The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1911-10-30
low STEEL
|. CAME into
EXISTENCE
|gan|zat|on Of Slant Corpora.
Ion Was First Suggested By
| Charles N. Schwab
GBy Leased Wire }

L N,
ates Steel corporation, the greatest
mbination of capital in the world,
organized in 1901 under the fin
cial management Of j. p. Morgan
Co. and began its corporate exist
Ice under the laws of New Jersey
bril- 1, of that year Charles NJ
hwab. formerly Andrew Carnegie S
Int hand nan, and first president
the corporation, is said to have
st suggested the idea having broach
= it. according to his own testimony
4rore the Stanley steel Investigation
mmittee. at a dinner held i'll New
prk. at which ]. p. Morgan, Mr..
rncgie, Fl. G. Frick, E. II. Hartman
enry Pnipps and other prominent
hanciers and steel men were pres
t. tfE@
EAs the sequence OF this dinner,
cording to Mr.. Schwab, negotiations
Ire opened between Mr.. Morgan and
fferent interests which controlled
e leading steel concerns o. the coun
h. including the largest the Carne-
company, to bring them together
Rder one control
erger of Combinations.
#These concerns were the Carnegie
mpany, Federal Steel company, Ma
bnal Tube company American Bridge
mpany, Lake Superior Consolidated
Iines company, American steel and
re company, National Steel company
|nerican steel Hoop company, Amer
an Sheet Steel company, the com
|ned stock and bend capitalization
which amounted to $9l 100000.
bch of these concerns in itself was
combination of smaller companies
3presenting. as set forth in the re-
brt, of Commissioners of Corpora
bns Herbert Knox Smith, more than
10 originally independent companies.
THE National Steel company, Am
fican Tin Pplate company, Amerl-
IN Sheet Hoop company and Amer
hn Sheet Steel company were con-
billed by the William II. Moore in
rosts; the American Steel and Wire
k.4ntany by John w. Gates interests
hid the Lake Superior Consolidated
Hines company by Rockefeller inter
|tts. and the Federal Steel, National
Eube and American Bridge company
'ere known as the Morgan group.
horn in The Flesh.
. Ut was testified before the Stanley
mmittee that the Carnegie com
hny at that time was referred to as
5he thorn in the flesh OF the steel
|dustry," owing to the alleged policy
rn vi in, rnft
agreements and it was Mr.. Carne-
BIS methods, according to some wit
sses that really precipitated the
3oposal of combination.
&In exchange for the stocks and
4nds Of the United States Steel cor
bration agregating $l,297 10000.
bsequentiy, in 1901 and 1902, there
.ere taken in the Shelby Steel Tube
&mpany a combination of fourteen
&nccrns with a capitalization OF $l5,-
10000; & the Union Steel company
18th a capitalization of $45,OO0,0O0,
Hlich had just absorbed the Sharon
&eel company: the Charlton Steel
Bmpany, small concern, and in
D07, the Tennessee Coal and Iron
Pmpany, with capitalization of $50
10000.
4xteen Millions a Year.
#'For his interest in the Carnegie
feel company, Mr.. Carnegie took in
Ryment . per cent first mortgage
pnds of the United States Steel cor
pration, netting him $l6,OOO,OOO an
aally.
Mr.. Schwab, before the Stanley
pmmittee, explained the fundamental
pea Of the combination when he was
Eked to tell what he said at the
Rmous steel" dinner:
i explained at that meeting the
|ery great advantage that would re-
Plt in manufacture through such an
organization as the United States
5teel corporation, and | gave my rea-
'ons In detail to them. First of all,
nat instead of manufacturing steel
Is 1t was then manufactured by a
lumber OF companies, each of whom
fanufactured the same lines, it was
ny idea that the Organization to be
'ruly successful should be made of
|uch character that one mill should
'e run on one product and not one
nil on fifty products, as was then
|he practice.
Profitable Concern.
According to Herbert Knox Smith
report the United States steel con-
perm has proved a profitable concern
paving earned II per cent on the ac-
mal investment Its chief tmonop-
piistic feature says the report, is in
y control of the raw material, own
ng % per cent. it is stated of the
commercially available ore lands in
|he Lake Superior district.
(. The corporations present capitaliza-
non consits of s5Go, 100000 common
tlon consists of S50S,000 900 common
VoV,Oo0 first and second mortgage
ponds, including those of subsidiary
sompanies. making a total of $l,464,-
,oo,O00. 1t has paid Z per cent divi-
lends in its preferred stock since or
sahization, and 5 per cent on its COM
mon stock since March of last year
i is estimated that its stocks are
held by about 124000 shareholders.
The gross earnings of the corpora
llon last year were more than sT00-
'VO,00O, and the net earnings in s3
cess Of $141 ,000, ,000. 1t produced in
mat year about 25,O00. 600 tons of iron
pre-. nearly 12,0J0.00O tons of pig iron
md more than 10000. 600 tons of fin
shed steel.
The WAY IN oct ahead Of the dpri