United labor bulletin., 1912-08-22
eRAsPINe STEEL MoLocH.
pevours Immense Profits in Every Field
of Operation.

Washington-In the report of the COM
mittee to investigate violations of the
antitrust act particularly directed to-
ward the activities of the United States
Steel CORPORATION, there is much inter
esting information relative to the con-
duct of that gigantic commercial enter
prise chapter in the report is de-
voted to the company supply store"
Not unlike other monopolistic business
concerns the Steel Corporation invades
every avenue where profit can be pro-
cured. The following is an excerpt upon
this phase of the corporations activity:
..As bearing on the question of en-
ployes, the policy of the Steel Corpora
ton in regard to the establishment of
the company supply stores is important
The evidence before the committee
shows that it is the custom of the COM
pany where steel and iron plants are es-
tablished and towns and villages grow
up around the company's plants, through
a subsidiary company known as the
Union Supply company. to open stores
to supply its employees with groceries,
provisions, and almost every article of
household necessity, together with pow
der. fuse, and other supplies-in fact.
everything the employees need, either to
live or to conduct their operations as
employees of the company.
THE local grocer, baker. meat and
fish dealer. apothecary. blacksmith. car
penter, coal. wood, and other dealers are
thus brought into direct competition
with the Steel Corporation stores. 1t
may be said that this is only the appli-
cation of fair and free competition But
this is not wholly so. The company
stores have great advantages. They deal
with their own employees, who constitute
90 per cent. of their custom To be sure
the employees are not obliged by any law
or rule of the company to buy at the
company store. but it is undoubtedly
true that they all understand they will
be the better considered for doing so.
THE company supply store knows just
what is coming in wages every day and
week to each employe who deals at the
company store. No other local competi-
tor has the benefit of this information.
This enables the company supply store
TO extend credit only to the extent of
wages actually due or earned. The re
suit is practically an actual cash busi-
ness with no losses in bad debts. The
fact that the Steel Corporation does not
attempt TO maintain these supply stores
except where it deals with its own en-
ployes. shows pretty conclusively that it
has no desire TO engage in such trade
under ordinary conditions in ordinary
where it deals almost wholly with its
own employees.
The profits made and dividends de-
clared to the Steel Corporation by this
system of supply stores, We think. are
pertinent and sufficient to show a pros
perity entirely out of the ordinary This
supply company was organized in
March, 1902, about year after the Steel
Corporation itself. Its capital stock is
100000. Its corporate name is Union
Supply company. and it is one of the
subsidiary companies of the United
States Steel corporation
in 1908, this s500.000 subsidiary cor
poration declared a dividend of S25o.o0o
and in subsequent years as follows:
1904. s250.JO0; 1905. s405.000; 1906.
sso5. 900: 1907, 100000: 1905. $4,000;
1909, $4,000, and 1910. s520,0oo. 1t will
thus be seen that this corporation
earned and paid its parent company, the
United States Steel Corporation. in divi-
dends total of ss.4eo.OOO in eight years
on retail supplies sold almost wholly to
its own employees"