The Democratic banner. (Mt. Vernon, Ohio) 1898-192?, 1912-10-08
THE CANDIDATES AND THE
STEEL TRUST
(By Sayoyard)

New York, Oct. 7-Before certain
great fnanciers organized the Nation
al Tube Company they employed Mr..
Julian Kennedy, one of the greatest
engineers In the world, constructor Of
the Bessemer converters. blast and
: open.hearth furnaces and other plants
required in the steel business, to as
certain the value OF the properties
that 1t was proposed to combine un.
der the name of THE National Tube
Company" Mr.. Kennedy made care.
ful and practical investigation and re-
ported that the concerns we're worth
not to exceed $i9.OOO.OOO. The pro-
moters acquired those properties and
organized the company, capltalizing
tt at S0,0OO.0OO, Of which they gave
the firm with which Mr.. George w.
Perkins was then connected az part
Ger 500 100000 for effecting the com.
Aination and establishing the mOnopO-
iy. Mr.. Perkins has since dropped in
TO politics and Is manager OF the Bull
Moose campaign.
This company had 80 per cent of
the tube mills OF the entire country
and fixed prices to suit It's cupidity,
earning 20 per cent per annum on the
cost OF its properties. But II was not
satisfied with such beggarly returns.
II bought its raw materials OF the
Carnegie Company. and now II resOlv-
ed to erect blast furnaces and rolling
mills and manufacture It's own steel
billets.
That did not suit Mr.. Andrew Car.
negie, and he served notice ON them
that II they could make billets he
could make tubes. That would have
been competition, and II is the mis-
sion Of Your trust To destroy competi.
ton. Mr.. Carnegie represented to this
National Tube concern that their
plants were antiquated, IT. only for
the scrap apile. and that II was his
purpose to build mill at an expcndi-
imre OF $12.000.00Q, at which he would
make tubes at cost OF so ton less
than the trust could make them. Car
negie had forced the Pennsylvania
Railroad to fetch and carry for him.
and he was "A boly terror In the world
OF business when competing with "a ri
val.
When Wall Street heard Of this
word went back to buy Carnegie out
at any price. They had previously
added to their tube company sundry
other properties for the manufacture
of wire, tin plates. hoops. steel bridg-
es, and so on, and already It was a
very lusty monopoly.
but until they rid themselves Of
Carnegie they would not have full con.
trol of the market, productive and
Sconsumptiye, The matter OF price
Carnegie must be hired to 20 out of
business at any cost before the Ameri.
can people could be made the victims
of the Steel Trust
sin-'lingation with II. G. Frick, Mr..
Carnegie swore that the properties
were worth less than $4,000. 900, and
his testimony was supported and cor
roborated by the oaths OF Schwab,
Galley and others. Subsequently Frick
and the Moores got an option on the
Carnegie Company. the agreed price
being s25O.0OO, 900 but they failed to
raise the money because j. Pierpont
refused to go into II for the reason
that the property was not worth near.
|iy the price.
/. Carnegie said. Very well, Il In war.
then," and he was hxing to enter up.
ON cutthroat competition with Nor.
igan. Frick. the Moores, Perkins and
the rest OF them, That was ruin FOR
somebody. and Carnegie knew II was
ruin not for him. for he proposed 10
produce and distribute cheaper than
she trust could possibly make and sell
The trust hesitated and again enter
ed upon negotiations. and the result
was they gave Andrew Carnegie over
Ho0.000.OO0 to convey to them his
property that Il had been sworn Ia a
''oonrt OF justice was worth less than
$7G,e00.000. hut he went out OF the
steel business. and that was what they
were after. a monopoly OF the market
of the most extensive and prodigai
consumers Of steel In the world,
Then what did they do? They capi.
1alized the trust at si.i00. .0OO, 900. and
rhe American people are paying diy.
iends on that gigantic sum-~moatly
water.
Roosevelt says that IL good
'sus' and II ought TO be legalized so