The independent., 1903-05-07
STEEL TRUST METHODS
Byron w. Holt In the Public Shows How
the Steel Corporation Avoids News
paper Criticism

the Steel Corporation Avoids News
paper Criticism
Byron w. Holt lives too far east to
keep in touch with western papers
and consequently his excellent article
on ''Steel Trust Methods which we
quote below from The Public, Chica-
CO. May 2, appears two weeks after
The Independent had called attention
to the comparatively small amount OF
taxes paid by the corporation, as well
as it's method of keeping down critf-
cism by a distribution OF largesse.
Mr.. Holt may add the Omaha Bee to
his list of papers. He says: @
Shortly after this giant trust was
formed in 1901 it's officers decided that
the corporation laws of New Jersey
should be materially changed. The
change was made unOstentatlously
and quickly.
Then the trust wished to dispose OF
several hundred million dollars worth
of its stock. Soon the bank officials
all over the country were quietly ad-
vising depositors to buy ''steel pre-
ferred" at 100, and "steel common" at
So Many newspaper articles, includ-
ing some in religious journals, Wers
suggesting the excellent opportunity
for investment in these steel stocks
the preferred paying and the COM
mon earning Is or 20 per cent. Of
course this talk and these articles
were mainly inspired But at least
$4,000 of the $500 people who pur-
chased stocks did not know this. They
had faith in their bank officials and
newspaper editors, and did not know
that the iron and steel men in the
east were not only unloading their
steel stocks, but were selling these
stocks 'short, being fully convinced
that, in spite of apparent great earn
ings, stocks would decline-as they
have done to the extent of Is points,
or $3.50, ,000,00G.
Again. we find but little unfavorabla
criticism of this devastating monster
in the newspapers. Why? 1t would
not be proper to say that this trust
has bribed nearly all of the leading
newspapers of the country. 1t is not
at all probable that it has done so;
and yet it is likely that it has even
more effectually headed off criticism
than if it had spent millions in
bribes. 1t simply inserts full-page
advertisements in all Of the leading
newspapers and the trick is done. The
following are some of the newspapers
in which the writer found the full
page advertisements of the last an
nual report of the steel trust:
Boston Herald, Boston Transcript,
Boston Globe, Springfield Republican,
Providence Journal New Haven Reg
lister, New York Evening Post, New
York American, Philadelphia Public
Ledger, Pittsburg Dispatch, Pittsburg
Post, Baltimore Sun, Baltimore Amer
lean, Baltimore News, Washington
Post, Washington Star, Cincinnati
ommercial-Tribune, Detroit Tribune,
indianapolis Journal, indianapolis
Sentinel, Indianapolis News, Chicago
Tribune, Chicago Inter-Ocean, Chicago
Journal, Chicago Evening Post, st.
Louis Daily Globe, st. Paul Pioneer
Press, New Orleans Times-Democrat
Montreal (Canada) Gazette.
1t is almost certain that this ad-
vertisement appeared in practically
all Of the other great newspapers,
which the writer did not see. If this
advertisement, with the prospect that
it will be repeated every year or ev-
cry quarter, does not entirely prevent
criticism, it will, at least, greatly tone
down and soften criticism in the great
majority of cases. The long-headed
officers of this trust never made a
better investment than when they put
million, or so, in advertising in q
hundred or more of the leading news
papers. Not only will it add millions
to the market value of it's securities
which is very important, until all of
the surplus securities are marketed
but it will keep the people quiet and
staVe off, perhaps for years, the radi,
cal reform of the tariff on trust prod
ucts, which is sure to come when the
people cut their tariff wisdom teeth.
The methods of the steel trust are
harsh and cruel to both competitors
and customers; yet we see almost
nothing about them in the newspapers
In hundreds of ways this trust de-
serves the severest Of criticism, yet
1t gets but small portion of its just
deserts. Take one instance:
Who has read any comment on the