New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-05-20
j. s. STEEL FRIEND Of
COMPETITION -SCHWAB
Has Done More for Healthy
Rivalry than Any Other
Influence, He Says.
ECONOMY CONCERNS AIM
First President of Corporation
Tells How He Interested j.
P. Morgan in Enterprise
at a Dinner.

Instead OF the United states Steel Cor
poration being a combination i'm restraint
of trade, as the government alleges i'm
| the suit for its dissolution. Charles NJ
Schwab. head of the Bethlehem Steel
. Company. now one OF the strongest com
petitors Of the concern. declares IL has
done more 10 bring about healthy compe-
ttion and develop the steel Industry than
any other one influence. Mr.. Schwab. who
was the first president OF the corporation.
appeared yesterday in the hearing Of the
case before Henry =. Brown special cx-
aminer, at No. Il Broadway
While the witness testified that the Car
negie Steel Company. with which lie was
associated before the corporation vas
formed and which is now one OF its suo-
salaries. had previously entered into
many pools he stated positively that so
far as he knew the corporation had at
no time since had any agreements with
competitors. either here or abroad He de-
ciared that the formation OF the corpora
ton. suggested by him to the late j. Pier
pont Morgan. had been brought about fer
reasons OF greater economy in production.
and not with any idea Of "A monopoly.
Mr. Schwab detailed the happenings
leading up 20 the formation II the GOV
poration i'm 1901 The idea, ne said. grew
out Of dinner in New York m 1899. at
( which he was the guest OF honor and MIR
Morgan his right hand neghbor. ne ~
terested Mr.. Morgan. he said. in the pos
siblities TO be secured from greater di-
versity of products. together with the
great economic and business advantage
of an even larger and more completely
integrated organization" The formation Of
the corporation followed two lears later.
The corporation has never attempted
to restrain trade between component
parts OF the organization or between the
corporation and its competitors. the VII
ness declared NO other factor or infiu-
ence has done more to foster trade. 10 e.
tablish fair and open dealing. and t. slim
ulate healthy and effective competition
than the corporation.
Asked as TO the existence OF a secret
price on corporation products. Nj
Schwab said
- never heard OF q secret price being
maintained against the published prices
OF the corporation which. when ] was
its president. were always given out"
Pools Of all sorts among steel nanu-
facturers were described in detail by Mr..
schwab as having existed previous to
the formation of tho corporation
When ] was president of the Carnegie
Steel Company We went after the bust
ness. and we got it the best way we
could" the witness said. with smile.
He denied positively, however. any
knowledge of foreign pool in rails while
he was president of the corporation, or
since that time, or any agreement be-
tween American and foreign manufacture
ers having TO do with a bargain 10 Keep
out of one anothers territory.
at wasn't possible in earlier days. De-
fore the formation of the corporation"
he declared.
That's all that restrained you. isn't
IT." Jacob NJ Dickinson. counsel for the
government. wanted to know.
Eyes. that's right" Mr.. Schwab added
with a laugh II would have made such
a pool abroad if we had had any rails
TO sell there, which we hadn't"
The witness denied the power of tho
CORPORATION TO put any OF its competitors
ont OF business. declaring that some Of
its larger competitors could more readily
exterminate "a small rival than the cor
noration. He also upheld his former con-
tentions that the price Of 81 ton paid
for ore underground, price the govern
mont declares was too high and fixed TO
Loen councillors out of the ore fields, is
a conservative price at the present tiIne'
and has been for the last ten years
Mr.. schwab's cross-examinauon was
hee,,n late in the day, and will be con-
timed at this mornings hearing. IL was
aimed 10 prove that the Carnegie Steel
and the Illinois Steel companies were
councillors before their absorption by
tho corporation and that such absorption
nroves the organization OF that concern
| 10 suppress competition