The Princeton union. [volume] (Princeton, Minn.) 1876-1976, 1916-01-20
MILLION
MAD BY War


Once the Boy Employee of Carnegie,
Head Of Bethlehem Steel Now Has
One of the Largest Incomes In the
World-one Du Pont Plant Turns
Out 100000 Pounds Of Powder a Day
Albert w. Atwood, a specialist on
i Wall street and business conditions,
has written for the American Maya.
zine an article on Americans Made
Rich and Powerful by the-War." He
sets forth that "a new dynasty in
finance, that of the munition makers,
has succeeded to the dynasties of the
! period after the civil war, the coal and
oil and transportation kings and the
group Of money monarchs produced by
the steel and tobacco industry reor-
CARNATIONS.
Charles NJ. Schwab and the Du Pont
family Of Delaware, the writer holds,
emerge head and shoulders out of the
'hurly burly Of war made million
aires" He says, "Schwab on the one
hand and the Du Points on the other
have their hosts of lieutenants. sa-
traps on the grand scale, with. incomes
ranging up to $1,000,OOO a year, the
| SchWab SCALE"
! Mr.. Atwood calls them double prod
uct Of the "bOnus" system of salaries
and sudden, unexpected dilation into
company shares Of huge but heretofore
privately concentrated wealth. OF the
1 Du Points he says:
| Two Families Of Du Points.
"The Du Points were to the purple
| born, as were long generations Of their
ancestors before them. The Du Points
are young and there is a host OF
them. Two generations are in the
business, the older barely middle aged,
the younger hardly more than youth
full. In old, picturesqe, conservative
Wilmington they have long controlled
! the banks, trust companies, utilities,
two Of the newspapers and a hotel big
enough for London, to say nothing of
surrounding country estates, game pre-.
serves and fancy breeding farms.
For absolute ability to size up, APP
preciate and cash in upon the Euro
pean war the Du Points have no peers.
! Alone among big munition makers.
| they have been ahead in their deliver
les at time when such speed might
mean life or death to certain European
empires. At least one of their sixty.
eight plants IS turning out more than
half million pounds day OF high ex-,
| plOsives.
I Here perhaps, is the only cou,4ter-l
part of the Standard Oil and Carnegie
steel as mother Of uncounted fortunes
For downright gold mine Du
!: POnt powder has no equal. In 1902
control Of the business was acquired
/ by T. Coleman du Pont, who had not
previously had any connection with
the company, and by Pierre and Al
fred /. du Pont. Pierre and his rela-
tives paid Cousin Coleman 5000 a
share for his $4,000 shares. That was
in March, 1915. A few months later
the stock sold at $500 share. Then.
they formed new company, gave
T themselves two new shares of stock
for each old one and kept the old stock
as well. At this writing the new stock.
! which itself was dividend, lis selling
around $3.50 share and has begun to
pay regular dividends of 6 per cent
! year and one extra Of 2s11a per cent,
Cash Profit of 500 Per Cent.
A government dissolution order ca us.
ed the reorganization Of the business
into three companies which have so
prospered that the owner of 100 shares
of the old stock, worth $18,5O0 at the.
/ time of the dissolution, has now
cash profit of $9O,66O, or 500 per cent.
The DuSPonts have allowed their en-.
ployees from vice presidents to day
laborers to buy stock and have given
it to them in bonuses.
/ In recounting the return to financial
power through the building up of
Bethlehem Steel by Charles NJ. Schwab,
once to all intents and purposes ruled
off the hard turf of Wall street by j.
Pierpont Morgan, the elder, Mr.. At.
wood says, after explaining Schwab's
i method:
$50 today the Bethlehem Steel cor.
poration is probably the greatest In
dividual Industrial achievement In the
country. Charles M. Schwab has made
! it SO with his ability, energy, hard
work and conservatism. and today he
! stands in the same financial relation to
the Bethlehem Steel as Andrew Car
negie stood to the Carnegie Steel COM
s pany.
"Schwab worked for Carnegie as
boy, and to all intents and purposes he
has made out Of his once small and
poorly considered steel business sec
ond Carnegie Steel. He is the man
to dictate terms, just as Carnegie was
He Is the lone, dominating figure In
this vast, humming enterprise.
'.But SchWab has developed about
him a group Of young men, just as
Carnegie did. None Of them stands
out as did Frick, Schwab and Corey
among Carnegie's boys, but they are
I vigorous and exceedingly wealthy
lot. Thus far they have stuck to the
steel business, eschewed New York
and live in South Bethlehem on a
street happily known as Bonus row.