The San Francisco call., 1908-12-22
SAYS STEEL NEEDS
NO PROTECTION
Carnegie Believes Industry Can
Compete With World Un-
der Free Trade
When Pressed for Figures the
Laird of SkibO Tells
Scotch Stories


made in the steel business and for his
views on economic questions. was an
entertaining. if not instructive, witness
before the house ways and means COM
miftce tariff hearing today.
An article on the tariff especially
relating TO the steel schedule, written
by Carnegie recently, appeared in
monthly magazine. Owing 10 the state
sncnts made in that article, it became
The basis for the questions asked by
the members of the COMMITTEES at hear
ings on the steel schedule.
As the testimony of various steel
manufacturers was at variance with
the statements made by Carnegie, the
committee invited him to give any in
formation the committee could use. As
Carnegie declined to accept the invita-
fion he was subpenaed. Carnegie was
ID have been heard nearly two weeks
70. but asked for a postponement, evi-
ATTY for the purpose Of having the
nufttee secure the testimony of 9TH
steel magnates first.
kRNEGIE AVOIDS FIGURES
Nthough he was on the stand for
" carly eight hours. Carnegie laughed
ID ioked good naturedly throughout.
lie eNasperated several of the stand
patters" with his epigrammatic replies,
praised tho genius of Charles III.
SchWab, urged the committee to ac-
ccpt the testimony OF Judge Z. H Gary
as conclusive, and told several funny
stories. He avoided figures, however,
10 such an extent that il is doubtful
II the tariff trainers are any more en-
lirhtened on the steel question to-
night than they were before Carnegie
was sworn in.
7.atl a.sff
that the steel industry needs no more
protection; that il has reached q point
IN its development where the Ameri-
can manufacturers can compete with
the world under free trade conditions.
While he claimed that the cost Of Ia
bor and production Of steel are less
in this country than Ia the other coun-
tries producing steel. Carnegie gave no
figures TO support his contention.
He said Gary told the committee
that the United States steel corpora
tlon could get along without tariff
or its products, and that should be suf-
ficient evidence for the committee to
take Off the duty on steel and iron.
WILL EXHAUST ORES IN 30 YEARS
Carnegie asserted that at the rate at
whicn iron ores were being extracted
the supply would be exhausted in 40
years. lie based his statement on the
best expert opinion he could obtain. he
said. He also said that England would
be IN the same condition in seven years.
The testimony Of Judge Gary was fire.
QuentIy referred 10 in the questions
asked of Carnegie. Reference was made
particularly TO q statement that the
duty on steel could be taken off as far
as the steel corporation was concerned.
end Carnegie said this portion should
be accepted by the committee.
Carnegie was questioned at length
regarCfng the cost of producing steel,
But he said that honest men easily
could differ or that question. The steel
business. he said. was business by
itself, and the cost to one man was q
very different thing from the cost TO
another.
STEi5L RAILS NOT TOO HIGH
Ho insisted in reply TO questions that
the railways were not paying too much
for steel rails. The steel rail makers,
lie thought, were making a fair profit.
How about other steel products be-
sides steel rails2" BOnynge inquired
II have not q word to say" Carnegie
replied That's out of my province"
Fordney recited the testimony of
Schwab and was interrupted by Carne-
sic with the remark that he is a
genius
Breaking in upon Scotch story
which Carnegie related and in the
course Of which the witness mentioned
the name Of Gary. Fordney asked If it
were intended to characterize Gary is a
.'sleek article.
-Oh. no" said Carnegie. @On the
contrary. he is a most lovable man. 1t
means that he is sllrewd. 1t means that
he has a delightful, sweet nature"
orpoSE-S T<c,0wFc TAX
Would you recommend an income
tax to make up the defcit in the reve-
nuese7
i believe. replied Carnegie. with
AR. Gladstone, whe had more eNpe-
rience with the income tax than any
other man Of his day, that an income tax
makes a nation Of liars. OF all the de-
moralizing taxes that nation can i'm
pose upon the people the income tax is
the worst"
Pressed with questions from all sides.
Carnegie arose from his seat and dra-
maticaI1y declared that he was pro-
tectionist."
Carnegie pointed out that there was
practically no foreign made steel i'm
ported TO this country.
Carnegie had planned 10 leave for
New York on an afternoon train, but
when Payne asked him if he desired TO
continue his testimony To-Day or appear
again tomorrow he arranged TO stay in
Washington tonight.
cROZIER CRITICIsEs CARNEGIE
Carnegie concluded his testimony
shortly before 6 O'Clock and was about
10 leave when Alfred O. Crozier of VIII
mington. Del, asked permission to be
heard. He also asked Carnegie TO re-
main and hear his remarks. explaining
that they would be in the nature Of q
criticism Of the former steel king s
views on the tariff Carnegie took a
seat with the evident purpose of listen
ing 10 Crozier, but the latter had not
proceeded far when Carnegie arose and
said that he had been before the COM
uittee al day and that it was pretty
tiresome. He begged TO be excused.
hut said that he would like to get 3
copy OF CrOzier's remarks after they
were printed.
crozier claimed that Carnegie's prop
osition TO take the duty OF steel would
have the effect OF leaving the United
states steel corporation forever in un-
disputed possession Of the American
field.
.BABN JOHN BACK IN SCHOOL
REDDING. Dec. 2I.-"Baby John