Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1908-12-22
Labor Cost of Ton Of Steel
Than Abroad.
ANSWER MADE TO JUDGE
There Are No Small Steel Mills Ex-
eept Makers of Speeialties.
FIGURES GIVEN NOT ACCURATE
Estimates Of Cost by Head of steel
Corporasisa, he Says, Are
Those Of Parties Directly
IntereHted.

q point where it does not need protection
but can stand al ne in competition with the
world. was the feature Of the testimony
today Of andrew Carnegie before the house
committee on ways and means, which is
securing evidence designed to assist It in
he preparation OF a new tariff bill
Mr.. Carnegie was subposnaed as a wit
ness and began his testimony early in the
mornings session and VIII not. il is eX-
pected. conclude until later in the afternoon
The laird Of stibo castle had primed him
self for the ordeal Of the rigid questioning
which he was to undergo and he kept the
committee and the audience in constant
laughter by his ready retorts and his wit
He would not deal in figures. claiming
that the more that figures were used the
more the subject would become ''befogged.
Mr.. Carnegie IN the course OF his answers
Characterised Mr.. sehwsb as a genius and
Mr.. Gary as a most lovAble man. but a
very shrewd one. He expressed the opinion
that wages would not be reduced IL the
tariff were lowered or removed entirely.
He was utterly opposed 20 any income tax,
believing. as he said. with Mr.. Gladstone.
that such a tax produced nation Of nars.
He and schwab '.Greas Team"
PrAising the genius OF Charles NJ.
Schwab. Mr.. Carnegie suggested that con-
gress should extend q vote of thanks to
HIr. Schwab for his work IN fmproving the
methods Of steel making in this country.
Il never met his equal" said Mr.. Carne-
gle. in speaking of Mr.. Schwab, and
when we were partners we were a great
team"
That is very apparent" remarked Chair
many Payne.
Speaking OF the testimony Of Judge Gary
before the committee, Mr.. Carnegie said:
You should not place any real value on
the testimony of interested parties. Judge
Gary said the United States Steel corpora
iion eoulee stand fpr rsdnction IN the
tariff on steel bot that the smaller steel
manufacturers could not survive with low
ered dusfea- That rs IKE one OF Aesop's
fables- Judge Gary is like the monkey
who desired the chestnuts. but wanted the
cat TO pull them cut Of the fire
Mr.. Carnegie was not willing to deal in
figures The more figures you get, the
more YOU win be befogged- do not Judge by
figures given by interested parties" he
said at another point In his testimony. y
judge by results"
The former steel magnate said that Judge
Gary had issued an annual statement show
ing the United States Steel corporation had
made a profit OF s15sooa0Oa which. he said.
equalled a profit Of sl5.5O q ton on all
steel produced
Mr.. Carnegie avoided direct replies to
questions az 10 whether the cost Of pro
ducing steel at the present time, as given
by Judge Gary and Mr.. Sehwab. was cor
rect M schwab's estimate Of the pres
ent cost is based on entirely different ideas
than his estimate on the cost in 1889" was
an that Mr.. Carnegie would say
Replying TO a question from Mr.. Cochran.
Mr. Carnegie declared that the removal of
the duty on steel would not necessarily af-
feet The prices because Europe could not
successfully compete with the American
product He also said if the figures given
by former witnesses were absolutely cor
rect. steel stock would be selling below
parity.
Mr.. Carnegie spoke of the difficulties he
experienced with directors ignorant Of the
steel business gradually bought then
out and got men like Schxab around me-
and we made the cheapest steel that has
ever been made
The Iaterested JudEe.
You've been out OF steel some time.
said Mr.. Psyne. Can you tel US wher,
we car set the figures on the present cos.
Of making steel =
i don't kaow whether you can get tn,
figures was the reply. ''If Judge wal
interested in a case you would not respec
hts decision. would youg' he asked. refer
ring 10 the steel manufacturers who hSv,
appeared before the committee
There was no reply 10 Mr.. Csrnegie'i
Qas9tion.
Silence IN the court room. he lauEhinKl,
remarked ''Its too bad I have TO suhrus
10 be enoss-sKsmined and can't get ehane,
TO cr0ss-eKAmine these dignitsries.
Mr.. Carnegie asserted that at the rat.
at which iron orea are being extrActet
the supply would be exhausted in fort,
years He based his statement on the bes
expert opinion he could obtain. he sa3d
He Hlso said that England would be in IN,
same condition In seven years.
The testimony Of Judge Gary was fre
qusntly referred 10 IN the questions asks.
OF Ar. Carnegie. Reference was mad.
particularly 10 a statement that the dut,
on steeS could b. taken off as far as tn,
steel corporation Is concerned and Mr.. Car
neEie said this position should be aooeptst
by the committee An argument was pre-
cipltated BY this statement between Messrs
Payne and DalEeu on one side. elaiuins
that Judge Gary did not say the duty
could be removed on all steel products
and Mr.. COclIrAn on the other hand. claim,
ihs thar Judge osry's testimony was !,
that effect
EuroDe Cannot Compete.
J1dge Gary has summarized the fact,
FOR YOU said Mr. Carnegie. '-and shoult
depend on them He has told you tina.
they don't need the duty, II the cost o
steel rails has Increased abroad As q Ia
increased here you win find Judge Gary
statement quite true. and that he oOul.
stand free trade"
Judge Gary had testified that the prio,
a. as high abroad said Chairman Payne
Then does not that show that yea har,
nothing 70 fear from free tracer vas IN,
pronpt rejoinder.
Mr. CArnegie EaE questioned az lsngtl
EegAn1ing ths cost q prOdoeing steel bu