Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1911-08-05
Steel
SAYS SCHWAb
Because Our Conditions Are Unlike 9th.
or Countries Tells How Steel Cor
poration Was Organized by Him
self and Mr.. ]. P. Morgan.

New York. Aug 4.-Charles ii
Sehwab. now competitor OF the
United States Steel Corporation, re
vealed that corporation before the
House committee OF inquiry today as
the child Of his own brain, reared by
j. Pierpont Morgan. with the acqui-
eaeenee, since regretted, of Andrew
Carnegie.
Mr. SehWab appeared before the
committee in the City hail, cheerful
and smiling. He pictured the Steel
Corporation - legal organization
not formed to curtail output. restrict
competition or maintain prices. bat TO
develop the steel industry of America.
lie said he felt great pride in the full
filment Of his hopes Of dominion be-
cause he told Mr.. Morgan and others
when Re advised the formation OF that
great industrial combination that his
hopes would come true.
The former head of the so-ealled
Steel Trust" was witness all day.
He made the nat declaration that neY-
81 can any entirely new steel manafae-
turing concern grow up in Tins eoun-
try because no such enterprise can find
available ores 1t is left. lie said. 70
existing steel companies in control ef
available ores to develop the indus
try
Mr. Schwab declared himself in fa
vor OF high protective tariff on steel
although ne said that no tariff would
be necessary if all conditions We're
the same IN this and other steel pro-
duciug nations. He denied that the re
cent Brussels conference of steel man
ufaeturers of the world from which lie
returned recently. had anything 70 do
with fixing prices In tits connection.
he was asked BY Rep Bartlett 4 re-
ports Of international trust organlza.
toms were true
NO such thing ever was mention
ed said Mr. Schwab,
Rem. Sterling of Illinois led Mr.
SchW8b into IA general discussion of
the tariff on steel particularly as To
the relations of the business in this
country and Germany lie admitted
that steel rails could re manufactured
as eneeplg in this country as in Ger
many but added that the Germans
had no such market as this country
ana No such equipment.
The real purpose of the tariff. on
steel. Mr. Sterling suggested, is To
protect you in the home market. You
say YOU can manufacture rails as
eheaply rs Germany and you still have
the adv1 utage in that they must trans
port to our market
Yes. but Germany can now trans
port To our Pacific coast for less than
We can ship from Pittsburg to the
coast " said MIR SehVab
Then il seems To me that the only
tariff YOU need is TO cover the differ
ence to the cost of transportation,
MI Sterling said. Il do not want TO
argue the tariff, Mr. Schwab con-
tinued but | cannot for the life of
me see any disadvantage 10 America
from liberal protection 1t seems - he
a mistake TO have the tariff 50 low
that a foreign competitor can reach
our Pacific coast That is not the prac
tice of Germany, France. Austria or
Italy, or of any country except Eng
land
You realize that what you say here
will have great weight Mr.. Sterling
suggested, in determining the tariff
on steel when the matter comes up
before Congress-
oh. l suppose 50" said Mr.. SchWab.
If Germany We're IN position 70 pro
duce the same quantity of steel rails
as we do, she would produce them
more cheaply, Don't you think il bet
ter fer the great manufacturers Of this
country to get good profits because
Of the corresponding benefits to ali the
people 10 whom they pay their eash?'
The congressman admitted such was
a good policy This colloquy was fol-
lowed by one with Rep Beall, in which
the standard price of $2S ton for
steel rails was discussed
You could make rails fer less than
that. and still make some profit
couldn't you?' Mr.. Peal inquired
"oh. yes" was Mn Schwabs reply
"but | think $2s a ton is too low As