New-York tribune., 1908-12-19
JUDGE GARY'S WARNING
Continued from first page.

at which the competitors Of the Steel Corpora
ton can produce rails. He said that the United
States Steel Corporation produced about 50 per
cent Of the steel rails manufactured in the asst
five years.
He gave the prices OF rails in foreign
tries The domestic price in Germany. he said.
is $50 OF a. ton, and the export price Sz2 20; in
Great Britain. s27 IS and s23 81; IN France thsrs
is difference Of So.
.SThey do in Europe as they do here" said ths
witness. They dump their surplus IN foreign
markets when business is dull in their own
Judge Gary suggested that IL probably would
prove of value for the committee 70 invsstlsate
the "countervailing tax in force IN canada
With such system. ne sald. ~ OsLLlal,s; ny, i9s
instance. has a surplus In a product and sells t
In this country IT price not IN keeping with
the cost Of production. il would be posslo.s 70
impose tax or duty that would prevent their
dumping their surplus in the American uarAst
we wouldn't need so high duty theh
either?" asked Mr. Crumpacker- The witness
assented, adding that nc favored maximum
and minimum tariff
At another point Judge Gary said that ths
average mill price rails for export IS 4 per
cent less than the domestic price
Representative Clark asked why the American
manufacturers did not sell the surplus IN me
home market, suggesting that railroads Wnicn
buy iron instead of steel rails then would es
able TO buy the latter because OF cheaper prices.
No railroad that Is able TO pay S29 ton Icr
rails has gone without them because they cost
s2s'' replied the witness Il think this question
should be approached from a different stand
point I don't think that a manufacturer On
account of the tariff or anything else. should get
more than fair return on his investment II
he doesn't charge fair price ne ought to be
compelled to sell for less
MI Clark asked how Judge Gary proposed 70
prevent the manufacturers from charging price
that gave them more than a fair return on their
by publicity and government control Of the
manufacturers he replied. adding that he vas
merely giving his personal opinion
Earlier Judge Gary gave the cost or raanufact-
uring pig iron at s15 80 ton MI Payne called
E-TTra H.
reau OF coFporatfons by the Steel Corporation.
giving the cost OF producing pig iron at Sl4 o.
The witness said these figures were for 1882 70
1896 while the figures he gave We're Tor laSt
year when the mills were not running az fun
time and the cost of everything vas nisner
''The cost Of ore has been increasing al tne
time" he said this being due TO the decrease IN
the percentage Of iron in the ore
DENIES CONTROLLING PRICES
rs it true that the United States Steel Ger
poration fixes the price of steel and steel pod
ucts?" asked Mn Clark
Certainly not
Then how Is IL for some years back the price
of steel rails has been SIS a ton
The price was fixed in 1899 at a conferences
of steel manufacturers. and Tith the advice OF
possibly a few railroad companies as 20 Nnal
would be a fair price for rails Since that time
$ne steel manufacturers have adhered 70 thaI
price and doubt If any of them would change
1t without informing the others They Fave no
agreement and do not have any meetlngS
believe this adheranCe 10 the one price - re
of the others business. due 70 publicity. Every
one seems satisfied that the price Is a fair one
Isn't il true that you have such a c0ntrCi OF
the industry that If you fixed the price none o
the independent manufacturers would care %
set a price below yours" asked Mr.. Clark
That may be true far as steel ralls are
concerned" Judge Gary replied, but qualned ms
answer by saying he did not mean that me sJeel
corporation has hold on the industry. out enas
the independents recognized the adVlsaolH'J U
maintaining one price
Suppose the United States Steel Corporation
put the price up 10 $50 ton. do you mink IneTs
is an independent manufacturer VINO wouons
mark his price Up 10 $50 a ton because you haa
marked yours up2
L can't say" was the reply. except that
think they would mark the price up
Judge Gary acknowledged that the Steel CH.
poratfon could drive the Independents our q
| poration can produce rails cheaper than the n
/ dependents. He said that the Steel Corp0ralssA
could not survive in the tinplate industry VII
, out tariff. possibly less than the present auH
/ this article =.
( Representative Clark wanted 70 kno7T 'noN
/ much profit the United States Steel CorporauV..
/ Is making. Judge Gary said that the intsres.
/ paid amounted TO $3.50. 1900 and the dlvldenus
to S262 354 500: that a surplus of S91649ee5 nas
been accumulated. and that s16S $4,000 has heeI
| paid for construction. He said that tne ~ I9NN-
| profit on the capitalization eQualied 5-IV p
/ cent The United States Steel Corporation -
cording to Judge Gary, is capitalized az SS0g.. =
7 sS1 100 In preferred stock and $5eS.S0-.9tV =.
: common stock, and the bonds OF the eolpS
/ ration amount to S4S019s 900. on which the raIe
of interest is per cent The subsidiary coa. 2.
panies have total bond issue OF S4-SsS49''sS' -
said