The times., 1899-11-15

-Four witnesses were heard by the In
dustrial Commission yesterday Two rep
resented the American Steel and Wire
Company and two the National Shear
Company John ". Gates. chairman and
managing director OF the Steel combine
occupied the stand during the morning and
part % the afternoon session. Mr Gates
said that his company dId not seek to mo-
nopouze the wire Industry Of the coun-
try. although il controlled two-thirds Of
the output Of copper wire, from 65 to 90
per cent. Of the wire nail supply, and -
10 so per cent. of the steel rod output. The
demand for pig iron, ne said. has in
creased largely during the past year 1t is
probable. the witness stated, that 49,,
U90. 600 tons Of pig iron will be manufac-
tured this year, as against an average Of
10000 000 II previous years.
The price owing 10 the worldwide de-
mand for iron products, has very mate
rally advanced, Notwithstanding the great
y increased output
The American Steel and Wire Company
controls almost One-eiEhJh Of the output
OF iron ore OF the Lake Superior mines.
The witness said he was also the Presi-
dent OF the American Steamship Com
pany. whose boats ply along the Great
Lakes. The carrying price per ton from
the mines to the lower lake ports, he said.
has varied during the past year from 60
cents 10 50.
Mr. Gates gave statistics TO show that
the price Of wire materials has decreased
within the past twenty years. which he
claimed was due to the higher tariff, which
now stands at 6-I0 cents per pound. No
wire is now imported he said, but large
quantities are sold in foreign markets.
Before the Inauguration Of the higher
tariff, the price Of wire was considerably
above what 1t is now, but with the pro-
lection the internal competition has low
cred il. With reference 10 wages, the
witness stated that the men employed by
the company have, during the year Of 1899
made more money than ever before.
The company represented by the witness
controls the patents OF ali machinery for
making barbed wire. The company be-
lieyes that the patents give them q right
10 name their own prices, which accounts
for the present high price Of material Of
this sort
In referring to the wage question the
witness stated that the combine has ad-
vanced wages fully 80 per cent There are
about 35 600 men in the employ Of the
company. The company does not recognize
any labor organization, and would not do
so II requested to.
In response to a question from Repre-
sentative Livingston, who asked if the
wire industry could not exist with profit
If the protective tariff were removed, Mr..
Gates said il could not on its present
scale.
The witness said that after a careful
study he had reached the conclusion that
wages in America are from so 10 so per
cent higher than in any other country.
AT the same time the cost OF living is as
cheap here as abroad. When asked TO
explain how American manufacturers can
undersell European competitors in their
own territory, he said that fuel and raw
material are more easily obJainable and
are cheaper here than abroad, and this
alone enables American manufacturers 10
enter with profit foreign markets.
The company, he said, has large trade
in China and Japan, where the demand for
wire goods is rapidly increasing.
Mr. Gates said he had studied the Euro
pean manufacturing question, and that a /
the manufacturing concerns are organized
into what are called syndicates which
practically amount TO the American trust
organization. Each line Of manufacturing g
Is organized into a separate syndicate. each
syndicate doing its business through a di-
rector general and board OF directors. who
arrange scales and prices and place on the
market the products OF each industry.
IL Germany, the Government exercises
a considerable control, requiring reports
from each individual corporation doing
business in the Empire
The European manufacturers recognize.
he said, that the United States is a dan
gerous competitor, and the question which
gives them The greatest concern is how 10
successfully resist Americans in the mar
ReCs Of the world.
4 few months ago the witness said that
he. Is the representative OF the wire in
dustry OF America, met the European rep
reseutatives Of the several countries for the
purpose of discussing an international
agreement by which the prices Of steel wire
goods might be raised throughout the
world.
Mr.. Gates was at first offered % per cent
OF the trade. but this he refused, demand
ing so per cent
The conference failed, because the for
eign firms refused TO grant the concessions
he demanded Mr. Gates states that he was
IN favor, in case the agreement had gone
through, Of raising the price OF wire goods
SO per ton. but that the Germans could
not agree with him on this point, and de-
manded that the price be raised $36 per
ton.
Mr. Gates expressed himself as being
heartily in favor OF Government control OF
combines. Corporations. he said, ought 10
be subjected 10 close supervision by Gov
ernmeut officials. chosen for the purpose,
and that the employe should receive in
creased wages as fast as the corporation is
able 10 pay il. Such a plan, q thought,
would prevent overcapitallzstion, and many
OF the ills which are so generally atJribu-
ted to trusts
The demand for steel for shipbuilding
and structural work amounts TO as much
as the total output Of the entire country
fifteen years ago. Il is increasing rapidly
each year. The plants owned by the
American Steel and Wire Company are
located all over the country, and We're
owned previous to their requirement by
the combine by the leading independent
concerns OF the United States. Many were
bought by the purchase Of a controlling
portion Of the stock with an agreement 10
pay q stated amount for the balance, and
by purchase outright Five OF the plants
acquired have been closed and the capacity
OF the plants that can be operated most
economically We're increased. The indie
pendent companies have been organized
into one concern, which has made il pos
sIble TO do away with high salaried off,
cials The witness said that II IL were
possible TO get a sufficient supply Of ore
al the plants Of the company would be
Dut in operation, as the demand AZ this
time far exceeds the supply.
Mr.. Gates said that the combine receives
no rebates from railroads and pays in all
instances the scheduled rates The witness
stated that there are 500 stockholders In
the American Steel and Wire Company.
lie admitted that were il not for the COM