The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-05-22
RIVAL FOR TRUST
EASILY POSSIBLE
Schwab Says Steel Corporation Is
Not Omnipotent in
Field.
CITES HIS OWN COMPANY
He Hopes to Be One OF Those
Who Bid for Big
Business.
Especial 10 The Times-p,,patch.l

Especial TO The Times pispatch.l
New York. May 21.-During his
cross-examination to-day in the gov
ernments suit to dissolve the steel
trust. Charles u. Schwab, first presi-
dent OF the concern, declared 1t would
would be easily possible for another
company to establish itself as a rival
OF the trust. Mr.. Schwab said he had
hopes that his own company. the Beth
lehem Steel Company. might be the
one to bid for big business against
the trust.
Jacob NJ. Dickinson, formerly Sec
rotary OF War. counsel for the gov
eminent at the hearings, then took up
the negotiations for the buying of the
Carnegie works and the general con-
solidation of the various steel in
terests. The witness admitted that
when the consolidation had been eff
fected the Morgan. Carnegie. Rookie
Teller. Standard Oil and Moore in
he did not know of any interests that
could compete with those mentioned SO
far as capital was concerned.
Carnegie Given Bonds.
Mr.. Schwab said Mr.. Carnegie got
bonds for his share of the consoida-
bonds.
What did Mr. Morgan get?" asked
Mr.. Dickinson.
Il don't know replied Mr.. schwab.
And the rest, what did they get?"
II don't know. While I was presi-
dent OF the corporation l had little to
do with the financial part Of the bust
ness. 1 handled the administrative end
OF it
How long after the formation of
the corporation did the plan of de-
veloping export trade take effect?'
II couldn't say exactly, but / think
statistics will show. l brought Mr..
Farrell from Pittsburgh TO take charge
OF the export business shortly after
the corporations formation and the
business has developed constantly
since that time"
Statistics put in evidence by the gov
eminent showed that export sales i'm
mediateiy after the formation of the
corporation were smaller than imme
diately before.
In support of the governments con-
tention that the Carnegie. Federal and
National Steel Companies were com
petitors before being taken over Mr..
Dickinson elected from the witness
the statement that their sales agencies
in several common products. notably
rails. we're combined after their ac-
QUESTION.
Mr.. Dickinson asked Mr.. Schwab Il
ne could tell what percentage of
standard rails In 1901 brought s2s per
ton. He replied that he thought about
SO per cent OF the entire output.
do you think $2s a ton too low for
rails?"
II do
Mr.. schwab said the railroads are
satisfied with the present price for
rails
The president OF railroad" he
said would place himself in an awk
ward position IL he would go off his
line and buy rails. For instance. my
works are on the Lehigh Valley.
pay freight rates to the road, AID II
would be awkward for that company
TO go away from that commodity and
buy rails at the same price they would
pay me-"
Mnkes bigger Profits.
Mr.. Dickinson wanted 10 know
whether the Steel Corporation did not
make larger profit on it's rails than
its competitors, owing to the fact that
II owned the railroads over which the
raw materials were transported. Mr.
Schwab conceded that the profits which
the corporations railroads made in
transporting these materials ought TO
be subtracted from the cost OF max
Ing It's rails.
THE corporation has an advantage
over It's competitors" insisted Mr..
Dickinson.
YES, Teplieu lHS "itHenS' put ciiis
because the Bethlehem Steel Corpora
ton has not the resources to build
Its own railroads"
with the facilities which the Steel
Corporation had in 1901, with the ores
IT controlled, railroad transportation
capacity for output and diversity of
products, was 1t possible to form any
other concern as we'll equipped to
carry on an export business? asked
the government attorney
They could have built the works
and the railroads" answered MIR.
Schwab. hut l doubt il they could
have got the ore reserves. 1 would
say, however, that another corpora
ton could have been organized, If 1t
built It's plants in the East and drew
its ores from abroad"