The Birmingham age-herald., 1908-12-16
QUESTIONS ANSWERED
 WITH GREATEST EASE
Several lnqusitors Tackle the Steel Magnate, But He Is a Match for All, and Questioning Is Left
 to MT. Underwood.
By wATTERsoN sTEALEY.

Washington, December lo.-lSpeclal)- Charles M. Schwab, president of the United States Steel corporation, was be- fore the ways and means committee to- day The session formed the most inter esting of the hearings not only because MT. Schwab is the president of the great est corporation in the country, but be- cause his coming before the committee has been heralded ever since the House passed a resolution empowering the com mittee to subpoena witnesses. Conse- quently a big crowd was on hand and was amply repaid for its attendance
 A man who started as day laborer and worked his way to the presidency or the biggest corporation that ever saw the light of day, who breaks the bank at Monte Carlo by way of amusement; who builds palace Fifth avenue, stocks it with art treasurers and then re- fuses to live in it because it's too blamed big and lonesome, who does lot of other things denied to the ordinary citizen, such as smoking one dollar cigars and really looking like a trust, is a big at- traction, whether he appears on the vau- deville stages or before such solemn
 
 Smooth Maenate.
 Incidentally, before going into the sub- 5ect of the price of steel rails when Hector was pup as compared with the market figure today, following the benign rule of Andrew Carnegie and other iron and water workers, It isn't too much to say that Charles M. Schwab is one of the slickest articles that ever stood in shoe leather He is as smooth as lycOpodeum and questions earoia off hiiaa like nail from tin roof. Even Bourle cockran, who is real probist. became vexed and peeyish today after he had questioned MT. Schwab for an hour or more and discovered that, although that astute person remembered to the fraction of a cent the duty on this and that and the other thing, he had, most unfortun- ately, forgotten many of the details of the consolidation of the various steel com panies into that great harmonious whole, the United States Steel corporation
 Caught Tartar.
 To sum up the committee caught a tar tar. Many questions were asked MT. schwab of the workings of the steel busi-
 
 poration in particular, but little positive information was obtained. Mir Schwab gave the cost of production of pig iron in Germany at $95O to SIP per ton It was made here for $l3.6S, he stated The cost of converting 1t into steel was about the same here as in Germany. While the labor here was higher the cost of manu- facture was about equal in both coun- tries. Germany, he said, had the ad- vantage in obtaining raw materials on account of better freight rates and great CT accessibility.
 Representative Underwood of Birming- ham, was the star inquisitor and much of the interesting statements of the wit ness was brought out through the skill ful questioning of the Birmingham mem- Der. Nearly all the members of the com mittee tried their hands at it and finally Representative Clark of Missouri stated that MT. Underwood was the best in- formed man on the subject on his side of the committee and from that time on MT. Schwab was largely In Mr. Under woods hands.
 The steel magnate seemed glad of it. Several times he had shown impatience ever questions asked by members of the committee but with MT. Underwood he seemed to feel that he was discussing the steel schedule with one who knew the subject
 While MT Sohwab practically admitted that the conditions which existed nine years ago have permitted a reduction in the steel schedule at that time, he said
  the manufacture of steel rails had in- creased to such an extent that the pres ent conditions must be changed to permit of tariff reduction.
 Tn five years there will not be a bes- semer steel refining works left in the United States" he predicted. "Bessemer steel will be of no use. The same is true of structural steel as well rails. They will all be made by the open-hearth pro- cess of manufacture Costly changes in the construction of the plants will be nec- essary to make the Improvements in the method of manufacture"
 open-Hearth Is Best.
 MT. Schwab also declared that within 10 years the open-hearth process would be superseded by the electric system of manufacture. which was being developed in Germany.
 'These changes in the process of man. ufacture Increase the quality of the steel" he continued, "but they also slightly increase the cost of production' Mir Schwab said he was not in favor of any change in the tariff on steel and steel products.
 "A moderate change would not make any material difference" he said but a radical change might do considerable harm"
 He admitted the traiff could be taken off iron ore without affecting the yalue of the mesaoa ore of this country Mr. |. Schwab stated that the Bethlehem Steel company, of which he is president, inn ports all of it's iron ore from Cuba.
 Chairman Payne of the committee be- gan a cross fire of questions by asking