New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-06-30
INDUSTRIAL CORPORATIONS AND STRIKES

Candid trial of the new industrial corporations
mas this week TO face an extremely illustrative
and important event. The difficulty disclosed is
one which may prove inseparablc from that
mode Of organizing industries. and, if so, may
go far to determine their success and usefulness.
The new tinplate company, which controls near
ly all the works In this country, has refused a
demand for 20 per cent increase of wages, and a
strike has been ordered which is said TO ahect
thirty-hve thousand men. Now. controversies
about wages and resulting strikes are not con
fined to any form of industry or organization.
But there Is reason for belief that the corporate
organizations which place sto ks on the market
will by their very nature be exceptionally liable
TO such controversies. If IL" stocks issued were
only OF such amount as TO represent actual cost
OF property. and were held almost exclusively
by those concerned in the business there would
be nothing 10 cause constant putting Of the
stocks and the profits. But where stocks
amounting 10 many millions are held by promOt-
crs, underwriters. banks and spectators. who
are anxious to make market and lift the mar
ket price perpetual parade Of all that can be
said in favor Of the stocks is natural
The tinplate company has $2000000O of { per
of common stock. Of which about half was sold
In this city in a single week when the price was
near its highest Ii has paid a quarterly diyi-
dend on the preferred. and the claim is that it
can produce eight million boxes yearly Before
the company was formed the current price here
was 81 S2l2 box. full weight, and is now
quoted at 81 02la box for future shipment from
mill, an advance Of 81 20 a box. This rise was
effected last April. and there has been no fur
Their advance since. The exploiters of the stock
have argued that If only half the advance in
price were profit the company could pay the pre-
ferred dividend and per cent on common stock
and still have per cent more to hold or divide.
Such things cannot be whispered in any market
without getting into print. If they get printed
anywhere the hands employed in the mills are
sure to hear OF them. Then the question arises
whether the company. which is said to be getting
S9,600.000 a year for its output more than the
makers formerly obtained should not divide the
enormous profits with the workers by increase OF
wages
This illustration is especially fortunate. be-
cause in this. as in most other recent organiza-
tons, the methods make il certain that the hands
cannot know how large part OF the advance in
price is covered by increased cost of material
The fact is that nobody can know exactly what
the cost Is 10 the many mills which roll theil
own plates, nor even to those which contract
with sheet mills for the material. That part OF
the business would not be told by anybody, be
cause II would tend 10 check an advance of III,
stock. and for the same reason would be mos
jealously guarded from many thousand hands
who might divulge it. The natural consequence
IS that the men are likely 10 hear that the prof
it's Of the company are much greater than the!
really are. aud to be obstinate in demanding
higher wages than might otherwise be expected
Whatever the cause. this has been the result. \
moderate and voluntary advance In wages was
made at most mills after the company wa