The Jasper weekly courier. [volume] (Jasper, Ind.) 1858-1922, 1911-07-07
STEEL REPORT OUT
SMITH SAYS TRUST OWNS rs PER
CENT. or 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.-President 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 hy Herbert Knox Smith.
commissioner OF corporations. the re-
port makes no recommendation and
is almost wholly narrative I'm form.
Mr.. Smith declares that restriction OF
competition was a prime object OF the
organizers OF the steel corporation, or
so-called trust"
Capitalized at 81. 400 900 900 the cor
poration. he asserts. had tangible prop
erty worth only $3.50 100000 BY con-
slant reinyestment Of earnings, how.
ever. the report points out. much of
the water in the company has been
eliminated.
The steel corporation now owns 20
per cent. OF the lake ores, having re-
Gently concentrated its efforts TO se-
curing these properties. on this point
the report says:
Indeed, in so far as the steel cor
porations position in the entire iron
and steel Industries is of monopolistic
character. II 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 $50 subsidiary
companies controlling 60 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-
fled by frequent pools of greater or
less duration and effectiveness"
Then came an era OF great comhina-
tons. the report continues. with CAPT
talizations ranging from $4,000. 900 to
500. 0O0 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 lS99-l900 there were
three great companies-the Carnegie
company. Federal Steel and National
Steel-dominating 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
uonal Tube and American Bridge
controlling the lighter finished pro-
ducts.
This was the period when the "strug-
gle OF the giants" was impe nding 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 s62.5OO.O 900 in
cash.
The commissioner finds that compe-
tition, so far as prices are concerned.
has been modified by the policy OF
GO 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
si,1s7 100000. as against sl.46S.O0O. 900
outstanding securities. an increase Of
about s4s7 100000 in property. while
only about sec 200. 900 has been added
10 standardization