The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1908-01-31
THE STEEL TRUST REPORT.

The United States Steel corporation
has issued its latest quarterly report
for the period ending December 81
1907. The figures it presents are
such that all men should ponder over
and perceive. if possible, their true
meaning to the country and its wei
fare. For the quarter just ended, the
net earnings were $50 5J3, 900. For
the year OF 1907 the net earnings were
$1GO, 1884 AZ. From these net earn
ings for the year were deducted the
dividends, fixed charges, appropria-
tons, etc, leaving surplus for the
year of So, TO-. 800. The total surplus
of the corporation is now Sis, IS, pa
all of which has been made during the
past six years. The stock and bonds
of the Steel trust are divided as fol
lows: sos, 3O2, 800 of common stock,
$3.50. 2S1 100 preferred stock and 1858,
go, 800 bonds. Two per cent is paid
on the common stock, per cent is
paid on the preferred stock and per
cent is paid on the bonds, or respect
lively. SO. 1GG,N5O, $25,219.677, and
SOS, 1856 693 a total Of So, So, 400 for
disbursements to stockholders and
bondholders.
These figures show two great
wrongs that have been perpetrated on
the American people. In the first
place this infant industry" taxes the
people of the country annually for mil
lions Of dollars for protection 1t is
one of the industries that is behind the
standpatters and bowls at the mere
mention of tariff revision. Under ex-
listing conditions it is making not only
over $63, 100000 for dividends, but it is
making $97OOO,OOO above that-to-
gether equalling the neat earnings for
one year-out Of which, after all fixed
charges, appropriations, etc. ARE
charged off, there yet remains a sur
plus Of over $15,OOO,OOO. In the
United States, on account of the high
tariff wall. the trust has practically
no competition and makes prices to
suit itself. On account of this We
the people-are taxed indirectly in a
thousand different ways to make these
gigantic net earnings annually. For
example, our great railroads are fore
ed to pay an exorbitant price for steel
ties. This affects us in several ways.
If we own little railroad stock it
means that the earnings of the compa-
ny may be lowered on account of the
high price that must be paid for rails
Or. if We are shippers over any rail
road, it may mean that we have to
pay a higher freight rate in proper
ton to the higher fixed charges of the
road, for renewal of old rails or ex-
tension Of the line. Take another eX-
ample. We may be a farmer living in
Wayne township, never having any
dealings with a railroad. We bring
vegetables To the market, we will say.
and every day We come to the city
must cross tie steel bridge over the
river. That bridge was built with
money raised fro mthe tax payers OF
this township. The Steel that enters
into its construction was obtained
from the Steel trust at its usual exor-
bitant prices. Now it can be seen
how, in a multitude Of ways, the Amer.
lean people are being taxed indirectly
for the support of this corporation,
that declares it cannot exist but for the
high protective tariff.
There is yet another side to this
question and its Importance is attest
ed to by the staggering figures we
have given above. Referring back to
the first paragraph, the total capital
LdNApll vi IlIS SlCSi lIuSI amounts 10
the sum of its common and preferred
stocks and the bonds, or TO the inl-
mense sum of 81, 43o, 511. 100. Were
this capitalization real, were every
cent of it paid in, the net earnings OF
the corporation would not represent
the result of eNorbitant prices. The
net earnings Of $!6o,No,Ooo would be
but about IL per cent of the capitalize
tioD annually, a fair return. But of
that total capitalization of $i,4QO. 900.
coo. only about SG0o,OOoOoo represents
paid up capital. The other $500. 1000.
00o is nothing but watered securities.
Think of it, sS00,000000 and all ficti.
tious value. 1t is on this 500, 0oO,-
900 that the American people are fore
ed to pay unrighteous dividends by
means OF exorbitant prices for steel
products. J. Pierpont Morgan. whom
Wall street proclaimed as the savior of
the country during the recent panic,
was the father of this gigantic imposi-
ton on the country. That $500 COO