Los Angeles herald., 1908-12-19
STEEL MAGNATE
GIVES VIEWS ON
TARIFF CHANGES
tcontinued from Page one,

| Dack the price OF steer rams ii''9
$2S a ton?"
"The price was fixed in 1899 at con-
ference of steel manufacturers ana
with the advice of possibly a few rail-
road commissioners as to what would
be a fair price for rails. Since that
time the steel manufacturers have ad-
hered to that price, and / doubt II any
would change it without notifying the
others. They have no agreement ana
do not have any meetings.
isn't it true that you have such a
control that if you fixed the price none
of the Independent manufacturers
would dare to set a price below yoursTY
asked Mr.. Clark.
That may be true as far as steel
rails are concerned" replied Judge
Gary, but qualified his answer by say
ing he did not mean that the steel cor
poration had a hold on the industry,
but that the independents recognized
the advisability of maintaining one
price.
Suppose the United States Steel cor
poration put the price up to $50 a ton,
do you think there is an independent
manufacturer who would not put his
price up to $50 ton because you had
marked yours up?"
Il can't say" was the reply, Except
that 1 think they would mark the price
up"
Admits Its Power
Judge Gary admitted the steel cor
poration could drive the independents
out of business in a competition be-
cause the steel corporation combination
produce rails cheaper than the inde-
pendents.
Judge Gary said the steel corporation
could not survive in the tin plate IN
dustry without a tariff, possibly less
than the present duty on this article.
Representative Clark wanted to know
how much profit the United States
Steel corporation is making. Judge
Gary said that the interest paid out
amounted to $1SO,711,00O; the dividend
paid out 1852, 354 500; that q surplus OF
S97, ,645, 900 has been accumulated and
that $163 $4,000 has been paid out for
construction.
He said that the total profits on the
capitalization Appropriated S-1O per
cent. The United States Steel corpora
ton, according to Judge Gary IS capt
talized at $3.50. .2S1, 100 in preferred stock
and S50S, 302 500 in common stock, and
the bonds of the corporation amount to
$3.50. .199. 900, on which the rate of in
terest is 8 per cent.
Cost of Pig Iron
Representative Underwood asked
Judge Gary II he agreed WITH MI !.
Schwab. who testified that the cost of
labor In a ton of pig iron in this coun-
try and England is about the same and
that the increased cost of labor in this
country is due to increased et1c1ency
and improved methods.
This probably is correct in regard to
the pig iron, but it is not so of other
steel products" he replied.
1.-THE corporation manufactures an
nually ten to eleven millions of tons OF
pig iron and the same quantity of
finished street. including steel rails,
structural STEEL steel wire and wire
products, such as nails, fence and piano
wire. tubes and tin plate" witness said.
What percentage of the iron produc !.
tion Is turned out by your company!
asked Chairman Payne.
Last year All per cent Of all.
would you be averse to our securing
the figures that you originally furnlshed
to the bureau Of corporations as con-
fdential information?" asked Mr..
Payne.
Il would be willing that the COM
mittee should have that data for its
own information" replied Judge Gary
Chairman Payne said 'he could NOT
promise that the newspaper men would
not get hold of the figures as the COM
mittee believed the public should have
the benefit of all information possible.
"Wel," said Judge Gary, I will an
swer in the negative; we are not aVerse
to the committee having those hgures'