The Birmingham age-herald., 1908-12-19
With No Tariff Judge Gav De- CIarGs Government Control
 Would Be Necessary
INDEPENDENT COMPANIES
 NEED PROTECTION MOST
If Tariff Were Taken Of of Steel the Magnate Says That Profits Would Be Reduced asd Wages
 Would Be Cut.

Washington, December 1S.-"If you protect our competitors, you leave us above protection, and I believe that the United States Steel corporation should make public it's affairs and submit to gov ernment control" was the rema rlable declaration of Judge E. H. Gary chair man of the board of directors of the United States Steel corporation at the tariff hearing before the House ways and means committee today.
 'This is radical" he added, but re- member that I am not speaking for the steel corporation in saying this.H
 Judge Gary, like Charles NJ Sehwab, who appeared before the committee on Tuesday, was admirable witness. giv- ing much information and submitting to a severe cross-examination. His testimony in substance showed that the tariff is needed more as a protection for the independent steel manufacturers than for the steel corporation. Like Mr. Schwab, Judge Gary declared that the reduction of the duty on certain steel products would compel the steel companies to re- duce the cost of labor
 He said competitors of the steel cor poration needed protection but that the corporation could take care of itself.
 Suppose this committee were to wipe out the steel duty entirely, the United States Steel corporation would still sur vive?" inquired Representative Champ Clark of Missouri.
 cannot say" replied Judge Gary, sb11t oF did we would have a monopoly of the market in this country don't think we could make reasonable and fair profit if the tariff is put on that basis"
 Tariff on Hides.
 Declaring it would make no difference to the concern he represented if the tariff on hides is lowered raised or taken off entirely, A. R. Urion of Armour & Co.,, the first witness on the stand today, said that the tariff had added from 90 cents to $1.10 to the value of hides. He as- serted the farmer received the entire benefit of this increased value.
 MT. Urion said the statement that the packers control the tanning as we'll as the packing business is inconsistent. T think in that case we would want hides on the free list''
 MT. Urion admitted that the packers had interests in some tanneries and that MT. Armour owns stock in the United States Leather company.
 Judge E. H. Gary, who said he has been chairman of the board of directors of the United States Steel corporation for five years, was the first witness when the steel schedule was taken up. He said that MT. Sehwab in his testimony before the committee Tuesday had not in his estimate figured enough for depreciation of the cost of pig iron at from s1475 to sl5 ton as compared to $14, the cost given by Mir. Schwab
 The committee then took a recess for lunch.
 Judge Gray was accompanied by two as- sstants with voluminous data and sta- tistics. He devoted much time to giving detailed statement of the cost of pro duction of steel He said the average mining cost in the Lake Superior region is 1. 4S, including royalty depreciation and mining cost The freight, he said, to the low lake ports, such as Chicago averages M. 40. He said that the manufacturers cost of pig iron at Chicago amounts to between $l4.75 and $l5
 Judge Gray declared the manufacturers in figuring the cost of production have not stipulated d sufficient amuont for de- preciation to keep up their plants. He said the United States Steel corporation can produce iron and steel materially cheaper than most of its competitors, He
 
 $1 a ton, which, he said, was due to the method, character of equipment and cost of certain material to the corporation
 Don't you believe it Is more than $1.10?" asked Chairman Payne.
 Advantage of Corporation.
 T do," replied Judge Gary. "rhe cor poraton, which has decided advantage in the quality and quantity of ore and an advantage in owning it's own lines of f4rr, 1.,1-l ally manufacture pig iron cheaper than those companies which have not those advantages. 1 think there is no doubt that the difference in cost is more than $2."
 It has been testified at a previous tariff hearing that the United States Steel cor poration can produce pig iron at cheaper cost than most other steel companies, but as to the cost of production has not been obtainable.
 Judge Gary testified the cost to pro duce iron in England Is $9 a ton; that the lowest cost in the Lorraine district of Germany is &.50 ton and in other parts of Germany sl1 a ton. He said that elimi- hating the profit all along the line that entered into the manufacture of pig iron the cost of production in the United States is $125 a ton. He said that the general manufacturer could not produce it for less than $15 ton.
 Declaring the ave%ge cost of producing pig iron in all of the plants of the United States Steel corporation Is S5.S0 ton, Judge Gary gave the figures by which this average estimated
 Iron ore used in the production of a ton of iron costs Ss 62. he said The other items which go to make up the $i5 30, he said are coke. s1 .15 limestone 49c; scrap, 16c; cinder and scale, He; labor, materials and operating cost, 1.5, and depreciation,