Daily press. [volume] (Newport News, Va.) 1896-current, 1908-12-16
'SCHWAb D|SACREES
WITH CARNEGIE
Tells Tariff Revision Committee That
He Opposes Reduction in
Rates on Steel.
PREDICTS CHANGES IN |NDU.TRY
Steel Magnate Is Sharply Questioned
Concerning Letter Admitting
Consumers Favor Maintenance OF
Present Prices In Structural S.eel.
CBy Associated Pres3.)


Dtsasr.riI.p with the published Vi, VS.
Il Andrew Carnegie with regard 10
the steel schedule cf tn" tariff Charles
VI. Schwab. former pres ia nj Ci III"
United Stalt; Steel Corporation. gave
testimony today al thu. tariff hearing.
Viii. h. prac,l"ally admitted that
the condition: which existed mir"
years ago would have permitted a re-
,;uctiOn in m" stt"! schedule at ma
TIM" he said that III" cost of every
item entering into tn. manhIic.ui"
Oi steel rails had lnrr"a:' 10 s1ch
an ,XIe,t hist tire present conjiti"AS
aust t., charged 10 permit OF far!h
""dnctiOn -,
In tive years the re- Will not h. a
Z, ssemcr st"e! converting works left
in the United States. Mr.. S>hwa5
predicted The Bcis"mer sjeel wi
BE- CT 10 use: tn" same is tr"" OF
structural steel. a well IS rails. They
will all be made b. the open hearth
process of manufacture. Costly
changes in the construction Ct the
plants will be n ce.;aarv 10 max" the
improvements in he method OF man
ufacture'
Soon Another Chance.
Mr.. Schwah declared that within
ten years the open hearth" process
wcY!d be sup' rseded ty the electric
system Of manufacture which was
being developed in Germany.
These changes in the process OF
manufacture increases the quality OF
irhe Steel" he confines. "h"t they
also slightly increase the cost OF pro-
Guction.''
Mr.. Schwab sid he was no ~ IA
vOr OF any chang" in the tariff on
steel a-I steel I-od 'cts.
"A moderate cnanee void not
make a naterial difference" he said.
hut a radical charge might do dam
age" He added that me tariff can
be taken off iron or" without affecting
he value Of the McSsaba ore OF the
country.
II, stated that the Bessemsr Steel
Company OF which he is president i'm
ports all OF is iron ore from Cuba.
SchHah Is Evasive.
Chairman Payne OF the committee
began a cross fire of Quosti0rs J."
Gstirg Mr. Schwab about i iett"-
which had been referred to by a Pr
vious witness
This l"ttcr was written by VI.
Schwah to Henry c. Frick on Nav
IL 1899 and stated that rats were
being made for less than So tor
or nearly 81 less than the cost n
England.
In the letter Schwab predicted that
the earn. Cia Steel Company. Cf which
~
ne then was president. Won d Nc 2hh
to increase its net earnings 20 So
Geo GOA a month. and said it cOu'd sell
all of its surplus production ahr"ar
At A rrotit nearly equal 10 the profit
on domestic sales.
NJ Schwab -tated that in G"rm1n'
he cost Of producing iron IS FROM
50 20 10 s12 a ton: while the cost Of
conversion into steel is about III"
same as in this country.
TIL" cost Of manufacture in Eng
lard !. little '.ss THIN i Germany
IF the tariff on steel Should h"
cCrei 'Crab'v reduced" asked Nr. Hill
Of Connecticut. would III" st"Cl has
mess l" seriously Affected?
Conditions Must be Eqvai.
If cood:ti,rs are equal v" CT
make steel rai'S - cheap - the"
can hc mad" ANYWHERE. r"C'i"d Nr
;-hwah. The cos; Of manufacturing
steel drD'rds On tRC cor !itior@. tn
cot Of tho Ta;cri,i in n" grCu""
ard COST Of labor. II tn, 81 cNrdi ioTS
arc he sar-c &C elsewhere. y" do1'
need tn t-r'N INT II ~" COS "
:ranspCrtai'on cr laho- or som"ihin:
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