er the partnership agreement was signed, Mr. Kloman said to me
that the Carnegies, owning the larger interest, might be too
enterprising in making improvements, which might lead us into serious
trouble; and he thought that they should consent to an article in the
partnership agreement requiring the consent of three partners to make
effective any vote for improvements. I told him that we could not
exact what he asked, as their larger interest assured them control,
but I would speak to them. When the subject was broached, Mr. Carnegie
promptly said that if he could not carry Mr. Kloman or myself with his
brother in any improvements he would not wish them made. Other matters
were arranged by courtesy during our partnership in the same manner."

_Question:_ "What you have told me suggests the question, why did Mr.
Kloman leave the firm?"

_Answer:_ "During the great depression which followed the panic of
1873, Mr. Kloman, through an unfortunate partnership in the Escanaba
Furnace Company, lost his means, and his interest in our firm had to
be disposed of. We bought it at book value at a time when
manufacturing properties were selling at ruinous prices, often as low
as one third or one half their cost.

"After the settlement had been made with the creditors of the Escanaba
Company, Mr. Kloman was offered an interest by Mr. Carnegie of
$100,000 in our firm, to be paid only from future profits. This Mr.
Kloman declined, as he did not feel like taking an interest which
formerly had been much larger. Mr. Carnegie gave him $40,000 from the
firm to make a new start. This amount was invested in a rival concern,
which soon closed.

"I knew of no disagreement during this early period with Mr. Carnegie,
and their relations continued pleasant as long as Mr. Kloman lived.
Harmony always marked their intercourse, and they had the kindliest
feeling one for the other."]

CHAPTER XIV

PARTNERS, BOOKS, AND TRAVEL

When Mr. Kloman had severed his connection with us there was no
hesitation in placing William Borntraeger in charge of the mills. It
has always been with especial pleasure that I have pointed to the
career of William. He came direct from Germany--a young man who could
not speak English, but being distantly connected with Mr. Kloman was
employed in the mills, at first in a minor capacity. He promptly
learned English and became a shipping clerk at six dollars per week.
He had not a particle of mechanical knowledge, a