but a straight line will be up to date in 1950 or before that. But there is another department in which progress has been great and even of greater importance than in that which has been referred to. It is in the care of railroad employees, their position, their advantages, their earnings, and in the pension system which the leading railroads of this country feel themselves obligated to establish, that those who labor year after year at stated salaries and have no prospect of making great gains should at least have this consolation in view, that in their old age they will be able to live in comfortable independence,

not as a matter of charity, but by virtue of their own exertions, and what they are entitled to as a bonus for faithful service rendered. I know of nothing which lifts and improves the service of a great line and adds so much to its safety, as a staff which can rest in the knowledge that after they have grown old in the service, their old age is made comfortable through the system of pensions. Before long, no line will rank as in the front rank

which has not this invaluable. I might almost say necessary element in securing a staff of trustworthy, intelligent, and loyal men filled with esprit decor for the company they serve. In the buildings now being provided at transfer stations, in the reading rooms and libraries, and in some cases, especially on the Santa Fe route, I learned billiard tables and other means of harmless and needful entertainment. are provided. Last but not least, in such buildings and societies which draw men together for their good in all these improvements and in many other ways, we have evidence that employers are recognizing their duties to the employed more clearly than in the past. The railroad man is to be

congratulated also upon this fact, that wherever improving agencies have been established, the men have endeavored to show their appreciation by using them to the fullest extent. Railway companies can make no better use of money than in establishing additional institutions of this kind and enlarging those which already exist and are crowded. It will be that company which does most for its men in the direction indicated, which will do best for its shareholders. and on the other hand, it will be upon that line the working man will feel most at home, and in which they will take the greatest pride, and for which they will be most willing

to incur the exhausting labor and danger incident to the railroad man's calling, thus giving another proof that their interest and the interest of those whose capital is invested are not antagonistic but mutual. It is a great delusion to say that labor and capital are foes. They must be allies or neither succeeds. I have before used the simile of likening capital, business ability, and labor to the legs of a three-legged stool. The stool will not stand up without the support of all these three legs, and to dispute as to which of these three is most important, is useless. It can never be determined, and if determined it would be of little consequence, since the great fact remains that they are all absolutely necessary for such success as we see

on the great transportation lines of our country. The men of the railroad world are to be congratulated on occupying the proud position, as I believe, of the most temperate body of employees in the world. They are an example to the working man in other branches of the outspreading tree of labor, and their influence cannot fail to prove of incalculable benefit. No rule that a man can adopt will bring greater reward than this, to abstain from the use of alcohol as a beverage. A drinking man has no place in the railway system. Indeed, he should have no place anywhere. The satisfactory relations which exist upon the whole between the railroads and their men should be gratifying to them both. It is always sure to be created and to exist

where the officers are intelligent and sympathetic, and feel themselves part of the the one organization which manages the line, comprising all employees, from the track laborer to the locomotive engineer, and up through all grades to the president himself, every one, a NYC, or a PRR, or a C, B, and Q, or a DL and W man. There is no room for antagonism upon a railroad between employer and employees, for the president and superintendent do not own the property any more than the employees do. Therefore, all are, as just said, members of the same core. All are equally the servants of the company.

The official, therefore, recognizes in the train man, the roadman, or the engineer, employees like himself, to whom he must naturally feel the glow of comradeship, while they cannot but regard the officials as their fellow members, and feel that in all matters of compensation or discipline, what their fellow members in office prescribe has not for its end their own self-aggrandizement, but the successful operation of the line. There is another feature of cheering import.

The road to promotion is clear and direct. All can certify to that, that, for, I doubt not, many of those now in authority began in subordinate positions, and have won their way by merit, not by favor. Every man in the railway industrial army, as Napoleon said of his army, carries a marshal's baton in his knapsack. Upon railroaders, there rest grave responsibilities. They have in their keeping the lives of the public.

need not say the traveling public, for with us all travel. Strict sobriety, unceasing vigilance, staunch courage, faithfulness to duty are demanded of them, and that these are characteristic of the force is testified at recurring intervals, and by the position they have reached and occupy in the estimation of their grateful fellow citizens. End of Section 10. Section 11, Part 1 of the Empire of Business by Andrew Carnegie. This is a Libravox recording. All Libravox recordings are in the public domain. For more information or to volunteer, please visit Libravox.org.

Recording by Tom Carroll. The Empire of Business, Section 11, Wealth, Part 1. When President Roosevelt sent his notable message to Congress seven years ago, calling attention to the unequal distribution of wealth and recommending high progressive taxes upon estates at the death of the owners. The writer sent him a copy of the Gospel of Wealth. The president wrote in reply that he was, quote, greatly struck with the fact that 17 years ago you had it all, end quote. This led the writer to proceed a step further and add another chapter which appeared in 1906.

In like manner, the writer held an exception. expressed advanced views upon labor and land before he could be ranked as one of the multi-millionaires. He cannot therefore be regarded as only a recent convert to some of the doctrines which are now promulgated so freely. As time has only served to confirm the views then expressed, it is believed that readers will prefer to learn what was written before these questions had come so prominently to the front. The unequal distribution of wealth lies at the root of the present socialistic activity. This is no surprise to the writer. It was bound to force itself to the front, because exhibiting extremes unknown before, it has become one of the crying evils of our day.

In the world's progress, scientific discoverers and mechanical inventors appeared and adapted the forces and materials of nature to the uses of man, followed by the commercial and industrial age in which we live, in which wealth has been produced as if by magic, and fallen. and largely to the captains of industry, greatly to their own surprise. Multi-millionaires, a new genus, have appeared, laden with fortunes of such magnitude as the past knew nothing of. The extremes in the distribution of wealth have never been so great as they are today, although salaries and wages have never been so high. This has naturally attracted the attention of the wage earners, and others not deluged by the golden showers, and the socialist budget

appears as one of the remedies proposed. In the Gospel of Wealth, 1889, the writer advocated graduated taxation upon estates at death of owners, saying, the growing disposition to tax more and more heavily large estates left at death is a cheering indication of the growth of a salutary change in public opinion. The state of Pennsylvania now takes, subject to some exceptions, one-tenth of the property left by its citizens. The budget presented, in the British Parliament the other day, proposes to increase the death duties, and, most significant of all, the new tax is to be graduated. Of all forms of taxation, this seems the wisest. Men who continue hoarding great sums all their lives, the proper use of which for public ends

would work good to the community from which it chiefly came, should be made to feel that the community in the form of the state cannot thus be deprived of its proper share. By tax, Taxing estates heavily at death, the state marks its condemnation of the selfish millionaire's unworthy life. It is desirable that nations should go much further in this direction. Indeed, it is difficult to set bounds to the share of a rich man's estate which should go at his death to the public through the agency of the state. And by all means such taxes should be graduated, beginning at nothing upon moderate sums to dependents, and increasing rapidly as the amounts swell until of the millionaire's hoard, as of Shylock's at least, the other half comes to the privy coffer of the state.

This policy would work powerfully to induce the rich man to attend to the administration of wealth during his life, which is the end that society should always have in view as being by far the most fruitful for the people. Nor need it be feared that this policy would sap the root of enterprise and render men less anxious to accumulate. for, to the class whose ambition it is to leave great fortunes and be talked about after death, it will be even more attractive and indeed a somewhat nobler ambition to have enormous sums paid over to the state from their fortunes. Long entertaining such views, there is nothing in the socialist budget, as presented by Mr. Snowden in the Labor Ideal series, which does not commend itself to the writer.

It will be noticed, it proposes, as the god. of wealth did 19 years ago, that one half of the deceased millionaire's hoard should go to the state when the estate exceeds $5 million. Mr. Snowden's protest against indirect taxation of commodities is also sound because this favors the rich. One individual does not consume much more of these than another, while the ability of the rich to pay duties is infinitely greater than that of the masses. The American, British, and German tariffs present a great contrast, much to the benefit of the masses of the American people, and this, although America, like Germany, is protective, and Britain is free trade. America taxes imports heavily, but these are the luxuries of the rich,

which the masses do not consume. The American masses eat, wear, drink, smoke American products. Only the rich wear foreign silks, linens, fine cottons, broadcloths, etc. drink French wines or smoke Havana tobacco. It is by taxing the importation of these and similar articles that America raises revenue. Thus, in 1907, $216 million was collected upon such luxuries, all paid by the rich who alone use them. Tea, chocolate, and coffee are free. Sugar, ormally free, alone of all food products,

yields much revenue as a protective duty of two cents per pound exists upon it at present, intended to stimulate the growth of beets. Half a million tons of domestic sugar were produced in 1906, and production is rapidly increasing. Thus, the American workman, if he neither smoke nor drink, practically escapes tariff duties, except upon sugar. In Britain, the workman pays not only upon sugar, but also upon imported tobacco, tea, and coffee. The American excise tax upon tobacco is only 6 cents per pound as compared with 75 cents in Britain. Germany in 1905 imported articles for consumption valued at $595 million. To protect her agriculturalists, she taxes all imported food products, which are consumed by rich and poor alike.

The German masses are here more heavily taxed than the British. The distribution of wealth and taxation in Britain, according to Mulhall and later authorities, is estimated as follows. See Westminster Review February 1908, page 172. 680,000 persons in the rich class with a combined wealth of $60 billion and $190 million in tax collected. 5,100,000 persons in the middle class, with a combined wealth of $50,000,000 in the middle class, with a combined wealth of $15 billion and $210 million in tax collected. 38,220,000 persons in the working class, with a combined wealth of $5 billion and $200 million in tax collected.

The total number of persons is $44 million, with a combined wealth of $80 billion and $600 million in total tax collected. This result is obtained by a combination of imposts, which, taken collectively, tax the different classes of the people on the average in proportion to their income or wages, but if an assessment were made, as it should be, in proportion to accumulated wealth, the figures would appear as follows. Rich class, with a combined wealth of $60 billion and $450 million tax. Middle class, with a combined wealth of $15 billion and $112,500,000 tax. Working class with a combined wealth of $5 billion and $37,500,000 tax.

The total wealth is $80 billion with $600 million in total tax. From this it would seem that the middle class are charged $97,500,000,000, above their proper share, and the working class pay $162,500,000 too much, while the rich contribute $260 million less than they should do in proportion to the wealth of their real and personal estate. In other words, about 1.5% of the whole population own the bulk of the wealth, and the rest of the community pay the bulk of the taxes. The statement appears almost incredible, but the matter is of such importance as to be worthy of official inquiry. Those whose incomes are only sufficient to meet physical wants should not be subjected to taxation at all.

Adam Smith's dictum, the subjects of every state ought to contribute to the support of government as nearly as possible in proportion to their respective abilities. That is, in proportion to the revenue which they respectively enjoy under the protection of state, should be the rule, especially since there is so much wealth concentrated in the richer classes beyond their most liberal needs. We speak, however, only of the physical needs of men. It should always be remembered by the working man that neither liquor nor tobacco can be considered as needs. The dire consequences resulting from the use of liquor would justify much higher taxation upon it in the interest of the workers themselves. The greatest single evil in Britain today,

is intemperance. $785 million yearly is the drink bill. How much of this is paid by the working class is, we believe, unknown, but even if it be only one half, here is $392.5 million worse than wasted by them. The liquor interests have now received title to their drinking places, when before they had only licenses from year to year, a present made to them, as estimated by sum equal to $1,500 million. When one asks himself, what would most benefit the worker, there is no hesitation in the reply, to avoid liquor and gambling. The working man who indulges in either is, to the extent he does so, the architect of his own poverty. Here is the issue of greatest moment to the working men. One cannot help those who do not help themselves. One man cannot

push another up a ladder. The moment he realizes his grasp, the assisted one falls. It is only possible to really help those who cooperate with the helper. It is not the submerged, but the swimming tenth that can be steadily and rapidly improved by the aid of their fellows. The former should be the special care of the state and should be isolated. Viewing socialism upon its financial side, as shown in Mr. Snowden's budget, its demands are just. A heavy progressive tax upon wealth at death of owner is not only desirable, it is strictly just. So is it just to exempt from taxation the minimum amount necessary to supply the physical wants of men and their families, just as a minimum is exempt from income tax in Britain and the modest homestead is from foreclosure under mortgage in America.

There is, however, nothing specially socialistic in this. It is sound Adam Smith doctrine that all should pay taxes only in proportion to their ability to do so, and revolutionary socialism is successfully to be combated only by properly conceding the just claims of moderate men. Wealth is undoubtedly a great factor in civilized life, a very great factor indeed since civilization itself rests upon it as its foundation. In his essay upon the Gospel of Wealth in the 19th century, Mr. Gladstone pronounced it to be the business of the world. When there was no wealth, there was no civilization. None was possible. All was necessarily savage or barbaric. As long as the first stage existed, and man consumed all that he captured, nothing permanent could be built. There being no reserve fund to draw upon.

Man lived in the wilderness, almost as he found it. sheltering himself in huts made of branches or in caves. During the second stage, faint traces of individualism began to appear. In the progress of the race, men displayed different aptitudes. One man could forge swords and make arrows better than another. One could capture more fish, another kill more game, and finally it became profitable for these to apply themselves solely to their respective branches. specialization began the root of individualism, then became exchange of products, but after a time

barter ceased, and certain articles, Wampum, beads, skin, shells became money in which were invested the savings of men. Then was slowly developed in due progress of time that beneficent gospel, as a man soweth, so he reap, reward, according to service. Many things hitherto held in common became private property, and at last, out of the savings of men, capital, durable things were built, and civilization dawned. Even in our own time, not a ton nor a yard of anything can be produced, not a ship nor railroad, not a house, school, university, nor church built, without drawing upon stored up capital, which is wealth. At first, for a short period, all was the savings of manual labor, But very soon, wealth came in much larger amounts due to individuals from various sources,

increased value of land, minerals, etc. And then of real estate, new inventions, etc. Thus, wealth is not all the result of manual labor, though the first small surplus was. The greatest growth of wealth from any one source in our times comes from the increased value of real estate upon which little or no labor is bestowed. the increase of population raising the values. According to McPherson, author of Carlisle and Adam Smith, in the famous Scots series,

we have to charge the greatest of economists Adam Smith himself with having made a slip to the effect that the wealth of a nation is the creation of labor, out of which sprang the other error that labor is the measure of the exchangeable value of commodities. Marx took up these mistaken ideas and justly decided that they led to the conclusion that capitalistic profit is simply the surplus value obtained from unpaid labor. In extenuation of Smith's slip, it should be remembered that in his day, our system of gigantic

production in huge establishments had not begun. People generally labored in their own homes and wealth accumulated slowly. All has changed and Marx's theory is, abandoned by the leading socialists today who reject his special contributions to pure economics. His theory of value meets with little support. But the great mass of socialistic working men have not yet reached this stage. Still, the error, having been wounded, must soon die among its worshippers, as error always does. It is easily demonstrated to be an error. For instance, the greatest increase of any single department in wealth arises from, increased value of land. The rateable value of the city of London in 1870 was 2,266,842 pounds,

or $11,334,210, and is now $5,451,820 pounds, or $27,259,000. The corresponding figures for the whole metropolis are 18,719,237 pounds, or $93,596,185, and $44,351,000, or $24,351,000, or $2215,000. The valuation of New York City has increased from $4,751,532,826 in 1903 to $6,240,480,602 in 1907. In the whole of the United States, as quoted elsewhere, the census shows that from 1890 to 1900, The value of real estate increased from $39,544,34,333 to $52,5377,628,164, an increase of $12,993, $83,8,831, $3,6288,164, $3.5253.3.5 times the national debt of Britain. It is clear that wealth mainly created by increase of population is not to be credited to labor, for little additional labor was expended. The labor of tilling the soil was compensated for by the crops and did not add to the valuation. That value depends upon and is the result of

labor can be exploded thus. The late Duke Sutherland, in his praiseworthy desire to improve conditions upon his vast highland estates, by making the land support his people at home, expended for years the labor of many men and vast sums in the effort. Few dollars of value were created. The effort failed. Chantry spends a year upon a statue, and it brings $5,000. Another man works twice as long and twice as hard, yet his statue is practically worthless. Both labored, but purchasers wanted the one statue and did not want the other. Thus, the wants of the purchaser and not the labor expended fixes value. So with all forms of labor. If there be a demand, i.e. a purchaser for it at a certain price, for price is a potent factor, what labor produces has value. If not, labor expended is labor lost.

The result is that labor is not employed upon articles not in demand. Thus, labor neither creates nor fix his value. The law of supply and demand does so. The employer engaged in manufacturing is compelled to meet the wants of the people, his customers. The interest of the employer and employee capital and labor in doing so are mutual, not antagonistic. Marks predicted that machinery would extend the hours of labor and depress wages so much that he foresaw the time when employers would get the labor of a whole family for what they had paid for the head alone. He denied that any share of increased profits could fall to the workers so long as capital had control of machinery.

The reverse of all this has been the result. Hours of labor have been reduced, wages increased, and a great advance has been made in the position of wage earners under the new conditions of production. The proofs of this gratifying result, especially during the past 20 years, are among the most welcome evidences the optimistic well-wisher of the working-class receives that all goes well, though not quite so fast as we and other reformers most ardently wish.

After making full allowance for differences in men, it still remains true that contrasts in their wealth are infinitely greater than those existing between them in their different qualities, abilities, education, and accept the supreme view their contributions to the world's work. It should be remembered always that wealth is not chiefly the product of the individual under present conditions, but largely the joint product of the community. Let us go to the root of the matter and inquire how fortunes are created, whence and how they arise. This the writer has recently attempted to do in the following manner. Imagine an honest, hardworking farmer who finds himself able to give each of his two sons a farm. They have married admirable young women of the

neighborhood, of good kith and kin, friends from youth, no mistakes about their virtues. The sons find farms, one in the center of Manhattan Island, the other beyond the Harlem. They cast lots for the farms as the fairest method, thus letting the fates decide. Neither has a preference. The Harlem Farm falls to the elder, the Manhattan to the younger. Mark now the problem of wealth, how it develops. A few hundred dollars buys the farms, and the loving brothers set out for themselves. They are respected by all, loved by their intimates. To the extent of their means, they are liberal contributors to all good causes, and especially to the relief of neighbors who, through exceptional troubles, need friendly aid and counsel. They are equally industrious, cultivate their farms equally well, and in every respect are equally good citizens of the state. Their children grow up and are educated together. The growth of New York City northward soon makes the children of the younger millionaires, while those of the elder remain simple farmers and comfortable circumstances,

but fortunate in this beyond their cousins, still of the class who have to perform some service to their fellows and thus earn a livelihood. Now, who or what made this difference in wealth? Not labor, not skill. No, nor superior ability, sagacity, nor enterprise, nor greater public service. The community created the millionaire's wealth. While he slept, it grew as fast as when he was awake. It would have arisen exactly as it did had he been on the Harlem and his brother been on the Manhattan farm. The younger farmer now a a greater property holder dies, and his children in due time pass away, each leaving millions since the farm has been part of the great city, and immense buildings upon it produce annual rents of hundreds of thousands of dollars. When these children die, who have neither toiled nor spun, what canon of justice would be violated were the nation to step in and say that since the aggregation of their fellow men called the community created the descendants' wealth, it is entitled to a large portion of it as they pass away.

The community has refrained from exacting any part during their lives. The heirs have been allowed to enjoy it all, because although in their case the wealth was a purely communal growth, yet in other cases, wealth often comes largely from individual effort and ability, and hence it is better for the community to allow such ability to remain in charge of fortune-making, because more likely to succeed, and in doing so, develop our country's resources. It would be unwise to interfere with the working bees, better allow them to continue gathering honey during their lives. When they die, the nation should have a large portion of the honey

remaining in the hives. It is immaterial at what date collection is made, so that it comes to the National Treasury at last. That by far the greatest amount of wealth created in any branch comes from enhanced values of real property is especially true in a prosperous country, increasing rapidly in population like the United States. The census shows that from 1890 to 1900, the value of real estate increased from $39,544,543, to $552,537,628,000, $628,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000, $164 an increase of $12,993,933,831,831, $1,300,000 per year, over $3,500,000 per day. The obvious creator of this wealth is not the individual, but the community, as we see in the case of

the two brother farmers. Property may pass through many proprietors, each paying more for it than his predecessor, but whether each succeeding owner sells to his successor at a profit depends almost solely upon whether the surrounding population increases. Let population remain stationary, and so does values of property. Let it decline and values fall even more rapidly. In other words, increase population, the community increases the wealth in each successive generation. decrease of population reduces it, and this law holds in the whole of that vast and greatest

field of wealth, real estate. In no other field is the making of wealth so greatly dependent upon the community, so little upon the owner who may wholly neglect it without injury. Therefore, no other form of wealth should contribute to the nation so generously. Let us now trace the acquisition of wealth by the active businessman who has some of the same. some personal part, and often not a small one in creating it. Imagine five brothers, sons of another hardworking farmer. The first settles in New York City, the second in Pittsburgh, the third in Chicago, and the fourth in Montana.

The first sees that railroads in every direction are essential to the coming metropolis, devotes himself to this field, and obtains large interests therein. As the population of the country increases and that of New York City bounds ahead into the millions, these lines of transport laden with traffic justify increasing bonded debt. Having the figures under his eye, he sees that the shares of these railways are sure to become dividend paying, that even already there are surplus earnings beyond the bonded interest, which, if not needed for pressing extensions, could be paid in dividends and make the stock par. He strains his credit, borrows great sum,

buys the shares when prices are low, and floating upon a tidal wave of swelling prosperity caused by the increased traffic of rapidly increasing communities, he soon becomes a multimillionaire. And at his death, his children are all left millionaires. In the consolidation of the various short lines into one great hole, there was margin for a stupendous increase of capital. And in other collateral fields,

there lay numerous opportunities for, profitable exploitation, all, however, depended upon an expanding population for increased values. Now, while the founder of the family must be credited with remarkable ability and with having done the state some service in his day and generation, it cannot be denied that the chief creators of his wealth were the increasing communities along the railroads, which gave the traffic that lifted those lines into dividend payers upon a capital far beyond their actual cost. In the work and its profits, the nation was an essential partner, and is equally entitled with the individual to share in the dividends.

The second son is so fortunate as to settle in Pittsburgh when it had been just discovered that some of the coal fields, of which it is the center, produced a coking coal admirably adapted for iron ore smelting. Another vein easily mined proved a splendid steam coal. Small iron mills soon sprang up. Everything indicated that here indeed was the future iron city, where steel could be produced more cheaply than any other location in the world. Naturally, his attention was turned in this direction.

He wooed the genius of the place. This was not anything extraordinarily clever. It was in the air. He is entitled to credit for having abiding faith in the future of his country and of steel and for risking with his young companions not only all he had, which was little or nothing, but all they could induce timid bankers to lend them from time to time. He and his partners built mills and furnaces and finally owned a large concern making millions yearly. This son and his partners looked ahead.

They visited other lands and noted conditions and finally concluded. included that a large supply of raw materials was the key to permanent prosperity. Accordingly, they bought or leased many mines of iron ore, many thousands of acres of coal, and of limestone, and also of natural gas territory, and at last had, for many long years, a full supply of all minerals required to produce iron and steel. This was sound policy, but it did not require genius, only intelligent study, foresight, and good judgment to see that. They did not produce these minerals. They saw them lying around open for sale at prices that are now deemed only nominal.

Much of the wealth of the concern came from these minerals, which were once the public property of the community, and were easily secured by this fortunate son and his partners upon trifling royalties. Their venture was made profitable by the demand for their products, iron and steel, from expanding population engaged in settling a new continent. Without new populist communities far and near, no millionairedom was possible for them. The increasing population was always the important factor in their success.

Why should the nation be denied participation in the results when the gatherers ceased to gather and a division has to be made? The third son was attracted to Chicago and quite naturally became an employee in a meat-packing concern, in which he soon made himself indispensable. A small interest in the business was finally won by him, and he rose in due time to millionairedom, just as the population of the country swelled.

If Chicago today and our country generally had only the population of early days, there could have been no great fortune for the third son. Here as before, it was the magnitude of the size. the business based solely upon the wants of the population that swelled the yearly profits and produced prodigious fortunes. The fourth son, attracted by the stories of Hecula and Calamette, and other rich mines, which far surpassed the wealth of Ormus or of end, settled in Montana, and was lucky after some years of rude experience. His ventures gave him the coveted millionairedom. The amount of copper and silver required by the teeming population of the country

and other lands kept prices high, and hence his enormous profits mined from the land for which only a trifle was paid to the general government not so long ago. He did not create his wealth. He only dug it out of the mine as the demands of the people gave value to the previously worthless stones. Here especially we cannot but feel that the people who created the value should share the dividends when these must pass into other hands. The fifth son had a melancholy career. He settled in New York City while young and unfortunately began his labors in a stockbroker's office where he soon became absorbed in the fluctuations of the exchange,

while his fond mother proudly announced to all she met that he was in the same. business. From this, the step was easy to taking chances with his small earnings. His gambling adventures proved successful. It was an era of rising values, and he soon acquired wealth without increasing values. For speculation is the parasite of business, feeding upon values, creating none. A few years in the feverish life of the gamester told upon him, he was led into a scheme to corner a certain stock, and, as was to have been expected, he found that men who will conspire to entrap others will not hesitate to deceive their partners upon occasion, if sure it will pay, and is safe from exposure. He ended his life by his own hand. His end serves to keep his brother's

resolute in the resolve never to gamble. The speculator seldom leaves a millionaire's fortune, unless he breaks down or passes away when his ventures are momentarily successful. In such a case, his ill-gotten gold should be levied upon by the state at the highest rate of all, even beyond that imposed upon real estate values. Wealth is often, we may say generally, accumulated in such manner as benefits the nation in the process. Here it demoralizes the getter as well as the people and lowers the standard of ethics. It is taken without returning any valid consideration and ranks with gambler's games. End of Section 11 of the Empire of Business by Andrew Carnegie.

Recording by Tom Carroll. Section 12, Part 2 of the Empire of Business by Andrew Carnegie. This is a Libravox recording. All Libravox recordings are in the public domain. For more information or to volunteer, please visit Libravox.orgs. Recording by Tom Carroll The Empire of Business, Section 12, Wealth, Part 2 There is one class of millionaires whose wealth, in very much greater degree than others,

may be credited to themselves, inventors, Graham Bell of the telephone, Edison of numerous inventions, Westinghouse of the Airbrake and others, who originated or first applied processes hitherto unused, and were sufficiently alive to their pecuniary interests to hold large shares in the companies, formed to develop, and introduce them to the public. Their wealth had its origin in their own inventive brains. All honor to the inventor.

He stands upon a higher platform than the others. It may be said that in greater or lesser degree are leading manufacturers, railroad builders, department store projectors, meat packers, and other specialists in one line or another, had to adopt new methods, and with few, if any, exceptions, there can be traced in their careers some special form of ability upon which their success depended, thus distinguishing them from the mass of competitors. No doubt this is correct, yet the inventions or processes used were the work of others, so that all they did was to introduce new methods of management or to recognize it,

and utilize opportunities. This, the inventor class, have also done if they have become millionaires. But in addition, they have invented the new processes, so that these deserve to reap beyond the other class, yet only in degree because both classes alike depend upon increasing population, the masses, who require or consume the article produced, so that even the inventor's wealth is in great part dependent upon the community, which, which uses his productions. It is difficult to understand why, at the death of its possessor, great wealth gathered or created in any of these or in other forms, should not be shared by the

community which has been the most potent cause or partner of all in its creation. We have seen that enormous fortunes are dependent upon the community. Without great and increasing population, there could be no great wealth. Where wealth accrues on our the people are always silent partners. It is not denied that the great administrator, whether as railroad builder, steamship owner, manufacturer, merchant, or banker, is an exceptional man, or that millions honestly made in any useful occupation, give evidence of ability, foresight, and assiduity above the common, and prove the man who has made them a very valuable member of society. In no wise, therefore, should such men be unduly hampered or restricted

as long as they are spared. After all, they can absorb comparatively little, and generally speaking, the money-making man, in contrast to his heirs, who generally become members of the smart or fast set, is abstemonious, retiring, and little of a spendthrift. The millionaire himself is probably the least expensive bee in the industrial hive, taking into account the amount of honey he gathers and what he consumes. Practically every thousand of his money is at work for the development of the country and earning interest, much of it paying labor. In the interests of the community, therefore, he should not be disturbed while gathering honey, provided it be destined largely for the general hive, under a just system of taxation when he passes away.

Those who have not had opportunity to study the operation of wealth in the world are naturally led astray. They see its possessors in their palaces, surrounded with every luxury, their gorgeous carriages in the park. They read of their extravagant balls, of riotous living, an inordinate expenditure, and worse than this, of gambling at cards and upon horses. Horse racing in Britain, unfortunately, is still under the highest patronage. Sites naturally hard to bear by those suffering for the necessities of life. The writer has no desire to minimize this sad contrast, nor to say one word in its defense. It is one of the saddest and most indefensible of all contrasts presented in life.

But when we proceed to trace the work of wealth as a whole, it is soon found that even these extravagances absorbed but a small fraction of it. The millionaire's funds are all at work. Only a small sum lies in bank, subject to check. Our railways and steamships, mills and furnaces, industrial structures, and much of the needed working capital to keep these in operation, are the result of invested wealth. The millionaire with two, or the new multimillionaire with 20 million sterling,

keep only trifling sums lying idle. all else they put to work, much of it employing labor. They cannot escape this unless they turn miser's and keep the gold to gloat over, which no rich man does whom the writer knows or has heard of. On the contrary, the millionaire as a rule is both mindful and shrewd, more apt than those of smaller fortune to invest his capital carefully. Besides, he is usually a man of simple tastes and averse to display. Whatever impressions the workers may receive of the wealthier classes, the fact is indisputable

that their surplus money minus a small fraction must augment the wage fund and, in some line or other, benefit those who labor. Even their extravagances must, in their course, contribute to the business of many people struggling to obtain a competence, and hence to employment of labor. Little can be spent by the rich without drawing upon the labor of others, which must be paid for. All that millionaires can get out of life is superior food, raiment, and shelter. Only a small, a very small percentage of all his millions can be absolutely wasted. When the socialist, therefore, speaks of all wealth going back to the state, he proclaims no great change in its mission. The state, sole owner, would use it just as the owners now use all but a fraction of it, that is,

invested in some of the multiform ways leading to the reward of labor. It is simply a question whether state as against individual control of wealth would prove more productive, which, judging from experience of state and individual management so far as yet tested, may gravely be doubted. It could not make much difference to the workers whether the title to wealth rested in the state or in individuals, if the state decided, as individuals do now, to recompense labor according to value as determined by demand, the fairest standard. All would remain very much as now, one would still get five talents, one ten, and a few would get very many talents, and individualism would brain. The bridge has yet to be found that spans the gulf between equal and unequal compensation

for varied service. Yet, until this be found, we believe it to be non-existent and impossible to devise, there can be no communism, nor indeed any milder form of socialism to which serious objection need be made by earnest improvers of present conditions, since the absorption of private property and equal compensation, the two pillars of revolutionary socialism, are inevitably relegated to the distant future until a practicable mode of obtaining and managing them be found. We hear far too much these days upon the subject of wealth as the main object of life. Only by the manual working man and poorer classes is money regarded as the great idol of our age, before which all fall prostrate.

and this simply because it is their one pressing want in its acquisition their life work. True, wealth is displacing hereditary rank, which, until our own day, held foremost position in Britain. Now the poor, average hereditary peer seeks its alliance and remains of little consequence, unless successful, because compelled to maintain an ostentatious style of living, which, without fortune, is impossible. He bargains for an heiress because his position depends not upon his merits, but upon her wealth. This applies only to the small United Kingdom, for among our English-speaking race elsewhere throughout the world, hereditary rank is unknown. It is a survival of the past, which raises a smile, for it is amusing to watch titled personages, assuming positions in state or society solely because someone who preceded them won precedence.

Let this be noted by the workers. None of the professions regard great wealth as the chief prize. Its acquisition is not their aim. Consider the physician. When a man selects that noble career, knowing all its trials, and consecrates himself to the amelioration of human suffering, he knows well fortune is not there to be found. He has a much higher prize than wealth in view. Consider the minister who feels that he has a message to deliver to his fellows, and, answering, embraces the call. Wealth does not allure him. So with the lawyer. Wealth is not in his mind as the reward of his labors. The chief justices of the Supreme Courts are above pecuniary gain. The inventor, the architect, the engineer and the scientist, all have nobler rewards before them

than riches. Only a modest competence is the reasonable expectation of all these classes. The great teachers of their fellows, the presidents and the professors of our seats of learning, and the teachers of our common schools, what thought have they of bowing before the vulgar idol of wealth? Our poets, authors, statesmen, the very highest types of humanity are above the allurements of money-making. These know of higher satisfactions and nobler lives than those of the mere millionaire. Having their nobler missions, they have no time to waste accumulating dross. All these men are quite right, for beyond a competence for old age, which need not be great and may be very small, wealth, lessens rather than increases human happiness.

millionaires who laugh are rare. The deplorable family quarrels which so often afflict the rich generally have their rise in sordid differences about money. The most miserable of men, as old age approaches, are those who have made money-making their god. Like flies bound to the wheel, these unfortunates fondly believed that they were really driving it, only to find, when tired and craving rest, that it is impossible for them to get off. and they are lost, plenty to retire upon, but nothing to retire too. And so they end up as they began, driving to add to their useless hordes, passing into nothingness, leaving their money behind for errors to quarrel over, only because they cannot take it with them, a melancholy end,

much less enviable than that of their poorer fellows. Wealth confers no fame, although it may buy titles where such prevail, nor are the memories of millionaires as a class fondly cherished. It is a low and vulgar ambition to amass money, which should always be the slave, never the master of man. There is one fundamental difference between rank and wealth. There can be no hereditary aristocracy of wealth. Where it is left free as a rule, it passes in three generations from shirt sleeves to shirt sleeves in all English-speaking lands except the United Kingdom, where the law of primogeniture and legal settlements guard a hereditary class and defeat the operation of the natural law. In free lands, the children of millionaires and their children

may be safely trusted to fulfill the law. To keep a fortune is scarcely less difficult than to acquire it. Wealth is dispersive, where unbuttraced by specials, special laws designed to keep it in certain channels, all of which laws should be promptly repealed. Wealth in America, the land of greatest fortunes, never yet has passed beyond the third generation. It seldom gets so far. We have a few, a very few families of the third generation, now spending the fortunes made by their grandfathers. The two or three greatest fortunes of their day are now being freely distributed among the children and grandchildren, and will be reduced to moderate sums for each when the present children reach maturity. As certain as fate many of their descendants

will be found toiling as their able ancestors did in their shirt sleeves. We may safely trust those who have not made the money to prove adepts in squandering it. Great fortunes are few. The Aggregate wealth embraced in these is small compared with the amount in very moderate fortunes. The former attract attention far beyond their importance. Gigantic fortunes in the nature of things must be fewer and harder to build up in the future than the past. Most great enterprises are now in corporate form. The writer knows of but one man now in active business who is likely to have an exceptionally large estate, and the foundation of that was laid more than half a century ago by the purchase of timberlands,

which have increased enormously in value. We can safely trust to the free play of natural forces under progressive taxation, if not thwarted by legislation as in Britain, to prevent danger or injury to the state arising from hereditary wealth. The equal distribution of wealth is one of the loudest cries of the socialist. Let us suppose that a philanthropist, which generally means a man with more money than cents, resolved to act upon that idea and distribute his fortune among the poor of London or New York, went to them one morning and announced his purpose. He is soon surrounded and begins the distribution.

Each man or woman gets pro-rata, say, five pounds sterling, until many thousands are given away, the crown still constantly increasing. He returns at night to witness the result and shudders at the vision that presents itself. Are these indeed men and women, or are they degraded wretches in human form? Is it not evident to all that the first and indispensable work of the socialist is the elevation of humanity to that standard of conduct which would ensure the wise and sober use of benefactions? We would all agree that when this necessary elevation was reached, the discussion of further steps to relieve distress would be in order.

Meanwhile, the foolish distributor would have done more injury to his fellows in one day than he could probably do good all the rest of his life. Down on your knees and crawl for pardon are the words one would undoubtedly apply to such a philanthropist. Imagine every man, woman, and child in Britain, receiving 250 pounds sterling, or $1,250, which is one's proportion of the national wealth, if equally divided. What would be the result? Saturnalia for a time, then rich and poor, as before slowly emerging, the last state worse than the first. It is self-evident that there is at present no foundation upon which wealth can be equally distributed.

The soil has not been prepared. Seed sown upon it would be choked by thistles. Meanwhile, our immediate duty is to distribute surplus wealth to the best of our abilities in such forms as we believe best calculated to improve existing conditions and to secure its more equitable distribution hereafter by heavy progressive death duties and by assessing the people in proportion to their ability to support the government. This policy President Roosevelt is strongly advocating in America. It is much more urgently needed in Britain. Socialists generally write of wealth as if possessed by the few,

but the fact must never be lost sight of that the laboring classes, in the aggregate, are great capitalists. The savings banks of New York State alone in 1906 held $1,335 million, owned by $2,637,235 depositors. average deposits of $506.25. This is all the savings of the workers, for businessmen and capitalists, use their money to better advantage. These banks are strictly confined by charter to investments in first-class securities, are carefully managed, and possess the confidence of the people. In the United States, the deposits in savings banks amounted to the grand total of

$3,482 million. But this is no measure in the total savings of the working people, because in America, especially in the Western states, opportunities for more profitable investment of savings are numerous, and the rapid increase of values in real estate leads workmen to prefer investing in homes. When we consider the vast sums invested by the workers in homes, insurance cooperative and friendly societies, and in other ways, and add these to the foregoing, the problem which the socialist writes about so glibly of transferring all wealth to the state begins to its true proportions. We quote from The Service of Friendly Societies by Alexander Cargill.

Quote, here is as brief a summary as possible of the position of the registered societies throughout the country, I mean in Great Britain and Ireland. as at the date of the last public return, namely 31 December 1902. First of all, we have the friendly societies, pure and simple, including all their branches, collecting societies, benevolent societies, working men's clubs, medical, etc. And it will interest you to know that the number of friendly society members on the date mentioned was 13,34,494.4.44.

Their funds at the same date being 44,848,875 pounds. Next, there are the Cooperative Societies for Industries and Trades, Businesses and Land Societies. The membership of these was 2,054,835, and their funds, 43,000, $43,3,3,3,3,328,78 pounds. Then we have the trade unions, which have a membership of 1,604,812, and funds amounting to 5,016,408 pounds. Workman's compensation schemes with a membership of 122,441, and funds of 172,401, and funds. Friends of Labor Societies, with a membership of 32,684, and funds of 254,426 pounds. Coming to the Building Societies, of which there are two kinds, the Incorporated and the Unincorporated. Together, they have a total membership of 595,451, with funds amounting to 63,9,9151,000,000,000,000,000,000,

37,087 pounds. Lastly, we have the total certified trustee in post office, peoples, and railway savings banks. These have no fewer than 10,837,186 depositors, and their funds amount to 22,22,677,941 pounds. totaling all these figures together, we reach an aggregate membership of nearly 29 million with combined funds amounting to 400 million pounds sterling, end quote, from the service of friendly societies by Alexander Cargill.

We give a few figures from the United States statistical abstract of 1906, showing deposits in postal and other savings banks in various countries in 1905. In Britain, there were $997 million in deposits, $11,694,000 depositors with an average of $85. In Denmark, there were $205,723,000 in deposits, $1,291,291,000 depositors, an average of $159. In Germany, there were $2,639,590,000 in deposits, 16,613,000 depositors with an average of $159. In France, there were $890 million in deposits, 11768,000 depositors with an average of $759. The aggregate of all countries which make returns is 91,273,000 depositors, with $11,801,229,509. These enormous sums are laid up where neither moth nor rust can corrupt nor thieves break through and steal.

Their only danger lies in the socialistic aim to remove them from present owners and transfer them to the state, thus making the depositors money the property of all. To return the deposits to the rightful owners or allow interest upon them would create a large capitalistic class apart from the general socialistic community, which would involve class distinctions as before, fatal to the socialistic idea. The British islands, with their 11 and 1 half millions of depositors in a population of, say, 45 millions, have an average of a fraction of more than one depositor in every family, allowing five to each. Serious trouble might be expected if the socialist cease to confine himself to writing about

placing all wealth in the hands of the state and begin to act. Fortunately, of this there is no danger. One of the chief objections to present-day socialism is that while it lends itself to endless talk, it is yet doomed to an action as a system, until and unless human nature itself has changed in the countless ages to come. Ernest and good men, touched to fine issues, should not occupy themselves, grasping at distant shadows, while the substance, improvement of the present, lies at their feet ready for treatment. There are three classes of men.

The first are born in poverty, and probably have to see the harrowing sight of father and mother, sister and brother, suffering from want. As a holy duty, they resolve to drive the wolf from the door and make me. make fortunes. Young men with such experiences go into the world resolved to win. They must win, and the business life furnishes their best chance of victory in our time. Their foot once upon the ladder, it was comparatively easy climbing, even in Britain until recent times, for it was the center of material development in the early part of last century. In America, it has long been and still is much easier to accumulate wealth than elsewhere. The Republic is soon to dwarf all other civilized

countries in wealth and population. It is the land of millionaires, and the new genus of multi-millionaire has just made its appearance there. Notwithstanding this, what has been said of the professional classes is eminently true of those of the Republic. Its best men and women have little in common with the makers and possessors of vast fortunes as a class. Not that those born in poverty should not aspire to higher positions, enabling them to influence others more potently for good, not that they should not gather gear by every while that's justified by honor, for it is, as a rule, only after man has provided for himself and family that he can be of much lasting good to others. He must surely recognize this to be his first.

first duty. But if any provide not for his own, and especially for those of his own house, he hath denied the face, and is worse than an infidel. A few, a very few exceptional men and women appear at intervals in the world who seemingly need to take little thought of themselves, or those depended upon them. Their fellows are captivated with their devotion to the general wheel and provide for them. But such characters are rare, and as a rule it is necessary for all to take care of themselves as the first duty. The never-to-be-forgotten truth is that huge fortunes, so far as their owners are concerned, are as useless as Star and Garter are to their possessors, and not so ornamental. And this truth, above all, that these fortunes cannot give their owners more out of life

worth having than is secured by a competence so modest that men beginning as workers can, with health, ability, and sobriety win for old age. We have prominent instances of this among the working men, members of parliament scattered throughout Britain, America, Canada, and Australasia. John Burns, cabinet minister, one of the most remarkable working men. The late Sir Randall Kremmer, Thomas Burt and others stand at the head. Several have reached the highest office upon earth, the presidency of the majority of the English-speaking people. This is only what we have right to expect,

for not a few of the greatest geniuses have been manual workers. In new countries, millions of men who began as manual workers have achieved moderate competence. Almost without exception, the millionaires of today have made their millions. It goes without saying that they had to be very economical at first, and neither drank, smoke, nor gambled. One, when asked how he made his first thousand, replied, that's very simple. I didn't spend it. The second class of men court fame, not so mercenary but vainer than the first, their sole desire as expressed by hotspur, quote, methinks it were an easy task to pluck bright honor from

yon pale-faced moon, or at a bound to dive into the vasty deep, and drag up drowned on her by the locks, so I might, without co-rival, wear all her dignities. And so, the vain peacock struts across the stage, the third class appears murmuring, I go forth among men, armored in a pure intent, great work is to be done, and whether I stand or crownless fall. It matters not, so God's work-pourable. It matters not, so God's work be done, for I have learned to prize the lightning deed, nor heed the thunder following after which men call fame." End quote. To this class may belong every honest, earnest, sober, brotherly working man who plays well the part assigned to him. It is a truth that should be pondered over by all, that for failure in life as a rule, the fault is not in our stars, but in ourselves. We must

all learn the great truth that only competence is desirable, almost necessary, wealth, non-essential, and when it does come, it is only a sacred trust to be administered for the general good. When this lesson is truly learnt, the thirst for wealth will lessen, and it will cease to be the object of keen pursuit by men in general, which it never has been with professional classes. people will soon see that it does not bring happiness to its possessors and is generally injurious to their children. The wise man engaged in business will seek only a moderate competence and then devote himself to public affairs, laboring for the good of others, especially in his own community. The writer has had occasion to visit many cities and meet the civic authorities, mayors, and members of council.

deeply impressed he has been with their characters and abilities, and especially with the large number who have risen from the ranks of the poor to eminence. Not seldom the mayor has done so. Much of their time is devoted to the careful management of municipal affairs, although few have ceased to pursue their regular occupations. They are happy in leading useful, worthy lives, conscious that they labor no longer solely for themselves, but for their less fortunate It is cheering to find that working men can and do rise so often to high positions and perform great public service in their maturer years. Useful and happy lives these men lead, striving in their later years to improve the conditions

of life for their neighbors, thus making one little spot of earth just a little bit better than they found it. That spot in many cases, the dearest spot on earth to them, the spot where they were born. For useful service to others, for personal happiness and sweetest satisfaction, for all that makes life desirable, and hallows departure at last, millionaires as a class, have good cause to envy the town councilors. Mayors, provosts, and councilmen should hesitate long before desiring exchange of positions, even with multi-millionaires. There is nothing inherently valuable in mere money worth striving for, unless it is to be administered as a sacred trust for the good of others.

Otherwise, the moderate competence suffices to give honored old age the crown. End of Section 12 of the Empire of Business by Andrew Carnegie. Recording by Tom Carroll. Section 13 of the Empire of Business by Andrew Carnegie. This is a Librevox recording. All Libravox recordings are in the public domain. For more information or to volunteer, please visit Librevox.org. This recording is by Michelle Frye, Baton Rouge, Louisiana, in September 2020.

The Empire of Business, Section 13, Labor, the upward march of labor. The progress of man from the earliest day up to the present has been one steady march upward, now and then in diverse regions seemingly checked, receding for the moment, only to be swept onward again like the waves of the advancing tide. If it were still thought that the unknown had made man perfect, but with an instinct for his own degradation, which ensured his fall, a call to return to the past would not have been astonishing. But when we, in our enlightened age, know that man is an outgrowth from lower orders of life and has implanted within him the instinct which compels him to turn his face to the sun and slowly move upward

toward that which is better, rejecting in his progress after test all that injures or debases, the call upon us by our socialistic friends to exchange the individualistic civilized present, which we have reached after many hundreds of thousands of years of progress, for the system of communism of the savage past is indeed startling. There is no phase of human existence upon which we look today, which does not show encouraging improvement over the past. This progress made in obedience to the very nature of man, created to ascend in intelligence, tastes in conduct, has made all the difference between the savage and the civilized being. Let us never forget that under present conditions, the world has grown and is growing better, and we steadily approach

nearer the ideal. Never was there so much of the spirit of brotherhood among men, never so much kindness, never so much help extended by men, and especially by women, to their less fortunate fellows. The writer scarcely knows a family intimately of which one or more members are not earnestly engaged spending their time and means in doing good, thus giving not only the their wealth but themselves to make brighter and better the lives of the less fortunate there are many of his acquaintances treading the path that leads to making earth a heaven less solicitous about heaven our home than hitherto but more about making home our heaven here in this life many indeed in our day will merit the epitaph if there is another world he lives in bliss if there be none he made the best of this it is not therefore to the savage past that we should look for guidance the part of wisdom is to hold fast to that which has proven itself good and to keep on as we have been doing marching upward the race is not led by the multitude but by the few exceptional natures just as all orders of vegetation have been and are improved by the exceptional plants,

from the sour crab to the apple of today, from the love apple in America of the past generation, to our succulent tomato. Exceptional plants arose, and from these came others. So in the animal kingdom, from the wolf came the collie dog from a five-toed, rude progenitor, the horse. All breeders perpetuate the best.

Now, in this progress, the laborer has not failed to share with the employer if we contrast what he is with what he was the difference is great he was once a slave then a serf who did manual labor up to a century ago he was still a baleen and was sold with the mine that is he could not leave it without the consent of the proprietor till recent times he was not paid in cash now he is a freeman and sells the labor the mine owner buys both equally independent in dunfermline some time ago the writer visited the cottage gardens for which prizes are given with the secretary of the horticultural society who was a working coal miner and a credit to labor he remarked that the masters and miners were that day conferring upon the wage question only a hundred years ago the writer replied your forefathers would have been transferred with the mines in case of sale now masters and men meet today as equals, buyers and sellers. What would be thought if the masters proposed a return to the old conditions? With a twinkle in the eye, never to be forgotten, came the words,

Aye, there would be two at that bargain, I'm thinking. With their trade unions, cash payments, masters of themselves, and their labor, it is clear that workingmen have shared in the general advance. The wand of progress has not passed them by untouched, nor are we, without evidence that the march of their improvement is not to stop. Following the same course with labor as with wealth, the writer will make free use of what he has said in years gone by rather than give his views in new form,

since they remain today substantially as they were then expressed. From an employer's view of the labor question, Forum April 1886, quote, The influence of trades unions upon the relations between the employer and employed have been much discussed. Some establishments in America have refused to recognize the right of the men to form themselves into these unions, although I am not aware that any concern in England would dare to take this position. This policy, however, may be regarded as only a temporary phase of the situation.

The right of the workingmen to combine and to form trades unions is no less sacred than the right of the manufacturer to enter into associations and conferences with his fellows, and it must be sooner or later conceded. Indeed, it gives one but a poor opinion of the American workman if he permits himself to be deprived of the right, which his fellow in England has conquered for himself long since. My experience has been that trades unions, upon the whole, are beneficial both to labor and to capital. They certainly educate the working men and give them a true reason. conception of the relations of capital and labor than they could otherwise form. The ableist and best workmen eventually come to the front in these organizations, and it may be

laid down as a rule that the more intelligent the workmen, the fewer the contests with employers. It is not the intelligent workman, who knows that labor without his brother capital is helpless, but the blatant, ignorant man who regards capital as the natural enemy of labor, who does so much to embitter the relations between employer and employed, and the power of this ignorant demagogue arises chiefly from the lack of proper organization, among the men through which their real voice can be expressed. This voice will always be found in favor of the judicious and intelligent representative. Of course, as men become intelligent, more deference must be paid to them personally and to their rights, and even to their opinions and prejudices. And upon the whole,

a greater share of profits must be paid in the day of prosperity, to the intelligent, than to the ignorant workmen. He cannot be imposed upon so readily. On the other hand, he will be found much readier to accept reduced compensation when business is depressed, and it is better in the long run for capital to be served by the highest intelligence, and to be made well aware, of the fact that it is dealing with men who know what is due to them, both as to treatment and compensation. I, therefore, recognize in trades unions, or better still, in organizations of the men of each establishment, who select representatives to speak for them, a means not of further embittering the relations between employer and employed, but of improving them. It is astonishing

how small a sacrifice upon the part of the employer will sometimes greatly benefit the men. I remember that at one of our meetings with the committee, it was incidentally remarked by one speaker that the necessity of obtaining credit at the stores in the neighborhood was a grave tax upon the men. An ordinary workman, he said, could not afford to maintain himself and family for a month, and as he only received his pay monthly, he was compelled to obtain credit and to pay exorbitantly for everything, whereas if he had to be able to, he had the cash he could buy in Pittsburgh at 25% less. Well, I said, why cannot we overcome that by paying every two weeks? The reply was, we did not like to ask it because we have always understood

that it would cause much trouble, but if you can do that, it will be worth an advance of 5% in our wages. We have paid semi-monthly since. To avoid the excessive prices of the small stores, I saw suggested a cooperative society, which was promptly formed, the first in the region. Another speaker happened to say that although they were in the midst of coal, the price charged for small lots delivered at their houses was a certain sum per bushel. The price named was double what our best coal was costing us. How easy for us to deliver to our men such coal as they required and charged them cost. This was done without a cent lost to us, but with much gain to the,

the men. Several other points similar to these have arisen by which their labors might be lightened or products increased, and others suggesting changes in machinery or facilities, which but for the conferences referred to would have been unthought of by the employer and probably never asked for by the men. For these and other reasons I attribute the greatest importance to an organization of the men, through whose duly elected representatives the managers may be kept informed from time to time of their grievances and suggestions. No matter how able the manager, the clever workman can often show him how beneficial changes can be made in the special branch in which that workman labors.

Unless the relations between manager and workmen are not only amicable but friendly, the owners miss much, nor is any man a first-class manager who has not the confidence and respect and even the admiration of his workmen. No man is a true gentleman who does not inspire the affection and devotion of his servants. Whatever the future may have in store for labor, the evolutionist who sees nothing but certain and steady progress for the race will never attempt to set bounds to its triumphs, even to its final form of complete and universal industrial cooperation, which I hope is someday to be reached. The follow of the following, extract is from an address delivered on opening the library presented to the workman of homestead eighteen ninety eight a partnership of three is required in the industrial world when an enterprise is planned

the first of these not in importance but in time is capital without it nothing costly can be built from it comes the first breath of life into matter previously inert the structures real by outside workmen, equipped and ready to begin in any line of industrial activity, the second partner comes into operation, that is, business ability. Capital has done its part, it has provided all the instruments of production, but unless it can command the services of able men to manage the business, all that Capital has done crumbles into ruin. Then comes the third partner in the works last in order of time but not least skilled labor. If it failed to perform its parts, nothing can be accomplished. Capital and business ability brought into play without it are dead. The wheels cannot revolve unless skilled laborers starts them. Now, volumes can be written as to which

of the three partners is first, second, or third in importance, and the subject will remain just as it was before. Political economists, speculative philosophers, and preachers have been giving their views on the subject for hundreds of years, but the answer has not yet been found, nor can it ever be, because each of the three is all important, and everyone is equally essential to the other two. Labor, capital, and ability are a three-legged stool. There is no first, second, or last. There is no precedence. They are equal members of the great triple alliance which moves the industrial world. We have seen the position which labor has reached in our day. Employee and employer meet upon equal terms. It was the writer's province to confer with labor for 26 years, and the more he knew

of the workingmen, the higher they rose in his estimation and regard. Sometimes, but not often, the worker may be misled by extreme men. But as a rule, a majority can always be depended upon to be fair and reasonable. The following are extracts from an article this writer published in the Forum, April and August, 1886. Quote, a strike or lockout is in itself a ridiculous affair. Whether a failure or a success, it gives no direct proof of its justice or injustice. In this it resembles war between two nations. It is simply a question of strength and endurance between the contestants.

The gauge or battle of the duel is not more senseless as a means of establishing what is just and fair than an industrial strike or lockout. It would be folly to conclude that we have reached any permanent adjustment between capital and labor until strikes and lockouts are as much things of the past as the gauge of battle or the duel have become in the moment. most advanced communities. Among the expedients suggested for their better reconciliation, the first place must be assigned to the idea of cooperation, or the plan by which the workers are to become part owners in enterprises and share their fortunes. There is no doubt that if

this could be affected, it would have the same beneficial effect upon the workmen, which the ownership of land has upon the man who has hitherto tilled the land for another. The sense of ownership would make of him more of a man as regards himself, and hence more of a citizen as regards the Commonwealth. While public sentiment has rightly and unmistakably condemned violence, even in the form for which there is the most excuse, I would have the public give due consideration to the terrible temptation to which the working man on a strike is sometimes subjected. to expect that one dependent upon his daily wage for the necessaries of life will stand by peaceably and see a new man employed in his stead is to expect much

this poor man may have a wife and children dependent upon his labor whether medicine for a sick child or even nourishing food for a delicate wife is procurable depends upon his steady employment in all but a very few departments of labor it is unnecessary and I think improper to subject men to such an ordeal. In the case of railways and a few other employments, it is, of course, essential for the public wants that no interruption occur, and in such case substitutes must be employed.

But the employer of labor will find it much more to his interest wherever possible to allow his works to remain idle and await the results of a dispute than to employ the class of men that can be induced to take the place of other men, who have stopped work. Neither the best men as men nor the best men as workers are thus to be obtained. There is an unwritten law among the best workmen. Thou shalt not take thy neighbor's job. No wise employer will lightly lose his old employees. Length of service counts for much in many ways. Calling upon strange men should be the last resort. This writer never attempted to run works with new men. In his opinion,

strikes generally arise not so much owing to disputes about wages as to the lack of knowledge of the one party by the other the employer does not know the men and their point of view and their troubles and the men do not know their employer and his troubles neither does the employer know the virtues of the working man nor the working man the good qualities of the employer each looks only at one side of the problem lack of proper recognition of the workers by the employers as fellow-men causes most of the labor disputes in domestic service where the two classes employer and employed do get to know each other as men and women there are few quarrels simply because each finds the other possessed of many endearing traits few are the families in which are not found valued servants living in their old age as members of the household or pensioned and living nearby in their cottages often visited the final relation between capital and labor labor and capital partners while we have said that labor has shared in the progress of the race considering from whence it started to the position it now occupies it cannot be claimed that conditions are satisfactory as they exist. In the future, labor is to rise still higher. The joint stock form opens the door to the participation of labor as shareholders in every branch of business. In this, the writer believes, lies the final and enduring solution of the labor question. The Carnegie Steel Company made a

beginning by making from time to time 40 odd young partners. Only one was related to the original partners, but all were selected on their approved merits after long service. None contributed a penny. Their notes were accepted, payable only out of the profits of the business. Great care was taken to admit workers of the mechanical department, which had hitherto been neglected by employers. The first time a superintendent of one of the works was made a partner, attracted attention, but as we kept on admitting men who had risen from their ranks as mechanics, we found it more and more advantageous. The superintendents now sat in conference at the board with the managers in the office. From this policy sprang the custom of bonuses awarded yearly to men in subordinate positions who had done

exceptional work. This class naturally felt that they were on the upward road to admission as partners, their feet upon the ladder. The problem presented by the combination of many steel works into the one United States Steel Corporation was not altogether new, for individual and corporate management have coexisted since joint stock companies were formed. The former had undoubtedly great advantages over the latter. Able men managing their own works in competition with large bodies of shareholders, employing salaried managers, were certain to distance their corporate competition and did so. Nothing can stand against the direct management of owners. the united states steel corporation realized this and as a substitute resolved to adopt the policy of interesting its officers and employees in its shares

some plan of profit-sharing was soon seen to present the best and indeed the only substitute for individual management this idea the writer highly approved in his presidential address to the iron and steel institute in london in nineteen o three but ventured to point out one serious defect the investments in the shares of the company proposed to the men were to be at the risk of the purchasers we added that this seems a feature we may however expect the corporation to change as experience is gained every employee a shareholder would prevent most of the disputes between capital and labor and this chiefly because of the feeling of mutuality which would be created now alas generally lacking to effect this every corporation could well be afford to sell shares to its saving workmen, giving preference in payment at cost as a first charge in case of disaster, just as present laws provide first for the mechanics lien and for homestead exemption. This is due to the workingmen who necessarily buys the shares without knowledge, and he is asked to buy them, not solely for his own advantage, but for the benefit of the company as well, the advantage of both. This view, as expressed by the writer in the address referred to, we rejoice to say, has been adopted by the Steel Corporation, and its last

offer of shares guarantees the men against loss. The managerial department is given bonuses every year upon the profits of the concern. All this was hailed by the writer with intense delight, as in his daydreams he had often meditated upon the plan of employees, becoming joint owners with himself and partners. Perhaps he may be permitted to quote from the address referred to May 1903, London, quote, I cannot speak too highly of this experiment, nor give the steel company too much credit for making it, since it is declared to be in the experimental stage, and subject to future improvement, as all new schemes should be. Its able and progressive author, Mr. George W. Perkins, is to be heartily congratulated. Thus we see, gentlemen, that the world moves on step by step toward better conditions.

Just as the mechanical world has changed and improved, so the world of labor has advanced from the slavery of the laborer to the day of his absolute independence, and now to this day when he begins to take his proper place as the capitalist partner of his employer. We may look forward with hope to the day when it shall be the rule for the world, workmen to be partner with capital, the man of affairs giving his business experience, the workman in the mill, his mechanical skill to the company, both owners of the shares, and so far equally interested in the success of their joint efforts, each indispensable, and without whose cooperation success would be impossible. It is a splendid vista along which we are

permitted to gaze. Perhaps I may be considered much too sanguine in this forecast, which no doubt will take time to realize. But as the result of my experience, I am convinced that the huge combination and even the moderate corporation has no chance in competition with the partnership which embraces the principal officials and has adopted the system of payment by bonus or reward throughout its works. The latter may be relied upon as a rule to earn handsome dividends in times of depression, during which the former, conducted upon the old plan, will incur actual loss and perhaps land in financial embarrassment. In speaking of corporations, we must not forget, however, that there are many which are corporations in name only, their management

being the life work of few owners. These rank with partnerships, having all the advantages of this form. The true corporation is that whose shares are upon the stock exchange, and whose real owners change constantly and are often unknown even to the president and directors, while to the workmen they are mere obstructions. It is impossible to infuse through their ranks, the sentiment of personal regard and loyalty in all its wonderful power. The step taken by the United States Steel Corporation is therefore no surprise to me, for I have long believed that such corporations would be compelled to adopt the best attainable substitute for the personal factor of the older system, or suffer. In the sagacious policy of the United States Steel Corporation, I see proof of that opinion.

Nor can I suggest a better form than that it has adopted, always provided the workingman shareholder be secured against loss. In the percentage allotted by the plan to reward exceptional officials, we have for the huge corporation perhaps the best substitute attainable for the magic of partnership, which nothing, however, can approach. The reward of department officials may readily be secured under this provision. In the bonus granted yearly upon shares held by the employees, we have proof of regard for them, which cannot but tell, and the distribution of shares in the concern among them gives an advantage which so far no

partnership even has enjoyed. The latter will no doubt adopt the plan, or find some equivalent, for the workingmen owning shares in absolute security, will prove much more valuable than one without such interest, and many incidental advantages will accrue to the company possessed of numerous shareholding employees who may someday see their representatives welcomed to the Board of Directors. This would prove most conducive to harmony,

knowledge of each other on the part of owners and workmen being the best preventive of dissatisfaction. If the investment of the workers' savings be made secure, the rapid extension of the plan seems certain and can be hailed with unalloyed satisfaction. But in its present form it is obviously incapable of general application, since the officials of few corporations could or would incur the responsibility of inducing their workmen to invest in their shares as a security, and few corporations could or should inspire the needed confidence of labor

that these are to enjoy an unbroken career of prosperity, for such has not been the history of manufacturing concerns generally, especially in our field, to which we may well apply the well-known lines of Houdabras. I mean, what perils do in Viren, the man that meddles with cold iron. The idea of making workmen shareholders and dividing a percentage of the profits among those rendering exceptional service will probably encounter the opposition of the extremists on both sides, the violent revolutionist of capitalistic conditions and the narrow grasping employer whose creed is to purchase his labor as he does his materials paying the price agreed upon and ending there but this opposition will we believe amount too little it will even speak well for the new idea of scouted by the extremists and commended by the mass of men who are on neither dangerous edge but in the middle where usually lies wisdom

meanwhile here is the germ of a promising plan offered as a solution for one of the pressing problems of our age which may prove capable of development let us receive study and discuss it with open mind that the problem will be solved and that the two factors are some day to live in friendly cooperation let no one doubt human society bears a charmed life it is immortal and was born with the inherent power or instinct as a lot of of its being to solve all problems finally in the best form and among these none more surely than that vexed question of our day the relations between these siamese twins which must mutually prosper or mutually decay employer and employed capital and labor two and a half million dollars worth of additional stock was offered by the steel company to workmen this year nineteen o eight and and all taken, and 25,000 more of the employees applied for shares, many for one share only, and these are to be provided, so that nearly 100,000 workmen of this company are soon to be shareholders, i.e. part owners having a right to vote with their fellow proprietors and sharing in the profits. These workers have their feet upon the ladder, and are bound to rise. They are very likely to save and invest more and more.

This is the answer, reached by evolution under present conditions, to pessimists and revolutionists, which our socialist friends should ponder well. The strict political economist of our day may look askance at the idea of a minimum wage and a guarantee for the workmen against loss upon their shares in companies in which they hold a minority interest. But whatever final form the merger of labor and capital may assume in the distant future, these, These features seem to be essential under present conditions. If taxation should be borne only according to ability to pay, it is not wholly unreasonable that the workmen should not be subject to loss,

for having only a minimum wage he has no ability to incur loss. The exemption of a stated sum from income tax in Britain, and in America the exemption of the small homestead are examples of this principle. Should the work men hold the majority of shares and really manage the business, exemption from sharing loss should cease. This is only a beginning. The Filene Stores of Boston, a shareholding company employing 7 to 900 men, has gone farthest of all in the direction of making its employees joint owners. The capital stock is held only by employees and is returned to the corporation at its value, should the employee leave the service. Every share of stock belongs to someone working in the stores.

The most important advance is that all questions are submitted to arbitration, not only complaints or disputes, but wages, scope of work, and tenure of employment. More than 400 cases of arbitration have arisen, and the result is that both managers and employees have been satisfied that this is the true plan. When an employee is discharged, he has the right to appeal to an arbitration board, composed of fellow employees of different grades. All wage disputes have been satisfactorily settled. There is a profit-sharing department, having nothing to do with wages, which has been able to distribute varying amounts each year. There is also a welfare committee of the shareholders which manages a clubhouse and maintains lunch and recreation rooms.

The Insurance Committee furnishes five classes of assurance at cost. Two-thirds of the workers are insured. The bank pays 5% upon deposits of employees, which are guaranteed by the corporation. The publication committee issues a monthly paper. Many features of a social and educational nature are enjoyed by the employees throughout the year, and an atmosphere has been produced of great value to the business and to the members. it may be added that the pheoline stores are not excelled if equalled in making profits their goods are turned over ten times some years six or seven times being the average and the stores are among the foremost and best known in boston no doubt the brothers fioline are remarkable men and recognized leaders in this work but we may expect their example to impress others particularly since their profit-sharing and stock-oes

owning plans have been vindicated by unusual success from every point of view, particularly in improving the relations between employers and employees. We are just at the beginning of profit sharing and the reign of working men proprietors, which many indications point to as the next step forward in the march of wage-paid labor to the higher stage of profit-sharing, joint partnership, workers with the hand and workers with the head paid from profits no dragging of the latter down but the raising of the former up we never see a fishing fleet sail without hailing it as the finest illustration of the perfect relationship which is one day to prevail between capital and labor generally every man in the ship from the capital down is a partner paid by sharing in the profits of the catch according to the value of his labor even the lowest paid probably a young hand not yet an able-bodied seaman could be a partner in the business here is a field capable of immediate and wide extension provided employers agree to fix the minimum wage sufficient to maintain economically the workers household and to this it is believed every fair-minded employer would gladly agree.

So far we have a list of 189 manufacturing concerns in the United States, which have welfare departments, sales of stock to workmen, or other modes of adding to their wages, or forms recognizing the community of interest between employers and employed. Gilman, in his book on profit sharing, published in 1899, gave the following numbers of profit-sharing firms in the different countries of Europe. France 120. Britain 94. Germany, 47. Switzerland, 14. Italy, 8. Holland. 7. Belgium. 6. Austria-Hungary. 5. It will soon be the exception for employers upon a great scale to ignore this feature.

Eighteen of the principal railroad companies in America have established systems of pensions for their employees as extra recompense, the cost borne exclusively by the corporations. The pension feature, like profit-sharing, is making great headway and promises soon to be universal. So marches labor up the heights to equality with the millionaire as his partner in business. This ends my quotation from the, the presidential address to the Iron and Steel Institute in 1903. It will be seen that the writer's views are not of yesterday. He has had considerable experience with the labor problem and thought much over it.

Whether the communist's ideal is to be finally reached upon earth, after man is so changed, that self-interest, which is now the mainspring of human action, will give place to heavenly neighbor interest, cannot be changed. known. The future has not been revealed. He who says yes and he who says no are equally foolhardy. Neither knows, therefore neither should presume to consider much less to legislate in their day, for a future they can know nothing of. Endowed as man is with the instinct for improvement, fortunately no limit to his march toward perfection can be set, but what perfection is to be we know not. The writer, however, believes one point to be clear, that is, that the next step toward

improved labor conditions is through the stage of shareholding in the industrial world, the workman becoming joint owner in the profits of his labor, payment to slaves and serfs by providing shelter and food and clothing for them, then by orders upon the stores for articles, up to payment by cash to independent workmen today. Each a great step forward have all been tried, and now the coming day dawns when payment is to be made wholly are in part by profit sharing, the workman having the status of the share-owning official and a voice in management as joint owner. He will be guaranteed a minimum wage when finally paid by profits entirely to keep his mind easy and free for his work, the proper support of himself and of his family being thus insured.

It may be mentioned that the investments of workmen partners in the United States Steel Corporation have been very profitable to both the men and the company. To the sober-minded workmen, we say, again, hold fast to that which has proved itself good. Keep marching upon the path of decided and continuous progress, a progress which can be proved, by simply glancing backward to conditions under which labor started when work was the part of slaves, and contrasting these with its present independent position. We have traced the progress of labor upward under present conditions from slavery to partnership with capital. What the working man has to consider and consider well is whether this be not the most advantageous path for him to continue to tread.

So far as it has been tried, it has been tried, it has. has proved a decided success, and it can easily be continued, since it is proving mutually beneficial to capital and labor. One of the greatest advantages, the writer thinks, will be found in drawing men and managers into closer intercourse, so that they become friends and learned each other's virtues. For that both have virtues, none knows better than the writer, who has seen both sides of the shield as employee and employer. We only hate those we do not know, says the French proverb. There is much truth in this. In vast establishments, it is very difficult, almost impossible, for workmen and employers to know each other, but when the managers and workmen are joint

owners and both paid wages, as even the president of the company is, we shall see greater intercourse between them. In the case of disputes, it is certain that the workmen partners have a status nothing else can give. They can attend all shareholders' meetings and have a voice there if desired. Entrance into the partnership class means increased power to workmen. On the other hand, knowledge of the company's affairs, its troubles and disappointments which come at intervals to the most successful concerns, will teach the workman much that he did not know before. co-partnership tends to bring a realizing sense of the truth to both labor and capital that their interests broadly considered are mutual and as far as the latter is concerned it may finally in some cases be all furnished by those engaged in the works which is the ideal that should be held in view the workmen both capitalist and worker employee and employer this however is not for our time we are are only pioneers whose duty is to start the movement, leaving to our successors its full and free

development as human society advances. The first company so owned will mark a new era in the relations of labor and capital. We may not have to wait long for this experiment, since it is in line with recent developments. The writer has no desire to embark again in business, but nothing would appeal to him so strongly as this ideal. He should like to address the body of workmen, many thousands in number, as all fellow partners. He addresses forty-odd at dinner once every year by that endearing term, partners of his youth and dear friends of his old age, only two ever put a dollar in the business. All the others, many of them workingmen, earned their shares by a brilliant service. Most of them are dollar millionaires. All are rich. Thus is labor soon to attain

its deserved place and recompense, and workmen and capitalist become one, the wage system, except a minimum, being displaced by division of profits. The foregoing was written before the following by John Stuart Mill attracted the writer's attention. Quote, the form of association, however, which, if mankind continue to improve, must be expected in the end to predominate, is not that which can exist between a capitalist as chief, and work people without a voice in the management, but the association of the laborers themselves on terms of equality, collectively owning the capital with which they carry on their operations,

and working under managers elected and removable by themselves. Footnote, this quote is from John Stuart Mill's political economy. It is most encouraging that so great an authority as Mill foresaw that the ideal condition of the future lay not in state-owned factories and mines, uniform wages to workmen and the abolition of private capital, as socialists urge, but in uniting the workmen and the capitalist in one and the same person. The writer is convinced that this is to be the highly satisfactory and final solution. The first step in advance has already come in the natural progress of evolution,

no revolution necessary, and it is earnestly pressed upon the attention of the intelligent working man and his leaders, some of whom seem to have been misled into devoting themselves to the advocacy of a system, admittedly unsuited to our day, which requires an organic change in the relations of society, and indeed involves a complete revolution in the nature of man, the task of a thousand years. The experiment of labor and capital, union workmen capitalists has exceeded so far all expectations even the convinced socialist might therefore hail it as at least a step in the right direction making labor's position better than before saying to himself let the future bring what it may a bird in the hand is often worth more than a whole

flock in the bush our socialistic remedy is for the future let us not forget this in our dealings with the present Such seems to the writer the part of wisdom. End of Section 13. Labor. Section 14 of the Empire of Business by Andrew Carnegie. This is a Leipravox recording. All LeBrahawks recordings are in the public domain. For more information or to volunteer,

please visit Leoprovox.org. Recording by Joanne Turner. The Empire of Business, Section 14, Wages. The two schools of socialism, evolutionary and revolutionary, differ upon the crucial question of wages, although it is fundamental and must be settled one way or the other, for until it is, what socialism really means cannot be known. If wages are not to be equal, all classes cannot be merged and kept uniform, the basis is, of socialism. We quote from several socialistic sources. Quote, socialism forbids the future use of

property as private means of production or private source of income and thus necessarily puts an end to inequalities of income, unquote. Quote, socialism is that mode of social life which based upon the recognition of the natural brotherhood and unity of mankind, would have land and capital owned by the community collectively and operated cooperatively for the equal good of all, unquote. Quote, our aim, one and all, is to obtain for the whole community, complete ownership and control of the means of transport, the means of manufacture, the mines and the land. Thus, we look to put an end forever to the wage system to sweep away

all distinctions of class and eventually to establish national and international communism on a sound basis, unquote. Quote, the land being the storehouse of the necessaries of life, should be declared and treated as public property. The capital necessary for industrial operations, should be owned and used collectively. Work and wealth resulting therefrom should be equitably distributed over the population, unquote. Quote, controversy, unquote, writes Mrs. Annie Bissant, quote, will probably arise as to the division. Shall all the shares be equal, or shall the workers receive in proportion to the supposed dignity or indignity of their work? inequality, however, would be odious. The impossibility of estimating the separate value of each man's labor with any really valid result, the friction which would arise, the jealousies which would be provoked, the inevitable discontent, favoritism, and jobbery that would prevail. All these things will drive the communal council into the right path, equal remuneration of all.

workers, unquote. Quote, socialism, we believe, to be the next step in the evolution of that form of state which will give the individual the fullest and freest room for expansion and development. State socialism, with all its drawbacks, and these, I frankly admit, will prepare the way for free communism, in which the rule, not merely the law of the state, but the the rule of life, will be from each according to his ability, to each according to his needs, unquote. Notwithstanding the foregoing, Mr. Hardy ventures to aver in another place that,

quote, the socialist state, therefore, will have good reason to honor the inventor, and will have a direct interest in rewarding him as a public benefactor, unquote. If already honored, one wonders what form further reward could take without differentiating him from others. Upon the other side, we quote from Mr. Jowett's booklet in the Labor Ideal series, The Socialist and the City, pages 17, 18 and 19. This deliverance is so vitally important, that we give it at length. Quote, at present, all the larger corporations are trying to monopolize for their own service a number of experts insufficient to go around. The result is that some of them are paying first-class salaries for second- or third-class men. There will be no need for this

when cities cease to compete with each other, and one may naturally expect that socialist cities would abolish this least vestige of competition still remaining between different municipal corporations. The associated corporations will be able to pay sufficiently large salaries, and each individual corporation requiring a specialist's assistance might pay consultation fees into a common pool. Joint action in this direction will tend to steady the movements of experts and officials,

and for the rest, it should be looked upon as a discreditable proceeding on the part of a man holding, say, a responsible post as engineer, surveyor, architect, or other similar profession, to transfer his services after committing the community to some large scheme involving great outlay until the work is sufficiently near completion for the responsibility to be properly placed in case of failure. It is no part of the socialist plan to run municipal concerns under the control of the managerial leavings of private enterprise, for that way disaster lies." Here we have a revelation.

Nothing new is to be obtained by Mr. Jowett's brand of socialism, except that socialistic cities are to combine, which they do not do under present conditions, and agree not to offer a higher reward for labor, thus robbing other cities of their valuable men. No competition for labor. Valuable men are to be compelled to remain where they are. No chance of escape.

What do our friends of labor think of this? Ability, as today, will look for and receive high rewards, and cities through their governors will condescend to combine to thwart service receiving the reward, which, under the free play of forces, it would command. In the necessary basis of society, Contemporary Review June 1908, page 664, Mr. Sidney Webb, who tells us he is a socialist, writes as follows, quote, the most democratic government of the ensuing century, based as it must necessarily be, on the very idea of providing for each of the series of minorities of which the world is made up

is as likely to provide for one minority as for another, for its poets as for its apprentices, for its scientists as for its soldiers, for its artists as for its artificers, and with the advance of actual knowledge in the administration is even more likely to know how they can be fostered and really well provided for than the irresponsible plutocratic patron ever did, unquote. Another eminent authority, Mr. H. G. Wells in his recent book, differs from both sides quoted. The state is not to take over all branches of industrial production,

but only half. He declares, Quote, a little moiety, or little short of a moity, of the business of such a country as England must always be in the hands of men who are the masters of their own enterprises, and are not the salaried officials of any larger organization whatsoever. Labor is not to be paid equal wages, or according to its needs. Socialism does not propose to abolish competition, as many hasty and foolish antagonists declare. If the reader has gone through what has preceded this, he will know that this is not so. Socialism trusts to competition for the service and improvement of the world. And in order that competition between man and man

may have free play, socialism seeks to abolish one particular form of competition. competition, the competition to get and hold property, even to marry property, that degrades our present world. But it would leave men free to compete for fame, for service, for salaries, for position and authority, for leisure, for love and honor, unquote. Socialism must either establish equality of wages, for thus only can it maintain uniformity of living, or retain the present system of inequality of wages involving variety of living. If the former were adopted, human life would be changed, with results unknown. No wonder Mr. Hardy relegates the consideration of that question to the future, for he is undoubtedly right in

saying man is not today prepared for such a change. Those whose services command more than the common laborer would not agree. Such is human nature as it stands today, and the idea of uniform income may be dismissed until the nature of man changes. On the other hand, if different wages be paid according to service rendered, socialism becomes impossible. as Mr. Spargo says, quote, there must be approximate equality of income, otherwise class formations must take place, and the old problems incidental to economic inequality reappear, unquote. Here is a step which socialism must overleap or else fall down. Mr. Ramsey MacDonald, MP, is a philosophic socialist who writes,

well. He tells us, quote, if the socialist state is ever to come, it is not by a sudden change in economic and personal relationships, but by a steady readjustment of existing relationships until the organic structure has been completely altered, unquote, never were truer words written. Would that all socialists apprehended that they are fatal to the realization of the socialistic state with its uniform incomes and abolition of private property, not only during our time, but until or unless, quote, the organic structure be completely altered, unquote. Man's progress in the past has been steady, and he, he is, has traveled upward from savagery, but long is the road and devious the way to complete change

of the organic structure of the economic and personal relationships of human society. Yet this must be reached before socialism as a system can be introduced. Strange that such men as we have quoted, fit for leaders of their fellows in assaults upon the numerous evils of our day, should waste their powers upon a system which they admit cannot be adopted until organic changes take place in the structure of human society. We have before us the work of our own day and generation, and only this can we push forward during our lives. lives. To this, it is our duty to devote ourselves, leaving the work of the distant future to our

successors. Rare are the men capable of dealing wisely with the needs of their own time. Even with these, their success is often not surprisingly brilliant. We have not been blessed with men capable of legislating properly for generations to come. They do not and cannot exist. Meanwhile, in view of the conflicting views expressed, we shall surely be excused for asking the socialists for an authoritative answer to the question whether socialism involves equal wages

or whether the present individualistic mode of payment according to service rendered is to be retained, or Mr. Wells' half-and-half system to be adopted. The most devoted disciple of socialism must realize that this constitutes one of the two vital differences between the individualistic and socialistic systems, the other being the right of private property, that it is fundamental and lies at the root of the whole matter. No equal wages, no socialism possible. Equal wages, no individualism possible. Half equal and half-unequal wages, endless confusion.

We leave the revolutionary, the evolutionary, and the half-and-half socialists, to study the problem and decide. Until it is solved, socialism remains a mere babble of words signifying nothing, for this is not a mere incident in its progress. It stands at the threshold and demands settlement. End of Section 14. Section 15 of The Empire of Business by Andrew Carnegie.

This is a Libravox recording. All Libravox recordings are in the public door. domain. For more information or to volunteer, please visit Libravox.org. Read by Wayne Cook. The Empire of Business, Section 15, Thrift. The socialistic system, as we shall see, does not harmonize with our present home and family relations which many of us treasure for their holy and ennobling influence upon human life as the most precious of all institutions. We find that it also attacks or belittles,

one of the virtues which, as we believe, lies at the root of the progress of our race, that of thrift. Most men and women are born to poverty. Comparatively few are provided for and free to spend lives of ease. The vast majority must work to live. Fortunately for himself,

in all probability, Kier Hardy, is no exception. If he had been one of the few born to competence, he might never have attained eminence through service to his fellows. In his booklet in the Labor Ideal series, page 38, after writing that the Sermon on the Mount is fully of the spirit of pure socialism, he continues, quote, nay, in its lofty contempt for thrift and forethought, it goes far in advance of anything ever put forward by any communist, ancient or modern, end quote. Thrift cannot commend itself to the true socialist, who forbids private capital, but the story of the talent hidden in the ground inculcates the duty of man not only to guard his capital,

but to increase it, and we are told that, quote, he that provides not for those of his own house hath denied the faith, and is worse than an infidel, end quote. provision certainly requires a reserve fund for contingencies. If we were to divide the vast army of workers of mature age into two classes, the savers, and the spendthrifts, we should practically separate the credible from the discredible, the exemplary from the pitiable, the progressive from the backsliders, the sober from the intemperate. A visit to their respective homes would confirm this classification. The thrifty would be found not only the best workmen, and foremost in the shop, but the best citizens and the best husbands and fathers, the leaders,

and exemplars of their fellows. Many are those who have risen from the ranks of manual labor and achieved reputation for useful work performed for the community, and had been held in general esteem as model citizens. Much good have they accomplished for their fellows. that they were thrifty, thoughtful men, goes without saying. They could not otherwise have risen. If the workmen depositors in savings banks, members of friendly and of building societies, cooperative stores, and similar organizations,

were to march in procession preceded by the workmen who are not, spectators would take heart again after their depression from saying the first. If the workmen who owned their homes were to march, and to be followed by those who do not, the contrast and appearance would be striking. Applied to the masses of men any of the tests that indicate success or failure in life, progress or stagnation, valuable or worthless citizenship, and none will more clearly than that of thrift

separate the well-behaved, respected, and useful from the unsatisfactory members of society. The writer lived in his early years among workmen and his later years as an employer of labor, and it is incomprehensible to him how any informed man, having at heart the elevation of manual laboring men, could fail to place upon the habit of thrift the highest value, second only to that of temperance, without which no honorable career is possible, for against intemperance no combination of good qualities can prevail. Temperance and thrift are virtues which act and react upon each other, strengthening both and are seldom found apart.

The pure, elevating, happy home with wife and children is the product of both. When some part of the weekly earnings is not saved, all is not as well with that home as could be wished. End of Section 15. All Libravox recordings are in the public domain. For more information, or to volunteer, please visit Libravox.org. Recorded by Dane Smithly The Empire of Business, Section No. 16. The land.

The land features prominently in political and social questions only in the British islands. It has settled itself in all other regions occupied by the English-speaking race. It is not a burning question in America, Canada, Australia, or New Zealand, nor in most European countries, where the land is mainly divided in small portions among the people. In the United States, in 1900, there were 5,739,657 farms, and 10,381,765 adults engaged in agricultural pursuits. The farms averaged 146 acres. The rapid increase of these may be seen from the fact that in 1850, there were only one and a half million. In 1880, only four million farms. So the good work has gone on, an average increase of 85,000 additional farms per year for the past

50 years. And the end is not yet. As a rule, farms are cultivated by the owners. If happy homes be the crown of civilization, we have here the scripture fulfilled. Millions of men sit under their own vine and fig tree, with none to make afraid. Land is free for sale or purchase, and is lightly taxed where it is taxed at all. The world may be ransacked in vain for equally large numbers of men, women, and children residing under such favorable conditions. Home Sweet Home is the spot round which center their fondest hopes, their dearest wishes, and their greatest happiness. The few who rent for the time have the desire and reasonable hope of soon owning their homes, the wisest purchase that can be made. Similar conditions prevail in Canada, Australia, and New Zealand.

France has 5.5 million peasant proprietors. Germany has over 6 million. Average holding, 30 acres. It is only in the United Kingdom that the land question is acute. The present conditions of landholding in the countries named prove to the people of the old land what can be done. But the favored people of the four new countries named had a clean slate to begin with, nothing to obliterate.

They do not, therefore, teach the needed lesson to the motherland which Denmark does. That wonderful little country, not long ago, was in the hands of a few owners, who rented it in portions to farmers, whose position was that of farmers in the United Kingdom today. But it is now very different. They are now on the same plane as farm owners in America and other English-speaking nations. The land that 70-odd years ago was in the hands of the few is now owned by no less than 86,000 people. And, as to 75,000 of the holdings, the law prevents they're being merged to form larger farms or estates. The area of the country is less than 10 million acres, and the population, two and a half millions. Denmark's exports of butter, eggs, cheese,

bacon, beef, and pork to Great Britain alone in 1904 amounted to more than 15 million sterling, a startling statement. One wonders what British farmers are doing. No revolution was necessary to produce the change, no government ownership. It was all quietly done, one step after another. The country was divided into farms of a certain size, and a progressive land tax levied. For one man cultivating one farm, the tax was small. If he had another, the tax was much greater upon the second, and so on, until additions became prohibitive, the object being to favor the owning of farms by those who cultivated them. The produce of the land is now three times as great under the former system of large proprietors,

still existing in the United Kingdom. The magic, said to be an ownership, was really found there. By following the example of Denmark, which involves neither dangerous experiments nor violent disturbance, the land of the United Kingdom can be owned and worked by the owners thereof, each man with a reasonable acreage, and thus many happy and endearing homes established. This is well, but it is not all, or even the best result. Denmark's policy has created an independent, prosperous, happy, and contented people. Instead of one great mammoth landowner, the state, as socialists propose,

Britain should have hundreds of thousands of small owners, necessarily developing into men of a much higher type than mere tenants or employees can ever become. The magic of ownership works wonders, not only upon the soil, but upon the happy working owner thereof. The type of men developed in America upon farms they own, taken all in all, is not to be equaled, as far as the writer has known large classes of men. The same qualities characterize the land-owning workers of Canada, Australia, New Zealand, and Denmark. Land in these countries is everywhere free, as other property is. The laws of primogeniture and settlements exist only in Britain.

No English-speaking people elsewhere would tolerate them. We have a striking instance of land development going forward in America at present. Forty-odd years ago, there were four million slaves owned by other people. They owned nothing, and could own nothing. They could not even own themselves. They had neither rights nor responsibilities. They were bought and sold. In 1800, under present conditions, these former slaves owned as landlords 173,352 farms.

They leased and cultivated as farmers, 762,000 farms. They have church property valued at more than $25 million. Great additions have been made to their lands since 1900. Here we have a race who, in 1862, could own nothing, not even themselves, now owning and cultivating the soil in small portions, no rent to pay. They could neither read nor write, and now the percentage of illiteracy has fallen, from 83.5 in 1870 to 47.4 in 1900. When such progress can be made under free trade and land,

surely we should be careful about revolutionizing conditions which produce such precious fruit. The extent of land owned and cultivated by these people in small areas furnishes the greatest contrasts to that of the United Kingdom, that between small landlords cultivating their own land and men who pay a rental to territorial magnates whose lands they cultivate. The more than 11 millions of working people and their children settled upon the land in America as agriculturalists

are the backbone of the Republic, intelligent, fair, kindly, sober, and law-abiding. One who knows them would hesitate long to disturb conditions which gave the state such model citizens. To transfer the land now cultivated and mainly owned by these people into the hands of the state and degrade the present working owners into menials working for and paid by state agents is unthinkable. Our socialistic friends would require larger armies to coerce them than have ever yet assembled, and they would fail, for men fighting in defense of their homes,

in which many of them and most of their children were born, would have their quarrel just. No offer on the part of the state to ensure their continued residents undisturbed would be entertained. They would never agree to come under any restriction of their right to do as they pleased with their own homes. It is the same with Canadians and Australasians. In every English-speaking land, other than Britain, estates are generally divided about equally among the children, but the farm usually goes to the member most qualified to work it. The other members taking other parts of the estate or mortgages upon the farm.

The proposed exclusive taxation of land, proposed by Henry George, was denounced by the people of Canada and America, as keenly as would be a proposition to make America a monarchy, or Canada, a colony, minus self-government. In both lands, the agriculturalists rule that the most eloquent socialists endeavor to convince these owners of the soil, true landlord and farmers, that they are not part and the best part, of the most highly developed and most desirable society known to man, and he will have a rude awakening. No socialism for them. Much is to be said against the British landlord's system. It has little to commend it. It is a survival of the past, but let not socialists imagine that the recourse to state ownership is the proper substitute.

Let them follow the example of Denmark, and, by the creation of farmer landlords, each with one farm, give to Britain one of the greatest blessings, a land-owning and land-tilling people, instead of a few land-owning squires who neither toil nor spin. Here lies before Britain a task easy of accomplishment. It is no experiment. Neither is it revolutionary. Our own race in other lands and the people of Denmark have proved the value of small farms owned and cultivated by owners.

One reads with wonder that, the cultivated land of the United Kingdom, including parks and permanent pastures, but not mountain or waste, amounted in 1880, to 47 million, 515,747 acres. The total acreage is 77,635,301 acres. By the Doomsday Book of 1875, it appeared that one-fourth of the total acreage, excluding plots under one acre, is held by 1,200 owners, at an average for each of 16,200 acres.

Another fourth by 6,200 persons at an average of 3,150 acres. Another fourth is held by 50,770 persons, averaging 380 acres each, and the remaining fourth by 261,830 persons, averaging 70 acres each. Peers, in number about 600, hold rather more than one-fifth of all the land in the kingdom. Thus, one-half of the whole country is in the hands of only 7,000, four hundred individuals. The other half is divided among three hundred and twelve thousand five hundred individuals. In Scotland the contrast is even greater. Twelve persons in eighteen seventy-six held more than a quarter of Scotland. Seventy held half. Nine-tenths

of Scotland was held by fewer than seventeen hundred persons. As upon the vital question of equal or unequal wages the socialists are divided, they are also upon the equally important question of the confiscation of, or payment for, the land, which, according to their theory, the nations should acquire. Mr. Sidney Webb testified before the Royal Commission on Labor in 1892. Question. Supposing it, the rate, had to go so far as to amount to twenty shillings on the pound. What then?

Answer. That is a consummation I should view without any alarm whatsoever. Question. The municipality would then have rated the owners out of existence, would it not? answer that is so the president of the scottish land restoration union testified before the royal commission on local taxation april fourteenth eighteen ninety eight what is to be the next step answer increase the tax upon the value of the ground question until you take it all answer until you take twenty shillings in the pound bailey ferguson before the same royal commission testified i hold that nothing short of 20 shillings in the pound will be a complete settlement of the question. Mr. Joseph Heider, in the crux of the land question, page 16, says,

Every land nationalizer should assist this taxation reform in order to facilitate the state acquisition of the land upon the most favorable terms possible. Mr. Blatchford, in Mary England, page 60, says, Now if a man has a right to nothing but that which he himself has made, no man can have a right to the land, for no man made it. My only hope is that compensation be kept as low as possible. Mr. Jowett, MP, says that socialists recognize the expediency in all and the justice, in some cases, of paying for land rather than confiscating it. The truth is that the socialistic leaders have not hesitated to propose the most sweeping changes, amounting to a revolution of existing conditions, without having first considered how these were to be accomplished.

They differ upon equal and unequal wages, a fundamental question, and upon payment for or confiscation of the land, purchase or robbery, another fundamental question. These two questions determined what socialism is, or is not. They are the pillars of the socialistic edifice, and not yet agreed upon. Upon one point, however, there is unanimity. The land must, in one way or another, be nationalized. All agree to this. Lord Wolverhampton has recently flashed light upon this subject of payment for or confiscation of the land by telling a story of Gladstone. The world's foremost citizen, being asked about socialism, replied that it had to meet this query. Did it propose to buy the land or take it? If the first it was folly, if the second it was robbery. Let us assume for the present

that the demand for confiscation made by the radical section of the Socialist Party will be rejected by the moderates. The query then arises, how is the land to be paid for? The great bulk of it has been acquired under law as it then existed, and as it exists today. Territory One, by force in bygone ages as a whole, is now in the possession of innocent purchasers. It has been paid for. Now, if there be one tenant of honest dealing, firmly rooted in the conscience of civilized men, it is that the tenet of the tenets of civilized men, it is that the title to such purchase is valid. The possessor must be paid a fair price for what the law has declared to be his. He can be robbed of his property, of course, but an advance toward heaven upon

earth, founded upon robbery, would infallibly be a step in the other direction. Backwards, not forwards, downward, not upward. Civilized man has advanced already under present conditions beyond the idea of robbery. Its advocacy would shock him, and the entire socialistic movement would be discarded as not only visionary, but confiscatory. A proposal to rob the neighbor. If it be clear that the property must be bought, it is equally clear that honesty compels the state to pay a fair value for it. As the state alone could be the purchaser,

it must deal fairly in forcing compulsory acquisition. To whom will payment go? To whom can it go? Except the owners of the property taken. Ah, there's the rub. What becomes of the socialist state in that event? Where is the equality upon which the state is to be founded. Impossible, because the rich and the poor we would still have with us, and the present

division into classes be revived, for it is wealth, not birth, in our day which creates class distinctions. The claims of birth in our race only survive in the United Kingdom. They would be laughed at elsewhere if presented. It is not only the land that the state has to purchase, the mills and furnaces, the shipyards, the railways, all means of production and distribution must also be acquired and paid for. To say that all production property could be rented and paid for out of the profits does not affect the question. The rents would go to the owners, and they would remain rich. What just power could compel them to leave their present homes and modes of life, surrender their rents to the state, and become

socialists? The payment made for their property would become a mockery if they were not allowed to spend what was their own. Yet, unless the payment made to the owners, with one hand, be promptly taken away by the other, no socialism would be possible, for it must be based not upon the capital of the few. but upon wealth in common, owned, not by the individual, but by the state. Besides this, as before quoted in the case of unequal wages, the ideal to be aimed at ultimately must be approximate equality of income. Otherwise, class formations must take place,

and the old problems incidental to economic inequality reappear. Should the socialist be driven from the idea of taking the land from private owners without paying for it, how is payment to be made? The cash could not be raised. Evidently, there is but one mode. The state must issue consoles, 16 or more hundred million sterling for land and farm improvements, for mines, machinery, etc., say half as much more, or altogether three times the amount of the national debt. What price could consoles, already much below par, reach under such an issue? Let the enthusiastic socialist ask the banker and learn what would ensue. What receiver of consoles would feel safe,

holding the bond of a government that forced compulsory sale and snatched from him his home, the dearest spot on earth to him and his. Who would wish to live under such a government or in such a land? Few indeed of those most desirable to retain. Canada and America would be too attractive, and the despoiled would follow the pilgrims, their forefathers, who left their old home and settled in the new, where men had rights and liberties then denied at home, and private property was inviolate. After settling the land problem through purchase with freedom to spend proceeds as former owner's desire, or through confiscation under compulsion of uniformity of living, there is another step, as mentioned, which socialism must overleap or else fall down.

Until officials, superintendents, foremen, and skilled mechanics, are willing to accept the recompense earned by the sweepers of the factories, there can be no success for socialism, for upon this foundation it is compelled to stand. The moment equality of payment is dropped, and a commission is formed to found and enforce inequality of payment, the phantom vanishes. We are back again to our present system with all its inequalities. Unequal income means unequal outgo, hence inequalities, or, as we individualists would put it, healthful variety needed for the improvement of man in his march upward toward perfection. The cry of the socialist of today in Britain should not be against private ownership of land,

but against there being so few private owners. To distribute the land by abolishing primogeniture and settlements, and through progressive taxation, is surely the next practical step. Being so palpably the remedy for the present unsatisfactory condition of the problem, it would seem that the needed legislation could not be long denied. When the interests of the masses of the people require change in land tenure, the few owners can justly be required to forego their preferences,

or submit to increased taxation if they decide to enjoy privileges injurious to the community as a whole. In all other English-speaking countries, the people work the land. In Britain, the landlords work the people. The writer cannot but believe that if, once the United Kingdom had its people settled upon the land as owners and cultivators, as other parts of the empire and America have, its nationalization would never be thought of. End of Section 13, the land.

Section 17 of the Empire of Business by Andrew Carnegie. This is a Libravox recording. All Libravox recordings are in the public domain. For more information or to volunteer, please visit Libravox.org. This recording is by Daryl Pence. The Empire of Business, Section 17 Individualism versus Socialism The alacrity displayed by socialists in pasting their labels upon the products of individualism is surprising

in view of the fact that many of the measures claimed as socialistic have long been in operation in English-speaking lands. Mr. Snowden, for instance, gives what he claims to be the socialist's ideas of taxation. One, both local and national taxation should aim primarily at securing for the communal benefit, all unearned or social increment of wealth. 2. Taxation should aim deliberately at preventing the retention of large incomes and great fortunes in private hands, recognizing that the few cannot be rich without making the many poor. 3. Taxation should be in proportion to ability to pay and to protection and benefit conferred by the state. 4. No taxation should be imposed which encroaches upon the individual's means to satisfy his physical needs.

He is quite entitled to number one. No one but a socialist would dream of taxing with a view of securing all unearned or social increment of wealth for communism. As to number two, graduated taxation in Britain is an attempt to equalize the present unfair distribution of wealth. and is already at work in the death duties and in the difference in the income tax between earned and unearned wealth both the work of individualism the strong and repeated recommendations of this policy by president roosevelt are soon to bear fruit in the united states he and his trusted envisers are individualistic to the core The non-taxation of imported food by Britain under individualism, as far as it has gone, is in accordance therewith. Number four is another application of Adam Smith's doctrine. Until physical needs of individual and family are provided for, there is no ability to pay taxes. Thus, three of these ideas are the product of individualism and should bear its hallmark, not the socialist label.

Mr. Jowett pastes the socialistic label upon the proper rating of sight values, as if this did not prevail under individualism throughout our English-speaking race, except in the old home. Mr. MacDonald regarded as the most philosophical of current socialistic writers, while indulging in dreams of a far-distant future, naturally restricts action in our day to practical measures. there is only to be a steady readjustment of existing relations under the organic structure has been completely changed. He lays down as ripe for action the seven points in the Independent Labour Party Programme, which he says is far and away the most representative socialist body in Britain, thus stamping the socialistic label upon all these points.

First in these comes an eight-hour day. One naturally inquires under what system the hours of labour have been reduced from 12 and more to 10 hours or less. Long before socialism attracted the public, the reduction of the excessive hours of labour was the care of progressive men under the present individualistic system in all English-speaking countries. Whether these can be wisely reduced still further is under consideration. To put the socialistic label upon the policy of shortening the hours of labour is as flat burglary as ever was committed. Second comes a workable unemployed act. Mark the adjective.

The attention of the English Parliament was given last year to this very question. It is a difficult task to meet without doing more injury than good. When or if a workable act is produced, parties will then take their positions. Third, old age pensions. Mr. MacDonald is here a day behind the fair. These have been established in Britain before this appears in print, both political parties being favourable. Socialism will have little right to label old age pensions as its product. On the contrary, it is the product of the best elements of the best elements of the world. of both political non-socialistic parties.

Number four is the abolition of indirect taxation and the gradual transference of all public burdens to unearned incomes. Here we must read the bracketed words in the light of Mr. MacDonald's philosophy. This is a consummation which cannot be reached until the organic structure has been completely changed. As far as the doctrine of lessening indirect taxisers, is concerned, it has been in practice since the repeal of the corn laws gave free food for the people. It is a wise policy. In America there are no duties of moment, except such as bear upon the rich,

who alone use imported articles, a protective tax recently imposed upon sugar to test the ability of the country to produce its own supply being the only exception. Number five is a series of land acts aimed at the ultimate nationalisation of the land. See note to number four as the words bracketed. Britain needs a series of land acts to bring her where all other English-speaking land stand. None have prima geniture or settlements. All rate sites at market prices. Land is everywhere free, except in Britain, and this has long been the case under individualism.

Socialism has no right to the label of free land, except as applicable to Britain. And even here, a large number of non-socialists have long urged the policy. Sixth, nationalization of railways and mines. As far as railways are concerned, individualism has preceded socialism in this department. Many countries own their railways. India, under British control, does, as do sub-of-the-saboard. the colonies. So do Austria, France, Germany, Switzerland, etc. Mines are precarious properties and should be leased upon royalties when owned by the state. In some cases this is already done.

Seventh, democratic political reforms. This is so indefinite that nothing can be said upon the subject. The reforms are in supposition so far and must be judged upon their merits when announced from time to time. In all English-speaking lands under individualism, democratic reforms have long been the order of the day, never more so than now. Mr. Hardy claims there is perfect agreement among socialists on two leading points, the first being hostility to militarism in all its forms and to war as a method of settling disputes between nations. Such of us, as have inherited this doctrine under individualism and proclaimed it all our lives rejoice that anybody of men agree with us. But we of the peace and arbitration societies in every English-speaking land

who have upheld the doctrine respectfully protest against the socialist use of a label to which the individualistic men of peace have prior claim. Opposition to war and support of arbitration have developed under present conditions and grow stronger with leaps and bounds these days and are soon to triumph. One great victory is seen in Chile and Argentina ceasing to wage war and agreeing to settle disputed boundaries peacefully. They did so and both conquered. There now stands upon the highest peak of their boundary line, a statue of Christ as Prince of Peace cast from their discarded canon. The pedestal bears this inscription. Sooner shall these mountains crumble to dust, then Chileans and Argentines shall break the peace, which at the foot of Christ the Redeemer they have sworn to maintain.

Socialism has no place in these lands. Scarcely a week passes without one or more treaties of arbitration between nations being entered into. All the nations assembled last year for the first time at the Hague Peace Conference and voted for obligatory arbitration, only eight dissenting, and these declaring they would make separate treaties with selected nations. Some such have already been made, and others are now under consideration. All this progress in the path of peace among nations has been made under our present system and socialism as such has no exclusive right to place its label upon the triumphs of peaceful arbitration.

Members of all parties have cooperated in this, the most pressing duty of our day, the banishment from the civilized world of the crime of crimes, the killing of men by men in battle like wild beasts as a mode of settling international disputes. As we see, there is much that evolution, Socialists advocate and claim to be socialistic, which we progressives have long welcomed. The municipalisation of certain public utilities is undoubtedly a step in the right direction, but this has already been done on our present system before socialism was much talked about. It has been proved that cities can advantageously own, in some cases operate,

and in other cases lease for periods, their public utilities, water, gas and electric works, street railways, etc. And that they can purchase and improve land to advantage in certain districts, and could do much more in that line in Britain were the laws like those of America and other English-speaking nations. We have perhaps one of the best examples of this beneficent policy in the city of New York, now containing more than four millions of people. It never parted with its riparian rights and owns these around the island, giving it more than 20 miles of waterfront.

Some years ago, it began building docks, issuing bonds therefore, with a sinking fund for their redemption. The rentals obtained for the docks meet the interest and sinking fund and leave a profit so great that it is estimated the city will possess the gigantic property free of cost before the bonds mature. The city is contracting for rapid transit subways, the building and operating contractors agreeing to pay the interest and sinking fund and hand over the subways to the city free of cost at the end of 50 years. No franchises will hereafter be bestowed by New York City except for stated periods. It is becoming the general policy of cities in America to avoid giving perpetual leases, Municipalization to this extent is steadily winning its way. The water supply is another instance. The foresight of New York has secured at comparatively small cost,

because taken in time 100 gallons per head daily for 8 millions of people, the city owns all this supply furnishing a great contrast to London. It also secured years ago, at small cost, 7,000, acres of land admirably adapted for city parks, which are now being rapidly utilized as population spreads around them. The cooperative movement, wholesale and retail, in which manufacturing begins to make its appearance, is another development upon which the socialistic label is often put, but cooperation was adopted many years ago. The members thus get controlled to some extent in one branch of the means of production and distribution.

In this field, there is desirable progress, but we note in all that has been done so far in this direction, the parting of the ways between individualism and socialism. The latter has as its aim a state in which every man renders service according to his ability and receives according to his needs. The needs of men in the main are common. Among a hundred men thrown upon an island, there would be found little difference.

All could be treated alike. This would be pure socialism, but in working municipal tramways, gas and waterworks, and in the management of cooperative societies, the compensation paid has no reference to common needs. It is paid according to the value of service rendered, the essence of individualism. The superintendent of the factory, the merchant in charge of the cooperative store, the employees down through the whole list, are paid exactly upon the same basis as in all private agencies of production. There is not a trace of socialism here. In this vast field of progress all remains individualistic. Socialism versus individualism is the race between the hair and the tortoise over again. Individualism, the tortoise, has found and kept the path upon which it has made, and is making steady progress upward.

Never has the tortoise had to stop long in its ascent, but, always carefully putting out its limbs, intuitively the steadily moving creature finds and treads the way onward and upward, moving neither to the right nor left, until certain it is right, and then steadily pushing forward. The hair has not yet made a start. It remains just where it was years ago, frisking around a circle. It knows where it wishes to end, tells us that clearly, but not how, when, or where it is to begin. One point it has settled, however. It will not tread the tortoise path of individualism, nor any path but that which our prehistoric ancestors trod many thousands of years ago, and which their progeny abandoned after years of trial and failure.

The frisky hair today insists upon opening up again this abandoned path and keeps scratching the earth and raising a dust as if it were preparing to start, but there is no saying whether it will do so in our generation. Meanwhile the tortoise, as we see, continues unceasingly upward, that which is better than that which has been, and that which is to come better than that which is. Lovers of progress cannot but hail its ascent as leading to the light.

Foolish indeed would Labour be to retard the advance until the hare has given some evidence of ability at least to start and demonstrate by experiment that it can overtake and distance its rival. President Lincoln, when asked where General Sherman was going with his army in the March through Georgia replied, I know where he went in, but I don't believe the general himself knows where he is going to come out.

Socialism is in that position. Let the socialist produce one enterprise managed upon socialistic principles as proclaimed, to put an end forever to the wage system, to sweep away all distinctions of class. The complete emancipation of labour from the domination of capitalism and landlordism with the establishment of social and economic equality

between the sexes. So far as experiments with these doctrines have been attempted, as Hepworth Dixon informs us, they have failed. There have been some attempts to live together by small parties of mature age, seeking a retreat from active life. These ventures lay in the eddies out of the rushing current of human existence.

They remember striving to content themselves with the present, while the part which active men have to play on Earth is that of improving conditions in every direction, making new discoveries, inventing new machines and processes, and extending the boundaries of knowledge. This is man's life work on Earth, one of development toward the more perfect day,

nothing yet finished, but all growing better through his strenuous exertions. Rest and be thanked, is for another existence. Until socialists can point to successful communities based upon their principles, fulfilling this mission of progress, the socialistic question is not within range of consideration. All is mere speculation, vain imaginings of a supposed heaven upon earth, as illusory as other dreams. All that is desirable and even possible as man exists today is being accomplished, too slowly we agree much too slowly, but in no small measure realize from generation to

generation under the present system, which always has been and is being now and always must be, steadily modified and improved as man correspondingly advances, and is himself modified and improved, but not otherwise. Man and his conditions must march abreast, acting and reacting, upon each other, that improvement may be evolved. This is the law of his being. In considering the wisdom of change from our present individualistic to the proposed socialistic system, our first inquiry should be, how has the former resulted? Has the human race marched backward and deteriorated, or has it advanced and improved? If the former, we should welcome a promising change and give it a trial tentatively upon a moderate scale. If the latter, common sense prompts us to refuse to make any

revolutionary change and to continue in the path upon which we have marched, and are still marching steadily upward, always pushing hard that the pace may be hastened. We find that from the dawn of history until now, man, overcoming temporary interruptions, has steadily developed, making great progress in every field. Contrast his condition at various periods in the past with the present, and we have one unbroken record of improvement, morally, intellectually and physically. Infant mortality is very much less. The death rate has fallen. The average of life has lengthened. Pestilences, which swept away our progenitors, are today unknown. Many diseases, once uncontrollable, are now conquered. The homes of the people have improved, and the poor are now taken care of.

The food and clothing of the people are better, hours of labour less, wages much higher. Free education leaves no child in ignorance. Illiteracy is almost unknown. Carlisle only ventured to imagine a future when every considerable town would have a collection of books. Now they have free public libraries. Even the prisons have been improved. Sentences for crime have been lightened. Man has become more law-abiding and better behaved. There is less intemperance, and crime is less frequent. In every domain the comforts of life have been increased, its miseries mitigated. The masses of the people are better housed, better fed, better clothed, better educated, and better paid than ever before,

and the sums in the savings banks were never so great. In the field of labour, man has risen from serfdom and controls his labour as an equal with his employer, and in our own day is beginning to rise from workmen to partner. Labor unions, cooperative stores, friendly societies and pension funds have all been developed. In all English-speaking lands, the rule of the people prevails. Only in Britain is hereditary privilege allowed to exist and obstruct their rule. Every public office is open to ability. Power is now in the hands of the masses wherever the English language is spoken. Never have the masses

made such rapid and substantial progress as in recent years, and never were there within their reach in Britain, so many far-reaching improvements in the laws, which when adopted will ensure to the masses the advantages already possessed by their own race in other English-speaking lands. The various sections of progressive men have only to unite in the effort to free the old home from all in its laws that keep it in contrast to Canada, Australia and America as governments of the people, for the people, and by the people. It is under such encouraging conditions that the socialist appears and distracts the masses, insisting upon discarding the system under which this triumphal march has been made, the only system in all the world's long history under which man

has greatly advanced, that the organic structure can be completely altered in our day, even if desired, is impossible, that the alternative socialistic scheme proposed can be established is equally so, because it first requires a change in human nature, a change quite as great as that involved in the evolution of the man-ape into the savage of the savage into civilized man. It is not the success of the presto change campaign, therefore, that is to be feared, nor even the attempt to establish the socialistic state, because neither is possible as long as human nature remains what it is. Mr. Ramsey MacDonald's warning, before quoted, we hope, will sink deep into the minds of the earnest, sympathetic, able men who justly enjoy the confidence of the masses and are numbered among their leaders, but who at the present juncture are devoting their time and attention to the socialistic system, which cannot be established except by a steady readjustment of existing relations until the organic structure has been completely altered.

To effect, this change would be the work of centuries. The socialist should reflect it was under a mutable law decreed that there should be evolved out of the burning mass of matter, the fair earth with all its charms, out of the beast, the higher organism, man with godlike powers, and that man should not eat the bread of idleness, but labour from morn till night,

in the noble task of making one small spot on earth, one small circle of his fellows just a little better than he found it a high mission none too great none too small to lose the privilege or to neglect the duty man does the latter at his peril be he cottager or king so long as man on earth can aid in the smallest degree the progress of his race he should rejoice how much fame or fortune he acquires or how little matters not so long as he contrans he contrans by his labour and example to the general good. This is the true end and should be the aim of life. Why should any man desirous of benefiting his fellows neglect the work of his own time, which it is his duty to perform,

and waste his abilities upon purely speculative ideas, which it may or may not become the duty of future generations of men to adopt? Our duty of today is with today's problems, We have nothing to do with those of the distant future. It is sad indeed to see able and good men who could aid in improving the present, expending their talents upon a new system for a distant future of which they can know nothing. It is in this world that all our duties lie, and only our own generation can we know how to serve. Upon it our thoughts and efforts should therefore be concentrated.

It is a serious waste of time to constern. ourselves with any system which we know cannot be introduced until the organic relations of human society are altered. Upon the men of today, only the work of today devolves. Not heaven our home, our motto, so much as home our heaven. Franklin was right when he proclaimed that the highest worship of God is service to man. Power to render service to the unknown is not given us except by serving those of his creatures here with us in our own day and generation. The man is not born who can legislate wisely for a future which has not been revealed to him, and of which therefore he can know nothing.

Sufficient unto our own day are the evils thereof. These we should endeavour to abolish or mitigate, leaving the future to our successes. End of Section 17. Individualism versus Socialism. Recording by Daryl Pence. Section number 18 of the Empire of Business by Andrew Carnegie. This is a Libravox recording. All Libravox recordings are in the public domain. For more information or to volunteer, please visit Libravox.org.

Recording by Kat Din in Osaka, Japan. The Empire of Business, Section 18, Variety versus Uniformity. Variety versus Uniformity The socialist needs to revolutionize human nature before he can even test his theories, for nature abhors a vacuum not more than she does uniformity. No two blades of grass are alike, and the higher we go in creation, the greater the variations. No two fishes, no two animals are alike. Huber tells us he was able to.

to distinguish the individual ants in the hill so different was one from another. When humanity is considered, no two children but display wide differences, the more intelligent being the more individualistic. No two families are alike, and were all placed under similar conditions, houses and grounds alike, incomes equal. Next day differences would begin to appear and increase as time went on. The children of able, prudent parents, would be differentiated from those whose parents were less able. No laws of the state could prevent this. Uniformity today would inevitably become variation tomorrow. Before socialism can introduce uniformity of living, men must be born duplicates of each other. Yet, in none of nature's productions, is diversity so great, because man is the

highest and most complex of all. We can no more make men equally comfortable through equal incomes then we can make them equal in fortune, but distributing the wealth of the country among them. One week after such distribution, there would be thousands penniless in begging their bread, their last state worse than the first. Because revolutionary socialism requires a change in human nature, it calls for scant attention.

It is impossible to introduce, much less to maintain the socialistic state, until human nature becomes totally different from what it is now. When the socialist has affected this change, but not before, is the abandonment of the present system worthy of the slightest attention. It is not in order as long as men differ from each other, no two alike but all equally determined to live each his own life in his own way, this being his nature. This is the law of progress of his race, as it is of plant and animal life. By selection and cultivation of the exceptional animal or plant, that's showing the greatest variation from the ordinary type, breeders and cultivators develop the higher orders of life.

Thus has come man from the brute. The race has been allowed to develop in freedom, hence, while still savage, the stronger physically was the foremost, and later, under civilization, the strongest mentally have become the leaders, from whom have arisen the select few whose names stand out in his, history as the exceptional members of our race, whose labors and example, in all the higher domains of human effort, have slowly lifted the race to its present position, infinitely higher than it was only a few hundreds of years ago. Not uniformity, but infinite diversity, ensure this progress, and as far as we can see, it is through diversity alone that the race

can continue its upward march. The exceptional man in every department must be permitted and encouraged to develop his unusual powers, tastes, and ambitions in accordance with the laws which prevail in everything that lives or grows. The survival of the fittest means that the exceptional plants, animals, or men which have the needed variations from the common standard, are the fructifying forces that leaven the whole. Among these are the great teachers and lawgivers, the poets and statesmen, physicians and historians, the inventors and discoverers, who lead the mass of more uniform pattern onward and upward. The contrast between Shakespeare and the ordinary specimen of humanity

is as great as that between the average civilized man and the barbarian. A few pages of this book would hold the names of the truly exceptional men who have distinctly moved the human race forward since history began. Many indeed have contributed there too, and in the widest sense no individual can live a good, useful life without contributing his might to the general wheel. But those who have achieved a decided advance in any one of the innumerable paths of human effort

have been few in number, although they built upon the work of many predecessors. Burbank grows hundreds of thousands of plants, sometimes millions, before the exceptional variation appears from which a new variety can be developed, capable of producing superior fruit. So with man, who must be left in perfect freedom,

as long as he infringes not upon the freedom of others, nor injures the state, free to choose his career and live his own life in his own way, the rule being perfect freedom. Limitation of that always exceptional and only exercised when overpowering reasons arise, rendering interference necessary to protect the freedom of others, and thus prevent greater evils to the body politic. Under present conditions, which give to all men liberty to carve out their careers, a wool carter hears and obeys the imperious call from on high, and gives to man the masterpieces of literature. A precious legacy, according to Lowell, worth more than all the ancient classics. A poor plowman, he, who of all men, nestles closest

to the bosom of humanity, sees the lovely vision that comes to him in his awed clay biggin, and under her guidance, he proclaims the royalty of man, exalts honest poverty, strikes down the cruel theology of his day, and hails an unfortunate mouse as his poor earth-born companion and fellow-morrow. mortal, to him all life being kin. A young man ordered to manage a farm rebels and follows his destiny, and in one word, gravitation reveals to the world the law that pervades the universe. To two English lads, both remarkable for originality and hard to place, while still groping, the revelation came, each found his destiny, and from their seclusion, after years of labor, they proclaimed the word which brought order out of chaos, evolution.

and man, no longer the supposed degraded creature fallen from his highest state, stands forth today in his majesty, the monarch of all created things, endowed with sublime aspiration for continual assent, no limit to his future elevation short of perfection. Four hundred years ago, a Scottish boy, soon left an orphan in poverty, the spirit moving within him at maturity, lived to publish the first germ of democracy in Britain, proclaiming that all power resided in the people, and kings were only to be supported as long as they wrought their people's good. Forty years later came one of his pupils, soon also left an orphan, who heard the call of destiny as a disciple of his predecessor. When asked by King James if it were not an offense against

God to oppose the Lord's anointed, he replied, man, you are only the Lord's silly vassal. And largely to these two pioneers of democracy, supported 70 years later in England by him of the organ voice, a poor scrivener, our race owes constitutional government. The son of a French tanner finds his mission and consecrates his life to it. The most horrible of all diseases, hitherto incurable, is conquered, the death rate reduced to 1%. Surgical practice is revolutionized. Later, he rescues the silk industry from an epidemic of fatal character. A working warfinger, in Genoa, fired by the gods, sees in imagination what lies over the seas and reveals the new world.

A poor student, getting access at last to a small telescope, follows the stars and revolutionizes human conceptions of the planetary system. A German physician, giving gratuitous service to the poor and perforating the walls of his humble dwelling that he might note the stars in their passage, keeping for many years the momentous secret in his bosom, lest the stake were his destiny, at last reveals to the world the Copernican theory. A boy, having learned dentistry, and, in its practice, seeing the agonies of his patients, hears the call to his mission, discovers the antidote in ether,

and henceforth in sweet, unconscious sleep, pain finds its conqueror. A German printer apprentice, noted for devotion to his work and studying the means of improvements, finds the answer in movable types, which, through the printed page, make knowledge universal. A Scottish mechanic, making odds and ends for a livelihood, is fascinated by Black's discovery of the latent heat in steam. His life thereafter is concentrated upon the problem of its utilization and the steam engine appears. A working engineer extends its dominion over the sea. A miner stretches it over the land, and the world shrinks into a neighborhood.

A printer's lad in Philadelphia, visited by the genie when commencing with the skies, draws electricity from heaven, and the world today is in constant instantaneous communication. A youth in our day hears the imperious call, and, most mysterious of all, we have wireless communication across the Atlantic. An apprentice to a surgeon, appalled at the ravages of an infectious disease, hears the spirit summons to be up in doing, and a wasting plague is conquered. An American telegraph messenger boy, carried by the gods into the mysterious realm, produces, duplex telegraphy, gives to the world improved electric lighting, the phonograph, and other wonders, and is still diving into the unknown. Another Scot, still busy with the gods, produces the telephone.

Another Scottish mechanic discovers coal gas and uses it for the first time to light his humble home. An English ironmaster invents plans for the use of pit coal instead of charcoal for smelting ironstone. A Scottish lad, who left school at 14, invents the hot blast, and these two Britons revolutionized the manufacture of iron. A German, after years of effort, finally invents a new process of steel-making, cheapening that indispensable article. A Scottish workman adds the one lacking ingredient. Another German follows with another process,

and steel becomes the indispensable slave of progress. Three Englishmen, a hand-loom weaver, a reed-maker, and an apprentice, through their inventions, the fly shuttle, the spinning jenny, and the spinning frame, give the world modern weaving of all manufacturing industries the greatest employer of labor. A poor young American employed upon the Mississippi in a trading barge seized for the first time men and women bought and sold upon the auction block, and is stirred by the divine messenger. Leaving the scene, he vows, If ever I get a chance to strike that accursed system,

I shall hit it hard. He concentrates himself to his holy mission and banishes the last vestige of slavery from the civilized world. Pages more could be filled with such instances of beneficent leadership developed under individualism. Seldom, if ever, to the palace or stately home of wealth comes to the messenger of the gods

to call men to such honor as follows, supreme service to the race. Rank has no place. Wealth robs life of the heroic element, the sublime consecration, the self-sacrifice of ease needed for the steady development of our powers and the performance of the highest service.

Let workmen note how many of the exceptionals indicated in the preceding pages who have carried the race forward were workers with their hands. Shakespeare, Gutenberg, Columbus, K, Morton, Edison, Watt, Murdoch, Jenner, Siemens, Bell, Hargreaves, Nielsen, Bessemer, Archerite, Stevenson, Lincoln, Mushet, Franklin, Symington, Burns. All these began as manual workers. There is not one rich nor titled leader in the whole list.

All were compelled to earn their bread. Most of them, however, but not all, in due time abandoned labor of the hands, a salutary development, and one which every working man should aspire to. Honorable and necessary as manual labor is, let us gladly greet productive labor of the mind as of a higher order, as the spirit is above the flesh, although it must never be forgotten, that in the skilled labor of our day a union of both brain and muscle is imperatively needed. The trained first-class mechanic now works as much with his brain as with his hands, and, if in charge of machinery,

much more. The dingy room, the close laboratory, the crowded workshop, and the home of honest poverty, contain the exceptionals, capable of carrying forward the mission of the race upon Earth. which is in each succeeding generation to make this life a little higher and better. In our day, it is very far from true that labor creates all wealth, and still further from the truth that labor fixes values, but it is very close to the truth that so far the young man reared in poverty, who must work that he may eat, has developed the qualities upon the exercise of which the progress of our race depends.

Little has been contributed in the past by either the rich or the titled to the world's advancement, and little can be expected in the future. These classes lack the spur of necessity, and being well placed, naturally rest contented. So would the poor were positions reversed. This is human nature as it exists in our day. The exceptional rich man or youth who scorns delights and lives laborious days, there are a few such, deserves double honor.

Under our present individualistic system, which breeds and develops the needed leaders, there is no state official to interpose, no communism, no uniformity, no commission to consider respective claims of the exceptionals and decide upon their destinies. All are left in perfect freedom, and in the possession of glorious liberty of choice, free by the sole act of their own unlorded will, to obey the divine call, which consecrates each to his great mission. One point is clear.

Nothing should be done that would tend to reduce diversity of tax. in our race, and everything should be done to increase it if possible. For it is through variation, the progress of the race has been achieved and is to come, and progress is the chief end of existence. This is what we are here for, as is proven by the fact that progress from the lower to the higher has prevailed from the time this earth cooled and life began to appear. This is our godlike mission that every individual in his day and generation push on this march upward, so that each succeeding generation may be better than the preceding. Not one of us can feel his duty done, unless he can say as he approaches his end,

that because he has lived, some fellow creature or some little spot of earth or something upon it, has been made just a little better. Nor is this beyond the reach of the humblest, for all can at least render to others. That best portion of a good man's life, his little, nameless, unremembered acts of kindness and of love. End of Section 18. Variety versus Uniformity. Recording by Kat Din in Osaka, Japan. Section 19 of the Empire of Business by Andrew Carnegie.

This is a Libravox recording. All Libravox recordings are in the public domain. For more information or to volunteer, please visit Libravox.org. Recording by Kat Din in Osaka, Japan. The Empire of Business. Section 19. Family Relations. Family relations. The most serious objection to socialism one hesitates to name, but this cannot well be avoided. We gladly believe that most of the so-called socialists of our English-speaking race would repudiate it, and yet it is clear that the system would

naturally tend to produce, at least in some degree the effects feared. We refer to the foremost of civilization's triumphs, the creation of the happy home, the product of man and woman. woman wholly married with the blessings of children coming to them to give us here a taste of heaven on earth. Of all that evolution has given man during the long, slow march of ages, from savagery till now, this is the crown. Take this away, and to millions who possess it, the best of the race, life becomes undesirable. The Holy of Holies is the pure and happy home. We have been treating of wealth, land, labor. Changes regarding these are unimportant compared with threatened changes in our family relations. That way degradation lies. Here rests the most precious root of all

that elevates, refines, and improves human nature. The writer would gladly have omitted reference to this feature of socialism, but he felt it could not be ignored. One looks in vain through the booklets so far published for a repudiation of the sentiments of socialistic leaders, both past and present, who admit that family relations must be greatly changed under socialism. The writer confesses it was with surprise that he found several modern and well-known writers going so far in the direction of accepting the doctrine that socialism compelled this change. The first exponent of modern socialism, Fourier, is responsible for this taint, although even Owen quarreled with accepted views of marriage so that it is not a recent development.

It appears advisable that the best-known writers among acknowledged socialists, especially those of our own race occupying eminent positions, should give this feature prompt attention, and we trust, public repudiation. We quote, from the case against socialism, pages 374 to 398, we have the admission of the leading English socialist historian of socialism in no lesser work than the Encyclopedia Britannica that in the Marx School, which in socialism is by far the most important in this as in other countries, there is a tendency to denounce the legally binding contract in marriage.

The connection, however, bases itself upon this, as treated by La Matine in his celebrated history the French Revolution of 1848, communism of goods leads as a necessary consequence to communism of wives, children, and parents, and to the brutalization of the species. Other historians have arrived at a like conclusion. Not only this, but socialist leaders have themselves admitted all that La Mortin here asserts,

save only his last conclusion. Yeager, in his socialismis, observes that the possession of land and soil in common, if it arises out of materialism, leads also to community of wives as being another expression of materialistic communism. In his essay treating of socialism and sex, Professor Carl Pearson, said to be one of the most distinguished of socialist writers in this country, writes, with the centuries as the last traces of the patriarchate vanish, as woman obtains rights as an individual, when a new form

of possession is coming into existence, is it rational to suppose, that history will break its hitherto invariable law, and that a new sex relationship will not replace the old? In a later passage, Professor Pearson throws further light upon the nature of this new sex relationship. In his essay, he informs us that woman will be the physical and mental equal of man in any sex partnership they may agree to enter upon. For such woman, I hold that the sex relationship, both as to form and substance, ought to be a pure question of taste. a simple matter of agreement between the man and her in which neither society nor the state would have any need or right to interfere.

This latter conclusion Professor Pearson proceeds to modify in the case where the sex relationship does result in children. Then, so Professor Pearson emphatically declares, the state will have a right to interfere, and apparently, in the writer's opinion, will be forced to interfere. One of the greatest of French socialist writers, Gabriel DeVille, in advocating the suppression of marriage under socialism and the substitution of free love, summarizes the principal reasons which account for the inherent antipathy to the continuance of marriage on the part of socialism, saying, marriage is a regulation of property,

a business contract before being a union of persons, and its utility grows out of the economic structure of a society which is based upon individual appropriation. By giving guarantees to the legitimate children and ensuring to them the paternal capital, it perpetuates the domination of the caste which monopolizes the productive forces. When property is transformed, and only after that transformation, marriage will lose its reason for existence. Bebel, the great international socialist leader in his woman and socialism, translated into English under the title of, Woman, Her Past, Present and Future, express as much of the same views as Deville in the following passage.

The bourgeois marriage is a consequence of bourgeois property. This marriage, standing as it does in the most intimate connection to property and the right of inheritance, demands the legitimate children as heirs. It is entered into, for the purpose of obtaining them, and the pressure exercised by society has enabled the ruling classes to enforce it in the case of those who have nothing to bequeath. But, as in the new community, there will be nothing to bequeath. Compulsory marriage becomes unnecessary from this standpoint, as well as from all others.

The existing of monogamic relation, write two of the foremost leaders of English socialism, Mr. Belfort Bax and Mr. H. Quartz, concerning marriage, is simply the outcome of the institution of private or individual property. When private property ceases to be the fulcrum around which the relations between the sex's turn, any attempt at coercion, moral, or material, must necessarily become repugnant to the moral sense of the community. Lecky says, it is perfectly true that marriage and the family form the taproot out of which the whole system of hereditary property grows, and that it would be utterly impossible permanently to extirate heredity unless family stability and family

affection were annihilated. Mr. Hepworth Dixon, who has devoted special study to, the actual working of communistic societies, observes that the fact remained, and in time it became known that Fourier's system could not be reconciled any more than Owen's system could be reconciled, with the partition of mankind into those special groups called families, in which people live together a life devised by nature, under the close relation of husband and wife, of parent and child. The very first conception of a socialistic state is such a relation of the sexes, again, writes Mr. Hepworth Dixon, as shall prevent men and women from falling into selfish family groups.

Family life is eternally at war with social life. When you have a private household, you must have personal property to feed it. Hence, a community of goods, the first idea of a social state, has been found in every case to imply a community of children and to promote a community of wives. That you cannot have socialism without introducing communism is the teaching of all experience. whether the trials have been made on a large scale or on a small scale in the old world or in the new. The late Mr. William Morris, in company with Mr. Belfort Bex, has written in denunciation of the present sham morality,

the aim of which is the perpetuation of individual property in wealth, in workmen, in wife, in child. Later, the same authors tell us on the advent of social economic freedom that children would cease to exist. Thus, they state, a new development of the family would take place on the basis, not of a predetermined lifelong business arrangement, to be formally and nominally held to, irrespective of circumstances, but on mutual inclination and infection, an association terminable at the will of either party. There would be no vestige of reprobation weighing on the dissolution of one tie and the forming of another.

Mrs. Snowden, in her recently published book, The Woman Socialist, informs her readers, It is more than probable that the ordinary church marriage service will be abolished, but it ought to be abolished. Under socialism, the marriage service will probably be a simple declaration on the part of the contracting parties before the civil representatives of the state. To much the same effect, writes Professor Carl Pearson, such then seems to me the socialistic solution of the sex problem. Complete freedom in the sex relationship left to the judgment and taste of an economically equal,

and intellectually developed race of men and women. State interference, if necessary, in the matter of childbearing, in order to preserve intersexual independence on the one hand, and the limit of efficient population on the other. The socialistic movement with its new morality and the movement for sex equality, writes Professor Pearson in an earlier passage, must surely and rapidly undermine our current marriage customs and marriage law. Mr. H. M. Heinemann predicts under socialism the complete change in all family relations,

which must issue in a widely extended communism. M. Jules Ged, one of the leaders of international socialism, writes, The family was useful and indispensable in the past, but is now only an odious form of property. It must be either transformed or abolished. There are other quotations in the book named, which we refrain from quoting. In judging socialism, we are forced to consider this aspect of the question and see where it leads us. The opinions expressed we trust are not accepted by many socialists of our own race. What concerns us is whether the result of the socialistic system tends to change or destroy

marriage and present family life as it exists today. Socialism, with its equal conditions of life and equal incomes, must tend to evolve the common assembling room, the aggregation of members in one common building, and all the features of the barracks. Mrs. Besant pictures these conditions, public meal rooms, large dwellings which are to replace old-fashioned cottages, one great kitchen, one dining hall, and one pleasant tea garden. The result of all this must be to destroy the home as we know it, and tend to substitute the ideal of the socialist, all people being brethren and members of one family and one home, heredity wealth and hereditary blood relationships abolished,

father and son, wife and mother, sisters and brothers no more to each other than other members of the one great socialistic household. The ties of kindred, even of father and mother and children, must eventually sink into one common affection for all. All are to stand upon an equality of relationship, one to the other, under the sway of socialism, in respect of homes, property, food, dress, and all other things.

Even the children are to be taken care of by the state. But if any provide not for his own, and especially for those of his own house, he hath denied the faith, and is worse than an infidel, becomes obsolete, for the home of socialism is not to be individualistic, but communistic. It becomes the socialist's duty, henceforth, to provide for all as for his own, they being members of one great household and one family. Such is apparently the final aim of the extreme socialist. This would mean a second fall of man.

Farewell to human happiness in its purest, most elevating, most entrancing form. Destroy our home life as it exists today, and we may well lament that, The wine of life is drawn, and the mere lees is left this vault to brag of. Just as socialism goes back to the savage past and urges man to return to communism, so seemingly it contemplates the return of men and women to barbarism in their home. holiest relations, if we are compelled to accept literally some of the writers quoted in the case against socialism as true exponents of the new system. The laws of Britain, compared with those of America, are less favorable to women, and those of continental nations still less so. Under American

laws, she has proper standing, proving the estimation in which she is held by American men in all the relations of life. Socialism, being a continental outgrowth, the references made to women by French and German socialistic writers, some of which we have ventured to quote, shock our sense of what is due to beings who, in their highest development, are capable of reaching heights unattainable by men. It is earnestly to be hoped that the respected leaders of socialism will deal effectively with this phase of the question by repudiating the sentiments expressed. A pagan philosopher, weighing the claims of Christ to rank among the great teachers, would probably give first place to what he did for the elevation of women.

Civilized man in his upward march has not only outgrown, he has reversed the miltonic idea of Adam and Eve. For contemplation he and valor formed, for softness she and sweet attractive grace. He, for God only, she for God and him. In the happiest and holiest homes of today, it is not the man who leads the wife upward, but the infinitely pure and more angelic wife whom the husband reverently follows upon the heavenly path as the highest embodiment of all

the virtues that have been revealed to him. He for God in her. Throughout the English-speaking race as a rule today, it is the wife and mother who sanctifies the home. If all the dreams of the wildest socialist were realities purchasable at the cost of the present happy home of individualism, With wife and children, the sacrifice were too great, the blow to our civilization would be fatal. End of Section 19, Family Relations. Recording by Kat Din in Osaka, Japan. Section 20 of The Empire of Business by Andrew Carnegie. This is the Libravox recording.

All Libravox recordings are in the public domain. For more information or to volunteer, please visit Libravox.org. by Wayne Cook. The Empire of Business, Section 20, the long march upward. If man had been created perfect, but with an instinct for his own degradation, and if he had fallen so low in the scale as to become unfit longer to live, then indeed his future might well be despaired of. But when we know that instead of this, he has developed slowly from the lower orders of life,

constantly ascending in the scale, century after century, for many thousands, perhaps millions of years, moving steadily towards perfection, we can indulge in the confident expectation that there can be no retrogression. We behold him and exclaim,

quote, what a piece of work is a man, how noble in reason, how infinite in faculty, in form and moving, how express and admirable, in action how like an angel, in apprehension, how like a God, end quote. Only through exceptional individuals, the leaders, man has been able to ascend.

He is imitative, and what he sees another do, he attempts, and generally succeeds in doing. It is the leaders who do the new things that count, and all these have been individualistic to a degree beyond ordinary men and worked in perfect freedom. Each and every one a character unlike anybody else, an original, gifted beyond others of his kind, hence his leadership. Men are not created alike. On the contrary, there is infinite variety,

not only in the powers bestowed, but also in their degree. For the fruits of men's lives depend as much upon the amount of the same powers shared with others as upon different powers inheriting. The earth was at first only a ball of fire thrown off from our sun, no life possible upon it till it cooled. Millions of years probably elapsing before a green leaf could appear. Then, after Vecration arose, came life from the ooze of the sea, and finally from the higher order of life there was developed primitive man, of whom the Veda remains our nearest type, described as living in trees and crawling down to feed on what he can find,

unable to walk upright until he gains more food as summer advances man lingered long in the savage state and like other wild beasts his chief occupation was war upon his kind eating as well as killing his captives subsequently he developed into the barbaric stage not quite so much of the wild beast he began building huts sometimes cultivating the ground always improving upon never permanently falling so low as its predecessor. After unnumbered years of such storm and stress, we of today have become more civilized, more peaceable. The arts of peace, not those of war, our occupation. We have reached the industrial age with its problems. This we are called upon to study and discuss, never fearing that the power within us,

which decrees unceasing improvement, will not enable us to continue to tread the upward path. we shall make mistakes as usual but that human organism feels its way surely though slowly drawing back its tentacles whenever they touch deleterious soil groping again until fertile ground is found and then the next step forward is taken thus the organism never moves far until the right path is discovered it is on the constant search for nutriment and discards all that is injurious if it now and then swallows an indigestible mouthful it promptly spews it out hence its constant march onward and upward it has never met a difficulty which it has not surmounted it bears a charmed life all this herbert spencer has clearly revealed it is a healthful sign when there is unrest and dissatisfaction and zealous even extreme advocates of change clamoring for better things in quicker march divine discontent is the root of progress and even our socialistic friends with their revolutionary ideas stir the waters for good if we reason soberly together and test their proposed remedies before we forsake the path which has so far led our race upwards from the bruce the path which has so far led our race upwards from the bruce brute to civilized manhood. By the nature of its being, the one rule which the human race can never persistently violate is that which proclaims, quote, hold fast to that which has proved

itself good, end quote. Complaint against our socialistic friends is not that they do not mean well. On the contrary, no class is moved by worthier impulses. Their hearts are in the right place, and one cannot but sometimes admire their aspirations. Thus Kier Hardy writes, quote, surely it is reasonable to hope that a day will dawn in which a desire to serve, rather than to be served, shall be the spur which shall drive men onward to noble deeds. There is perfect agreement on two leading points of principle, hostility to militarism in all its forms, and to war as the method of settling disputes between nations is the first." George Eliot, says somewhere, that she could imagine a coming day when the effort to assist

a fellow being in trouble would be as involuntary as it now is to clutch one stumbling and in danger of falling to the ground. Such hopes and aspirations are not confined to socialists. They are held by hosts of good individualists. Let these be freely indulged. Under individualism, the race is ever developing the generous impulses. Altruism grows as time rolls on. Never was civilized man his brother's keeper to such an extent as in our day. Socialistic conditions are not required to produce healthy growth in this direction.

Where we differ from the socialists is as to the evisibility of any violent change from individualism, which is guided and is still guiding in the direction desired through the continual improvement of present conditions. We believe that the surest and best way to obtain more service from men to their less fortunate fellows is by continued evolution as in the past, instead of by revolutionary socialism, which spends its time preaching such changes as are not within measurable distance of attainment, even if they were desirable in themselves. we feel that socialists neglect the immediate duty of their day and generation and vainly attempt to provide for a distant and unknown future of the race which alone can determine its own wants in its own day their revolutionary outbursts alarm the timid and conservative and hence threaten to delay and perhaps to frustrate for generation many desirable advances which the moderate wing of their own party ardently desire especially in britain the extreme

Socialists themselves are one of the obstacles to substantial progress today. On the other hand, the timid and conservative must not fail to remember that grave and unjust inequalities prevail in connection with the land, non-taxation of site values, plural voting, and unequal electoral districts in Britain, also in taxation not according to ability to pay, and unequal distribution of wealth common to all countries. And they also should remember that the surest and indeed the only way of ensuring a contended people is promptly to recognize and redress these and other evils. It would be futile to indulge the belief that the masses of Britain will much longer be content to see their fellows in Canada, Australia, New Zealand, and America

enjoying free land, without primogeniture or settlements, and sites taxed at true values, equality of voting power through equal electoral districts, one man, one vote, payment of members, complete control over the liquor traffic, yearly licenses at high rates and freely canceled, and local option rapidly spreading. Equality with her fellows across the seas must soon become the cry, and the sooner this is granted, the better, that the steady march of evolutionary development so fruitful in the past, so necessary for the future, may continue to hold peaceful sway in the land where freedom broadens slowly down. The pace of reform for some years has been much too slow as compared with

progress and ideas. The day is coming when kindred institution shall prevail in all the nations of our race, that which proved advantageous in one being promptly adopted by all the others. Thus shall be laid the foundations of a lasting and beneficent imperialism of race, whose influence in the councils of the world, always pleading for peaceful arbitration, of disputes will lead to the reign of peace and the brotherhood of man. One parting word to our well-meaning but, as I believe, misled socialist friends. To be born to honest poverty and compelled to labor and strive for livelihood in youth is the best of all schools for developing latent qualities,

strengthening character, and making useful men. Hence from this school have come our leaders. It is well that man should go forth to his work in the morning and labor until the evening. Work is no punishment. It is a blessing. Steady work is also the best preservative of the virtues. No substitute for it has yet been found. Man has not been placed in this world to play and amuse himself.

He is entrusted with a serious mission and has onerous duties to perform, not to a future generation, but to his own. And he who fails to labor for the improvement of this, our own life of today does not deserve another to advocate speculative schemes for a future of which we can know nothing is folly and worse for the revolutionary ideas so rashly proclaimed by the socialist alarm sober-minded conservative men and drive them into the ranks of those who oppose the salutary reforms needed in our day which could otherwise be easily won socialists evolutionary socialists half-way socialists revolutionary we are here to attend to the pressing wants of our own age not to obstruct the steady orderly march of progress by basing action upon the startling assumption then in a distant and unknown future individualism under which man is steadily advanced is to be supplanted by communism. This is to lose the substance by grasping for the shadow and waste our time,

like children chasing rainbows and crying for the moon. End of Section 20. Section 21 of The Empire of Business by Andrew Carnegie. This is a Libra Vox recording. All Libravox recordings are in the public domain. For more information or to volunteer, please visit Libravox.org. Recording by Joanne Turner The Empire of Business, Section 21.

My Experience with Railway Rates and Rebates. This subject carries one back to his early days. It was in 1856 that my chief, Thomas A. Scott, superintendent of the Pittsburgh Division of the Pennsylvania Railroad was made General Superintendent with headquarters at Altoona. I was his secretary and telegraph operator in Pittsburgh, and he took me with him. The duties of the superintendent of the line, then in its infancy,

included the making of local freight rates. These I entered in the rate book, and naturally grew to take a shone, share in their making. Our great aim in those days was to develop local traffic. Of through traffic, little was expected, although President Thompson, the great railroad man of his day, had ventured to predict that a hundred carloads of through freight would in time pass Pittsburgh daily. This prophecy was often quoted to show the length to which that sanguine but far-sighted official could go. Now every day, thousands passed through the city in each direction. Local traffic,

that is, traffic originating and ending upon the line, was then depended upon to yield revenue. One enterprising man would write or call to say that he was thinking of opening a stone quarry on the line and shipping dressed stone to the towns and cities if he could get rates enabling him to do so. Because traffic paying much less than we might think fair was better than no traffic at all, we would hold out every inducement to pioneers with the result that the quarry was opened. Another was willing to make the experiment of cutting bark and shipping it to tanneries, intending later, however, to erect a tannery in the forest. Here was attempting new enterprise and rates were readily agreed upon.

Another thought a peculiar quality of sand was suitable for glassmaking and was willing to open the deposit and test it. He was promptly accorded a siding, which was usually necessary, and rates low enough to permit him to begin. The plot began to thicken when a second man came with a proposition to open another similar factory or quarry which he could not do unless he received rates equal to those given to his predecessor, although his railway hall might be longer.

If two factories were to be only a few miles apart, it was obvious that they had to receive the same rates. And so the question of special rates, starting very simply, soon became a complicated one. areas had to be established in which the rates were uniform, although this involved the seeming injustice of charging more per ton per mile upon the traffic of one than of the other. This could not be avoided. At a later date, corporations were found desirous of establishing ironworks and of opening coal mines, etc. From such small beginnings was built up the enormous

local traffic of the Pennsylvania Railroad, unequaled it is believed, by any other line in the world. All these rates, it will be understood, referred to traffic within the state of Pennsylvania, Pittsburgh and Philadelphia being the terminals of the line. Beyond Philadelphia was the Camden and Amboy Railway, beyond Pittsburgh, the Fort Wayne and Chicago, separate organizations with which we had nothing to do. During this period, through traffic occupied an entirely subordinate position. Rates for it were made in Philadelphia by a freight agent, who then was an official of little importance compared with what he soon became.

Upon the completion of the Erie, New York Central, Baltimore, and Ohio, and the Pennsylvania systems between the Atlantic seaboard and the Great West, a strong competition for through traffic once began. At first it was a scramble, and each road got what it could at the best rate it could, regardless of everything. The position was peculiar and is so still, and must long remain so. Eastbound tonnage from Chicago, St. Louis, and other points in the west to the Atlantic seaboard is far greater than that from the east to the west. Hence, long trains of empty freight cars have to be hauled westward empty. It is evident why westward-bound freight was eagerly sought by all lines. Each had its freight agents

all scrambling to secure the prize. What rates might's might be able to be able to be able to be able to secure the prize? What rates might be obtained for westbound freight was a secondary consideration, for any rate was clear gain, since cars must go west in any case and might as well go loaded as empty. Hence, bitter wars broke out between the roads at intervals, and the four presidents would meet and make what was called a gentleman's agreement. These worthy presidents would give their word of honor. that certain rates would be strictly adhered to, and gave orders to that effect, we may be sure, in good faith to their subordinates. But it is a remarkable fact, notwithstanding, that these gentlemen's agreements did not last long, but required renewal at short intervals.

The rates agreed upon were too easily evaded. The assistant freight agent, or one of his staff, could promise certain favors to shippers upon other traffic, while adhering strictly to the agreed-upon charge for that he was securing, or could remit charges upon other freight not involved in the agreement. So gentlemen's agreements were made and remade, but meanwhile, freight from Pittsburgh was often sent by way of the Ohio River, some 500 miles, to Cincinnati.

transferred from boat to railroad car there and transported back to Pittsburgh by rail, passing through its streets to the seaboard for less than the fixed rate upon the same articles from Pittsburgh direct to the seaboard. It was the same with freight from the east to the west. Many a trainload of iron from the east has passed through the streets of Pittsburgh,

paying less freight than was charged upon the same articles from Pittsburgh to the same points west. The Pennsylvania Railroad had a monopoly of the traffic, and much grievous wrong had we manufacturers in that state to suffer in consequence. We must not be understood as blaming the Pennsylvania officials severely. They did not raise our Pittsburgh rates, and these in themselves might be considered fair, but they lowered the rates to our competitors in their warfare with the trunk lines. This bore hard upon the manufacturers of Pennsylvania and especially of Pittsburgh.

It would have been a wiser and broader policy if the Pennsylvania Railroad had been bold enough to say, come what may, we will protect manufacturers upon our own lines, but it required more than the ordinary railroad official of that day to reach this height. A perfect system of rates over the various routes could not be reached without first passing for a season through great irregularities and making many mistakes. Order had to be hammered out of chaos. These were the days when the much-talked of rebates had their origin. Gentlemen's agreement rates were charged, and the bills of lading were fair and square on the surface, but the understanding with the shipper was that rebates would be allowed and settled

for at some future time. The Keener members soon discovered that evidence might be called for by competing lines, and the question asked, have any rebates been paid on this shipment? The party concerned might be able to say that he had paid none, but had he been questioned a month or two afterward, perhaps, or asked if advantages in other directions had not been granted to the shipper, he could not have so stated truthfully. In short, every conceivable way of keeping the word of promise to the ear and breaking it to the hope was indulged in. At least we shippers over the Pennsylvania Road heard from its officials from time to time that the other lines were most unscrupulous competitors and solely blameable for the reigning disorder.

The sentiment aroused in Pittsburgh because of these unequal rates became dangerous. The Pennsylvania Railroad was regarded as a monopoly strangling to local interests, and so it was. The manufacturers of Pittsburgh never in a position to get rebates were in fact being driven to the wall by the competition of manufacturers upon other lines whose products passed their doors and were carried a thousand miles over the Pennsylvania system for less than they were compelled to pay for half the distance. Remonstrances were constantly made, but without avail, until the time came when the railway company had a dispute with its men, which gave occasion for an outburst of the smoldering bitterness Pittsburgh felt. Grave riots took place, and the spirit of

hostilities shown by all classes to the great monopoly brought from Philadelphia, my former chief, than vice president to Pittsburgh. At a conference with the manufacturers, it was agreed by him that no matter what the through rates fell to, the local traffic on the lines from Pittsburgh would be carried to Chicago or Philadelphia and New York at a small difference, less than the through rate between the seaboard and Chicago and other points.

That is to say, Pittsburgh traffic would be charged only a shade less for half the distance than Philadelphia and Chicago through traffic paid for double the distance. Rates according to distance were denied. With this, the Pittsburgh manufacturers had to be content. Matters went along tolerably well until railway rates were again thoroughly demoralized by war between the trunk lines. Our Carnegie Steel Company, upon this occasion, had had what it thought the certainty of a contract of great value for material with the Newport News Shipbuilding Company, freight from Pittsburgh to Newport News being much less than from Chicago. The contract, however, went to Chicago, and upon investigation,

we found that the rate given to our Chicago competitor to Newport News was less than the Pennsylvania Railroad rate from Pittsburgh, the distance not one-half so great. President Ingalls of the Chesapeakean, Ohio, then beginning his brilliant career, had made the lower rate for his new line not yet embraced in the Gentleman's Agreement. We investigated and found several rates of a similar nature prevailing to other points, and having a list of these made, the writer carried it to President Roberts of the Pennsylvania Railroad with a request that he placed us upon his own line on an equality with manufacturers on other lines. When the paper was presented to him, showing the overcharges we labored under,

he pushed it aside, saying, I have enough business of my own to attend to. Don't wish to have anything to do with yours, Andy. I said, all right, Mr. Roberts. When you wish to see me again, you will ask and interview. Good morning. The situation had become intolerable, and we looked about for the best means of protecting ourselves. A railroad line of our own, from Pittsburgh to the lakes,

would be an invaluable acquisition, rendering us independent of any monopoly and enabling us to transport all our ironstone traffic from the lakes to Pittsburgh and our coal and coke from Pittsburgh to the lakes, also giving us connection with the other through lines. I purchased the harbor at Coneyot and a few miles of railroad connected with it

and began extending the line to Pittsburgh. My partners had good reason to dread the consequences of the reckless challenge to the monster monopoly, and I could not blame them, for it undoubtedly had the power to cripple our operations. An intimation to the superintendent that the car supply for our works or the movement of our traffic need not receive undue attention would be serious indeed. As a precaution, I took good care that the authorities in Philadelphia were advised of the policy I had determined to pursue if there was the slightest interruption to our business. All our works would be stopped. I would visit each in succession and inform the workmen why they were idle. Published the monopoly rates, explain why Pittsburgh needed our new railroad, and, as to you, and ask them,

ask them and all the workmen from other mills to stand with folded arms upon the streets over which the Pennsylvania trains passed for miles, in peaceful protest, and as an intimation that justice had better be done to Pittsburgh. No interference with our operations came. It was not long before I received a note from Vice President Thompson, saying that President Roberts and himself would like an interview. I agreed to call as I passed through Philadelphia and did so. I write this in the first person because my partners did not see their way to fight the Great Pennsylvania Railroad, but my scotch blood was up and I was in to fight to the death,

determined no longer to stand what we had been groaning under. It was indeed a fearful thing to fall into the hands of a railroad monopoly in those early days, and yet this is to be said for the railroad. While its rates for competitive traffic were being reduced beyond reason by competition, the company needed all the more the high rates upon local traffic if these could be enforced. This was no doubt taking a very narrow view, but, Railroading was then in its infancy, and public sentiment was not the force it has since become. What I needed for the interview with my former railway associates were the secret rebate rates prevailing elsewhere.

Our freight agent, Mr. McCaig, then a clever young man, obtained these and placed them in my hands in a few days. He had left me with the word of Richelieu, ringing in his ear. From the hour I grasped that packet, think your guardian star reigns fortune on you. Sometime after that, he was, of course, admitted to partnership. That was the turning point in his career. Entering President Roberts' room, I found him and my dear friend Frank Thompson, Vice President, sitting together. My reception was cordial.

How are you, Andy? How are you, Mr. Roberts? How are you, Frank? Gentlemen, you ask me for an interview, and here is the culprit before you. Put me in the dock and question me as you wish. Frank said, this is just what we want to do. May I be examiner? Yes, I said.

You are just the man. What are you fighting the Pennsylvania Railroad for? he asked. You were brought up in its service. We were boys together. Well, Frank, I knew you would ask me that question. question, and here is the answer. I handed him the packet of secret rates and, begging to be excused for a few minutes, left the room, desirous of giving them an opportunity of looking it over together. Upon my return, they were still sitting with the packet lying before them. Frank raised his

head and exclaimed, Andy, I feel like Rip Van Winkle. Frank, the Pennsylvania Railroad officials have slept just about as long. Well, tell us what you want. I don't want anything. I did not ask to see you, you asked to see me. Don't talk that way. What do you want? We wish to make an arrangement satisfactory to you. We did not know these things were going on. We can hardly believe it, but we shall now find out. Tell us what you think we ought to do. I said, gentlemen, all we have ever asked was that the rates charged us shall be at all times as low as those which competitors on other lines are paying on the same articles for similar distances. We ask for nothing else. Other lines are carrying freight for our competitors cheaper than you are carrying it for us,

and you take part of this freight at the cut rates. We cannot stand that. We have never asked for lower rates than our competitors, but we shall never rest satisfied with less. If you will stop building that line from the lakes to your works, we will do what you ask, was his response. Gentlemen, that cannot be. I have agreed to build that line, and certain parties have taken action in consequence of my promise. It has to be built. Repeated efforts were made to induce me to forego building, until finally, Finally, I said to President Roberts, you have just given a rival concern about to build works on your line in Pittsburgh an agreement to give them everything you give us. We make no complaint. But if I had

come to you and asked you, Mr. Roberts, to withdraw that agreement, and you had told me you were pledged to give it, I should say no more. I should expect you to keep your word. If abandoning the new line is a condition of anything you will do for us, we must part. No more was said upon that subject. Then came the extension of the lake line we had decided to build from Pittsburgh to our Coke ovens. They wished that stopped, and as I was not yet pledged to build it, I said that was a matter for negotiation. If they wished to carry our Coke over their line from the ovens to our works at Pittsburgh at the same rate agreed upon

with the new proposed line for that service, they could have the contract. This they gladly accepted. The result of the meeting was that I got all I asked for and greatly obliged the Pennsylvania Railroad by allowing them to retain transportation of our own Coke traffic from the Coke fields to Pittsburgh.

Everything was satisfactory, arranged, and we were all boys together again. I was the ally of the PRR, much to my delight. It was estimated that the agreement saved us about one and a half millions of dollars per year, a large sum upon our business then. Railway officials, free from restrictions, could make or unmake mining and manufacturing concerns in those days, and could do so still had we not at last a court of appeal and laws against obvious discriminations. The Interstate Commerce Commission is to become one of our greatest safeguards. I must not forget to mention that one part of the understanding was that so long as the Pennsylvania Railroad gave us the same rates our competitors

paid for similar distances anywhere in the United States, we would not be parties to building any additional lines in the Pittsburgh District in competition with the Pennsylvania Railroad, and this agreement lasted until Mr. Cassatt returned to power. I was in Europe when he changed the Coke and other rates, not knowing their origin or the details of our agreement with his predecessors. All that we asked and obtained, as I have explained, was the same rates given by other lines to our competitors, and nothing lower than these. It was impossible, I am told, for the railroad company to do anything, however, but charge the regular rates on some of our shipments as made, and at the end of each month, to compare these rates with any they had given to other,

or which we could show their competitors had given to others for similar traffic. Therefore, the necessary deductions, if any, that had to be made to us, might be considered in one sense technically rebates upon the higher rates charged, although not such in any true sense. For the net result to us was that, according to the agreement, we got just the rates that the Pennsylvania Railroad officials were satisfied our competitors were paying in other districts over other lines. Thus, we were given, as it were, the most favored nation clause, nothing more. The new rate on Coke was in a different category. Here, the Pennsylvania Railroad

Company elected to take the place of a threatened rival railroad and had to meet its terms. The Carnegie Steel Company only got what the new line was to give it. The efforts of Pittsburgh manufacturers to escape the thrall of the Great Monopoly were first the making of an independent line to the lakes, and connecting with the New York and Erie, New York Central, etc., which was done, but subsequently sold to the Vanderbilt interests, who offered $3 for one invested. It proved to be a great mistake to sell, because it permitted the two railroad systems to confer and come to terms upon fixed rates and probably division of traffic. Thus ended effort number one.

Sometime after, when war again broke out between the rival systems, the late, William H. Fanderbilt asked me what I thought of the project of his able and enterprising son-in-law, Mr. Twombly, to extend the reading system to Pittsburgh through Pennsylvania. I thought so well of it that I said, if you will undertake it, I and my friends will go with you to the extent of $5 million, a prodigious sum then, at least to us. If you will, then I will put in $5 million also, he replied. Thus the South Pennsylvania was organized and its construction begun. Here was a chance for the New York Central to grip and hold its antagonist by the throat.

But the Pennsylvania interests, seeing what the movement involved, approached Mr. Vanderbilt while I was absent in Europe and induced him to surrender. Exactly what advantage the New York Central System received, I do not know. But it should have been great indeed, for this was probably the greatest mistake in its history. Mr. Twombly had found the key to Masterdom for the Vanderbilt interests, but it was foolishly thrown away. The work on the South Pennsylvania was stopped and our investment returned. Thus ended effort number two. My personal effort to build the Bessemer Railroad to the lakes came after these vain efforts of United Pittsburgh to emancipate herself.

When Mr. Cassat ended the agreement entered into between his predecessor and myself, I was quite prepared to take up the challenge. We were once more free. An idea struck me one morning. I called upon Mr. George Gould and said to him, ago, soon after I had taken up residence in New York, your father reproached me in the Windsor Hotel and said he would buy the control of the Pennsylvania Railroad and divide profits equally with me if I would promise to devote myself to its management. It was a great compliment to be paid to one so young, but my heart was already in steel development, and I declined. This morning, I come to you and offer an opportunity to create and control a through line from the Atlantic to the Pacific. Extend your line to Pittsburgh, and we will give you a contract for one-third of all our business,

provided you agreed to give us the rates prevailing elsewhere and enjoyed by our competitors. I offered to build West to meet him, and also to join him in building East. Fortunately, he agreed, and the result is that the Gould system today is in Pittsburgh enjoying that contract. We were just upon the eve of arranging to extend the line eastward, taking in our Coke works and route, which would have been a hard blow to the Pennsylvania Railroad since we controlled our own Coke traffic. When Mr. Morgan asked Mr. Schwab if I wish to retire from business, If so, he thought he could let me out. I replied in the affirmative, having resolved early in life,

not to spend my old age struggling for more dollars. I had seen so many pitiable cases of men with fortunes to retire upon, but nothing to retire to, condemned to continue like flies held fast by the revolving wheel, to whom change means misery. Of course, we stopped all negotiations looking to Eastern extension after this, and the result was my retirement from business. With Mr. Cassatt's return to power as president of the Pennsylvania system,

came needed reform, and it gives me pleasure to record the great service that companion of my youth did to the railroad interests of the country. In doing so, he broke the Constitution, of Pennsylvania, which prohibits any of its railroads from controlling competing lines by purchase or otherwise. He bought large interests in the Baltimore and Ohio and other competing lines. But when he did this, I do not believe he knew he was breaking the Constitution, for in those days, railway officials thought little about the law because it rarely touched transportation operations. These investments have since been sold by the Pennsylvania company.

His influence upon competing lines became decisive. He enforced uniform rates honestly on the Pennsylvania system, and he gradually induced the other lines to adhere to them. Then was established what is called the, quote, community of interest, unquote, idea. In the interval, the government had taken up the subject of interstate commerce, which the states were and are clearly unable to control. Wise laws were passed and a national commission appointed, and the evils of rebates are today already unknown. Under present laws, no corporation can afford to offer, neither can any person or company afford to receive rebates. the risk of exposure and punishment being now fortunately far too great. Thus the conditions described as prevailing in the past in railway transportation, then still in the formative stage,

are rapidly being succeeded by a system finally to become as perfect as is possible for a man to create and maintain. The President has performed a great service, focusing the attention of the country upon certain crying evils, and the present position of the government is all that could be desired. The dead past is to bury its past. It is rapidly doing so. It was the custom for different rates to prevail in the beginning of railroad development when all was chaos, but our conditions are soon to be those which the old lands have been led by experience to establish. We are only following their example in supervising railway and other corporations strictly, as we do national banks. Leases, mergers, purchases of shares, control of other lines or corporations, the issue of bonds and stocks, and the rates of freight must all be reported,

examined and approved by the tribunal which is to become our industrial Supreme Court. We may rest assured that the Interstate Commission, progressing from year to year as it gains experience, will sustain fair rates for the railroad companies and establish what is indispensable, equality of rates throughout the whole country. The equality of the shipper will soon become an axiom, ranking with the equality of the citizen. One shipper's privilege over any railroad, every shipper's right. Different rates per ton or per mile may prevail in different sections or under different conditions, but these will be open to all.

This will give to shareholders in corporations a degree of security hitherto unknowingly. known, enhance the value of their investments, and prove as beneficial for the corporations as for the shareholders in the country. Capital, both domestic and foreign, will be attracted more than ever to this field. The creation of the Commission is the most important addition that has been made in our day to the machinery of government. It should be proclaimed by the administration and leading statesmen of both parties, and kept clearly before the people, that no radical action has either been taken or is contemplated. On the contrary, all that is desired is only what other nations already possess, and is in the truest sense, conservative and preservative, in the highest

degree. The ease and rapidity with which the commission was established, which has all abolished demoralizing rebates and is rapidly giving to corporate investments the security they possess in other lands by bringing them under supervision is a great triumph for our governmental system in all departments, legislative, executive, and judicial, and gives to all the assurance that no emergency can arise in our country which will not be promptly and successfully met. an intelligent, just, and fair-minded people at the base, cordially approving the salutary measures of their representatives, with the President a great reforming force at the head leading the way. End of Section 21.

My Experience with Railway Rates and Rebates End of the Empire of Business by Andrew Carnegie.