The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1909-01-06
FAVORS PUBLICITY
AND us. CONTROL
Radical Statement by Gary at Steel
Hearing, But Not Official
For Trust.
SUPPORTS THE PRESENT TARIFF.
Says Reduction in Rate Would Be
Disastrous to the Small
Factories.
THE PRESENT TARIFF

WASHINGTON, December 1S.-"If
you protect our competitors you leave
us above protection, and | believe that
the United States Steel Corporation
should make public it's affairs and sub
NIT to Government control" was the
remarkable declaration of Judge E. H.
Gary, chairman of the Board of Direc-
tors of the United States Steel Cor
poration, at the tariff hearing before
the House Ways and Means Commit
tee today
This is radical" he added, but
remember that | am not speaking for
the Steel Corporation in saying this
In spite of this statement, however,
which he made under oath, Judge Gary
continued his plea for the present pro-
tection, declaring that among the
smaller steel factories the effect of a
radical reduction in the rate would be
disastrous. The cheaper production
and more efficient administration of
the trust, he said, would, however, en-
able his own concern to preserve its
present position.
Remove all steel duties,' he said
to Mr.. Cochran, and we will still
dominate the American market But
we will dominate it as a monopoly.
That is the problem that confronts the
committee"
Oh replied Mr.. Cochran smiling,
"of course, l understand your sensibil-
| ity for the pending misfortunes of
your competitors"
Judge Gary appeared under obedience
to a subpoena, and had no formal
statement to make. He answered such
questions as were put to him, how
ever, in way that won the common
dation of the committee, through to all
questions of figures and technical
knowledge his ansyers came only after
extended consultation with two as
sistants who sat near him.
RETICENr ABOUT FIGURES.
1t was apparent at the outset that
the figures explaining the cost of
producing iron and steel in this coun-
try submitted by the representatives
of the Steel Trust would not agree
with those submitted two days ago
by c. NJ. Schwab, president of the
Bethlehem Steel Company. Judge
Gary's figures were higher in nearly
every particular, 81 30 higher on pig
and 81 81 higher on the finished steel
rails, but he insisted that the trust
can make these products as well as all
other products more cheaply than the
Bethlehemites. His explanation for
part of the discrepancy was that Mr.,
Schwab did not include depreciation
in his estimates, and partly he eX-
| planned it by the difference in the
bases on which they had counted
Discounting the profits to the rail-
| roads, steamship lines and other COM
panies owned by the trust, which he
| counted in his first estimates of cost,
Judge Gary said the cost of pig iron
at the Chicago works is $12 65 ton.
Including the other items, this made a
cost in this country of SIS. 80, against
a cost of only 81 in Germany, IS. SO in
the Lorraine district and SO in Eng
land. He based a fair profit to the
transportation concerns at 55 cents a
ton, and said that labor in this coun-
try averages $2.42.
Following statement from Judge
Gary that a removal of the duty on
steel would absolutely crush out his
smaller competitors, Mr.. Randall ask
ed how long it would be before the in
dustry could get along without a tax
in its behalf. To this Judge Gary res
pended that one may as well ask how
long is a string.
But you ask me about the alleged
prosperity of the American working
man." continued Judge Gary. Il wish
you could see a picture l have taken
at Vandergritt, Pa. There lin one
group are 20 automobiles, all owned by
workmen in our mills"
Have you any pictures of soup
kitchens?" was Mr. Randall's final
and unanswered query.