Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1911-07-04
STEEL TRUST
CONTROLS ORE
REPORT SHOWS STRENGTH DUE
TO OWNERSHIP OF LARGE POR-
TON OF CRUDE PRODUCT.

Washington, D. c., July 3.-The long
expected and much discussed report
from the bureau Of corporations on the
United States Steel corporation, re-
Gently submitted to President TAFT,
has been made public.
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 s1,4o2 ZOO, 900, the cor
poration, he asserts, had tangible
property worth only $6s2,o0o.ooo. BY
constant reinvestment Of earnings.
however, the report points out, much
Of the water in the company has
been eliminated.
Owns rs Per Cent Of Lake Ores.
The steel corporation now owns IS
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
troll of ore holdings and the Transport
tation of ore.
Discussing in detail how "the i'm
pending struggle of the giants" was
averted almost over night by the
formation of the great combination OF
combinations, taking III $50 subsidiary
companies controlling so per cent Of
the total crude and finished steel pro-
duction OF the country, the report
says:
Until 1898 the bulk Of the business
was distributed among very consid-
cradle number OF concerns. There was
sharp competition, modified by fire.
quent pools Of greater or less duration
and effectiveness"
Era Of Combinations Begins.
Then came an era of great combina-
tions, the report continues, with CAPT.
talisations ranging from $3o,000,000
to 100000, mergers of many smaller
companies, which, instead Of eliminat-
ing competition. threatened to bring
price cutting on large scale than ever
before. In 1S99-1900 there were threa
great comprehensive Carnegie COM
pany, Federal Steel and National Steel
the production Of crude
and semi finished products, and 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
struggle of the giants was impend-
ing and when the formation Of the
United States Steel corporation was
conceived and brought about. All nine
Of the companies named were combin-
ed, 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 $62,500,00O IN
cash.
Dinners Modify Composition.
The commissioner finds that COM
petition, 80 far as prices are concerned.
has been modified by the policy Of
"co- operation" inaugurated at the
Gary dinners" about which so much
has been said before the congressional
steel Investigating committee.
The present valuation Of the COM
bines tangible property Is placed at
$1,1S7, 000,c as against 81 1853, 100000
outstanding securities. an increase IT
about 100000 in property, while
only about $66,co0,ooo has been added
to capitalization.