The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-10-18
TALE OF THE TRUSTS
TRIAL COMMISSION BY MEN
WHO ARE INTERESTED
THEY SEE NO HARM IN IT

Have Been Increased and How the
Manufacturing and Sending
Abroad Articles That Were For
| merIy ImpOrted-AII Are Agreed
WASHINGTON, Oct. 1.-THE indus
trial commission continued it's inquiry
| into the trust question today. the wit
nesses being President Daniel G. Reed, of
Chicago, of the American Tin Plate COM
pany; William Refs, of Chicago, presi-
dent of the National Steel company;
Charles 8. Guthrie, of Pittsburg, presi-
dent Of the American Steel Hoop COM
pany. and Judge William FL. Moore, the
promoter of these and other trusts.
Mr.. Reed, in reply to questions as to
where the books of the company are open
to the inspection Of stockholders, pro-
duced series of resolutions adopted by
the stockholders at their first meeting,
but not heretofore made public provid-
ing that the books in which the transfers
of stock shall be registered and the books
containing the names, addresses and
number of shares respectively OF the
shareholders, shall be at all times during
the usual hours Of business open to the
examination of every stakeholder at said
principal office.
He said that Judge Moore had organ
lied the combination, and had received
for his services common stock. The con-
solidation had been made to prevent abb
solute failure, as many of the tin plate
establishments were rapidly drifting into
bankruptcy. The prices of the product
had increased rapidly since the organfza-
ton, and there had been corresponding
advance in wages. He estimated that the
increase in wages and in employees would
report an enlarged pay roll of S20oO,O0o
annually. The roll men in his establish
ment were paid as high as $40 per day
the highest price paid to any laborers in
the world The average wages OF their
employees were $3.50 per day.
ADVANCE IN PRICES.
The advance in the price of finished
product had not been equal to that OF the
raw material and of wages. He admitted
that there had been talk Of requirement
on the part of the tin plate company that
patrons for whom the company 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
relations Of his company with the Ma
tional 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 National company, but
it buys, he said, where 1t can buy cheap
est. There was more or less OF co-opera-
ton, and this cooperation afforded
means of keeping well informed
Mr. Reed said that thirteen mills had
been shut down because Of their poor To-
cation, but twenty-five new ones had been
started There are thirty nine establish
ments in the combination, he said. With
out the tariff, Mr.. Reed thought it 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 $5.25 per
box before bringing it into competition
with the English product. He estimated
that the manufacture of our own tin
plate had resulted in keeping at least $780,
COZ, 900 of money in this country, which
otherwise would have gone abroad. In
the thirty-nine establishments owned by
the combine there were 800 mills, while
the outside establishments contain tWen-
ty-seven mills The American company
manufactures nine-tenths Of the tin plate
made in this country and controls the
prices.
STEEL TRUST TESTIMONY.
The testimony of Mr. Refs agreed IN
most respects with that of Mr.. Reed, es-
pecialIy in regard to the increase Of wages
and the average in prices Of raw material.
His company, he said, was capitalized for
$50 COO. Co., of which $21,000,ee9 was prefer
red and the remainder common. He de-
clared his company sold it's products to
any one who wanted to buy, and that it's
sales were not confined to the tin plate
company, as has been alleged. In his COM
hination there were six steel works and
fifteen furnaces. The company also owns
its own iron mines and IT'S boats for lake
transportation. The capacity of the COM
bine is about 5000 tons per Gay, or about
Is per cent Of the total product Of the
country. Prices of steel had increased
since last year from $10.33 to s22. so per
ton, and Of steel bilets from S15.3 to from
$34 to $44
Mr.. Refs differed from the other Witness
es In his estimate Of the effect OF the tar
iff saying that directly 1t did not benefit
his industry In the least. He said that
his company did business with the
tin plate company on the same basis as
other patrons, but admitted that the re-
lat1ons OF the two companies were conf
dental. His company, ne said paid it's
regular dividend of per cent on the pre-
fcTred stock, but had never paid any div
loend on the common stock The profits
OF the company were IN excess of the
amount paid in dividends Asked If there
was any prospect of dividends on the
common stock. he replied Eve have
hopes, and added that he could mako
statement Of earnings, but he would
not like to do so. He declared that rhe
steel company was not trust, as that
word was ordinarily regarded
STEEL HOOP STORY.
Mr.. Guthrie said that he found the com
biEation of the interests represented in
the Steel Hoop company Of vast advan-
tage In many ways, especially in securing
foreign market. He hoped to see the
tim" when the export steel trade of this
country would be ten times as great in
volume as at present. The United States
had vast advantage over other coun-
tries In the plenitude of it's raw material
and the inland water haul furnished
by the great lakes. These ADVANTAGES
would enable this country to beat all the
European countries in the Orient and in
all other places where there is fair com
petition. The Steel Hoop company was
composed Of nine different plants, with
$ll,000,0G0 of preferred and $19,00000O of
common stock He considered the tariff
of very material advantage to the indus
try.
Judge William Fl. Moore, of Chicago,
who had organized the American Tin
Plate company, the National Steel COM
pany and the American Steel Hoop COM
pany, and also other combinations, ex-
planned his methods at length. The or
ganization of the tin plate company had
been undertaken at the request Of the
owners of a number of tin plate estab-