Poverty Bay Herald. PUBLISHED EVERY EVENING. GISBORNE. TUESDAY MAY 26, 1903 UNITED STATES STEEL TRUST.

Poverty Bay Herald, Volume XXX, Issue 9753, 26 May 1903, Page 2

Poverty Bay Herald. PUBLISHED EVERY EVENING. GISBORNE. TUESDAY MAY 26, 1903 UNITED STATES STEEL TRUST.

Speaking at Hamilton the other day the Premier, while admitting the progress made by Great Britain, pointed out how much more in recent years the United States has increased in wealth and productiveness. America has now at- ' tained a most commanding position in the commercial uud financial system of the world, and her marvellous progress has attracted universal attention. She lias obtained a lead in iron, and a superiority in the make of steel, and these are acknowledged to be the key indus- ' tries of all modern production. There is one American concern — the Steel Trust — which, during the past year, has occupied a prominent place not only in America but its influence has been felt in other countries. The United States Steel Corporation, \yhich is acknowledged to be the most important industrial organisation in the world, has recently pub- , lished its first annual report and balance sheet, disclosing the financial position of this huge company, and the result of its first year's working. It may be explained that this trust succeeded Mr Carnegie, > and was organised tit the beginning of 1901. Its power in the United States is immense, and the ramifications of its influence and operations can hardly be traced, they are so numerous and far reaching. It has a number of important subsidiary companies — railway, steamship, coke, clock, steel and wire, etc. A small central executive body watches over the operations of all the minor companies, looks after the maintenance and condition of the plant, studies the processes employed in the different works, compares the conditions and results, and is thus enabled to tell which branch is doing its task at the lowest cost and with the best results. The main control is exercised by the president, three vicepresidents, and two assistants to the president, who meet daily for the purpose of conference, and they have placed before them the exact state of the business of the whole corporation. A remarkable feature of the organisation is tho establishment of committees of skilled operatives, whose duty it is to study and recommend uniform methods with a view specially to effecting economies in the cost of production. In America employers and workman seem to be closer together than they arc in England, and in consequence the former is more able to benefit from the latter's knowledge and experience. In- England, workmen are not encouraged to make suggestions tending to the saving of time or improvement of process ; whereas in America the tendency is rather to encourage the zeal and intelligence of the workmen and to profit by any novel ideas he may conceive. In the United States Steel Corporation and in other concerns the employees are systematically encouraged to suggest improvements in the conduct of the business. The first year's operations of the Steel Trust show that during the year 1902 the gross sales and earnings amounted to more than £112,000,000, that the number of shareholders was nearly 60,000, and that about 168,000 persons wore employed. The total net earnings I last year, after deducting for ordinary repairs in the property, for maintenance, taxation and incidental charges, amounted to £26,660,000. Deducting from this sum interest oh corporation bonds, amounts disbursed in dividends, etc., there was left a surplus of £6,840,000, and this amount, with the surplus for ;i portion of the previous year, gives a total surplus at the end of 1902 of £15,000,000. The American press has given the corporation credit for thus disclosing its financial position and progress, and for having in this respect set an example to smaller trusts which do not publish reports or balance sheets. There can be little question that the method adopted by the Steel Trust tends to remove suspicions and to establish public confidence iii the management, and probably the publicity thus given to its affairs will be followed by other trusts, and this may have an important effect in modifying the anti-trust legislation of the United States.