The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1911-07-01
Almost Overnight Steel
Competition Is Elm
inatedA
PRIME OBJECT ON
COM BIN A TIOM
Commissioners of Corporations
Smith Gives Result of HI In
vestigation Into Formation
of Steel Trust-overshad-
ows All Rivals and Can
Dictate Prices.


striction of competition Is declared to
have been the prime object of the w
organizers of the United States SteeLl
Corporation. which, capitalized at $ieT3l
100000 900. had tangible property r.
worth only sss2OO0,O00. The corpora T.
tion. having concentrated its efforts
to secure ore properties, now owing
10 per cent. of the lake ores. upon
which the present steel industry Is 3.
based. These are some of the conclu- e
sions reached in the long expected. s.
report of Commissioner of Corpapsf
tions Herbert Knox Smith on TIL
steel industry. part one of which wa -
submitted to the President too day.
Avcrted Overnight. tl
Discussing in detail how the i'm
pending struggle of the giants waft
averted almost overnight by the for
nation OF the great combination of
combina tons, taking in ESQ subsidiary E
companies. controlling 60 per cent OF
the total crude and finished steel pro-
ductlon of the country, the report ~
says
Until 1895 the bulk of the business
was distributed among a very con
siderable number of concerns. ThcR6
was sharp competition modified ~
frequent pools of greater or less dur 49,
ton and effectiveness ~
Then came am era of great comb = =
tons. the report continues, with d ~ -
sloooo0.0oo MERGERS of many SRI 3l.kgl
companies whicfx instead of elm ~
n nF '0mp s, ON on rs ss5saf ~. t.
ever before. In 1s9s-lE&5a IS = ~
three great companies 81 I8&ft3 - ~
Company Federal Stee |3l2
S,eel-dominating the -
crude and semi finished E3 - - = - : 80
six concerns-the Amerl r. ~ y -
Wire. American Tin Pla{ = T.
Steel Hoop, American She ~ - ~ = 3
ticnul Tube and American ILL., 49,. : :
trolling the lighter hnishe - - -
This WAS the period whe ~ q - :
gle of the giants" was in}E + g Ky
when the formati OF the = ~
Steel Corporation was col = - - ~ 49,
brought about. All nine ~ = =
panies named were combine ~ ~
the Union Steel Company Pllf3D.5 - ~
ton Steel Company. and - -
Tennessee Coal. Iron and Raj - : =. ~
pany .iere taken over The r. 3&4EE34ll
syndicate putting the deae =
netted $62,500.000 in cash. 343l3
Big Annual Profits. 6SfSSS6E 4s$33|
During the ten years OF its lfflj@4
the report says, the steel trus d632I$ I13
average annual profits of IL FL
on the money invested. In thi!
ton attention is called to the 59.sI
a considerable part OF the in t. - 2fs$34]
is In undeveloped or unwork ed 3{8sl : 49,
Ties. showing that dividends fri -
Ing properties must be much H.
than the average would indica e S2 - Z
sisting upon computing profit - , -
a tangible property value.ka6R3 le6 :
port says that tbSuFSg IA -
In defending s&h1 ~ n 8 5f g ~
doubtedly wot aS2 - = ~ r : 81
a merger valV4e22Se7<<2zd = - - rs ~
missioner says: SX&13( H. {jHtI4
1T is probably true that thek ~
properties acquired by the ST 5at5
poration. taken together w!tif$Hy
Sani2ation OF this company as a goE IL
concern. do have value in excess
the sum of their values as separA
entities. The coordination and ,9f8
grafton made possible by the comb 56&
tion or such properties under <R
control undoubtedly tend to
costs either through economic
through removing the necessI ~
paying profits to others. ~ 4
Further. so far as the conc =
OF the industry under control 4
gle concern giydeato It mon ! #
may result inEf X 4 - IS
cured. the bulk otga ril 3{45 9{S533S3
credit for such merger vail XII {Ifl -
upon which to earn p3S ~
therefore, question ofdo$ 81
pubic policy. To regaIoAse
so arrived at as justify$ 'us 55 ~
unuer these conditions To1
sohlns IN az circle bod : <
question is whether H. = 81
selves used to deterf - s "a - x
report. the corpy53 - - - ~
much over 30 PEI a.
eonclusively the ~ n - :
Of strong ard Incr f2 T. ~ IS -
production" XII f. 2, 49q3I = -
Gary dinners. &HS& 81 s. - = = - 73!e
has been said S5+&7 ~ = III - -
steel Investigate #T S. ~ - III ~ s
bne's tangible A8 Il = ~ ~
I.lS7, 900, OGG as V2$ q ~
outstanding securI XXI - 555E55 - ~
about s4s7.000. o0d ~ - = ~ II
poration bag ~ ~ - ~ - ~