The times., 1899-10-18

A number OF witnesses testified before
the Industrial Commission yesterday on
the advantages Of large aggregations of
capital in conducting the industries of
the country, and especially the tinplate
and steel business. The President Of the
American Tinplate Company, Daniel G.
Reid. Of Chicago. occupied the morning
hour in giving his testimony, and the after
noon was divided between c. S. Guthrie,
OF Pittsburg President OF the American
Steel Hoop Company, and Judge William
II. Moore. OF Chicago. an organizer and
promoter OF industrial corporations.
Mr. Reds testimony was a practical
affirmation CT the testimony given on
Monday by Vice President Graham Of the
same company. He emphasized the asser-
tion that there would be no tinplate in
dustry in this country if it were not for
the tariff on that article. he saw no way
In which the combination worked harm to
the industry or TO the country. President
Reid predicted that if the price Of steel
continued 10 advance for the next six
months as it had in the past, it would be
necessary TO make cut in the wages of
the employees Of the American Tinplate
Company. as steel is a necessary compo-
nent Of tinplate. Mr.. Reid was asked if
IL would not be possible to offset the raise
in the price of steel by raising the price
OF tin plate. He replied that the public
would be made TO bear part OF the extra
expense. but that if the price of tinplate
were raised above certain mark it would
encourage the Importation of the article
from abroad
c. s. Guthrie, Of Pittsburg, President of
the American Steel Hoop Company, told
the Commission that the combination of
capital in the manufacturing industries
tended TO encourage the expectation of
American goods. This, he explained was
caused by bringing the over production and
surplus OF any combination of factories
or mills under one management. and for
which foreign market could be sought al
& very small profit or even in some in
stances at a loss il there was a prospect
Of future business in the same market
Judge Moore was the last witness OF
the day He is man Of very wide ex-
perience with corporations, having been
the organizer Of the American Tin Plate
Company, the Federal Steel Company. the
American Hoop Company, the American
Biscuit Company. and the Diamond Match
Company, and many other large corpora
tions. He outlined his organization meth
simply went throughout the country and
bought up the different concerns which
Il was desired 10 bring together. and after
this was accomplished a company was
generally organized under the laws OF
New Jersey. Whenever the former OWL
ers of the plants that had been purchased
desired TO go into the combination they
were given as a usual thing 500 in pre-
ferred and $10o in common stock Of the
faH for
OF their property which had been pur-
chased. In many instances where this
was done the former owners were kept
IN charge of their own mills or factories.
Judge Moore was very positive that in
dustrial combinations had come to stay.
He called attention 10 the fact that a
few years ago there was seemingly a very
strong prejudice against capital combina-
tion in England, and her laws were ac-
cordingly very oppressive on this point.
Now, be continued. the English laws are
even more liberal than those OF the State
OF New Jersey and the people generally
look. upon these aggregations Of capital
with great favor. and their stocks arc
eagerly bought on the London exchange.
This was rapidly growing to be the case
In this country, continued Judge Moore.
and the proof OF il was the eagerness
with which the American people bought
the preferred stocks in the great indus
trial corporations OF the country. These
stocks. which generally paid q dividend
OF per cent, were regarded generally as
q better investment than bonds. The
common stocks OF the industrial compa
mics represented in reality the premium
at which the preferred stocks of the same
companies would be held, If no common
stock had been issued
The witness saw no evils In large cor
p0ra1ions that we're al all commensurate
with the good they did the country in
many ways.