Shepherdstown register. [volume] (Shepherdstown, Va. [W. Va.]) 1849-1955, 1900-03-01
A Striking Illustration.


Frick against the Carnegie Steel Com
pany show that the plea for the pro-
lection of our "infant industries" as
the New York Times points out IN
vigorous terms, is "monstrous and
wicked lie" The Sun has already
published principal allegations made
bv Mr.. Frick in his bill of complaint.
AS the Times says: They put into
the hands of the assailants of the tar
Unprotected trusts, combinations and
monopoliss the most formidable ar
tillery they have ever possessed
Under tariff averaging IS per cent
ad yalorem on the entire class of man
ufactures of iron aud steel the Car
negie Company has earned profits OF
from 80 to 100 per cent.
The Carnegie Steel Company was
organized in 1892 by the consolida-
ton of the firms of Carnegie Brothers
& Co., and Carnegie, Phipps & Co.,
each with capital of S., 100000. The
nominal capital of the joint concern
was $25, 100000, but the amount paid
in was only s2O,OOO,OOO, which it is
alleged, was made up by issuing 200
per cent. dividends on the capital Of
the two component companies. The
checks representing these dividends
were made to serve as cash, 1t Is
charged in paying in the capital. How
this business fourished under the pro-
lection it received as an "infant indus
try is set forth by Mr.. Frick as fol-
follows;
'In November, 1899, Carnegie esti-
mated the net profits for 1900 at SIC, OOO,-
600, and Frick then estimated them at
S42, 10000 Carnegie valued the entire
property at over $3.50, 900, 600, and avowed
his ability, in ordinarily prosperous
times, to sell the property in London for
$500, 900, 900. In May, 1899, Carnegie
received in cash, and still keeps, Sl,l7O,-
600, given as a mere bonus for his 80
days option to sell his ISL per cent. in
terest in this steel company for Sl51,-
$50, 600. Tricks 6 per cent. interest on
that basis would be worth GIG, 23S, 600. "
There never was in all the history
of high tariff legislation more crush
ing indictment Of the system by which
consumers are plundered by the owners
of our "infant industries. 1t has
been known heretofore that the prof
its were enormous, but no one ever
imagined that they would range from
so to 100 per cent. As the New York
Times says "There are countless
manufacturers in this country who
would be glad to make 10 per cent.
on their invested capital, leaving wa
tered stock out of the question" Yet
here we have the Carnegie Company
making In 1899 $2l, 100000 profits
on $25, 100000 capital, while its prof
its this year are estimated at $40
100000 on the same capital. How
can any business man, Republican or
Democrat, tariff reformer or Protec-
zionist, justify such profits as these
at the expense of the business inter-
ests Of the country, the building trades
and railroads particularly?
The Government Is now unable to
complete the construction Of some of
its warships because Of high price
charged for armor plate. Yet on the
whole it deserves little sympathy. The
Government is itself partner IN the
Steel Trust, as it gives this gigantic
monopoly tariff protection which ex-
cludes foreign competition. Congress
should, in view of Mr. Frick', reyela-
tons decline to-pay the extortionate
price for armor plate which the trust
demands. If the plate manufacturers
make from SO to 100 per cent, the
Government could well afford to build
its own plant, although, for other
reasons, such step might not be adj
visable And if Congress is unwilling
to pay 100 per cent. profit for the
armor required by the navy, why
should it allow such extortions to be
practiced upon the railroads and build
ing trades ? The tariff duties which
the steel monopolies now enjoy should
be removed. An Infant industry
which yields l60 per cent. profit should
no longer be enabled by any act Of the
Government to prey upon the people.
Baltimore Stn.
Mid-Winter Excursions to Washington
| vervIou PateS Baltimore & Ohio r. R.