The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-10-18
Individual Works Were Drifting Into
Bankruptcy Before the Console
dation Was Effected.
PRICES OF PLATE NOW HIGHER
BUT WAGES OF EMPLOYEES IN
CREASED s2,OOO,OOO ANNUALLY.
Thirteen Mills Shut Down. but Twen-
ty-Five New Ones Started-The
steel Combinations.


commission continued its inquiry into the
trust question to-day, the witnesses being
President Daniel G. Reid, of Chicago, of the
American Tin-plate Company William
Reiss, of Chicago, president of the National
Steel Company; Charles S. Guthrie, of Pitts
burg, president of the American Steel Hoop
Company, and Judge William III. Moore, the
promoter of these and other trusts.
Mr.. Reid. in reply to questions as to
whether the books of the company are open
to the inspection of stockholders, produced
a series of resolutions adopted by the stock
holders at their first meeting. but not here
tofore made public, providing that the books
in which the transfers of stock shall be reg
istered and the books containing the names,
addresses and number of shares, respective
", of the shareholders shall be at all times
during the usual hours of business open to
the examination of every stockholder at said
principal office. He said that Judge Moore
had organized the combination and had re-
ceived for his services 100000 worth of the
common stock.
The consolidation had been made to pre-
vent absolute failure, many of the tin
plate establishments were rapidly drifting
into bankruptcy. The prices of the product
had increased rapidly since the organization
and there had been a corresponding advance
in wages. He estimated that the increase in
wages and in employees would represent an
enlarged pay roll of 100000 annually. The
rolling mill men in his establishment were
paid as high IA so per day, the highest
price paid TO any laborers in the world. The
average wages of their employees were $50
per day. The advance in the price of the
finished product had not been equal to that
of the raw material and of wages.
Mr. Reid admitted there had been talk of a
requirement on the part of the tin-plate
company that patrons for whom the COM
pany should make special brands should be
required to purchase their entire supplies
from that company, but the regulation had
never been enforced. He explained the re-
lations of his company with the National
Steel Company and the American Steel
Hoop Company, saying that each company
had directors who held similar places in the
other companies. The tin-plate company
buys half of its raw material from the Ma
tional company, but it buys. he said, where
it can buy cheapest. There was more OF
less of cooperation and this cooperation
afforded a means of keeping well informed
NEW MILLS STARTED.
Mr.. Reid said that thirteen mills had been
shut down because of their poor location
but twenty-five new ones had been started
There are thirty-nine establishments in the
combination, he said.
Without the tariff Mr.. Reid thought il
would be impossible to manufacture tin
plate in the United States The margin is
now sufficient to permit the increase OF
the price of American tin-plate to S5.25 pei
box before bringing it into competition with
the English product. He estimated that the
manufacture of our own tin-plate had re-
suited in keeping at least $35 100000 in
this country which otherwise would have
gone abroad. In the thirty-nine es-
Establishments owned by the combine there
were 800 mills while the outside establish.
ments contain twenty-seven mills. The
American Company manufactures nine
tenths of the tin-plate made in this country
and controls the prices. he added
The testimony of Mr.. Reiss agreed In
most respects with that of Mr.. Reid, especi-
ally in regard to the increase in wages
and the advance in the prices of raw ma
terial. His company, he said, was capi-
talized for $4,000 600, of which $4,000. 600 was
preferred and the remainder common He
declared that his company sold its products
to any one that wanted TO buy, and that
it's sales were not confined to the tin-plate
company, as has been alleged. In his com
bination there were six steel works and
fifteen furnaces. The company also owns
its own iron mines AID its boats for lake
transportation. The capacity of the com.
bine is about 5000 tons per day. or about
Is per cent. OF the total Of the product OF
the country. Prices of steel had increased
since last year from s1O.33 to $22.5 per ton
and of steel billets from 1851 TO from So
to $44.
Mr. Reiss differed from the other wit.
nesses in his estimate of the effect of the
| tariff, saying that directly it did not bene
fit his industry in the least. He said that
his company did business with the tin
plate company on the same basis as with
| other patrons. but admitted that the reIa.
tions of the two companies were confiden.
| tial. His company, he said paid its regular
| dividend of per cent. on the preferred
stock. but had never paid any dividend or
the common stock. The profits of the com.
pany were in excess of the amount paid In
dividends.
STEEL COMPANY NOT a TRUST
Asked II there was any prospect of divi
dends on the common stock. he replied
we nave HOpes' anu duueu lndt he cOuiC
make statement OF earnings. but that he
would not like TO do so. He declared the
steel company was not a trust, as thai
word was ordinarily employed.
Mr. Guthrie said that he found the combi
nation OF the interests represented in the
steel hoop company of vast advantage IN
many ways. and especially in securing a
foreign market He hoped 10 see the tims
when the export steel trade OF this countr,
would be ten times great in volume a.
al present. The United States had a vas