The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1903-02-22
LODGED IN
GEO, B. CORTELYOU
How the Trusts Regard Secre-
tary of Commerce
A MAN OF GOOD JUDGMEN 7
Bear Contingent Trying to Find Rea.
son for Selling United States steel
Stocks-Other Wall Street
Gossip of Interest.

BY w q. NICHOLAS.
New York, February 21.-The trust
nngnates are seeking information about
George b. Cortelyou, who has been Sc
lected for secretary of the newly created
department of commerce. Their interest
in Mr.. Cortelyou grows out of the fact
that in him is invested the authority to
dip into the private affairs of trust cor
poratons, whose secrets have heretofore
been inviolate. The power lodged in Mr..
Cortelyou is to a degree discretionary.
1t is for him to say whether or not in
vestigation shall be made and how deep
the inquiry may go; also how much of
the information obtained may be properly
given to the public. The essense of the
reports on Mr.. Cortelyou is that he is a
man of excellent judgment and very ripe
experience in public affairs ard not given
to spectacular or gallery plays. Conse-
quently while not feeling anything like
a, sense of ownership of Mr. Cortelyou,
they are in no fear that he will annoy
them unnecessarily or adopt demagogical
measures against them. Most of Mr..
Cortelyou's life has been spent in New
York City, and his knowledge OF large
affairs is more or less intimate, although
when he lived here he was comparatively
unknown as a personality
The trust objections to the publicity
provision of the new federal laws are
confined to comparatively few men, con-
spicuous among whom are John d.
Rockefeller and II. o. Havemeyer. These
two individuals dominate two of the
II Ind io1 in, t1a
Standard Oil and American Sugar Re-
fneries (sugar trust) 1t has been their
policy from the first to withhold every
thing but the barest skeleton statements
of the net results of business done. They
are autocratic In their specialties and in
sist that neither the public nor the stock
holders have any right to inquire as to
details or general policy and they have
consistently lived up to their ideal in this
respect. Every minor stakeholder in
these concerns is absolutely in the dark
as to what his investment represents
All he knows is that at certain intervals
and at the pleasure of the dominating
management dividends are distributed
and market quotations for the stock are
based almost entirely thereon. Conse-
quently Mr.. Rockefeller and Mr.. Have
meyer took fright at the suggestion that
they might have to take the public into
confidence; hence their earnest obiec-
lions to having publicity written into
the law.
Early in March the Standard Oil stock
holders are to receive $4,000, 900 in divi-
dends. This makes sS2S, OOO0 600 paid by the
Standard OH Company to its stockholders
direct within a period of twelve years.
Enormous additional profits have been
paid insiders in the way of dividends ON
the stock of the companies which are
the outgrowth of the oil business. The
Standard Oil building an immense struct-
ure on lower Broadway. is filled with
these minor companies. 1t is designated
in the street" as "26 Broadway" a name
that embraces not a multitude of sins
exactly, but a multitude of Standard Oil
projects.
The bear contingent is trying to find
reason for selling the Steel stocks In
the statement that by the end Of the
year the pig iron capacity of the United
States will have increased 23000, 900 tonss
They see ruinous competition in this tre-
mendous development of the iron indus
try, a smash in prices and the beginning
of the end of industrial prosperity-the
Inauguration of hard times. The produce
tion at the present time is at the rate of
100000 tons per annum and home con-
sumptiye requirements appear to show no
abatement The fact that American
manufacturers and consumers are
still obliged to import foreign prod
utcs and foreign raw material to an ex-
tent suggests that there is still consid-
cradle leeway before home production
overtakes c, assumption. And even when
It does al the time arrives for a de-
cline in prices the result will be a great
extension i'll our foreign trade. The
United States Steel Corporation has its
plans already fully matured for an inva-
sion of the European markets and II is
working into position to undersell tine
world. | referred to this matter in my
last weeks letter, but cannot refrain
from again mentioning 1t in connection
with the efforts of calamity howlers to
extract comfort from the increase in
American manufacturing capacity
Big money is still needed by the big
people in the carrying out of their big
plans for big railroad and Industrial de-
velopment. The stock market therefore
waits until the edge Of the appetite of
the giants is turned The time is con-
sidered opportune by the masters of the
situation for making provision for con-
templated betterments and extensions of
railroads, and for the conduct of larger
financial deals In connection with the
Steel trust and other pretentious indus
trials. These needs are In rapid process
of being supplied. and the public is re-
ceiving pointed hints that 1t will not be
long before an invitation will be extended
to take part in another bull movement
Meantime the conditions are improving
in every way. Railway earnings are nm
to the fullest expectations. both gross
and net. The vast sums which have been
invested in putting transportation prom
critics in improved revenue bearing posi-