New-York tribune., 1908-12-19
FATORS PUBLICITY And
GOVERNMENT CONTROL.
Sous Steel Corporation Can Take
Care of Itself, but It's Com peti-
tors Need Protection.
From The Tribune Bureau. !


Tn6re E H. Gary. chairman of the board of
s.-s,,ors cf the United States Steel Corpora
80, n me tariff hearing before the House
,.-s,,s and Means Committee to-day.
This Is radical he added. but remember
.A..1-sr, not speaking for the steel corporation
in saying this
.rzot government ownership" he said fur
49, but government regulation. or some
rs-rison and control Of corporations which will
sste-uline where real protection leaves off and
,he opportunity to Cypress begins
Jp6re Gary said that the competitors Of the
...sr corporation needed protection. but the
.,-,o-ation could take care Of itself
-Srn7ose this committee were TO wipe out the
,..sl 5sry entirely. the United States Steel Cor
-ustion would still survive?~ inquired Repre-
,s-5,-e Champ Clark of Missouri
= cannot say" replied Judge Gary. but am
:. she ir7pression that If did would have
(, monopoly Of the market in this country /
don't think We could make reasonable and fair
,-r6, + the tariff is put that basis"
The tremendous advantage the United States
c.sel CORPORATION has over all independent man
-ssc-u-ers was clearly illustrated by Judge
Cary when he said that the corporation can
-c5uce pig iron. the principal constituent Of all
steel products, for 81 ton less than any other
COMPANY
~ his testimony Of more than five hours did he
.bov the slightest impatience. although many
,,inre5 questions were asked him. He advised
orssrs- any reduction Of the duty steel
l-on. and in supporting this advice showed from
ths books Of his corporation that steel rails.
utich sell for S2s. cost SD 81 to produce He
argued that the same rails would cost the in
dependent companies about 81 more. so that
-bev could make little profit If the tariff were
materially reduced and foreign competition be
came strong In answer TO a question by Mr.
Clark Judge Gary said that all companies ex-
cspt the steel corporation would have Ito go out
Of the business If the tariff should be materi-
sny reduced He said that if the corporation
raised the price Of rails to $50 a ton the inde-
rendert companies would not dare to under
sell Il
Mr. CARNEGIE TO APPEAR MONDAY.
s-6reu- Carnegie 5s to appear before the com
-nit1ee IN Monday.
Judge Gary said that Mr.. schwab. in his testi-
monv before the committee on Tuesday had not
il his estimate figured enough for depreciation
Of the cost Of pig iron Judge Gary placed the
cost Of producing pig iron at from S14 40 to SO
ten as. compared TO S14. the figure given by Mr-
schvah
REPRESENTATIVE Underwood asked the witness
II ne agreed with Mr. Schwab who testified that
country and England is about the same. and
that the increased cost Of labor in this country
Is due % increased efficiency and improved
methods abroad
This Is probably correct in regard TO pig iron,
but II Is not so Of other steel products" he re
pied
The witness gave many facts concerning the
Eteel corporation saying that it owns stock in
various corporations which manufacture iron
and great many different kinds of steel, and in
companies which mine ore and engage in coal
mining and coke making. The United States
steel Corporation also owns shares Of the stock
o. various rail and lake transportation com
psnies. he said
He said that the corporation manufactures an
rUaIly 100000 TO 100000 tons Of pig iron
snd the same quantity OF finished steel, includ-
ing steel rails structural steel. steel wire and
wire products, such as nails, fence and piano
wire. tubes and tin plate
What percentage OF the iron production is
turned out by your company asked Chairman
PAYNE
Last year Al per cent of all"
How much in 1902"
A little less"
Chairman Payne said he did not think the
Present condition of business in this country
could BE- taken as a just basis which 10 de-
ts-rnine revision Of the tariff and asked Judge
Gary Il he could give the figures for 1906 The
witness agreed 20 send the figures for that year
% the committed
Would you be averse TO our securing the fig
ures that you originally furnished TO the bureau
OF corporations as confidential information?"
asked Mr. Payne
= would be willing that the committee should
have these data for its own information re
Piled Judge Gary.
Chairman Payne said he could not promise
that the newspaper men would not get hold of
the figures and publish them. members Of
the committee were OF the opinion that the pub
IL should have the benefit Of all the information
Presented TO the committee.
Wei" said Judge Gary. 7 VIII answer in the
negative; We are not averse 20 the committee
having those figures
Mr. Payne told the witness that he would have
an opportunity revise the figures after they
obtained from the bureau OF corporations
and inserted in the record OF the proceedings.
Judge Carr. having given the committee the
items entering into the cost Of producing pig
irca, was asked by Mr.. Payne 10 give the cost Of
manufacturing steel rails. He gave the follow
ing figures for rail making by the Bessener
Process.
COST OF STEEL RAILS,
The manufacturing cost Of pig iron for one
ten u steel rails SIS 05, for the cost Of convert
ing pig iron into ireots. 50 IS: the cost OF con-
verting ingots into rails. g -. for depreciation
81 cents. for administration and taxes, 81 cents.
naaklnz total of s22 - as the cost Of producing
cle tor Of steel rails
5udgc Carr sfs ,l7at This cost is less than that