The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1902-12-21

The steel trust in gobbllng up the Union
Steel company. its strongest rival,
strengthens itself in many ways. 1t Sc
cures a valuable addition to it's coal and
coke properties, several mills of latest
construction and at the same time gets
rid of competition that threatened to be-
come annoying and possibly dangerous.
The central figure In the Union Steel COM
pany is Fl. c. Frick, who is also a men,
Der of the board OF directors and execu-
tive committee of the United States Steel
corporation. To forestal possible criti-
cism over the purchase, Judge Carey Of
the big steel trust explains that the prop
critics acquired were under construction
before the formation of the billlon-doilar
trust. This announcement IS Intended to
lead off any unpleasant comment about
any alleged "hold-up' or inside deal, and
will doubtless have that effect In we'll
informed quarters. The great trust Is
gradually getting Itself In shape to mo-
nopolize the field as much as possible on
any back tracking in prices which may
occur, attended as 1t win possibly be by
reduced production. 1t has already de-
cided upon the policy of charging COM
petitors greater prices than heretofore for
materials furnished them, and at the
same time marking down tho price of
some of its own products. This policy will
cut both ways against competition. II is
in one sense a limited application of the
same principle put In force by the Stand
ard Oil during the years 1t was able to
obtain from the railroads rebates on all
petroleum shipped, whether by jtseR or
other people In the oil business Armed
with that advantage the Standard Oil
company killed competition and obtained
virtual monopoly. The steel company
cannot go so far, OF course, but as 1t is in
absolute control of very large percen-
tage of the raw material, 1t has decid-
edly the inside track and DESPITE its
manifesty inflated capitalization it is
likely to come out first best in the life
and death struggle for business the end
of which will be marked by the Survival
of the fittest" The steel trust Is ever IN
the market for choice iron and coal ter
ritory which might. at any time. fall
into hostile hands and become a weapon
against 1t in trade warfare 1t has even
gone 80 far as to obtain and keen alive
options on prospective very valuable iron
areas in Mexico-property that is now DOR
mant.
The recent general selling of standard
stocks and other high-grade securities has
revealed the fact that large numbers Of
wealthy people were Obliged to sell the
contents of their strong boxes in order to
make good on underwriting and other
speculative commitments. These gentle
men fell into the habit of taking with
out inquiry or demur, allotments of I'M
derwriting distributed by their banlsers
They were rarely called upon to pay more
than one or two assessments on subscrip
tions, and the checks they received now
and again In the way Of fat profits looked
like easy money" They grew careless
and In many instances allowed themselves
to be drawn into schemes to an extent
they did not realize. Hard times In the
money market came. and then bankers
who had beer carrying their rich
friends and clients, or drawing on them
sparingly. suddenly laid bare the un-
pleasant fact that all subscriptions must
be paid In good hard cash and at once.
Not a few of the rich gentry laid down
on their subscriptions, but q majority
came to the front with their checks, al
though to do 50 they were obliged to