New-York tribune., 1901-05-12

steel rams Wnoiis-
oppocFD To LABOR UNIONS.
~, the no,nt Of a reduction of the wage scale
Afr schwab came out strong and emphatic. He
aaclared that every well managed and success
ful manufacturing enterprise had learned by ex-
perience that the only safe business course was
pay TO labor every cent labor is worth. This
was the fixed policy of the Carnegie companies.
with which he had been connected so long. and
would be the policy OF the United States Steel
Corporation, because that was the only safe
business course. But he did not believe In what
he called labor aristocracy Later Mr.. Schwab
explained that by this term he meant labor
unions. There virtually no labor
unions in the Carnegie works and had not been
since the disastrous days of 1892. The wage
scale ever since then had been gradually rising.
and they had not been bothered by strikes He
started with the Carnegies as a laborer himself
and he had no theories the labor question.
Under the labor union system" declared Mr..
Schwab with passionate earnestness, "all MEM
bers are reduced to a dead level of equality. and
the wage scale largely is determined by the
worth and capability of the cheapest workman.
instead Of the most capable and highest priced.
This narrows opportunity. dulls ambition and
gives man a chance to rise"
OPPORTUNITIES FOR ABLE MEN.
Further along. while discussing this same sub
ject, Mr.. Schwab replied in response to ques-
tion as 10 whether or not the opportunity for
the man with small capital is as good it
before great consultations were formed:
II small capital Is all he has my answer is no
But do know that under the latter day system
OF consolidation the opportunity never was so
good for men of energy and brains. no matter
what their station or how humbly they start.
The big concerns in this country to-day on
the sharp lookout for men who master particu-
lar lines of business. and who thus become
specialists experts. Responsible positions and
high salaries await all such men in the employ
Of the United States Steel Corporation.
On the subject OF the capitalization OF the
United States Steel Corporation. Mr.. Schwab
declared that it was not too high. ''On the con-
trary," said he. my contention from the first
has been that in one important sense II is much
too low. BY this mean that If had my way
in listing the assets OF the United States Steel
Corporation / would put a much higher vaiua-
ton upon ore deposits thnn has been done
Why I'm the Northwest alone we own ore depos-
it's that will yield five hundred million tons At
the lowest average profit OF 81 10 ton this
means actual property asset of stupendous
value. Even at the present rate Of production
and consumption We will exhaust these deposits
in sixty years. And then where are We going 10
get other like it? In this field which is the
largest in the world. own so per cent OF the
ore deposits. The virtual exhaustion of the ore
deposits is now the great cause OF weakness
and foredOomed distress In the British steer
manufacture. Five years ago. in an address 10
the British Steel Association, / warned the
manufacturers OF England on this point Now
they turning 10 Spain and other uncertain
fields for their ore. In COAL too, that is such an
important factor. have decided advantage
over England We own sixty thousand acres OF
oa1e,
the best in the world for the manufacture OF
steel. and at our present rate OF consumption all
OF this kind Of coal will be exhausted In thirty
years"
TARIFF QUESTION DISCUSSED.
When Mr. Schwabs attention was called TO the
fact that at the last session OF Congress Rep
resentative BabcOck introduced a bill to abolish
the tariff on steel and iron. because of the for
nation OF the United States Steel Corporation.
he laughed again. THAT wouldn't do ANYBODY
any good" he said. Then he entered fully upon
discussion OF the tariff in it's relations 20 the
steel and iron industry. II was true. he said and
never had been denied, that American manu-
facturers sold their products In foreign markets
at lower prices than they obtained at home
But II was also true. though many people didn't
seem 10 know IL, that the expert trade is carried
on al a loss. This trade was encouraged only be-
cause IL Is sometimes necessary TO do business
at a loss in order to keep the works running
fun all the time. His company could stand a
reduced tariff, or no tariff at ALL much better
than labor could stand It, In point Of fact those
classes OF steel and iron manufactures In which
the cost OF labor is not a heavy item, such as
billets and rails. could get along now without
any tariff, but in the finer grades such as wire
where the cost of labor was the heaviest item
or production, the present tariff was necessary
IN order to give labor its adequate reward
summarizing under this head. Mr.. Schwab de-
clared that home tariffs help some, but that for
eign tariffs are what hurt the American manu-
faeturers- If only We could get into Germany
ana France duty free he said, with another
laugh, the worlds markets would be ours
FAvoRs SUBSIDY FOR SHIPPING
Another disadvantage under which the Amer
ican manufacturer labors. said MIR. Schwab. is
more TO transport ton OF steel and iron from,
Pittsburg to Europe than IL costs the owners
in Pittsburg to produce il. Therefore some
shipping subsidy policy badly needed in
this country. When asked il j. Pierpont Nor
gan's recent purchase of an English line of
steamers meant the growth OF the agitation
for ship subsidy legislation i'm this country Mr.
Schwab laughed again, did the commission
ers, and he said he did not know-they should
ask Mr.. Morgan about that
This closed Mr.. Schwabs examination thoueh
some of the commissioners expressed a desire
to put him on the stand again after luncheon
"Oh, please don't-please finish with me now"
he pleaded, "as / must get away from here
The commissioners then let him GO after Vice
Chairman Phillips had informed him that he
was entitled TO Sl.50 as witness fee and the cost
OF his railroad ticket from and to New-York
During the examination a local female suf-
requesting them TO ask Mr.. Schwab what was
the paid in his ernnlov