The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1910-05-08


The foregoing announcement by the
Steel Corporation, following that of Mr..
Carnegie about three weeks ago, when he
devoted his contribution to the pension
fund for employees. is highly interesting
Both announcements follow an advance In
wages paid 20 steel workers averaging 6
per cent. II all affords proof of n more
liberal policy of one Of the biggest and
most powerful Industrial enterprises in
North America toward its salaried and
wage-earning subordinates.
The realization OF this plan 70 provide
pensions for disabled and sUperannuated
workers is part OF a movement which
has been gaining Roadway In Europe and
this country for more than ten years. The
feeling has been growing among right
minded capitalists. who. in their way. are
philarthropic and sympathetic by nature
that provision ought to be made through
liability insurance. pension funds, or other
means to afford men who have given
their lives to building up these great en-
terprises a living after age or infirmity
has fastened letters Of inability to labor
upon them. Whatever opinion one may
hold upon the ethics Of trusts and their
vast accumulations of wealth. it must
be granted that the establishment Of
this annuity fund is in the interests OF
the uplift Of humanity.
In Good Financial Hands.
Il can be said that the earlier liability
insurance plan and this later pension en-
dowment fund established by the Steel
Corporation is in good financial hands,
assuring to the beuefeiaries the payment
of their annuities while the Steel Cor
pOration exists as a large and command
ing power in the Industrial growth Of this
country. True. the same power which
grants the boon can withhold IL. but il
IS hardly 20 be conceived that the Steel
Corporation. bad as some people seem to
believe it to be, could inaugurate such
benefits for the good Of its employees for
any other purpose than that declared.
The fact is praiseworthy and the policy
which inspired it is commendable.
Criticism OF the Steel Corporation and
its methods is not lacking. Men holding
the high position OF economists have
openly condemned the practices In in
dustry which first made possible such
organizations as the Steel Corporation
and then place in It's hands so many mil
lions In profits that II has no legitimate
way of investing them except in public
libraries, insurance societies for disabled
workers, and pension endowments for
aged workers.
These men argue that the show Of
humanitaranism at the end OF a period
Of piracy in production OF one OF the
most needed commodities Of modern life
comes with bad grace. Men OF keen
analytical intellects cannot get by many
unpleasant facts in the history Of the
Steel Trust The capitalization Of the
great corporation. whereby its principal
promoters were placed among the RICHEST
men In the world without the investment
OF anything like the values which their
holdings represented after the scheme
had been worked out 20 its tremendous
financial results is looked upon by many
men as the elimination OF a system Of
stock and bond juEglery which is de-
nominated by no less ugly word than
robbery.
The organization Of the corporation I'M
doubleday took from the pockets OF many
through investments in :he newly issued
securities OF the corporations. millions
upon millions Of dollars which were added
10 the private fortunes of Mr.. Carnegie
Mr.. Gary. and others Of the American
millionaire class.
Scholars, financial writer's. and publi-
cists who talk in this way about the
operations Of the Steel Corporation charge
openly that while this stock jobbing and
bond selling process was going forward
the price Of the product turned out by
the factories Of the company was held
at an inordinately high price.
Earnings Called Predatory.
The argument is that the vast earn
ings Of the corporations which gave some
security TO the enormous issues of stock
and bonds which We're sold to investors
were predatory in character and wrong
fully accumulated. II is declared that the
first care OF the steel trust. after finding
Its revenues swelling TO unwieldv pronor-
tons, should have been 10 cbeanon tho
product and give to the consumer mart
of the benefit accruing from Iessened ex-
penses through organization and good
fnanciering
To put the climax TO the statement II |
has been said by the critics Of the cor
pcration that if it had paid good wages
always apd favored the consumer Of the /
product logically. the profits OF the cor
poration would have been kept within 1
bounds which would not have permitted |
casting sop to Cerberus In the way Of
libraries for the working classes and in |
surance liability and pension endowments |
to disabled and superannuated workers
Every question OF this kind bas NJ /
least two sides. both Of which have been !
here presented When Il is taken into
consideration that the age is one Of cor I
porate enterprise; that in the great in
dustrial movement OF our dav the Steel
Corporation occupies a position no diff
ferent from that Of numerous other sim
liar enterprises; that the methods used
by this corporation are those prevalent
everywhere, even in the increasing Of
the capital stock of local handsome gets
a view that largely justifes the mergers
OF the corporation which now ~
pioneer in practical benehcence q
pioneer in working out -
lures OF thA Ar,eAi~o,,