New-York tribune., 1912-02-09
SCHWAB ON STEEL BILL
Saws He Will Quit Business It i
Becomes Law.
MAKES LITTLE PROFIT NOW
Tells Finance Committee About
Condition of Industry-Re-
fuses to Criticise Carnegie.
From The Tribune Bureau J

rFrom The Tribune Bureau
washington. Feb. S-Charles NJ. Schwao,
the guiding spirit Of the Bethlehem Steel
Works. said to-day before the Senate com
mittee on Finance that If the Underwood
bill becomes law he will quit the steel
business.
after all my work and the investment
of my fortune, ! have never taken penny
out of the industry and have never paid
dividend. and If the proposed tariff rs 10 ne
the law, I repeat that I shall cash in' he
said
II haven't made sufficient profit to feel
justified in taking money out of the In
dustry." ne added
What IS your salary asked Senator
stone.
"Oh. haven't any" replied Mr.. Schwab.
laughing II don't mind telling YOU why
am in this work. ! don't need the income.
I have no heirs. no children 10 leave any
thing to. ! want to build up successful
enterprise. but / want to say that II IN"
House biu passes shall drop it,
Mr. Srhwab acknowledge that he got
loss for some or the steel exported than
for that sold hero.
At times we even sell abroad at loss.
he said. because the average cost OF
large production is less than that ot "A
small production: it is necessary to main
tain the output to keep the machines going
AL tho time"
Mr. Schwab said that pig iron could j"
made i'm China for 81 - ton, and that he
was importing iron from there for his san
Francisco works rather than snip iroh
Bethlehem.
steel rails cost in this country fIom -
10 S93 a ton. and i'm Germany about SIS or
$40 Mr. Schwab defended th" s"Von-days-
p-vook system Of work in the steel in
dustrr. saying It was the system through
out the world and that 4 change couId NOT
ho made by ono manufacturer. lie agreed
with members Of tho committee thai th'r"
should he "A change and expressed interest
in an experiment now in progress to that
end
Would Harm Eastern Industry.
Mr. scnvah said the Underwood rates on
lar.cr steel products would he Of most
serious consequence "a the steel business
in the Eastern states. and added.
ON man. occasions haze said that WITH
equal conditions -l""I '"nl" ~ "'tn ,,,
,hcaDIy an the United states - IN any
.nfrrr country rms mas p'"n '"hS'I "''
INTO a .t.t,mcnt that stool ~ W!hr ~
.nr.,uI, here as elsewhere. Ihdi nav
not said and do not taH " ~, ',n w, ,i,',r
conditions. especially with labor ~ 'h'ap,
....t ,a protection. bUt the labor account
voiphs heavily against us ohIl on ir n"n
dr,d miles from Sow YORK, u c"0lN ~ t IT,
to put our steel ihrr" dN ~ ~ ,rcsont
H. from Holland I consider ih" lI,S'n;
t.riU rates necessary to 'h" pl"sp'L,h -
e., stool hu..n,ss Most cmphdtirailF,
ann opposed 90 any reduction.
Mr. Srnvan went ON g. say that without
pro,cctiou no would want no hnan'''. '"-
,,rc.f In trr aic.l business and ""H" re-
...,,d a. wasted tho f}5o"'"oo recently IN
vested IN his h"s'n"sf
Mr. scnVah said ,hat with iIcr acr'sS 20
American markets Germany would nave
g,r,g,d sdvautag, over American ran man
,,s,.ru,,rs ON 'n. Atlantic coast, and "A-
rr,ssed the opinion that under On" pres.
,rt d,rr,.,,d condition r' INDEPENDENT
,,,r buqinprs could mako money
carn.gis "a Father to Him"
f.. -crrsrd ~ dI-ruae with senator sim
,.,ra Andrew Carnegie statement mat
tho stool duty could ro abolished. ! must
Pms. 20 alscuqs aug opinion of a man
,bo has h,cn ~ near and dear 80 mo az
Mr. Caru"Eic. h' said. ,..
"It IL a case Of armed neutrality, then
$50 not - aiI. Mr rarn"gi" has been
father % me-. DO" r'pl'd.
ur scnvab said thai Mr Carnegie d'd
NOT have as much practical kuo"l"dg" az
n, %, steel making
"ilss Mr C.rucg," ever Interested him-
self hy s,udylur ont the details ~ me h"si-
moss "' ho was asked. ,..t,.
NO hut mo- had tine general hH'"I'hb'
at H.. tu-iu,ss, aud De- showed the Er'hi'St
dom Iy giving half ot what h" effn'd
a. tIr mon who made l'7 business s"'''ss-
Vnce Senator Stou" remarked mat MI.
r.,rrcric rlc accumulated "n enormous
,nrt,frc Nj SchWah replied: Noi h"Ii as
,,,,I ts ia. Ea. deserved 90 The missouri
senator said hr thought that 'NlWV"'' OF
ril,0 90 Was 20 pretty good pot
,rhc cncsts Of iuc House bilI 10 Inc "aN
,r roduriuE wages were pointed our 10Y
,'b,r y,itrrsgc' Sp'uc.r Mll"r. "t Nc"
ynrk said that reduction ot rates on
machinery would have tu Dc met Dy manu-
f,rtIlr,r- reducing WACO Go'rE" j.. nam,
zion. of Massachusetts, said mat IN" caro-
.lotbinr irduetry would BE- destroyed by
the new bill Az, - ,,
\uothcr protest against the on MAS pre-,
.,,f,d I'm the senate to-day In tho FORM OF
,,,IfItioue from the Idaho Legislature
against putting lead and zinc ores on inc
t.,,.