The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1901-05-12
SCHNAB On THE STAND
HEAD OF THE STEEL TRUST a
WITNESS BEFORE INDUSTRIAL
COMMISSION
CLERK BREAKS INTO JAIL
TRIED TO SELL OFFICIAL CORRE-
SPONDENCE ANENT THE
NEELY CASE
HOME COMING OF VOLUNTEERS

WASHINGTON, May IL Charles M.
Schwab, president of the United States
Steel corporation, was before the Indus
trial committee today. He said the Unit
ed States Steel corporation con-
trolls 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 lett to
conduct business in its own way. AS
rule the plan had been to take III only
companies which were not competitors,
Dut 1t was true that there were cases IN
winch 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 consoli-
oatlon, Mr.. Schwab said they were found
especially in transportation and man
agement and in the utilization of all ores
owned. In this connection Mr. Schwab
said that the United States comDanv
owned so per cent of the iron ore country
OF the Northwest, and he expected that
these deposits must constantly grow
In value because limited The COMPANY
makes from 65 to Is per cent of the steel
products of the country. lie also said
that there had been no increase in the
price OF products since the organization
OF the United States company AMI 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 labors enters largely, such
LOT instance as tin plate, it would be
necessary either to reduce wages or to
fRlF 9
lie thought that except on the Facific
the removal of the tariff would not in
terIere with the production of steel rails
ana billets- Mr.. SchWab took position
against organized labor, saying that it
did not give individuals a fair chance
In life
HOW THE TRUST WORKS.
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 com
pany TO control the subsidiary organiza-
tons in harmony, but this is to be Goae
by indicating the officers of the variol s
concerns. There may not be so MANY
names of Influences on the boards he
said, "but the manageman will be ef-
icent''
Mr.. schwao said that questions con-
cerning capitalization premiums etc
know the steel trust" he said, when
some ono so designated his company in
general way he said the company is
organized upon the same plan as the FED
eral steel company, but he did not con-
slider the company oVercapitaliZed 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 owned by the company
He also stated in this connection that the
company owns $1,000 acres of Connells-
vile coking coal land and that in its
iron mines there are 5CU,GO0 O)0 tons OF
ore in sight. lie thought a reasonable
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 at six
ty- 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 clear
Ing house to which its constituent COM
panies go for information. He admitted
that the company sells many of it's prcd-
ucts at lower price in foreign markets
than at home. saying that this practice
IS followed to hold the markets
TARIFF ALL RIGHT.
Mr.. Schwab said he did not desire to
have the tariff changed in any respect
considering it entirely satisfactory as at
present arranged. Asked for his opin-
ion as to the effect of the enactment OF
the Babcock bill taking the duty off
tTust-produced articl, S, Mr. ScAwab ex-
pressed oppositioR to It, He did NOT
consider as possible an Internal onal i-on
and steel combine regardless of all tariff
restrictions
Discussing the relation of capital to
To- l.a rsT4e4
undertake to outline the future policy
of the company, he did not indorse the
policy Of the labor organization as in
the interest Of the laboring man him
self. He did hope, however, to so ar
range matters that operatives couId
share in the profit of the enterprise. In
stead OF being detriment, he consid-
cred the big corporations as affordine
the best openings for labor and enter
prise. There were never such opportuni-
ties for brains as today" he said. 'If
were a laboring man. as once was. 4
should not want to belong to a labor
organization if employed by a properly
managed corporation like the steel com
pahy' Tor l would not want to be put
on level with the poorer worknen in
the establishment The tendency is to
give the highest possible price for prom
er services, and no member of a labor
organization is in a position to avail him
self of such disposition"
WAGES ADVANCING.
He said the average Of wages paid now
by the steel companies is higher than
previous to 1892. The question was not
one Of wages, but OF the management or
business with which the labor unions
wanted to interfere. Mr.. Schwab ay-
pressed himself as opposed to the pub-
icity Of the accounts of corporations.
and said he had no legislation to suggest
Tor the regulation of corporations. In
conclusion, Mr. Schwab said he could
see nothing but good to result from bust
ness combinations. He considered them
Of value both to the investor and to
labor and thought they were calculated
to extend business.
Mr.. Isaac l.. Rice, president Of the
Rubber Tire company, was heard at the
e1te.Ao session concerning the methods
OF the organization of that and other
companies with which he is connected.
Mr Rice deals with patented articles.
and said that when he found an accepta-
Die invention he floated 1t by bringing
IL TO the attention of his captalistic
friends heading the subscription himself.
he expressed the opinion that the in
Ventlon of the rubber tire had added
vastly to the manufacture OF carriages.
CLERK IN TROUBLE.
An attempt-to sell the confidential COM
munications between the attorney general