The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-04-08
SCHWAB PREDICTS
POOR YEAR IN STEEL
Tariff and Freight Rate Dues.
ton Injure Industry,
He Says.
BUSINESS BAD IN MARCH
Bethlehem Head Asserts Steel
Corporation Dissolution
Would Be a Blow.

Charles NJ Schwab, head Of the Bethle-
hem steel Corporation. in speaking Of the
steel industry yesterday said that he
looked for a continued depression. He
pointed out that March is usually consid-
cred the pilot month" in stee, circles,
the month by which the industry for the
year IL gagged.
II look for a continued depression In
the steel industry" Mr.. Schwab said.
march is the pilot month and last
March was very bad one In that In
sustry. So the outlook is poor"
He added that tho present gloomy out
look was due to q great many conditions,
among them the tariff and the freight
rate question. In explanation of the
tariff he said:
THE Bethlehem plant is about ninety
miles from New York. but our chief COM
pctitor Germany. can bring steel here at
The same or lower freight rates than
those we have to pay. Foreign steel Is
already being taken at Boston. Galveston
and San Francisco.
Difference In Wages.
sOne fundamental fact we have to re-
member is this, the annual average wage
Of each man in the Bethlehem company
service last year was about 5000. have
absolute information that In the factories
Of our chief competitor abroad Germany.
the annual average wage Is only about
cne-third as great. You can draw your
own conclusions. believe that industries
should be protected IL they must pay high
wages and l believe in the wages paid
Sn the United States.
irrespective Of the tariff and other con-
ditions we will go right ahead with the
developments already planned for our
business. OF course, IL we were certain
where We stood some OF this development
would really progress much faster.
I'VE have contracted for six steamers
from Swedish interests to be used In the
carrying OF ore from our Chilean prop
critics and will need about twenty more TO
carry on the work. II will not be neces-
cary for US to do any financing in connec-
ton with these ships.
II don't believe that dissolution Of the
Steel Corporation into its integral parts
would benefit either the country or the
industry. We have always found that the
Steel Corpora ton was able to preserve a
balance between periods of prosperity and
depression in the industry which Was Of
s,nmense benefit TO the business and to the
country The dissolution of the United
States steel Corporation would be step
backward. as it would be a movement con-
trary to economic law.
Better Rates, BETTER Trade.
II am sure that il the railroads get the
desired advance in freight rates that II
will mean an Improvement not only in the
steel industry but in all lines. I believe
that the railroads will continue to buy
STEEL in the United States If they can
afford to do so without too great a loss, If
only to help industry.
Il favor the regulation Of large cor
poratons by the Government in so far as
81 refers to the issues of securities and
financing as long rs IT doesn't interfere
with tne operating and manufacturing end
Of the business.
THE s20,000.0OO contract which the
Bethlehem Steel Corporation has with
the Chinese Government for naval stee,
material still stands and is awaiting only
tho further action of the Government"
The annual meeting of the Bethlehem
steel Corporation was held yesterday and