The Colfax gazette. [volume] (Colfax, Wash.) 1893-1932, 1901-11-08
Another Opposition Trust.

is, it seems, to have a competitor in its
own class, besides the innumerable indie
pendent concerns which continue to
manufacture steel and iron and sell
their product without difficulty in COM
petition with it. says the Post Inteli-
gencer. This new corporation, which
promises to be as large as or larger
than the one created by Morgan and his
associates, is to be headed by H. c.
Frick, who has already invested few of
the millions which he received from the
sale OF the Carnegie plant, in a steel
company entirely under his own control.
The new concern ia likewise to have
associated with it number of practical
| steel and iron men, who sold the plants
which they formerly owned to the
Morgan syndicate, at prices consider
ably in advance of their actual value.
This has been long anticipated as like
ly to follow the creation of the great
Morgan company. To insure the con
solidation of the numerous companies
which we're thus placed under one man
agement, it was necessary to buy out
right the plants of large number of
other corporations which at the time
were doing an exceedingly profitable
business. To buy those concerns, under
such circumstances, it was, of course,
necessary to pay a price considerably in
excess OF the cost Of the plants, other
wise the owners of the old concerns
would have been in no haste to sell. The
natural result of this consolidation and
the buying out of large number of
| corporations was that millions OF dol
lars in cash have passed into the pos
session of practical steel and iron men.
many of them in the prime of life and all
of them recognized captains of indus
| try" With these millions for invest
ment, and with no inclination to retire
| to life of ease, it was inevitable that
| these men, thrown out of active work by
the purchase OF the plants which they
had heretofore been identified, should
soon or late turn anew to the business
with the workings of which they had the
largest familiarity.
Thus it was seen that Mr.. Frick, when
his connection with the Carnegie com
pany ceased, Immediately proceeded to
build a large steel plant of his own.
Thus MIR. Schwab, who remains tenn
poraIily at the head of the United
States Steel Corporation, is reputed to
have acquired for his own personal in-
vestment the majority interest in the
great Bethlehem works, which is still
independent Of the trust. There are
numbers of other men, formerly leaders
| in the production of steel and iron, now
| with large capital for investment, who
| are prepared to follow this example, es-
pecially since the showing has been had
| OF the enormous profits which the steel
| trust has made since it's creation. Hence
| the news which comes from Cleveland of
the proposed formation of another
gigantic steel company has a strong air
| of probability.
This much is certain. With the enor-
nous amounts of capital which are now
| seeking Investment in this country, cap
| ital which will be satisfied with a very
| low rate of interest, no manufacturing
concern can long show an extraordinary
earning capacity without soon or late
meeting active competition. Much less
can it do this at time when there are
large number OF men of large fortunes,
thoroughly familiar with all the details
| OF the business, who have been recently
released from active business life by the
purchase of the concerns in which thew
made their money. and who are now
seeking investments for the capital
which they received in selling out.
There can never be a monopoly in the
United States of any product unless all
OF the sources OF supply of the raw ma
terial are likewise mOnopOlized, or un-
less that monopoly is content with a
very small profit on it's product; profit
| SO small as to exclude fears of any com
petitOr seeking to share it.