The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-12-22
He Says the Trust l. a Dead Business
Would Wreck Anything.
CONSOLIDATION IS DIFFERENT
1T EXPANDS TRADE y REDUCES
PRICES OF PRODUCTS.
His Great Concern, with Its 10000
stockholders, in Favor of Pub
~Iicity-Pay for Labor.

CHICAGO, Dec. 21.-In a speech tonight
before the Bankers Club Charles VI.
Schwab, president OF the United States
Steel Corporation, declared that "the trust
is a dead business proposition built on a
trinity that would wreck a~nything-the
restriction Of trade. the increase Of prices
and the thrOttling OF competition" In
distinction from the trust he declared
that consolidation had for its guiding prin-
cIpIes the reverse of this trinity; that
instead Of restricting it expanded trade
by creating new avenues and reducing the
prices of commodities produced. For par
ticulars he discussed the United States
Steel Corporation. pleading that it was
with this consolidation that he. was most
familiar.
Mr.. Schwab was the second speaker. w.
b. Ridgley, controller OF the currency, pre-
coded Mr.. Schwab and two others followed
him-H. II. Hanna, Of Indianapolis, and
Prof. j. p. Nugget, Of Coe College.
Before a company Of bankers il Is, of
course. unnecessary TO defend the principle
OF consolidation" said Mr.. Schwab. Men
IT. your business are Of necessity too well
grounded in industrial science 10 be affect
ed by the timorous advocates OF old line
methods or the silly cutlery against con-
solicitations as trust No one has a clearer
appreciation than myself of the evil that
lurked In the trust scheme. l say lurked'
adVisedly, because the trust is a dead bus
mess proposition with which we will never
again be troubled. Ii was an experiment.
and 10 that extent served its purpose. But
IL was founded on miscOnceptiOn and pro-
noted along lines of self-destructiOn. It's
fundamental principles were the restriction
OF trade, the Increase of prices and the
thTOttling Of cOmpetitiOn-a trinity that
would wreck any proposition or business,
political or social The consolidation. as
organized to-day, has for its guiding line
the very opposite of this. Instead OF re-
strtcting trade it expands trade by Great
ing new avenues and reducing the price
OF the commodities which it produces. Ii is
enabled TO do this because the chief advan-
tage OF consolidation is the reduction in the
cost Of the articles produced"
nation and workings of the United States
Steel Corporation and then said: Il am
heartily in sympathy with President Roose-
veit when he says that all the great COM
binatiOns should be given publicity. When
the stock in a large corporation is held by
the public, as in the case OF the United
States Steel Corporation, for example,
which has some $4,000 stockholders, | be-
neve every stockholder has the right to
know something of the financial standing
of the company and the management of its
affairs and that 1t will only be companies
that are formed on erroneous principles of
capitalization that viii object TO such pub
lclty."
OF the relations between capital and
labor Mr.. Schwab said: Touching on the
relations between labor and combinations
i beg to state that the greatest advantage
10 the welfare OF this country has resulted.
Wages have steadily advanced since con-
solidation started. This curious thought
occurred 10 me this evening:
Many people think that the bonds of
the United States Steel Corporation are a
first mortgage upon its great properties.
IL you Will stop 10 think. you will find
that the first great mortgage is that which
Is owed TO labor. The United States Steel
Corporation pays 10 labor approximately
$50. O00, 900 a year. This is equivalent to a
mortgage debt OF 5000, 200 upon the
property, which must be paid in advance
OF the first mortgage bonds. Never be-
fore has labor In the industries with which
/ am familiar received such high pay"