The Washington times., 1908-12-15
CHARLES SCHWAB
IS STAR WITNESS
President of Steel Company
Appears Before Ways and
Means Committee.

CHARLES NJ. Schwab, president OF the
Bethlehem Steel Company, took the
oath today TO tell the WAYS and Means
Committee Of the House the truth about
the steel business. He is about the
star witness Of all the galaxy that has
paraded before the committee and he
was accordingly given close attention.
Congressman DaIzeT left the platform
and went over into the crowd TO give
Schwab a friendly greeting.
Chairman Payne said TO Schwab, when
the latter had taken the oath: The
committee wants TO know a number of
things you know Would you prefer
that we ask questions or that you first
make a statement"
I have nothing to ask and nothing to
state"
What is your business asked Chair
man Payne.
I am with tine Bethlehem Steel Com
pany"
In what capacity?'
I am unfortunately a stockholder as
well as president"
Are, you connected with the United
States Steel Corporation" p"
No. except as stOckhOlder."
Letter From Frick.
Chairman Payne then read to Schwa6
= letter written by the latter TO Fl. c.
trick. May 10 1899 i'm which he said
that they could make rails at Pittsburg
for less than S12 ton The letter
stated that the cost in England was Sl9
> ton We can sell at this price
abroad and 10 nearly as good advantage
as We get from the hoHe price We
are going to control the steel business
of the world"
Was that true" asked Chairman
Payne.
Yes, at that time" answered Schwab.
! may explain that 1 was young and
enthusiastic at that time That was
an optomiStic day The point of view
was that OF the manufacturing depart
menL The Sl2 was the mill cost and
none OF the general charges, interests
Nr depreciation were included The
English cost did include those charges.
Inc letter was written at Mr.. FriCk'S
solicitation at a time when we were
anxious 10 sell The cost of iron ore
Al PittsbuvE al that time was $40 a
ION Tie cost of pig iron was $S.25 and
The cost OF converting zig iron into rails
was $5.t5, which makes the Si2 per ton
Tor rails. Everything IN the steel bust
ness was then at the lowest basis. We
could get plenty OF men at 81 20 SI25
day, ana one OF them would do the
work that two men do in these days.
Freight rates were One-third less than
iAeE are today
TEL US in the same detail. the cost
today said Representative DalzeL
Are YOU going 10 be optimistic or
IcSSlWlS-iC now asked Representative
Ransdel Of Texas
Cost of Pig Iron.
81 VIII let you be the judge OF that,
said Schwab.
Then Schwab gave in detail figures
10 show that the cost Of a ton OF ore
iE Pittsburg now IS SAO5. and the cost
of ton of pig iron, including the ore,
Is bout SIA
Many mills had shut down this yea-.
he said. because the owners could not
sell pig iron at S14 The present cost
%. converting pig iron into rails is s.. 80
Il ton, SChWab said. making The present
cost of rails S2l-50 ton.
Representative Underwood Of Alal9
ma, remarked upon the necessity Of the
committee getting exact facts TN
give You the facts. replied SchWab
quickly, and YOU can do what you like
with the tariff"
Is Good Witness.
Mr. Schwab made such an excellent
witness for himself that even Bourke
Cochran. VINO occupied the major por-
tion Of the morning session in question
ing him. was unable to get down to
bedrock Oh some vital questions per-
tanning to the finances in the organf-
zation Of the Steel trust.
When Chairman Payne announced at
noon that the committee would take
a recess until o'clock Mr.. Schvab
pIotesIeo mat ne could not remain FOR
further examination. Mr.. Payne. how
ever, who is somewhat deaf. did not
hear the protests Of the steel manuf,c-
theT' ana he ordered him 10 appear this /