The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1902-02-18
MR.. scHwAB's OBSERVATIONS.

IT IS INTERESTING to note that
l while Charles NJ Schwab on his
return from Europe declined to dis
cuss any Of the personal features Of
his trip. such IS gambling at Monte
Carlo. interviews with crowned heads
and the IKE. he talked very freely as
president Of the United States Steel
corporation. After some unimportant
observations about the business men
he was privileged to meet while
abroad. Mr.. Schwab found il necessary
70 rash TO the defense OF trusts, with
the steel monopoly as a specific ex-
ample of their benefits. His defense
almost amounts to an arraignment, al
though he obviously intended other
wise.
For instance. the magrate says. we
are now more than ever ready to dem
onstrate that the greater the scope of
the coordination. the greater the possi-
bilities for economic production. and
consequently. the greater the possibiH-
ties for the reduction of costs. With
these objects IL view, we must have
out great plants manned ana equipped
TO perfection and no care or proper
expense must be spared to keep these
plants modern and at the highest
point that ingenuity and skill and en-
terprise can reach
Ii viii be noted that Mr.. Schwab, in
expatiating on the beauties Of .he
trust. does not claim that i reduces
the cost of a manufactured article 10
the consumer. He knows better. and
If he didn't know better the increased
prices Of practically all trust-made ar
ticles would prove him a falsifer.S It
IS not true that trusts reduce prices to
those who have 10 purchase their prod
ucts. The main advantage in a COM
binaticn of manufacturing enterprises
is an advantage which lies wholly
with those who control the combina-
tion. That is the power to lessen ex-
penses BY cutting down payrolls and
allowing machinery to rust through
curtsilnent OF output
In order TO pay the enormous divi-
dends on their stock. which is watered
and watered again. the tr1sts are ae-
tually forced 70 advance prices. not
withstanding their own admission thu /;
she cost of production is lessened. TIL
Her Il. wSS-Sgree with Mr.. Schwah ~
his theory thaCNEIsts are very b,sSut1t
fui things to those~Hho are hrs asssSSS
bur it begs TO differ on the point he
makes that they are beneficial TO the
country. Any statements that they
are. no matter who makes them. are
absurd
Another observation by Mr.. Schwab
is worthy Of comment. Speaking of
trade i'm China and the Orient gener-
ally. ne said the United States wanted
It and would get it, but he added: IN
order that we may do SO. however, we
look TO congress to make provision for
the protection of our shipping" BY
this. Mr. Schwab means that ship
subsidy bin should be passed by con-
gress az tle earliest possible moment.
No measure would be of greater ben
eft 90 the United States Steel corpora
tion. 1t not only makes steel for ships,
but it builds ships, and, through its
allied or collateral interests would
profit TO the extent of oillions of dor
lars through ship subs s.
It may seem unkind antagonize a
proposition so benefci to an infant
industry" but the majority OF the peo-
PIE of the country viii not look with
favor upon Mr.. Schwab's declaration