The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1908-12-16
SAYS COST is HIGHER
NOW THAN I'M 1899
Continues from Psqe /.

OOUAin0CO iiOfIl
iron is sI4 ton, az compared with IS
a ton in 1899: while the cost of steel
rails today is $21.50 a ton, compared
with s12 a ton nine years ago.
Mr.. Schwab replied to many ques-
tons bearing on the ACCESSIBILITY or re-
ducing the iron and steel tariff.
Mr.. Schwab stated that in Germany
the cost of producing pig iron is from
$3.50 to s12 ton, while the cost of con-
version into steel is about the same as
in this country. The cost of manufac-
ture in England is a little less than in
Germany.
IF the tariff on steel should be con-
siderably reduced, would the steel bus
mess be seriously affected?" asked Mr.
Hill of Connecticut
Where Protection Comes In.
IF conditions are equal. we can make
steel rails as cheaply as they can be
made anywhere" replied Mr. Schwab.
The cost of the manufacturing of steel
depends on two conditions. the cost of
the material on the ground and the
cost of labor. If these conditions are
the same as elsewhere, we don't need
the tariff, but If the cost of transporta-
ton or labor or something is greater
here, we need a tariff for protection -
Mr.. Schwab claimed that he was not
aware of any understanding between
the United States Steel corporation and
the German steel syndicate and the
English rail syndicate
Mr. Schwab said that the price of
steel rails was fixed by most of the
American manufacturers at SIS in 1895
or 1886; that in 1898. during the "steel
war; this price was not maintained,
but that following the war it was
again agreed to to maintain that price.
Since then no manufacturer has at
tempted TO lower this price for fear of
precipitating another conflict.
Conditions Abroad.
Referring again TO foreign countries,
Mr. SchWab said:
The labor conditions in England are
the worst of any manufacturing coun-
try in the world" He said that the
German government does more than
any other for its manufacturers and
that the steel makers In that country
are farther advanced in the methods of
manufactures than those in this coun-
try"
rs the tariff balanced between pig
iron and steel rails 4" asked Represent
alive HILL
The differential between rails and
rolled steel products is fair" stated Mr..
Schwab, replying affirmitively.
Mr.. Schwab declared that the average
manufacturer is entitled to a profit of
Is to 20 per cent, and that the most sue
cessful manufacturers should have 25
per cent net profit. Mr.. Schwab stated
that the railroads are not in favor of a
reduction in the price of steel rails.
He testified that the United States
Steel corporation manufactured 40 TO 50
per cent of the steel produced in this
country.
Tennessee Company Not Included.
Does that include the production of
the Tennessee company, the purchase
Of which was consented to by the presi-
dent?" asked Ny. Clark of Missouri.
mo, it does not; although 1 don't
know anything about the president con-
senting to the purchase" replied Mr..
Schwab
Giving many valuable arguments in
favor Of reductions in the tariff Frank
W. Taussig. professor of political econ
omy at Harvard university, argued thai
certain raw materials should be admit
ted free. naming coal, iron ore. lumber
hemp, fax, corn, barley, oats and wool
He said it would be a wise policy to re-
duce the duty on wooden clothing and
sugar
Referring to Mr. Schwab's testimony
he said he thought the same watchfuI-
ness should attach to Mr. SchWab's tes-
timony today as to the letter he wrote
to Mr.. Frick in 1899. He was a little
biased then, and l think he is a little
biased the other way now" Professor
Taucsig declared that it is a question
whether in the end protective tariff
works a benefit to the country at large