The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-11-28
STEEL TRUST ECONOMIES.
Some of Those the Great Corporation
Claims to Have Put i'm Force.

The December Century contains a paper
on the steel Trust" by Henry LOOMS
Nelson, which embodies statements of an
authoritative character concerning that or
ganization, including the paragraphs which
follow. setting forth the claims of the cor
poration as 10 the economies which 1t has
brought about Mr. Nelson says:
Among the leading causes of low prices
Is low cost OF production, and this is OBJ
tanned by the economies which the combi-
nation has rendered possible. The fact
that economies are possible is clear. In
the first place, not one of the subsidiary
companies possessing ore owned every kind
of ore which is needed in it's work The
Illinois Steel Company and the Carnegie
Company, for example, We're obliged to
purchase ores for mixing with their own.
The United States Steel Corporation buys
no ore. In the second place, there is an
enormous saving in the item of transporta-
ton. The great fleet of the corporation
sails about the lakes, stopping at the mines
for loading, departing at once on receiving
the cargo, notified then or on its passage
at what wharf and for what furnace the
ore is to be delivered. There is no loss of
time, as there used to be when the boats
belonging to different and competing COM
panies were obliged to wait their turn at
the loading wharf, while there was further
delay at the destination, either by reason
of failure of land transportation or be-
cause the furnace was not ready for the
ore. Now the ore is carried directly to
the furnace at which 1t is needed and the
former waste is saved.
Another economy is the consequence of
the possession by the company of virtu-
ally complete equipment for the iron and
steel business. Orders that once We're taken
by one mill can be distributed among the
several mills which formerly were competi-
tors. This not only secures promptness in
executing the orders, but where once the
mill machinery was changed as il passed
from the making of one size to the making
of another of pipes rods or other forms
there is now no such loss of time for sizes,
like forms can be distributed to the proper
number of mills. There is also economy in
administration; there is no waste of effort
and of men in competition for orders; and
the product once sold through scores of
agents is now disposed of by a few. But
the chief advantage of this combination is
expected to be gained through economy of
production, not in the number of salaries
saved, and not merely in the utilization of
existing methods and means Of manufac-
ture.
mo one can question the fact that in COM
petition there is great waste: the question
is whether the consumer gains loses by
the struggle which results in this waste. Ii
is true, however that those who now are
interested in the United States Steel Cor
poration have been saved enormous ex-
penditures of material and have also been
saved losses which might have brought Sc
rious disaster TO all directly or indirectly
dependent on the iron and steel business
There is no reason now why the group of
men who carry on from 40 to 70 per cent OF
this business should build a single mill
more than the demands of the business
warrant, and if we recall the war which
was in progress at the time of the formation
| of this corporation the Importance of this
| will be manifest. The manner in which the
| corporation is administered, however is OF
| the first Importance. The question here is
| whether the men who have combined are
| taking every advantage of the opportuni-
| ties for effecting the purpose which they
| profess to have in mind.