The Washington herald., 1919-04-05
LET. EMPLOYEES
BECOME OWNERS
Holland Advocates Plan Of
U. S. Steel as Ideal One
For Profit Sharing.

Someone said at the time of the
United States Steel Corporation.
when Il was spoken OF as billion dol
lar company. that the day was not
distant when no longer would it be
called billion dollar company but,
instead, a two billion dollar COM
pany. That prediction is now veri-
ned. The remarkable ANNUAL report
Of this corporation. unprecedented
by the report of any other industrial
FORMULATION in the world. except
possibly THAI OF the Krupps. shows
that the net working capital at the
beginning OF the present year was
in round numbers s4s0Oooooo all
earned. Prior to the time of the
rich mans panic the accusation was
frequently made that much of the
capital of this corporation was
water. Nevertheless the late Nor
man B. Ream was accustomed 10
smile when he heard this accusa-
tion and then to refer to the fact
that the corporation possessed iron
mine properties and resources
whose money value was in excess of
the common stock OF the corpora
tion. although not included in the
assets. But If any water was in it
that was squeezed out when the
market value of the stock was a
little under $40 a share.
Dismissal Of Cnse Expected.
Today the total assets and liabilities
are a little in excess OF 81, 800, 900, 600.
Before the Supreme Court at Wash
ington now lies an appeal by the De-
partment of Justice from the decision
Of the United States Circuit Court
that this corporation is not organized
or operated in violation OF the anti
| trust law. The magnitude of the fig
urss which the corporation is now
| able to make public has nothing to
| do with the appeal In fact 1t is COM
| monty believed that after still fur
| thsr prOCrastination the government
| viii withdraw its appeal and then the
last will be heard OF Federal prose-
| Cution OF this corporation for Violat-
ing, as alleged. the antitrust laws.
Some years ago Charles NJ. Sehwab
was quoted. as having said that the
yearly net earnings of the steel cor
poration would, in the course of a
few years. reach 500 O0O. 900 and prob
ably considerably in excess of that
sum. There was a time when II
| seemed as though Mr.. SChwab's pre-
dIction would be found to have beeen
| greatly exaggerated. That was short
Iy after the beginning Of the Euro
| pean war Then the earnings had so
| greatly dWindled that it became 2
question for the mana cement to de-
eide whether it were the better part
to reduce wages or to pass dividends
upon the common stock. Unanimous
decision was AZ last made to permit
the stockholders to bear the loss oc-
| casioned by the falling off in business
I. so that the wages of the employees
should not be diminished.
Enormous Earnings.
Now. a little over four years after
that period OF deTessiOn. it is dis
closed that Mr. Schwab's prediction
was nearly eQualIed by the fact. and
hut for very heavy expenses would
have bccn below IRE fsctE. Pie gross
| revenues of the corporation in the
ycs-r Of 1918 were within 1900 OO0. 600
Of the amount Of the first liberty Ioan.
| Eut there were to be subtracted Ysri-
Gus charges. some OF them very
heavy. especially the eNactions OF the
Federal tax law. the increase in
wages. as well as interest. The gov
eminent took nearly 800 900 900. and
from no other single source did the
government gain a revenue compare
ble with this enormous amount: In
fact the governments taxes passed