The Jasper weekly courier. [volume] (Jasper, Ind.) 1858-1922, 1911-07-14
STEEL REPORT OUT
SMITH SAYS TRUST OWNS IS PER
CENT. OF ALL LAKE
ORES.
MUCH WATER IS ELIMINATED
Strength Of United States Cooperation
Is Shown to Be Due 70 It's Owner
ship Of Large Portion Of Crude
Product

Washington.-PTesident 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 rs Herbert Knox Smith.
port makes no recommendations and
S almost wholly narrative in form.
MIR Smith declares that restriction OF
competition was a prime object OF the
organizers OF the steel corporation. or
so-called trust
Capitalized al 81 fO2 .0O0. oOo the cor
roraiion. he asserts. had tangible prop
erty worth only s6S2 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 10
per cent. Of tie lake ores. having re-
Gently concentrated its rforts 20 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. 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
ayerted 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 1895 the bulk OF the bust
ness was distributed among a very
considerable number OF concerns.
There was sharp competition. modi-
aed 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 $4,000 600 10
500 0O0 200. mergers OF many smaller
companies. which. instead Of eliminate
ting competition. threatened 10 bring
price cutting on a larger scale than
ever before. In iS9s-l90O there were
three great companies-the Carnegie
company. Federal Steel and National
I Steel-dominating the production OF
crude and semi-hnished products. and
six concerns-the American steel and
Wire. American Tin Plate. American
f 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 anC
when the formation Of the United
States steel corporation was con
ceived and brought about All nine OF
the com panies named were combined
and later the Union Steel company
the Clarion Steel company, and. II
1907. the Tennessee Coal. Iron anC
Railroad company were taken over
The promoting syndicate putting thu
deal through netted So. 500. 900 ii
cash.
The commissioner finds that com7e
tition. so far as prices are concerned
has been modified by the policy o
cooperation inaugurated at th
Gary dinners" about which so nucl
has been said before the cOngressiona
steel investigating committee.
The present valuation OF the CON
hines tangible property Is placed a
sl.Is7 .0OO. 900. as against 81 .46S.O00.OO
outstanding securities. an increase o
about sss7 900. 900 in property. Will
only about see. 900. 0O0 has been adde
10 capitalization.