INTEGRATION OF INDUSTRY 71 



not have a greater interest in shipping than in the steel com- 

 pany. So he put these interests all into one company, so that 

 each partner's interest was as a whole." 



Something of a diversion has been made in order to give 

 this account of the Carnegie company, because it constitutes 

 such an important step in the evolution of the iron and steel 

 industry in this country, because it affords an unusually defi- 

 nite presentation of the reasons dictating the consolidation of 

 allied interests into a single corporation, and because it un- 

 doubtedly pointed the way and furnished the model for its 

 great successor, the United States Steel corporation. 



Returning now to a consideration of this latter combina- 

 tion, it is, of course, too early to attempt a forecast of what its 

 ultimate influence will be upon the industn^ and upon the 

 public welfare. If our position in the matter, however, is 

 correct, there seems to be no reason to apprehend anything 

 like an effective monopoly of the trade being organized by the 

 corporation. Practically, all of the testimony before the in- 

 dustrial commission, including that given by independent 

 operators, was against any such idea. There are now, as we 

 have seen, a large number of plants outside of the corporation ; 

 and the building of new mills seems, if anything, to have been 

 stimulated by the events of recent years. It is, of course, 

 quite possible, if other iron and steel companies pursue the 

 same policy of building up self-contained organizations, as 

 indeed a number of them are already doing, that the time will 

 come when the competition between them and the steel cor- 

 poration will be a serious matter. When that time arrives, 

 the old tendency of combination to restrict competition will 

 again become dominant. 



The formation of the United States Steel corporation is by 

 no means an isolated example of integration on an extensive 

 scale in this country. In the transportation industry can be 

 found evidences of the working of the force of integration in a 

 great variety of ways. Several of them have been mentioned 

 in the preceding paragraph. Of others, the most important 

 is that whereby a close community of interests is being estab- 

 lished between railroad and ocean transportation. The pur- 

 chase of the Leyland line by J. P. Morgan & Co. was for the 



