River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1911-07-06
STEEL REPORT OUT
SMITH SAYS TRUST OWNS rs PER
CENT. OF ALL LAKE
ORES.
MUCH WATER Is ELIMINATED
Strength of United States Corporation
Is Shown to Be Due to Its Owner
ship of Large Portion of Crude
Product.

Washington.-Pres Taft made
public the much discussed and long
expected report on the United States
Steel corporation submitted to him by
the bureau of corporations.
Signed by Herbert Knox Smith,
| commissioner of corporations, the re-
port makes no recommendations and
| is almost wholly narrative in form.
Mr.. Smith declares that restriction of
competition was prime object of the
organizers of the steel corporation, or
so-called trust
Capitalized at 1,402, 100000, the cor
poration, he asserts, had tangible prop
erty worth only 1852, 100000. BY con-
slant reinvestment of earnings, how.
ever, the report points out, much of
the water" in the company has been
| eliminated
The steel corporation now owns rs
| per cent. of the lake ores, having re.
Gently concentrated its efforts to Sc.
curing these properties. On this point
the report says:
Indeed, in so far as the steel cor
poration's position in the entire iron
and steel industries Is of monopolistic
character, it is chiefly through its
control of ore holdings and the trans
portation of ore"
| Discussing in detail how "the i'm
pending struggle of the giants" was
averted almost over night by the for
nation of the great combination of
combinations, taking in ESQ subsidiary
companies controlling so per cent. of
the total crude and finished steel
production of the country, the report
says:
Until 1898 the bulk Of the bust
ness was distributed among very
considerable number of concerns.
There was sharp competition, modi-
fed by frequent pools of greater or
less duration and effectiveness"
Then came an era of great combina-
tons, the report continues, with CAPT.
talizations ranging from $30,000,000 to
100000, 900, mergers Of many smaller
companies, which, instead of eliminat-
ing competition, threatened to bring
price cutting on a larger scale than
ever before. In l899-1900 there were
three great comprehensive Carnegie
company, Federal Steel and National
Steel-dominating the production OF
six concerns-the American Steel and
Wire, American Tin Plate, American
Steel Hoop, American Sheet Steel, Ma
tional Tube and American Bridge
controlling the lighter finished pro-
ducts.
This was the period when the ''strug-
gle OF the giants" was impending and
when the formation of the United
States Steel corporation was con-
ceived and brought about. All nine of
the companies named were combined,
and later the Union Steel company,
the Clarion Steel company, and, In
1907, the Tennessee Coal, Iron and
Railroad company were taken over
The promoting syndicate putting the
deal through netted $62,500,000 in
cash.
The commissioner finds that compe-
tition, so far as prices are concerned,
has been modified by the policy OF
cooperation" inaugurated at the
"Gary dinners" about which so much
has been said before the congressional
steel investigating committee.
The present valuation of the COM
bine's tangible property is placed at
$1,187 900, 900, as against 81 ,468, GOO, 900
outstanding securities, an increase OF
about $4S7 100000 in property, while
only about $4,000, 900 has been added
to capitalization.