The Kootenai herald. [volume] (Kootenai, Idaho) 1891-1904, 1901-05-17
IN DEFENSE OF STEEL TRUST
sCHWAB BEFORE COMMISSION.
Thinks 1t Is Good Thing-His Compn-
ny Controls Eight Concerns-selIs
Products Mt Low Cost Abroad to
Hold the Markets.

Washington, May 13-Charles NJ
Schwab, president of the United States
steel combination stated before the indus
trial commission 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 CO.
operation of all these companies, each one
generally is left to conduct business in ITS
own way AS a rule the plan has 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 together in making their plans for
sales.
Enumerating the advantages of consoli-
da ton, 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 Steel COM
pany owns 80 per cent Of the iron ore OF
the country and he expressed the opinion
that these ore deposits must constantly
grow in value because limited. The com
pany makes from 50 to IS per cent of the
steel products of the country. 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 toward lower prices.
Discussing the tariff, Mr.. Schwab ex-
pressed the opinion that in articles of
manufacture in which labor aoes not en-
ter as an important factor, the tariff
might be removed, but that in products
into which labor enters largely, such as
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
let's Mr. Schwab took position against
organized labor, saying that it did MOI
, give individuals a fair chance in life.
!. Mr.. Schwab said it was the purpose o
Q the parent steel company to control thu
l. subsidiary organizations in harmony, bu
:. this was to be done by indicating the OF
/ ficers of the various concerns.
l. 'There may not be so many names o
:. influence on the boards" he said, but tn
d management will be efficient
Il Mr. Schwab excused himself tror
u speaking concerning the details OF the OF
e ganization of his company once or twice
saying that questions concerning capital
=. cations. premiums, ETC., should be aske
g of Mr. Morgan.
Lower Price Abroad.
N He admitted that the company sells
,e lower price abroad than at home in SON
lie products. The practice is followed
a. hold the markets, he said. The witne
s. discussed the relation of the tariff 10 II
ID steel industry at length, but he said thu
Il, on the whole the steel magnates did NJ
ee desire to have the tariff changed in an
r respect. considering it entirely satista
ID tory as at present arranged. Asked Il
ct his opinion as to the effect OF the enac
W ment of the Babcock bill, taking the du
y off trust made articles, Mr. Schwab
-, 80 pressed opposition to it. He did not co
va slider as possible an international noi 81
- steel combination regardless OF all tar
# restrictions.
oo Relation of Capital to Labor.
VS. Discussing the relation OF capital to 4
"a Dor he said that while he would not Il
dertake to outline the future policy OF
steel corporation, he did not indorse t
policy of the labor organization as IN
to interest of the labOring men. lie
De- hone. however, to arrange matters IN
re- operatives could share IN the pron'S
III the enterprise.
err
by Kitchener's Report.
ely London, May l3-Lord Kitchener
ter ports to the war Office, under date oil I
i'm -: 90 fo1lou.s. "Since Nav 2S BO