Pullman herald. [volume] (Pullman, W.T. [Wash.]) 1888-1989, 1901-05-18
IN DEFENSE OF STEEL TRUST
sCHWAB BEFORE COMMISSION.
Thinks IL Is Good Thing-His Comma
ny Controls Eight Concerns-seIls
Products ut Low Cost Abroad IN
Hold the Markets,

Washington, May l3.-Charles NJ
Sehwab, president of the United State,
steel combination stated before the indus-
trial commission that the United STATES
Steel company controls eight companies bv
owning their stock, and that while stems
are taken to insure the good will and CO.
operation of all these companies, each one
generally is left to conduct business in ITS
own way. As rule the plan has been to
take in only companies which were not
competitors, but it was true that there
were cases in which two institutions of the
same line We're brought together. and in
such cases the managers were expected to
get together in making their plans for
sales.
Enumerating the advantages of consol-
dauon, MIR. Schwab said they were found
especially in transportation and manage,
ment and in the utilization of all the ores
owned In this connection MIR. Schwab
said that the United States Steel com.
pany owns 80 per cent of the iron ore of
the country and he expressed the opinion
that these ore deposits must constantly
grow in value because limited. The COM
pany makes from 20 to 10 per cent of the
steel products of the country. He also
said that there had been no increase in the
price of products since the organization of
the United States company and that the
tendency is toward lower prices
Discussing the tariff, Mr.. Schwab ex-
pressed the opinion that in articles Of
manufacture in which labor does not en-
ter as an important factor, the tariff
might be removed, but that in products
into which labor enters largely, such as
instance, as tin plate, it would be neces-
sary either to reduce wages or lose trade
if the tariff were removed. He thought
that except on the Pacific coast the re-
moval of the tariff would not interfere
with the production of steel rails and bill
lets. Mr.. Schwab took position against
organized labor, saying that it did not
give individuals a fair chance in life.
Mr. Schwab said it was the purpose of
the parent steel company to control the
subsidiary organizations in harmony, but
this was to be done by indicating the of
ficers of the various concerns.
"There may not be so many names of
influence on the boards" he said, "but the
management will be efficient"
Mr. Schwab excused himself from
speaking concerning the details of the or
ganization Of his company once or twice,
saying that questions concerning capitali-
cations, premiums, etc., should be asked
of Mr.. Morgan.
Relation of Capital to Labor.
Discussing the relation of capital to IA
Dor he said that while he would not UNI
dertake to outline the future policy of the
steel corporation, he did not indorse the
policy of the labor organization as in the
interest of the laboring men. He did
hope, however, to arrange matters that
operatives could share in the profits of
the enterprise.
Lower Price Abroad.
He admitted that the company sells at
a lower price abroad than at home in some
products. The practice is followed to
hold the markets, he said. The witness
discussed the relation of the tariff to the
steel industry at length, but he said that
on the whole the steel magnates did not
desire to have the tariff changed in any
respect, considering it entirely satisfac-
tory as at present arranged. Asked for
his opinion as to the effect OF the enact
ment of the Babcock bill, taking the duty
off trust made articles, MIR. Schwab ex-
pressed opposition to it. He did not con-
slider as possible an international iron and
steel combination regardless of all tariff
restrictions.