The morning Astorian. [volume] (Astoria, Oregon) 1899-1930, 1901-09-01
OPPOSITION To THE TRUST

Seattle Post-Intelug
/, IA reported ;hst President sOawab
proposes to resign his position a; the
head OF the United states Steel Com
paay. The so-caned steel trust" and 20
devote his attention TO the con3uc, ot
the great Bethlehem Steel Company
which is outside Of the trust, ana the
control Of which he recently acquired
with the millions received by him tor
his share in the Carnegie concerns pur-
chased by the trus; az price very
much greater than their actual value.
1, is altogether probable that young
captain Of industry like Mr.. schwab.
who has exhibited wonderful executive
ability and who has attained mastery
OF the details Of the steel business, has
no, been altogether At ease in a position
where his executive actions have been
controlled by fnanciers. who have re-
placed the practical iron masters in con-
troll OF the grea; corporations. More
over. it Is extremely likely that he. ike
his former associate. Mr.. Frick, prefers
to conduc; personally, for his own in
teresss. a coacern in which he owns
large or majority interest, rather than
to remain a mere employe. no matter
how large the salary which he may OBJ
tain in the latter position.
The detection Of Mr.. schwab, IL it be
true that he intends TO leave the employ
Of the trust, exhibits anew the weak
ness which these great consultations.
with their extraordinarily diversified
ownership. will disclose in active compe- (
titlon with more compact. close corpora
lions in which the positions Of power
and responsibility are filled by men who
themselves are large owners OF the stock /
Of the concern, and who are not sub I
iect to the dlctation OF a board Of man
ayers elected by outside stockholders.
In forecasts as 20 the growth Of yrusis I
and their ultimate monopolizatloa OF .
any productive industry. this element Of Z
weakness is generally ignored Yet the
personal equation has been the ons es-
sentlaI fature in the up5ulding Of each
Of the industrial enterprises which have
been absorbed into the great combina-
tions; and IN the absorption this per-
scnal equation has been eliminated. The
great Carnegie combination practically
made its own capital The men who
made millions out OF It, without excep- ID
ticn started in life without capital The
whole system was built up from very
small beginnings. by the knowledge,
Hklll, brains and executive force OF the
! en who are now retiring from active
Participation in the conduct Of the busi-
ess Of the new combination. These
Ferry men, who bulli up these great
concerns. without the aid Of outside
capital, are many Of them still young.
vigorous and active. abundantly equip
ped with capital, they have acquired in ,
past years. The places which they held
are in the future to be held by mere
employees, working for fixed wages.
rhey themselves have all of the equip 4
nent, in skill, character and money. 10
'e-enter upon business for themselves
md to renew the wonderful successes Of
he past. That they will do so is more
han possible. It seems inevitable.
Thus. it is already seen that Mr.. Frick.
heavy stockholder in the Carnegie |
concern, has invested some Of the mil
ions which he received on the sale Of
he plant in a new steel company. Il
lso appears that Mr.. schwab has like
wise invested heavily in and is reported .
0 have secured control Of an existing
reat steel company. which remains
utside of the trust Others Of the form
r Carnegie partners. all millionaires
nd all practical men, will doubtless do
kewise. They viii bring their large
xDerience to the management Of con-
erns which they viii own themselves,
'hich viii not be ourdened by ary ire-
lendous weight Of over capitalization.
nd which will not be controlled by d.
sciors representative merely Of outside
ivestors In the stock. That they viii
E able to compete successfully with
ie great combination goes without say ]