The French Broad hustler. [volume] (Hendersonville, N.C.) 1896-1912, 1908-10-15
TRvsTs AND REsULTMe INJUSTICE.
TRUSTS INCORPORATED AND

&aMGAa1S
TRUSTS INCORPORATED AND un1rcoRPonArrD.
All the trusts are not incorporated companies; there are innumerav
buying agencies, Notwithstanding agreements, etc, Of which the
beef trust is q notorious example. There are, however, 287 in
tdustrial combinations or trusts incorporated, of which 1913 en-
JOY direct tariff benefits in more or less degree, and SO others
probably receive some benefit from the tariff. The products Of most
OF the remaining trusts are on the tariff list, but their protection is
more or less nominal. Of this list 81 derive their monopoly chiefly
from patent rghtsand % are based on municipal or other franchises,
rights OF way, etc; 10 are based on control of coal and other lands,
mines, ore deposits, etc, exclusively. The balance Of the unprotected
trusts have in most cases some. other element of monopoly which con
tributes to their strength. When the element of monopoly is small
the general financial standing OF the trust is relatively weak in
nearly all cases.
A rYrIcAIrRusr.
The United States Steel Corporation is the greatest Of all trusts,
its total capitalization being approximately $1,500,000,0O0 It is
a true, typical trust, a trust in the original sense of the word, be.
cause, as Prof. III. L.sWi1gus of the University of Michigan has
shown, it holds as a trustee the shares of the various constituent
companies and votes for directors Of the constituent concerns. Yet
ton. Every person in the United States pays tribute to this gigantic
corporation, for it controls the price of everything that is manufac-
tured of steel, which everyone is compelled to use.
THE STEEL TRUST AsAIrzED.
In Moodys Magazine for September, a reliable financial maya
zine, there is an article on the steel trust, from which the follow
ing IS taken:
Steel Corporation, and while Nh. Il. G. Frick had an option on it at
about half the price paid by the trust, its net earnings exceeded $780,
100000 a year. Now we have a single industrial concern with net
earnings of over $40, not for an entire year, but for a
quarter Of a year only Its net earnings for the 4rst. half Of. the
present year were $76,759, 523, or at the rate Of over $150,O00,O0o
siders, then, amounted to only Popt$4oo,OeoOo q 1so5. Adding
35,000,0O0 for other possible earnings and sales, we have $780,
100000 instead Of $5S5.000,000 as the total Of actual gross receipts.
Deducting the net proftsof $119,787 ,65S and the selling and general
expenses, and other operating expenses q ltaxes, So, 646, 489. 500,
amounting in all to about $25,0Q0,OOO, we find that the actual manu-
featuring and producing cost of the product sold was, at a liberal
estimate, only about $8o0sOoo,0oo instead Of $44o,o13,4 32, as stated
In the report
TARIFF PRODUCTS DISGUISED.
"Now, if net profits are $120,OO0,O 900 on goods that cost $4,000,
900 to produce, the rate of profit is about q per cent. IF the goods
cost but $4,000 900, the rate of profit is 40 per cent on first cost.
A profit of even 81 per cent. looks bad enough to a nation that is tax
ing itself heavily in order to give = tariff bonus to this Proft-earning
industry. A profit of 40 per cent. would, If clearly exhibited to the
.taxpaying people, be likely to prejudice them against this particular
protected corporation and, perhaps, to bring the tariff question again
into politics. This might result unfortunately for the Steel Cor
-poration and for It's good friends, the tstandpaters'
Apparently this giant infant will occupy the center of the stage
when the next tariff play is put on at Washington. 1t IS clearly en-
titled to this preeminence. It has probably been more Influential
in preventing tariff revision during the last. four years than have
any half dozen other corporations.
Those behind the political scenes know that its word has great
weight with the Committee on Ways and Means of the House. IF the
head of this corporation writes a letter to Congressman DalzeT, of
the Ways and Means Committee, advising Chairman Payne and the
others Of the committee not to open up the tariff question for any
purpose or in any way, the committee may confidently be expected to.
Stand pat 1Ar# ~
EXPORT PRICES OF STEEL. y
with tariff duties removed from all trust products sold cheaper to
foreigners than to Americans as the politicians put it, the common
stock of the Steel Corporation would have value only for voting pur-
poses. That this is true is evident when it is realized that the tariff
profits of THIS corporation pGTy from about $4O,OOOOOO to. 100000
600 a gear These may be roughly estimated by the difference be-
tween the export and home prices of goods sold. Although, as stated
by Chairman Gary to the Committee on Merchant Marine and
prices received for exports during the year were materially in excess
of those previously received and approached more closely domestic
prices yet active iron and steel brokers and jobbers say that the
present difference will average about S. per ton on all goods sold by
well covered up, vary so greatly to different countries, and Huctuate
so widely and uncertainty from day to day, that but very few persons
can estimate the difference closely
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