The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1899-05-06
The Great stccl Combine.

d
1t turns out that the Carnegie Steel
Company IS TO be the backbone Of the
monsterssteel combination in process OF
formation. and the capital Of which is
TO be several hundred millions OF dol
lars. 1t Is to include several very. large
corporations, with capital ranging from
twenty to q hundred millions each, tho
Carnegie Company representing the
latter figure. Mr.. Carnegie, It Is al
legged. will retire from business and Mr..
Frick is to conduct matters. ,s,.55,
The anouncemensSis giving rise to n
great amount of discussion concerning
this climax Of the combination move
ment This one. which is to have for
Its backbone the Carnegie Steel Com
pany, is to combine also the National
Steel Company, the American Tin Plate
Company. the American Stce! Hoop
Company, the American Steel and Wire
Company, the National Tin Plate and
Enamel Company, and number OF
others. Each Of the corporations IS
something OF combine in itself. ana
the whoie is TO be q combination OF
combines. 1t is wide in its scope and
will be powerful in its influence on the
steel market, for 1t will be in practical
control.
There have been denials from parties
Interested in the combination that the
plans were formulated, but the latest
statements are made on apparently
good authority. One of the authorities
for much of the information concerning
the proposed combination. President
Gates, of the American Steel and Wire
Company. says the capital may reach
"a billion dollars, that 1t will take in
about all the companies worth having.
and that 1t is not q trust. but combine.
which. as single distributor, will be n
good thing and make business better"
1t is sincerely hoped that Mr.. Gates Is
correct in his calculations.
The near future will develop whether
the big combinations that are being
formed will prove positive benefit to
the country or not. In most cases one
of the causes. and 1t may be said the
principal cause, for the formation of q
number of them, Is held to be the de-
preston OF prices resulting from the
competition among producers. It all
depends upon the wisdom with which
the control OF prices is exercised as to
whether the combines are wise in them
selves or not. That is al! in the flu
ture.
There Is no doubt that large num-
Der OF the new trusts that are trusts
pure and simple have been created 10
make new securities to be sold on The
market for profit. for great quantities
of the stock are watered. The new steel
organization, however. II the state
ment5 of those who are at the head Of
the deals arc to be taken. is to be clags-
ed amonS the more substantial! Of the
stocks based upon actual values. and
formed merely because competition has
become SO great that the competitors
find it necessary TO place z limit on it
by combining. This explains the ex-
preston Of President Gates. TO the eff
feet that where there Is but one dis
trlbu:er trade will be improved and
prices sustained.
II the stee! combine is to be conduct
cd or legitimate lineS in this respect,
It may accomplish that benefit. II GER
talnly has the facilities for it. 1t Is
hoped thar, while all these events in the
business world are taking place. the
necessity of legislation that Will prevent
the possibilities OF trusts formed for
the sole purpose OF manufacturing Sc
curitIes based on watcred stock and
representing practically nothing Will
not be forgotten. They are dangerous
and work great evil. The whole subject
of trusts Is one for serious considcra-
ton.