The Republican journal., 1903-11-26
WHAT IS The NATTER WITH STEEL?
What is the matter with Steel? Thou
sands have been asking themselves that

What is the matter with Steel? Thou
sands have been asking themselves that
question during the past few days.
Steel has been sagging steadily until
now the preferred is bringing less than
what was asked for the common when
the corporation was formed. The price
of the preferred is practically cut in
two. Is its value equally deprecated?
Steel preferred ought to be worth 100
cents on the dollar and as far as the
layman can judge from externals it is
actually worth it. There is no corpora
ton whose tangible assets are so real
as those of the Steel Corporation. Last
year it transported out of its own mines
l6, SOC, 900 tons of ore. That is more
than is mined in the whole of Great
Britain. Its control of the iron depos-
its is in even greater proportion. 1t is
a conservative statement that the Steel
Corporation owns twO-thirdS of the
Lake Superior iron mines. FOur-fifths
of all the iron ore used in the United
States comes out of the Lake Superior
iron Mines As far as the market for
raw material is concerned the Steel
Corporation is absolutely Independent.
All the steel works in Great Britain
put together are not as big as the Steel
Cooperation. AS far as regards the ton
cost of steel the Steel Corporation can
make it more cheaply than anyone else.
Moreover, it has the biggest market in
the world in which to dispose of its
wares. There is no home market like
that of the United States. 1t can al
ways dispose OF its surplus abroad by
mere cutting under the price of the
foreign producer Then what is the
matter with Steel? Why should such a
security as this be literally slaughtered?
OF course forced liquidation has had
something to do with the decline in
price Manipulation has probably some
thing to do also: but neither liquidation
nor manipulation could provoke the
wholesale distrust which characteriZes
the Steel shares today. Is not the real
base of lack of confidence in the man
agement accentuated by the dis
closures of startling financial immoral
ity among those who were big in
it councils less than year ago.
That was a sorry mess of dirty linen
! that Receiver James Smith aired in his
! report of the United States Ship Build
ing Co. Mr.. Andrew Carnegie said that
given the personnel he could in four
years re-establish the Carnegie steel
works. That was probably hyperbole
but it was a good way of emphasizing
the value of personality. What the
Steel Corporation lacks is personality.
1t lacks the close, intimate, personal
attention that a man gives to his pri-
vate business, that devoted interest
which, year in and year out, never
flags. 1t would be ironical to say that
any person is giving such attention to
the affairs of The Steel Corporation.
Schwab's conduct while president of
the Corporation would certainly have
ruined a private business. There is
probably not single big official in the
Steel Corporation who is not up to his
ears i'll something else. There may be
an exception, like Corey, but the ex-
ception always proves the rule No man
can serve two masters. No man can
carry on two enterprises without slight
ing one or the other. When the head
of department is VIGOROUSLY deficient
the subordinates cannot be expected to
be otherwise. 1t is difficult matter to
give so vast body as the Steel Corpo-
ldllOll COueSlou UuI IL ali Oh lIS OFFICIALS
had a single purpose in life, and that
purpose the care of the affairs of the
Corporation, it would be better cement
ed than it is. Little leaks have an un-
happy fashion of becoming big ones.
1nattention on the part of one man is
tritling, but inattention on the part of
| 165, 600 is mighty serious matter.
There is no corporation SO strong as to
forever withstand constant and unnec,
essary drains. The biggest pond will
empty in time. Reckoning the common
as bonus the capital stock Of the Steel
Corporation can not be regarded as ex-
cessive. Its tangible assets in the COM
mon market are worth the sum of its
preferred stock and bonded indebted
ness: but it was unauthorized folly to
distribute 100000 in dividends upon
the common stock as it has done. The
corporation needed that money for the
transaction of its own business. 1t has
always needed it and it needs it now
more than ever. The matter with the
Steel Corporation is lack of wise and
Judlclous management.-Marine Re-
view