The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1901-05-14

washington, May u.-CnarleS M
Schwab, president of the United States
Steel Corporation was before the indus
rtial commission today. He said that |
the United States Steel Company con- |
trolls eight companies by owning their |
stock. and that while steps are taken |
to insure the good will and the cooper |
alton of all these companies, each one
generally is left to conduct business in
it's own way. AS a rule the plan had
been to take in only companies which
We're not competitors, but it was true
that there were cases in which two in
stitutions of the same line were brought
together, and in such cases the man
ayers We're expected to get together in
making their plans for sale.
Enumerating the advantages of con-
soldation Mr.. Schwab said they were
found especially in transportation and
management and in the Utilization of
all theories owned. In this connec-
ton Mr. Schwab said that the United
States Corporation owns so per cent
of the ore of the country and he ex-
pressed the opinion that these ore de-
posits must constantly grow in value
because limited. The company makes
| from 65 to rs per cent. of the steel pro-
| ducts of the northwest. He also said
| that there had been no increase in the
price of products since the organization
of the United States Company; that the
| tendency is toward lower prices.
Discussing the tariff, Mr.. Schwab
| expressed the opinion that in articles
| Of manufacture in which labor does
not enter as an important factor, the
! tariff might be removed, but that in
| products into which labor enters large
| ly, such. for instance, as tin plate, it
| would be necessary either to reduce
! wages or lose trade if the tariff were
removed. He thought that except on
! the Pacific coast the removal of the
| tariff would not interfere with the pro-
| duction of steel rails and biIlets.
| Asked in detail for the plan of man
agement of the various companies
combined in the steel company, Mr..
Schwab said it is the purpose Of the
parent company to control the SUBJ
| sidiary organizations in harmony.
He said the assets Of each of the
subsidiary companies had increased in
value since their organization and that
| sufficient value upon the mines owned
by the company.
He said that the company OWNS 60 600
| acres Of Connellsville coking coal
land. and that in it's iron mines there
are 500, 100000 tons of ore in sight He
thought reasonable profit on this
iron ore would be 81 a ton.
Asked how long he thought these
mines would be able to meet the de-
mand, Mr.. Schwab placed the limit on
the iron ore at thirty years and on the
coal at sixty. Each of the constituent
companies, he said makes it's own pur-
chases and it's own sales. "In a word
he said, 1.-The United States Steel Cor
poration is a clearing house to which
its constituent companies go for in
formation
He admitted that the company sells
in foreign markets than at home, say
ing that this practice is followed to
hold the markets.
The witness discussed the relation Of
the tariffn to the steel industry at
length, but he said that. upon the whole,
he did not desire to have the tariff
changed in any respect. considering
it entirely satisfactory as at present
| arranged.
Asked for his opinion as to the effect
Of the enactment Of the Babcock bill,
taking the duty off the trust produced
articles. Mr.. Schwab expressed oppo-
sition to it. He did not consider as
possible an international iron and
steel combination regardless Of all tar
iff restrictions.
Discussing the relation OF capital
TO labor he said that while he would
not undertake to outline the future
policy OF the Steel Corporation. he did
not endorse the policy Of labor organ
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