The Washington times., 1911-12-15
SECRET RATES GAVE
CARNEGIE CONTROL,
WITNESS DECLARES
Senator Oliver Tells Steel
Committee Pittsburgh Suf-
fers BY Discrimination.
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rates. I don't think the rate should be
more than so cents per ton. The Pittss
ehe rate per ton per mile paid by other
steel centers.'
Make Bulk Of Output.
Senator oliver said the Steel Corpor-
alton and Jones & Laughlin manufac-
tured an overwhelming proportion q,
the steel in the Pittsburgh district.
Out Of forty-seven stacks in the dis
tr1ct thirty-five belong to the Steel cor-
poration and nire to Jones & LauRflin.
said the Senator.
congressman Young observed that the
carnegie Company owned a road of its
own' called the Union road, and that
Jones q Laughlin also used this road,
Tor which each company received a d.
vision Of rs cents Of the freight on ore
do you think such q division gives
sssaa sss, an na- aIdNyantage INge over competitors?'
Yes. ] do said the Senator.
MI. Young called attention to COM
plai2ts made by Charles M. Schwab
co!nfcehrning hn ore rates from the lakes. -,
'satd Senator Oliver, but I can see
where a charge Of 81 cents a ton when
tne cost OF handling is only % cents q
10 lon be @osia easessIYs appear to man up tree
Senator oliver said his interest in the
freight rate situation is based on '.sel-
lnsh local patriotism" and that he
douShs distriets n;9 an equitable rate to all steel
pittsburgh. THE freight rate on ore is
the only handicap to Pittsburgh" said
and ahs senator; shis o, I'VE get our fuel cheaper
exsept tSsss Sns ra say other s
high rates charged by. the railroads
proportion. We ought to have a 90
do you think these rates benefit the
steel Corporation to the exclusion Of
Sheir competitors?" asked Chairman
Assuming the rate unreasonable the
Steel Corporation would beneft to the
extent of that unreasonableness and
also TO the extent that the corporation
'hauls ore over its own road, the Besse-
mer and Lake Erie"
Prior to 1901, Pittsburgh was the in
dustrial cented in the production of steel
and iron?" asked Chairman Stanley.
IT is yet" said the Senator. proudly.
II believe Mr.. Carnegie was the first
to apprehend the natural advantages Of
f1ttspurgh" vehtured Mr.. Stanley.
Carnegie Only Followed.
"oh, no." said Senator Oliver. Car
negie only followed in the wake Of a
long line Of iron masters. He came to
~->S NAoAs "nSh Sho SOuhIiy Wdb ue-
veloping at q great rate, and in the
later development Of the industry he
was q most prominent factor. l do not
think Carnegie had any more appre-
hension of Pittsburgh's possibilities than
quite number Of other men. He had
more courage than some. and he was
tal."
Chairman Stanley asked a series of
questions about Carnegfe's early oper-
= af
The only ~ in the sodntniient orisi-
nally,'' said the chairman, WIS the
exhaustion of the home ore. Then Car
negie got control of a railroad from
Lake Erie to Pittsburgh. Now, didn't
that make Carnegie the ironmaster of
this continent? II he had kept control
or his steel business and his railroad,
could anybody else have competed?"
mot unless the railroads generally
lowered their freight rates. That's
what I am trying to make them do
now" answered the Senator.
Carnegie depended upon undue fa-
vors from transportation companies"
said the Senator
I'm other words he was the king bee
in the steel business about that time
1902 asked Chairman Stanley.
Yes, as any other man could be the
king bee who gets secret freight rates
while others get open rates." said
Senator oliver.