New-York tribune., 1908-12-23
Mr.. CARNEGIE AND STEEL

Our contemnorarv The New York Evening
Post" always sees red when the word tarln
is mentioned Mr. CarneGie's appearance DeIore
the Ways and Means Committee. it says was
marked hv such slaughter has scarcely
been seen since Bannockburn. The uiscomhF
ure Of the committee was the more cohPlet@
because ii had expected 10 do little staying OIL
it's own account. at was all very hne Tor MI
Carnegie 10 write a magazine article. but wait
tfII he had TO face the expert cross-quesuohlhg
of PAYNE and Dalzel! The subpoena 10 compei
his attendance was issued with many nodS
..and wreathed smiles: come and see the con
..fdent Scotchman butchered TO make pro
.rectionist holiday or course. this Is eXcfu-
ciatingIv funny but equally of course it pears
no resemblance TO the truth. The treatment OF
Nr Carnegie on the witness stand was eVloehce
enough of the committees fairness and open
mindedness toward him. He enjoyed latitude
seldom granted to any one testifying at FOR
NAL hearing before official body. He was
: narOittpd 10 say everything he wanted TO. per-
tfnent and impertinent. His disposition 10 ma he
the most Of the opportunity To indulge his rah
tastic bumor in conspicuous manner was ac-
/ ouiesced in apparently in an honest ehofl 10
get at the facts or which he haSed MS wen
known opinion that steel needs no turther pro
lection No attempt was made to check or padger
him. or 10 tllwart him by holding him TO strict
I
tion TO haze the witness by expert cfoSS-queS
tioning" his testimony could have been reduced
70 q statement that it was his opinion that steel
should be admitted free based only on what ne
had heard steel producers say. and that he had
no figures regarding cost of production 10
prove IT.
And in saying this we have no more dIsposi-
ton 10 minimize the effect Of Mr.. Tarnegles :
testimony than we could detect on the part of
ANN tor
ing Posts" own account Of the hearing Mr
Carnegies testimony was important and valua-
hla Q : far as II went II tended to show that the
figures regarding the cost Of steel production Of
fered by the producers themselves were "hIH
bookteanine statements of cost and had little
relation 70 actual cost It cleared the atmos-
phere showed the fallible nature Of Interested
evidence regarding cost Of production IN gen
eral and will strengthen public opinion in sup
port Of Mr.. Taft in his demand Tor n r7Nlslo"
based on the facts.
tz1+ as for the facts-and rhe committee must
have the facts if there is TO he a scientific re-
vision Mr. Carnegie left every one as much
in tie dark as ever. Doesn't Mr. Carnegie. the
holder of most of the United States Steel bonds
know the facts abouE the cost of producing
steel? Apparently not according to his testl-
nony but he himself preached the wisdom OF
..11sinn your brains on testimony. Is he. too.
a
Judge GARY VINO 'still keeps somethin TO him.
sar he wi na' tell 70 any," Well, leave it to
those who use their brains, But we regret that
AIr Carnegie did not furnish the facts 10 the
committee or tell it where it could learn the
facts If the actual figures were put In tie nos
session of the public it could determine not only
that interested testimony Is subject to dis
count but exactly to what discount
The last study of the cost of steel production
we have seen was contained in "The Quarterly
Journal of Economics Of last February. The
writer Professor !. Russell Smith. of the Uni
versity Of Pennsylvania, put the cost Of pro
ducing a ton of pig iron at SIS. as against Judge
Garv's S14 *. and the cost of a ton Of steel
rails at S14 to S15. against Judge Gary's estt-
mate Of more than S21- Professor Smith 5
figures would he compatible with the total prof
its Of the Steel Corporations operations as
/ pointed out by Mr.. Carnegie. The actual cost"
| writes Professor Smith. and the book cost as
/ shown on the Steel Trusts books would he
/ very different This IS because the corpora
! tion on its books assigns certain share Of the
profits 10 each stage Of the operation. from the
mines 10 the finished product. precisely as II
| each step were carried on by an Independent
| producer.