The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1908-12-19
Statements of Steel Trust Head
StartIe Committee.
Judge Gary Says Removal of
Duty Would Hurt Rivals.
AFFECT TRUSTS LESS.
Does Not, However, Favor Re-
ductiOn in Tariff.
Would Turn Corporation Over
to Government Control.

|
fect our competitors you leave us
above protection and believe that the
| United States Steel corporation should
make public its affairs and submit to
/ government CONTROL was the remark
| able declaration of Judge E. H. Gary,
| chairman of the board of directors of
| the United States Steel corporation at
the hearing before the house ways and
| means committee.
This is RADICAL he added, "but re-
member that I am not speaking for the
| steel corporation in saying this"
Judge Gary like Charles NJ. Schwab,
who appeared before the committee
on Tuesday, gave much information
| and submitted to severe cross ex-
animation. His testimony showed that
the tariff is needed more as a protec-
ton for the Independent steel manu-
facturers than for the steel corpora
ton. He declared that the reduction
of the duty on certain steel products
would compel the steel companies to
| reduce the cost of labor. He said that
the competitors of the steel corpora
ton needed protection but that the
corporation could take care of itself.
Suppose this committee were to
wipe out the steel duty entirely the
United States Steel corporation would
still Survive?' inquired Representative
Champ Clark of Missouri.
I can not say" replied Judge Gary,
but am of the impression that if we
did we would have a monopoly of the
market in this country. I don't think
we could make a reasonable and fair
profit If the tariff was put on that
basis.''
Judge Gary was accompanied by
two assistants with voluminous data
and statistics. He devoted much time
to giving a detailed statement of the
n of
He said that the average mining
cost in the Lake Superior region is
$1.43, including royalty. He said
that the manufacturers cost of pig
iron at Chicago amounts to between
STATS and SIS.
Judge Gary gave many facts con-
corning the steel corporations saying
that 1t owns shares of stock in various
manufacturing corporations which
manufacture iron and a great many
different kinds of steel and in COM
panies which mine ore and engage in
coal mining and coke making.
Judge Gary suggested that it prob
ably would prove of value for the
committee to investigate the counter
vaiIing tax in force in Canada
with such a system" said the judge.
"if Germany for instance has a sur
plus in a product and sells it in this
country at a price not in keeping with
the cost of the production it would
be impossible to impose a tax or duty
that would prevent their dumping
their surplus in the American
market
1--WE would not need so high a duty
then, either?" asked Mr.. Crumacker.
Mr.. Gary, asserting, added that he
favored a maximum and minimum
tariff.
cit is, true that the United States
steel corporation fixes the price of
steel and steel products?" asked Mr..
Clark.
'Then how is it that for some
years back the price of steel rails has
been $2S a ton?"
'"The price was fixed in 1899 at a
and with the advice of possibly a few
railroad commissions as to what
would be a fair price for rails. Since
that time the steel manufacturers have
adhered to that price and I doubt If
any would change it without notifying
the other. They have no agreement
and do not have any meetings. 1
believe this adherence to the one price
is the result of the knowledge which
each of them has of the others is
due to publicity"
Judge Gary admitted that the steel
corporation could drive the independ-
ents out of business in a competition
because the steel corporation can
produce rails cheaper than the in
dependents.
Rep. Clark wanted to know how
much profit the U. S. corporation is
taking. Judge Gary said that the in
terest paid out amounted to $1S0,711,-
OOO the dividends paid out $226,345,-
500, that a surplus of $97,645, 900 has
been accumulated; and that $1.633.-
$4,000 has been paid out for con-
struction. He said that the total
profits on the capitalization equalled
$40 per cent. The u. S. steel cor
poration according to Judge Gary, is
capitalized at $36o,2S1.10O in pre-
IN
mon stock and that the bonds of the
corporation amount to S4S0,199,000
on which the rate of interest is 5. per
cent The subsidiary companies have
total bond issue of SIPS, $4,000 he
said.