The Vermont watchman. [volume] (Montpelier, Vt.) 1883-1911, 1901-05-22
Mr.. Schwab and the Steel Traffic.

G. M. Schwab, president of the trust
known as The United States Steel Com
pany, was one Of the most interesting
witnesses yet heard by the industrial
commission sitting in Washington. He
was very frank and willing witness,
giving all the information that was
asked except a copy of the syndicate
agreement, which he thought was pri-
vate matter that he would not care 10
furnish at this time.
President Schwab said the new COM
pany controlled about seventy-fve per
cent of the steel products of the coun-
try, and expressed the opinion that the
consolidation under one head would be
beneficial all around. When asked what
effect it would have on prices, he re-
piled: 81 think the tendency will be
towards somewhat lower prices. 1 Go
not think there is a probability of high
er prices unless something unforeseen
happens"
Asked what effect the talk of the re-
moval OF the tariff on steel products
would have on his company, be replied:
"Reduce the tariff and the wages Of
labor will be reduced. Labor forms the
largest element. Our greatest exports
have been in rails and billets, wherein
labor is the least factor, comparatively,
and not in the lines upon which the
most labor is exerted."
AS to the effect of corporate consoli-
dation on the chances of men for en-
ployment, he said: Opportunities
were never so great before as they are
now for men of brain and energy who
are willing to work. There never was
80 great scarcity of the special men
who are required by manufacto-
ries. Men with such exceptional
abilities have chances equal to any
such men ever had. doubt, how
ever, if men with small capital have"
The average of wages paid by the Car
negie Co., at Homestead last year, he
said, was 81 a day. The lowest was
$3.50, but Mr.. Schwab said he was
ashamed to tell what the highest was.
Mr.. Schwab is one of thirty employees
of Mr.. Carnegie, taken from the ranks,
whose demonstrated skill and capacity
fer the varied requirements of steel
manufacturing marked them for 'cap-
tains of industry" and, finally, passing
successfully some supreme test, for
partners in the business. He is one of
thirty or more whom Carnegie has
made millionaires, and who are becom-
ing multi-millionaires.
The facts of Mr.. Carnegie's financial
history, the story Of Mr.. Schwab's rise
among the millions, and that OF bis
comrade millionaries, appears to contra
dict, in some important particulars, the
testimony before the industrial COM
mission. If there are such possibilities
for fortunes in the production iof ;steel
and it's manufactures as are exemplfied
in the instances of Mr.. Carnegie, Mr..
Schwab and their associates, to the eye
of the common mortal it is not clear why,
if the tariff on steel is reduced, "the
wages of labor will be reduced" A more
rational conse quence might be that Mr..
Schwab's wages might be reduced, and
the princely fortunes of the steel mag
mates might be somewhat shrunken,
and it is not probable that this possible
curtailment of their wages or profits
would entail hardships they might not
endure with serenity, without rendering
them objects of charity.
All the facts of this business, for some
years past, seem to sustain Representa-
tive Babcock's position in respect Of
the tariff, and the latter's proposition
to lower the duties in an industry that
Is no longer an infant, but giant Of
herculean strength, is in strict con-
formity with the theory of protection
when the protective principle was first
formulated and put into practical effect
The tariff was to be protecting barrier
behind which infant industries could
take refuge till they should grow tc
mems estate, and acquire the skill and
strength to defend themselves against
competition. 1t was not proposed, be-
yond this stage, to continue the tariff
as means of piling up herculean per
sonal fortunes in the possession o