The Birmingham age-herald., 1908-12-19
JUDGE GARY SAYS PROTECTION IS
 BEST FOR STEEL
CONTINUED FROM PAGE 11

UED t'hOM HA0E l.D
 --~-~~~-~--~-~-~-~-~-~~ 40c An important declaration made by l the steel magnate was that the ore is
 now poorer in quality than formerly, and | that the cost of production is, therefore, increased. Andrew Carnegie will appear before the committee on Monday.
 Earnings of Employees. Judge Gary gave the average earning per man in the United States PAP in 1907 | as against $2.26 in 1902. Representative Underwood asked the witness If he agreed with MT. Schwab, who testified that the cost of labor on i a ton of pig iron in this country and England is about the same. This is probably correct in regard to pig iron. but it's not so of other steel products" he replied.
 The witness gave many facts concern ing the steel corporation. saying that it owns shares of stock in various manu- featuring and mining corporations and lake transportation companies.
 This corporation manufactures annual ly 10 to Il million tons of pig iron and the same quantity of finished steel he said.
 What percentage of the iron produc- tion is turned out by your company" asked Chairman Payne.
 Last year AT per cent of all.'
 How much in 1902?''
 "A little less"
 Chairman Payne stated that he did not think the present conditions of business in this country could be taken just basis upon which to determine the re- vision of the tariff and asked Judge Gary if he could give the figures for 1906. The witness agreed to send the figures for that year to the committee.
 Would you be averse to our securing the figures that you originally furnished to the bureau of corporations as confi- dentia1 information?" asked MT. Payne.
 T would be willing that the commit tee should have that data for it's own in formation" replied Judge Gary.
 Dodeing the Press.
 Chairman Payne said he could not promise that the newspaper men would not get hold of the figures and publish them. Well" said Judge Gary, 'I will | answer in the negative; We are not averse to the committee having those figures" Judge Gary was asked by Mr Payne to give the cost of manufacturing steel rails and gave. the following figures for rail making by the Bessemer process: "The manufacturing cost of pig iron for 1 one ton of steel rails $1506; for the cost
 of converting pig iron into ingots s2.Ss; 1 the cost of converting ingots into rails l $3.23; for depreciation S4 cents; for ad- 1 minstration and taxes S1 cents making a l total of s22S1 as the cost of producing | one ton of steel rails.
 Judge Gary said that this cost is cheap | CT than the cost at which the competitors 1 of the Steel corporation can produce rails | He said that the United States Steel cor | poration produced about 50 per cent of the steel rails manufactured during the l last five years.
 | Judge Gary gave the prices of rails in | foreign countries. The domestic price in | Germany he said. is $29 .02 a ton and the 1 export price s22 20; in Great Britain, $27 98 | and $23.S1; in France there is a differ | ence of $S.
 | Export Price Lower | At another point MT. Gary said that | the average mill price on rails for export | is 7h per cent less than the domestic price.
 | Representative Champ Clark asked why | the American manufacturers did not sell | the surplus in the home market, suggest | ing that railroads which buy iron rails in-
 stead of steel rails then would be able to | buy the latter because of cheaper prices. "No railroad that Is able to pay S25 a
 ton for rails has gone without them be- l cause they cost s2s," replied the witness. | T think this question should be ap- | preached from different standpoint l | don't think that manufacturer on ac- | count of the tariff or anything else should | get more than fair return on his invest
 ment. If he does not charge fair price | he ought to be compelled to sell for less"
 | Mir Clark inquired how Judge Gary pro- ] posed to prevent the manufacturers from
 charging a price that gave them more
 than a fair return on their investment.
 By publicity and government control
 of the manufacturers" he said, adding
 that he was merely giving bhis personal
 opinion
 ''Is it true that the United States Steel