The Worcester spy. [volume] (Worcester, Mass.) 1898-1904, 1901-12-22
Charles M. SChWab, President of
the United States Steel Corpo-
ration Takes "TrustS" for His
Subject
THE TRUST A DEAD
BUSINESS PROPOSITION
Built on a Trinity That Would
Wreck Anything-The RestriC-
ton of Trade, the Increase OF
Prices and the Trottling of
Prices

Prices
| Chicago. Dec 21.-In speech to-
night before the Bankers Club, Charles
NJ. Schwab, president Of the United
States Steel Corporation, declared that
1.-THE trust is dead business PROPOSE
ton, built on a trinity that would
wreck anything-the restriction of
trade, the increase of prices and the
throttling of competition"
In distinction from the trust, he de-
clared that consolidation had for its
guiding principles the reverse of this
trinity-that, instead of restricting, 1t
expanded trade by creating new ave-
nues and reducing the prices OF com
modities produced. For particulars he
discussed the United States Steel Cor
poration, pleading that it was with this
consolidation that he was most tamil
lar. Mr.. Schwab was the second
speaker.
w. B. Ridgley, controller of the cur
rency, preceded him and two others
followed him-H. H. Hanna of Indian
apolis and Prof. ]. p. Nugget of Coe
College
/ Before a company of bankers, it is,
of course, unnecessary to defend the
pTinClDlG Oh COllSOlludllOii Goih AAA
Schwab.
Men in your business are Of neces-
sity too well grounded in industrial
science to be affected by the timorous
advocates of old line methods or the
silly cutlery against consultations as
trusts"
mo one has a clearer appreciation
than myself Of the evil that lurked in
the trust scheme. l say "lurked' ad-
visedly, because the trust is dead
business proposition with which we
will not again be troubled. 1t was an
experiment and, to that extent, served
| its purpose. But it was founded on
msconception and promoted along
lines of self destruction.
Its fundamental principles were the
restrictions of trade, the increase of price
and the throttling of competitions trim
ity that would wreck any proposition
business, political or social. The CONSOLE
dation as organized today, has for Its
guiding line the very opposite OF this.
| instead of restricting trade 1t expands
trade by creating new avenues and re
duclng the price of commodities which 1t
produces. 1t is enabled to do this be-
cause the chief advantage of consoida-
ton is the reduction I'm the cost of the
articles produced.
Mr. Schwab gave an account of the
formation and workings of the United
States Steel Corporation, and said: Il
am heartily in sympathy with President
Roosevelt when he says that all the great
combinations should be given publicity
OF the relations of capital and labor
Mr.. Schwab said wages have steadily
advanced since consolidation started.
This curious thought occurred to me
this evening; Many people think that
the bonds of the United States Steel
Corporation are first mortgage upon
its great property. If you will stop to
think, you will find that the first first
great mortgage is that which is owed
to labor The United States Steel Cor
poration pays to labor approximately
$3.50, 900 900 a year This is equivalent
to a mortgage debt of $4,000 900 on the
property, which must be paid in ad-
vance of the first mortgage bonds
Never before has labor in the indus
tries with which l am familiar received
such high pay"