The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1900-02-23
A PROTECTED INFANT.

A PROTECTED INFANT.
The parents and guardians of our in
dustrial infants who are seeking to en-
force on the people of the former pos
sessions of Spain which are now under
the American flag barbarities in compar-
ministrators were quite paternal and
kindly, will no doubt suffer an uneasy
quarter Of an hour over the developments
made in the bill of complaint filed by Mr..
Prick in his suit against the Carnegie
concern
That is a really interesting document.
but there are certain of those state
ments, on which Mr. Frick is an au-
thority, and which 1t is not reasonable to
believe are perjured. One of these state
ments relates to the extent Of profits
realized by the protected infant known
as the Carnegie Steel company. Mr..
Prick says that the infant In question
had just $21 zoo, 900 placed to its credit
last year on total capital invested Of
$25, 900, 0O0 He goes even further, and
says that the profits for the present year
on the same capitalization will probably
reach $4O,OOoOOO.
The infant which needs protection to
mortal to be better off in another and
less infirm state of existence. Its present
existence is certainly a grievous burden
to somebody, and that somebody most
assuredly is not either Mr.. Carnegie or
Mr. Frick, Or the helpless widows and
orphans who we are taught to believe,
in all such cases, own the great bulk of
the stock of, the concern. Then. whom
is the burden imposed on?
Let us see. The tariff on the products
which this concern turns out ranges
about As per cent on all manufactures of
iron and steel. SO that it becomes nee
essary for a government which is quite
busy these days carrying the flag to the
Hinterland of creation to take about s10,-
600. 900 Or so every year out of the pockets
of greedy people in order to enable this
infant to survive on an annual income of
$25. 900 600!
But let Mr.. Frick speak for himself.
In his bill of complaint he uses this Ian
guage, under oath. of course:
''The business from 1892 to 1900 was enor-
mously profitable. growing by leaps and
jumps from year to year until, in 1899,
the firm actually made On low-priced
contracts in net profits fit 400 after fde paying
ber., 1899, Carnegie estimated the net
then estimated them at $42, 100000
Carnegie de- valued the entire property at
over $25O, 600, and avowed his ability
in ordinarily prosperous times to sell the
property on the London market for G100,-
600 900, or $500. Geo. 900.
I'm May 1899, Carnegie actually re-
ceived in cash and still keeps $1,17O, 900,
given him as a mere bonus for his ninety
days option to sell his 5S1s per cent in
terest in this steel company for $157 1885,
GOO. Tricks 6 per cent, on that basis,
would be worth $16 23S. 000'
Nothing need be added. But as there Is
much more of interest, slight addition
showing how the Carnegie combine has
been financed may not be amiss. From
the interesting legal document referred
to it appears that in 1892 Carnegie Bros
& Co. and Carnegie, Phipps & Co., each
having a capital of $5,000,OOO, combined
under the name of the Carnegie Steel
company, with a capital of $25, 0O0,00O Of
this amount $20,0o0,OOO was actually paid
up. This $2O0O0,00O seems to have been
made UP by issuing 200 per cent dividends
on the capital Of the two concerns. In
addition to all this, the checks used in
and representing these dividends were
made to serve as cash in paying in the
capital.
While, Of course, these statements are
still open as to their correctness to any
answer which Mr.. Carnegie may make,
the % per cent protection offered the Con-
necticut tobacco growers in that Puerto
Rican tariff seems none the less beggariy
OF course it ought to be added to, rather
than reduced or abolished, even If all
the ''Dagos" and ringers" now living
under the Stars and Stripes between here
and Botany bay were reduced to grinning
skeletons.