The Savannah morning news., 1901-05-12
PRESIDENT OF BIG STEEL TRUST
ON THE STAND.
HE TALKS OF COMBINATION.
THINKS 1T A GOOD THING FOR La
BOR AND CAPITAL.

Such Corporations and Had Best
Let Labor Organizations Alone.
Washington, May L.-Chares NJ.
Schwab, president of the United States
Steel Corporation, was before the Indus
trial Commission to-day. He said that the
United States Company controls eight
companies by owning their stock. And
that while steps are taken to insure the
good will and the cooperation of all these
companies, each one generally is left to
conduct business In it's own way. AS
rule the plan had 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
were brought together and in such cases
the managers were expected to get to-
gether in making their plans for sales.
Enumerating the advantages of consol-
idation Mr.. Schwab said they were found
especially In transportation and manage
ment 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 the opin-
ion that these ore deposits must constant
ly grow in value because limited. The
company makes from 65 to rs per cent.
of the steel products 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, and that the tendency is to-
ward 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. for
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.
How Companies Are Controlled.
Asked in detail for the plan OF manage
ment of the various companies combined
in the steel company. Mr.. Schwab said
it is the purpose of the parent company
to control the subsidiary organizations in
harmony and that this is to be done by
the officers of the various con-
Germs.
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
ganzation of his company once or twice
saying that questions concerning capitali-
cation, premiums etc, should be asked
of Mr.. Morgan.
He Knows no steel Trust.
II don't know the steel trust" he said,
when some one so designated his company.
In a general way he would say that
the company is organized upon the same
plan as the Federal Steel Company, but
he did not consider the company over
capitalized. 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 suf-
fcient value upon the mines owned by the
company. He also stated in this connec-
tion that the company owns 10000 acres of
co<ing coal land and that in
its iron mines there are 10000 900 tons of
ore in sight. He thought a reasona BILE
profit on this iron ore would be 81 a ton
Asked how long he thought these mines
would be able to meet the demand, Mr.
Schwab placed the limit on the iron ore
at thirty years, and on the coal al sixty.
Each of the constituent companies, he
said, makes Its own purchases and its
own sales.
"In word" he said. the United States
Steel Corporation is a clearing house to
which its constituent companies will go
for information"
He admitted that the company sells |
many of its products at lower price in |
foreign markets than at home saying |
that this practice is followed to hold the |
markets.
He Likes the Tariff as II L..
The 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 In any respect |
changed, considering IL 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 |
1ff OF trust-produced articles, Mr.. |
5chwab expressed opposition to It. He did |
not consider as possible an Internal tional |
ron and steel combination regardless OF |
All tariff restrictions.
Discussing the relation OF capital to la
Dor, he said that while he would not un-
dertake to outline the future policy OF |
the steel corporation, he did not indorse
the policy Of labor organization as in the
Interest OF the laborlng man himself lie
sd, however, hope TO so arrange matters
hat operators could share In the profits
1f the enterprise. Instead OF being a derti-
ment. he considered the big corporations
as affordlng the best openings for labor
and enterprise.
Opportunities for Brains.
There were never such opportunities
Tor brains as to-day" he said. "If were
a laborng man, as / once was, / should
not want 10 belong to labor organlza-
lion II employed by properly managed
corporation like the steel company FOR
would not want 20 be put on a level
with the poorest workmen IN the estab-
ishment. The tendency Is to give the
highest possible price for proper service.
and no member Of a labor organization
" IN position TO avail himself Of such
disposition"
He said that the average wages paid
low by the steel companies is higher
han previous TO 1892. The question was
,ot one OF wages, but Of the management
u business, with which the labor unions
wanted 10 interfere.
Mr.. Schwab expressed himself as oppos-
ID 10 the publicity OF the accounts OF cor
,orations and said he had no legislation