THE STEEL TRUST AND ITS MAKERS 163 



in the United States in the past twenty years. It exceeds, 

 after deducting cash in the treasury, the pubHc debt of the 

 United States. The pay roll of the new company amounts to 

 five hundred thousand dollars per day, or one hundred and 

 fifty million dollars per year of three hundred days. It em- 

 ploys two hundred and fifty thousand men, who directly sup- 

 port a million persons more. This is like studying astronomy ! 

 The expectations and opinions of those who have cared to 

 express themselves on the character and future of the great 

 company have been of deep interest. What must be taken as 

 Mr. Morgan's opinion is found in the official announcement 

 signed by his firm and approved by a large number of the in- 

 terested parties. The announcement says: "Statements 

 furnished to us by officers of the several companies show that 

 the aggregate of the net earnings of the companies for the 

 calendar year 1900 was amply sufficient to pay dividends on 

 both classes of the new stocks, besides making provision foi 

 sinking funds and maintenance of properties. It is expected 

 that by the consummation of the proposed arrangement the 

 necessity for large deductions heretofore made on account of 

 expenditures for improvements will be avoided, the amount 

 of earnings applicable to dividends will be substantially in- 

 creased and greater stability of investment will be assured, 

 without necessarily increasing the prices of manufactured 

 products." This statement imdoubtedly met the approval 

 of the great body of the foremost business men of the country 

 whose consent contributed to the consolidation. An interest- 

 ing, and perhaps a representative, foreign comment appeared 

 in the London Standard as follows: ''It is a serious menace 

 to British industry. American users of steel goods will also 

 be squeezed to the last cent short of damage to the trade. It 

 remains to be seen whether the American people will much 

 longer tolerate a fiscal policy which renders such a combina- 

 tion possible. If the trust indulges overmuch in squeezing, 

 the revulsion may carry the nation much further than is 

 dreamed of now in the direction of free trade." To this ex- 

 pression of fear and regret, the New York Herald made this 

 answer: ''Foreign observers have not yet got a clear per- 

 ception of the impelling motive of the combination or its pur- 



