Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1908-12-19
STEEL TRUST NEEDS
NO PROTECTION.
II Can Get Along Without It but
Independent Concerns
Could Not.
so SAYS CHAIRMAN E. H. GARY
n competitors Protected His Corpor-
alton should Make Its Affairs Pub.
lie and Submit to Govt Control.

washington, Dec. 1S.-''If you pro-
Tact our competitors. you leave us above
protection, and believe that the Unit
ed States Steel corporation should
make public it's affairs and submit to
government CONTROL" was the remark
able declaration of Judge E. II. Gary,
chairman Of the board OF directors OF
the United States Steel corporation, at
the hearing before the house ways and
means committee today.
This Is radical" he added. "but re-
member that am not speaking for the
steel corporation,in saying this
WHO NEED PROTECTION.
Judge Gary. like Charles M. schwab,
who appeared before the committee on
Tuesday, gave much information and
submitted to a severe cross exanina-
ton. Els testimony showed that the
tariff is needed more as a protection for
the independent steel manufacturers
than for the steel corporation. He de-
clared that the reduction OF the duty
OH certain steel products would compel.
labor. He said that the competitors of
the steel corporation needed protection,
but that the corporation could take care
of itself.
suppose this committee We're to wipe
out the steel duty entirely, the United
States Steel corporation would still
survivor inquired Representative
Champ Clark of Missouri.
II cannot say" replied Judge Gary,
did we would have q monopoly of the
market in this country. | don't think
we could make a reaonable and fair
profit If the tariff was put on that
basis
Former Judge Gary. who said he has
been chairman of the board of directors
OF the United States Steel corporation
for five years, took the stand and was
the first witness when the steel sched-
lle was taken up. He said that Mr.
Schwab in his testimony before the
committee Tuesday had not in his csti-
mate figured enough for depreciation in
the cost Of pig iron. Judge Gary placed
the cost TO produce pig iron at from
$l4.T5 to Sis Il ton, as compared with
sl4. the cost given by Mr.. schwab.
This Afternoon Judge Gary devoted
much time to giving a detailed state
ment OF cost OF production of steel He
sdlu lIldl Tue ttNclStf,c CoSt EtIS lLahS
Superior region is SLAB, including roy
atty. He said that the manufacturers
cost of pigeiron at Chicago amounts to
between SITS and $15. This cost
does not include the interest of the
steel company on its investments in
mining properties and transportation
companies.
CAN BEAR COMPETITION.
Judge Gary declared that the manu-
facturers in this country, in figuring
the cost OF production, have not stipu-
lated Il sufficient amount for deprecia-
ton to keep up their plants. He said
that the United State Steel corpora
ton can produce iron and steel mater
tally cheaper than most of its COM
petitiors. He estimated the difference
in cost at about u dollar a ton,which he
said was due to the modern character
Of equipment and cost OF certain ma
terial to the corporation.
Don't you believe 1t Is more than
dollar toni" asked Chairman Payne.
",rhe corporation which has 81 de-
.cided advantage in the quality and
quantity OF ore and an advantage in
owning its own lines OF transportation
by lake and rail can naturally manu-
facture pig iron cheaper than those
vantages. think there is no doubt that
the difference in cost Is more than
two dollars
Judge Gary today testified that the
cost to produce pig iron in England. is
80 a ton; the lowest cost, in the Lor-
raine district of Germany. is $3.50 a
ton, and in other parts of Germany Sill
ton. He said that, eliminating the
profit all along the line that entered
into the manufacture of pig iron, the
cost of production in the United States
is S12.50 ton. He said that the gem
cral manufacturer could not produce it
for less than SIS ton.
Declaring that the average cost OF
producing pig iron in all of the plants
of tie steel corporation is $3.50 ton,
Judge Gary gave the figures by which
this average was determined
The iron ore used in the production
of ton of iron costs $3.50, he said.