The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1901-05-12
A GOOD THING FOR LABOR
SChwab Says the Unions Are Hurt
full to Workingmen.
He is OPPOSED TO THE BABcocK BILL
Admits That the Steel Corporation Sells Its
Goods in Foreign Countries Cheaper Than
at Home in Order to Hold
the Markets.
the Markets.
(By the Associated Press.)


(By the Associated Press)
Washington, May 11.-Charles NJ
Schwab, President of the United States
Steel Corporation. was before the In
dustriaI Commission today. He said
that the United States Steel Company
controls eight companies by owning
their stock and that while steps are
taken to insure the good will and the
cooperation of all those companies,
each one generally is left to conduct
business in its own way. AS a rule the
plan had been to take in only companies
which were not competitors, but it was
true that there We're cases in which two
institutions of the same line were
brought together and in such cases the
managers We're expected 10 get together
in making thei rplans for sales.
Enumerating the advantages of con-
solidation. Mr.. Sehwab saiy they were
found especially in transportation and
management and in the utilization of
all the ores owned In this connection
Mr.. Schwab said that the United States
Company owns so per cent Of the iron
ore Of the country and he expressed
ne opinion that these ore deposits
must constantly grow in value be-
cause limited The company makes
from 65 per cent to rs per cent of the
steel products of the Northwest. He
also said that there had been no in
crease 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 eX-
pressed 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 largely, such,
for instance as tin plate, it would be
necessary either to reduce wages or lose
trade if the tariff We're removed. He
thought that except on the Pacific coast
the removal Of the tari ffwould not in
terfere with the production of steel
ails and billets.
Asked in detail for the plan of man
agement of the various companies com
bined in the Steel Company, Mr..
Schwab said it is the purpose of the
parent company to control the subsid.-
organizations in harmony ard that this
of the various concerns. There NAV
not be SO many names of influence on
the boards" he said, but the manage
ment Will be efficient"
Mr.. Schwab excused himself from
speaking concerning the details Of the |
organization of his company, once or
twice saying that questions concerning |
capitalization, premiums, etc, should be |
asked of Mr.. Morgan. II don't know |
the Steel Trust he said when some |
one so designated his company In 4 |
general way he would say that the COM |
pany is organized upon the same plan |
as the Federal Steel Company, but he |
did net consider the company oyercap- |
italized. He said the assets of each of |
the subsidiary companies had increased |
in value since their organization, and |
that the popular estimate did not place
a sufficient value upon the mines own |
ed by the company. He also stated |
in this connection that the company |
owns 10000 acres of Connellsville coking |
coal land and that in its iron mines |
there are 500, ,O00, 900 tons of ore in sight. |
He thought reasonable profit on this |
iron ore would be 50 a ton. Asked how |
long he thought these mines would be |
able to meet the demand Mr.. Schweb |
placed the limit on the iron ore at thirty |
years and on the coal at sixty Each |
of the constituent companies, he said, |
makes its own purchases and it's own |
sales In word, he said, the Unit |
ed States Steel Corporation is clear |
ing house to which it's constituent COM
panies go for information"
He admitted that the company sells |
many Of it's products at a lower price |
in foreign markets than at home, saying |
that this practice is followed to hold |
the markets
he witness discussed the relation of
the tariff to the steel industry at length,
but he said that upon the whole he
did not desire to have the tariff chang
ed in any respect, considering it entire
ly satisfactory as at present arranged.
Asker for his opinion as TO the effect
of the enactment of the Ba abcock bill |
taking the duty off of trust product ar.
ticles, Mr.. SchWab expressed opposition
to it. He did not consider as possible
an international iron and steel combi-
nation regardless of all tariff restric-
tions.
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 organization as in
the interest Of the laboring man himself |
He did hope, however, to 50 arrange mat