The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1911-07-01
Steel Inquiry
Report PlaiI
Concern Formed of $50 Pland
Now Seeking to Control Trade
Through Ore Resources.
SEVENTY-FIvE PER CENT.
OF ORE REQUIRED
Production Decreases as Ore Ad
quiring PrOgresses-Eliminat-
ing Water in Trust.

WASHINGTON, June 30.-The Ion
expected and the much discussed r
port from the bureau OF corporation
on the United States Steel corpor
1 tion, recently submitted to Presided
! Tart. was made public here tonight
Signed by Herbert Knox Smitl
commissioner OF corporations. the =
port makes no recommendations. an
| is almost wholly narrative in ford
Mr.. Smith declares that restriction
competition was a prime object of ID
organizers of the steel corporation.
so-Called trust"
Capitalized at Sl.4O2 .0O0. .O0O. I'D
corporation. he asserts. had tangib
property worth only S6S2. .OO0. 900.
constant reinvestment OF earning
however. the report points out. mud
! water" in the company has bee
eliminated.
The steel corporation now owns
per cent OF the lake ores. having r
Gently concentrated its efforts to 8
curing these properties.
On this point the report says:
indeed. in so far as the steel cd
poration's position in the entire ird|
and steel Industries is OF monopolist
character. IL is chiefly through its Co
troll OF ore holdings and the tran
portation of ore.
Discussing in detail how the Id
pending struggle OF the giants" va
averted almost over night by the 20
nation OF the great combination
combinations. taking in 2tO subsidia
companies. controlling 80 per cent.
the crude and finished steel productic.
OF the country. the report says:
Until lSgS. the bulk OF the busines
was distributed among a very consiy
erable number OF concerns. There wa
sharp competition, modified by fr
Quent pools OF greater or less dur
lion and effectiveness"
The Trust Formation.
Then came an era OF great combiI
atiOns. the report continues. with ca
iializations ranging from S3O. 600 .Oc
TO SlOo. .000 900. mergers of many smalI
er companies. which instead OF elm
mating competition, threatened
bring price cutting on a larger sea
than ever before In lSgg-lyOO therI
we're three great companies-the cal
hcgie Company. Federal Steel and y
tOual Steel-dOminating the produ
ton Of crude and semi-hnished pro
ucts. and six cOnceTns-the America
steel * Wire. American Tin Plad
American steel Hoop. American She
Steel. National Tube and America
Bridge controlling the lighter finishd
products
Struggle Of Giants.
fEhrl
struggle OF the giants" was impen
: ing. and when the formation OF III
United States Steel Corporation I'd
conceived and brought about. Al
nine Of tho companies named we.
combined and later the Union ste
Company. the Clarion Steel Comp
ny. and. in 1907. the Tennessee Goa
Iron and Railroad Company were
ken over. The promoting syndica
putting the deal through netted S6l<
100000 in cash
During the ten years OF its operE
ton. the report says. the steel trulI
mas paid average annual profits Of
per cent on the money invested. d
ihis connection attention is called n
the fact that a considerable part 1
th" investment Is IN undeveloped n
unworked properties. showing al
dividends from paying properties mud
he much larger than the averaa.
would indicate. Insisting upon cod
putting profits upon n tangible proper|
value basis the report says that
steel Corporation Tn defending
book valuation undoubtedly Wou
claim that there was a merger value
As to this. the commissioner says:
Matter Of Values.
.It is probably true that the vario
properfIes acquired by the steel col
pora'i0n. taken together with the Il
carizaron Of this company as eel
60. 1. DO have value in excesS . ~
sum of their values a. separate e
titles. The coordination and
tograt.on made possible by the combi
alton ~ such properties under a sing
control undoubtedly tend 20 rcdu
costs either through economies
Ccontinusd on Einth Pag.l