Aberdeen herald. [volume] (Aberdeen, Chehalis County, W.T.) 1886-1917, 1906-08-06
GIANT Steel TRUST
The ENORMOUS TAX People PAY
BY Protecting IT.
The Tariff Profits by the Steel Trust
Are Estimated 10 Exceed SIS, ,OOO,.
900 Annually. ArmOr Plate Trust
is Rakisg Off Millions Of the Pee.
pie'S Money.

That genial Trust magnate, E. H
Gary, chairman OF the board OF directors
OF the United States Steel corporation
before sailing for Europe gave us a
glimpse OF trust prosperity. He stated
that the Steel Trust had received in the
month of June new business OF nearly
100 per cent. more than in the cores
ponding month OF last year. He further
stated that the net earnings of the trus,
for the year will be between $40 900 00C
md $150,C0O.O0O as compared with the
previous high record OF $133 900 COO
Thus this pulling infant industry, which
the republican tariff protects from com
petition by duties OF 20 to 81 per cent, is
allowed to eXtort from the people about
$13O,OOO,0O0 profits after paying all ex
penses, including the payment OF s1S,.
100000 for interest and sinking fund on
outstanding bonds at per cent interest.
This will leave over Is per cent that can
be paid as dividend on the outstanding
common and preferred stock which
amounts to 81 .01S. $50, 200, more than
half of which is notoriously watered
stock, so that the interest earned on the
actual money invested is 26 per cent
The tariff profits OF the Steel Trust
are estimated to exceed $75 10000, so if
the whole tariff schedule on iron and
steel was cut down so per cent, thereby
reducing the tariff profits to $37 800, 900,
the Steel Trust would still be making
nearly $1O0,00O,0OO profit.
The Steel Trust, of course, would de.
clare they would be ruined, If such a
proposition was before congress, and the
republicans would vote against such
bill for tariff reduction, but if the demo.
Gratis elect a majority OF the mem bers of
congress this fall, that will be one of the
tariff reform measures that the trust and
its republican friends will have to meet.
Can any disnterested person say it is
not fair proposition and fair deal all
around?
The armor plate contract recently let
by the navy department is interesting
mainly because it shows that the gov
ernment has been paying vastly too much
for its armor and armor plate, under the
law that requires it to purchase "arma.
ment and armor OF domestic manufacture
for vessels authorized" The Midvale
company, OF Philadelphia. offered to fur
nish the material for $345 ton, while
the trust, which consists OF the Carnegie
company and the Bethlehem company,
offered to furnish it at about 1892 a ton
making difference of S47 ton.
OF course, the Midvale company would,
under the law, have got the contract for
the entire amount required, If it had in.
sisted on it. But the trust reduced it's
bid to the level OF that OF the Midvale
company, and was awarded one-half of
the work, with the apparent consent OF
its rival. 1t is said that an understand
ing was reached for effectng a merger
with the Midvale company, in order to
avoid future competition; and that it
was this merger proposition which
brought about the agreement to divide
the present contract between the success
full and unsuccessful bidders. So that,
next year, the new combine will get all
the work at the highest price, unless the
law limiting the purchase to domestic
manufacture" should be repealed, so as
to allow purchase abroad.
1t was clearly shown in the course of
debates in the senate several years AGO,
that armor plate could be manufactured
in this country at cost not exceeding
1925 ton. And yet, in 1900, and prior
years thereto, the government paid the
trust $545 ton; thus giving the trust a
clear profit of $500 ton. Iu 1903 the
government paid the trust 1852 ton,
leaving the trust profit of 1927 ton.
This year, it pays only $345 ton, still
leaving profit OF Sl2O ton. And now
that the old monopoly has been re-estab.
lished by taking into the trust the only
independent armor plate factory in the
country, the old price OF $545 a ton will
be restored.
The democrats in congress have been
trying for years to secure government
armor plate factory, but without success.
They have also striven to repeal the ini.
quitous law which limits the purchase OF
armor plate to domestic manufactures,
but have been thwarted by the republi.
can majority. With the aid of the re.
publican party the trust has robbed the
people OF money enough to build score
OF armor plate factories, and will con.
tinue to rob them until that party is
driven from power. When it comes to