The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1903-11-15
Secret of the Enormous Profits
in the Industry Lies in the
Mystery That Surrounds
the Cost.
! Steel Hoop Company. with more
the Cost.

American Steel Hoop Company, with more
than SIC, 100000
FABULOUS FORTUNES MADE.
It was a gigantic problem to grappls
with. but Morgan knew his public. Though
1t has been said that nearly every one OF
the merging companies was handed over
to the trust at an enorm ously watered
price, and again rewatered when they
were offered in shares to the public. the
great f1nancler was confident that he pos
sessed sufficient public confidence to float
the deal, and he did It, Though theigreat
"billlon dollar trust" stupefled the world
at large. Morgan said that even the com
mon stock would pay four per cent. and
when the securities were offered for sale
there was a rush to purchase. The people
believed in Morgan. Individual and fab
ulous fortunes were made as result
OF the great combine. Insiders were hand I
cd enormous blocks OF bonds and stocks.
preferred and common The general be-
lief Is that all were secured actually In 4
the amount OF bonds received. and that
the stock handed over. both common and !!
preferred. was purely in the nature OF
bonus. It Is doubtful II this statement
could be actually proved. though the
six months goes a long way to prove it.S
No one could understand until It was too
late where the great liquidation In steel
came from. 1t was the most widely held
stock known. but even the public had not
enough of the paper to unload II IN such
volume as 1t was unloaded.
THE PUBLIC Be DAMNED"
Then came tho great slump. and when
the unfortunates realized 1t was too late
to sell without ruinous sacrifice the fact
8 became public property that the "ln-EsS
sIders'' had been realizing on thsir
profits-sellng their paper. Even at
falling prices It was profit, and II was
known to the insiders that as an invest
ment dividends were to be cut In hall
The cut came. the insiders had turned
paper into cash. and the public once
more had food for thought. Ruin was vas
brought to the doors Of many house
holds, thousands, In fact. scattered
throughout the length and breadth Of
tho land, a nd, indeed. abroad.
The steel men say thnt all this comes
Of Mr.. Morgan meddling In a business he
did not understand. MI. Morgan says
nothing He undertook to swing one Of
the greatest financial deals in the his
tory Of the world, and he swung It
Mr.. Vanderbilt once said: The pub
5lic be dh mined.
Meanwhile, the steel kings OF the coun-s
try have made their giant fortunes. and
rest in a position OF absolute security
Not one Of the original companies butts
saved to Its owners by a, bond Issue
large enough to staggcr the average
manipulation, and If the giant CORPORA
ton should fail, no one would suffer ex--
cept those on whom the securities have
becn unloaded.
Perhaps none Of the insiders benefited
so much as Schwab. who, while his ex-s
act wealth is not known. certainly Isl
many times millionaire as result Of
his Identification with the steel com bine.s
AS president of the great corporation he
drew an enormous salary which, With
his interests. is said to have footed up to-
the enormous sum OF $780, 900 a wear.
This has been denied, but no definite
statement Of schwab's exact revenue
from steel ever has been given out. Ger
tain It is that#re made enough money to-
own the Bethlehem Steel plant, which
has since been sold to the sicflv ship
building combine for some $40, 600, 000. on
lines that have been criticised to some
extent by the public and In court
TO trace the effect OF this gigantic
steel manipulation would be a task az
hard as to count the lives lost, the
homes shattered. the war. the blood
shed and the snread OF cankerous non--gE
archy over peoples who might now have
been free from desrotic government ana
tho effects thercfrom, results that have
sprung from Inventions and discoveries
In the great inquiry OF steel. and which
! have made all the world wonder. ID