New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-02-16
NOT EXCESSIVE, SAYS GARY
FEDERAL STEEL PRESIDENT ON THE
CARNEGIE STEEL PROFITS-EX-
MAYOR HEWITT'S VIEWS.

The business men Of this city are following
with unfagging interest the developments in
the Frick-Carnegie litigation. as revealed in the
daily dispatches from Pittsburg and they are
still marveling at the prohtableness of the
steel business, shown in Mr.. Frick's figures
giving the net earnings Of the Carnegie Steel
Company for 1899 as S21, 600 OOO and estimat-
ing the profits for the current year at twice
that colossal total. The demand for steel con-
tinues unabated and the steel companies are
working their plants to the utmost capacity in
an endeavOr to keep pace with that demand.
The price OF steel has advanced greatly within
the last year. but this rise has been partly in
sympathy with the increase in the price of pig
iron and other commodities entering into the
manufacture Of steel due to increased demand.
Pig iron, for instance which a year ago was
selling at SO IS TO SD 30 a ton is now quoted
at about S25 and is likely 10 go even higher,
for. was learned yesterday from a high au-
thortty, the total quantity OF pig iron which can
be manufactured in the United States in the
next four and a half months up to July / and
which has not been already sold. is only 81. 900
tons, and the several steel companies will
doubtedly need several times that quantity be-
fore July
JUDGE GARYS STATEMENT.
While the profits Of the steel companies are.
exceedingly large it is declared by leading steel
men that these gains are not excessive. even
in the case OF the Carnegie company. This is
the view taken by President Gary of the Fed
eraI Steel Company who said yesterday:
,,1sr. ae egal eonroysIsy @ which has arisen 6eZes9
10y the officials OF the Federal Steel Company not
because It viii in the slightest degree affect the
steel industry, but because Of the feeling Of friend
bolh Of the gentiar,1 iI3L-oIl2e5 n ne iI1forfra+e
3Y9T is hon and balfa hat
corning the profits of the busine 5 of the Carnegie
Steel Company which are made public in the legal
proceedings. there need be no great surprise, for
promises to be even better and the earnings Of
LIZ ny ~ eei sI enc. nous Il r. - Ds
Is many times the amount of tie nominal capital.
sfiI - iT7riics+a rblr1 al tba s5a 600 zoo or
10 per cent per annum, is not an unreasonable IN
come TO be produced Many Of the large railroad
companies are earning al least 10 per cent on Their
TO the stockholders ana using the reInaiRder dor
Steel Company is doubtless pursuing substantially
ne SUI greater as no" ] seems Phi gLIe m 80 as - ne
in5Lai5Lion STA & 81 n pre- e6 r6sbIe %esn " III De
For many years most. If not al, the steel manu-
time without profit and II they have at last reacned
vestors fair return for their investment, It is
So far as the question OF tariff is concerned, It
must be conceded by all who nave studied the
- 81 S Continued nor can the wages 10 the Iaoorers
which present paid be maintained unless
reasonable protective tariff laws prevail
Fx-Mayor Abram s Hewitt who Is a well
known iron manufacturer. said last night that
he was not in the least surprised that the Car
snegie works cleared S2I.e0o.0G6 in ls5ssa and
that they would do still better this year. He
says Mr.. Carnegie deserves all the success he
is enjoying that he is one Of the greatest bene-
factors Of mankind living to-day in having
brought about reduction in the price Of steel
TO the consumer. and while Mr.. Frick may not
want 10 be a partner Of Mr.. Carnegie any
longer he. Mr. Hewitt knows plenty Of iron
masters who would like 10 be
ADVANTAGES OVER COMPETITORS
Mr.. Carnegie's profits, as represented by Mr..
Frick assuming for the time being that they
are stated correctly are not at ali surprising 70
people familiar with the iron trade said Mr.
Hewitt because the Carnegie company enjoys
very exceptional advantages over the most OF
its competitors. II has its own ore from the
Lake Superior region, with cheap transporta-
ton: its own coal and coke at its own doors,
and Mr. Carnegie, through his wonderful fore
sight has taken advantage Of all the labor saw
ing devices possible. II does not follow that
there will be many years ike 1899 The Won
derful prosperity Sof the country followed a long
period Of depression. when steel sold for the
cost Of production. The Carnegie company's
profits are not excessive when il is considered
for q minute that its profits represent about
half the profits accruing TO the steel trade as
whole. Mr.. Carnegie's company makes about
30 per cent Of the steel manufactured.
From 1893 10 1899 there was no money in the
steel business. Now we are back to fair aver
age price. At our works in Trenton we had a
furnace lying idle for five years, with fifty thou
sand tons Of pig iron stored near by. Our money
was tied up in that ore. Then came the pros
porous times. and We started the disused fur
mace and used up the ore. That's what we
bought the ore for-to use it ua at profit Why
should there be any wonderrhent at Mr. Car
negie'= profits at this time? He is making about
half a cent a pound his product. Fifteen
wears ago We were rolling beams and girders
for 81. cents a pound. Then the price went 10
cents. and after the Bessemer process came into
use the price went "a cents. or about one-hal1
The normal price for several years. The present
prices for steel are nearer normal than any we
have had for many years.
From reading the newspaper account OF the
srit begun by Mr.. Frick, I gather that one OF
Mr. Frick's grievances IS the fact that Mr. car
uegie secured from him a contract 20 sell him
(Nfr Carnegie) about fifty thousand tons OF coke
ar 81 30 a ton while now the same coke Is worth
double that ar Frck was glad TO sell that
coke rO Mr.. Carnegie year or Two ago W ny
ala h. enter into the contract II he didn't mean
TO keep it2 Nj Carnegie helped him out Just
when he most needed the money We are nlIlnS
orders for pig iron a 81 ton that We could
get $50 for If We were not under contract. nat
are contracts for If not 10 be uVed up 10. II Ihe
price of coke had gone down Mr. Frck would
nor have objected 10 Nj Carnegie $ sticking 10
~ terms Of the contract. Nj Carnegie has
alwavs had the reputation Of dealing with his
partners with consideration. and almost every
one not his partner has wanted 10 be.
why should there be any surprise al Mr. Car
uerie's profits Look at the size Of his works.