Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1907-01-05
The Trusts Dilemma Dangerously Precarious.
Standard
Govern Suit for bD MOST Far
Reaching YearsD

consolidation was the acquisition by
the United States Steel CORPORATION OF
the Hill ore lands. BY this coup the
trust makes long step forward in the
control or an adequate supply of raw
material. and while the outlook for an
Increase I'm its proportion of finished
product Is no different from that Il
was before, the corporation is In n
much better position than it was n
year ago. The lease lnsures TO II n
supply of ore for 81 years to come, IL
the present rate of consumption is not
Increased Within IL years the steer
corporation will obtain from its new
a QUESTION 40, 600 tons of ore, and
thereafter the lease will run on indef,-
hitely on the basis of S,250.00O tons an
nually Perhaps the best feature of
this transaction is the fact that nv Al
the fixed charges of the trust are not
increased. In other words instead of
adopting the suicidal policy of the
Readlng DO years ago, and burdenlng
Itself with interest charges to carry n
product which 1t would not need for
many years, the corporation merely
contracts to annually buy given
quantity of ore at a fixed price
Inc unprecedented prosperity of the
united states Steel Corporation which
Is made known not only by the return
OF the common stock TO a dividend paw
ing basis and the large sums which the
company 10 phAAllS Duth from earnings
10 improve Its plants and Increase it's
capacity but by the reports from every
department of the steel trade rejecting
n tremendous volume of business with
advancing prices for products. has had
the effect of inducing the Incorporation
or new companies and in encouragin.
competitors of the trust in every line
to increase the supply OF finished steel
products,
The steel corporation, In spite of
widely circulated reports to the con-
trary, is by no means able to exclude
competitors from ore supplies. Tho
Cambria Steel company, for example.
Is known to hold &c. 00, 900 tons OF ore
and the total visible supply OF ore con-
trolled by independent steelnakers In
the northern states Is more than 25O.-
0O0,OOO tons. In the Birmingham dis
triot the visible supply OF ore exceeds
100000, 900 tons. The coke mononolv
Is now a thing OF the past. There Is
little to discourage the competitors of
the trust, and, on the other hand tho
heavy fixed charges of the steel cor
poration. amounting on the average TO
W Tor each ton OF Its finished product.
pace the southern companies. notably
tennessee Coal and Iron and Republic
Iron and Steel. In splendid position az
competitors, and the steps taken by
these companies during the last year I'm
making arrangements to extend THAR
plants ana broaden the market for
their products promise an Interesting
era OF competition In the trade. From
all Indications the figure of 10000 900
tons OF pig iron manufactured I'm his
country In 1906 viii be exceeded by
100000 tons next year, ana In this In
crease competitors OF the United states
steel corporation win participate
INITIATION DANGER SIGNALS.
The prosperous condition of the steel
trade have been duplicated IN some de-
gree IN every line OF Industry which
Is controlled by one or the other OF The
combinations. The era of high priess
and the elevation OF the general level of
purchasing power has resulted I'm nm.
preeedented activity In every branch of
production. Not only are plans made
for extensive additions to plants now
working, but new cancellations have
been made and new concerns formed
with apparently the utmost confidence
that existing conditions VIII 10 on
without setback for years TO come
Capital Issues have been larger, aud In
many respects the phenomena OF cor
poratlon finance Indicate belief that
we are entering upon period OF In
fFIrff