Bridgeton pioneer., 1911-11-02
FACTS ABOUT
STEEL TRUST.
u Is the Largest Corporation
In the World
ORGANIZED TEN YEARS AGO
|4ss the Greatest Number of Stock
holders of Any Business orsaniza-
tion-Government Seeking to Compel
ats Dissolution.

ats Dissolution.
The United States Steel corporation,
dissolution Of which is sought by the
federal government in a suit recently
iled at Trenton, n. j., at the time of
its organization in 1901 was and it re-
4nains the largest corporation in the
world. 1t consolidated, under the finan-
rcial management of J. p. Morgan &
Co, the principal steelmaking compa-
'tlies in the country, many of which
were in themselves combinations.
1t began its corporate existence un-
der the laws Of New Jersey, April l,
1901, and the operative end Of tine
consolidation was dominated by the
men trained under Andrew Carnegie,
whose steel properties formed the chief
constituent Of the merger. Charles NJ.
Schwab. formerly Andrew Carnegie's 3
right hand man and one of the active
participants in the merger negotia-
lions, was the first president and was
succeeded by another Carnegie man,
W. f. Corey, who held Office until he
was succeeded by James A. Farrell
last spring.
Judge Ebert II. Gary las been from
the beginning the real head Of the cor
poration, however, as chairman Of the
board of directors and Of the finance
committee, and there has been a grad
nal elimination of the men trained in
the old Carnegie school.
Corporations Capital.
Besides being the biggest corpora
don in point of capitalization, the
United States Steel corporation has
the largest number of stockholders of
any business organization in this cOun-
try, If not in the world, its books show
approximately 100000 stockholders,
but it is estimated that this list would
be swelled to 10000 and perhaps
more, if the large number of shares
held by investment companies, espec-
tally abroad. were split up among the
holders of their certificates. The great
extent to which the steel corporation
shares have been divided is better IL
Illustrated by the fact thar It's nearest
rival in this respect, the Pennsylvania
railroad, has no more than half the
number of the corporations stockhold-
- arR.
At tine time of its organization the
corporation had, in round numbers,
e610,0O0,000 of per cent cumulative
preferred stock and 50S,0G0,OO0 of
common stock, besides 1903, 100000 Of
fts'own bonds and about $S1, 900, 900 Of
the bonds of its subsidiaries and other
,.obligations-a total of 81, ,402, 100000.
There is now outstanding S50S, ,302,-
'6la0 common stock, but the preferred
stock was reduced by $150,000,000 in
1903 by Its exchange, dollar for dollar,
for second mortgage bonds, and there
Is now outstanding $500, 0,2S1. 700 Of this
issue. Its bonds in the hands of the
public total $596, ,351 ,S67.
Suggested by Schwso.
According to Charles NJ. Schwab's
testimony before the Stanley investi-
eating committee last spring, the idea
of the consolidation was suggested by
him at dinner held in New York, at
which ]. p. Morgan. Andrew Carnegie,
%. II. Hartman, Henry Phipps and
other leaders of finance and the steel
Industry were present. The steel busi-
ness was then in a chaotic condition,
and trade war was threatened,
which, in the language of the depart
ment OF commerce and labor's report,
under such circumstances might be
forced to work out in rigorous COM
petition, the survival of the fittest."
Until 1898 the steel business had
been distributed among large num-
= ber of concerns, and competition was
4 modified by frequent pools and price
agreements which were usually of
: short duration, and the erratic course
or steel prices was a byword in busi-
ness.
The end of the Spanish war began a
period OF consultations with capital
asations ranging from $30,0O0,OOO to
f100IO00.000, which, the department of
commerce and labor's report says, put
the bulk of the business in the hands
OF three companies-"the Carnegie
company, the Federal Steel company
and the National Steel dominating the
production of crude and semifinished
steel"
Some Statistics.
The number of employees has grown
nearly in proportion to the expansion
OF its output, and last year the corpo-
2ation's payroll carried an average of
918,435 men, an increase of nearly
25,OOO over the previous year.
Net earnings of the company have
ranged from S79,176,522 in 1904, a
period of depression, to $160964, ,673
IN 1907, the corporations banner year.
Last year they were $141, ,054,754
Since organization the corporation
has added heavily to assets out of
earnings. 1t charges Off at the rate of
about 10 per cent per year for deterio-
ration of plants and in addition has