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MR. CARNEGIE SAYS HE "WAS A FOOL" TO SELL HIS STEEL BUSINESS FOR FOUR HUNDRED

AND TWENTY MILLIONS. HE "MIGHT HAVE GOT A HUNDRED MILLION MORE."

schedule of overstrain; and they become, the men to balance them and resist enwhen there is no common organization of croachment, a system of exploitation.

The result of it all is a system of the mills of the Steel Trust, he must sign speeding, unceasing and relentless, sel an agreement releasing the corporation dom equalled in any industry at any time.” from liability for any damage to his per

According to the same acknowledged son. In a single year two hundred workauthority the Steel Trust employs also men have been killed in the steel industry regular secret service men whose duty it in the mills of the Pittsburg district alone is to spy on the workmen and to report to and that takes no account of the other their superiors any agitation looking to hundreds more or less seriously and perwards the formation of unions or organ- manently injured. But in this whole matized protests against

ter of affording better the twelve hour day or

protection to its workother working condi

men, it is a pleasure to tions. At various

report that the United times also successful

States Steel Corporaattempts have been

tion is taking an agmade, under direction

gressive and enlightof the central office in

ened interest. New York, to dictate

In 1903 the Steel the political action of

Corporation instituted the work m en. In

its so-called "profit May, 1908, for in

sharing" system, unstance, the Pittsburg

der which shares of Survey reports that

the preferred stock of the superintendents of

the corporation are the Edgar Thompson

sold to workmen on plant at Braddock,

the installment plan. Pa., were ordered to

The annual offer of line up the men in

stock has been usually favor of the Penrose

oversubscribed by the candidates for the

men. The stock is legislature, the point

paid for in ten monthbeing made that

ly installments, which the first duty of

are deducted from the the men was to the

wages in amounts Steel Corporation and

fixed in advance by that the Corporation

the subscribers. In needed Penrose in the W.B. Dickson. First VICE-PRESIDENT OF

addition to the reguUnited States Sen

THE STEEL CORPORATION.

lar dividends, paid to Nearly two years ago he called attention to ate.

the stigma which attaches to the working of all holders of the But it must not be men a twelve hour day seven days in the week.

stock, the men are taken for granted that

promised that if they the managers of the Steel Trust, hav hold the stock for five years and during ing the power entirely in their own that time “show a proper interest in the hands and not at all hampered by the fear welfare and progress of the Company," of strikes or labor unions, have no realiz they will be paid an extra dividend of ing sense of their duty and responsibility $5.00 and to such of them as "the cortowards the men.

poration shall find deserving thereof" a Under the direction of Judge Gary, still other and larger gift or bonus. Chairman of the Board of Directors, and As a result of this sorting process, the his subordinates, many broad-minded and 26,399 workmen who originally subhumane policies have been inaugurated. scribed for stock in 1903 dwindled to Committees of Safety have been organ- 5,409 when the first extra dividend was ized to develop the use of safety appli- paid in 1908. ances in the various plants. That work The feeling is general among the workof any kind in the steel mills is recog men that the stock selling system, with its nized as dangerous is shown by the fact extra payments, at the will of the Comthat before a visitor is admitted to any of pany, to those who are tractable and

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WHAT STEEL DIVIDENDS COST

253

obedient, is intended to bring the intelli- violent outbreak of any sort, the Corgent and thrifty class more and more poration officials will not need to look far under the complete domination of the for the cause. Revolutions, however, do Company. If a worker, for instance, not necessarily involve violence. And should protest against the

through either the trade union twelve hour day as inhuman

or the political movement and barbarous, it is

or through some probable that he

other means, would not be con

there is bound sidered as taking

to be a revolu"a proper inter

tion ere long est in the wel

that shall have fare and prog

as its goal, ress of the

the restoraCompany."

tion of deIn all its

mocracy to dealings with

the Steel the men, the

workers.” company

That the oftakes the po

ficials of the sition of a

Steel Trust do more or less

not view the kindly and pa

situation with ternal despot.

any such alarm, Looked at from an

is shown by the unprejudiced standpoint,

following statement, atthe spirit among the 300,

tributed to Judge Gary, 000 men who work for the

chairman of the Board of IN THE GLOW OF THE MOLTEN STEEL Steel Trust seems to beIN THI

EL. Directors of the Corporaone of sullen restraint and

tion: half-fearful, half-angry repression.

“The treatment accorded by our Cor“The workingmen of Pittsburg or any poration to its employees compares favorother American community could not be ably with that of any line of industry in roused over night to the point of serious, this country or any other country at the premeditated, revolutionary violence," present time or any period in the history says the Pittsburg Survey. “Agitation of the world." alone, however persistent, could never ac- Between the two views, there is a wide complish it; but if the treatment that the divergence of opinion. They can never steel companies are now employing to harmonize. That is impossible in the ward their workmen be indefinitely pro- very nature of things. It would seem to longed, it will be hard to predict the ulti be the duty of every citizen to study the mate action of the workers. Under such facts and make up his mind which is circumstances, if there should ever be a more nearly correct.

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TOWN WHERE TRUSTS DON'T RULE

By

CHARLES DILLON

T did not take long for Sabetha, other towns and cities, and, in view Kansas, to build its own public utili of the record to date, it must have ties. While the newspapers were

had much to learn. It is, without a printing frosty messages, last winter, doubt, the one town on the American

about weather thirty degrees below continent so self-satisfied that it is not zero, coal shortages, and shivering fami- particularly interested in the commission lies, this little town of 2,100 inhabitants, form of government, although some of in Nemaha county, was the most com its progressive citizens are urging this fortable place in the state. It had its further improvement, while admitting it own pure water supply; it owned an ex is not especially needed. It is in a class cellent electric light plant; it had a per by itself, too, in that it has fewer than fect system of sewage disposal; and, 125 negative votes in a total registration more important than all, in the winter, it of about 700 home-owners. And even had a municipal steam heating outfit that this timid opposition to things taxable is made it independent of everything and weakening, thawed out, and warmed into everyone on the frozen, snow-covered smiles and good nature by the grateful earth excepting, only, the powers that radiation that comforted everyone while produced the fuel oil for the furnaces, the outside world was wrapped in gloom. and it had a good supply of

But there are no ward bosses in that.

Sabetha, and, as I said a moment Sabetha had no injunc

ago, no lawyers. tions to fear, last winter.

There never was an engineer, It had no franchise grabs

I suppose, who did not, at to fight, no coal trust to

some time in his life, try to fear, and not one lawyer

figure out a way to use within its peaceful limits.

waste steam, especially This doesn't mean that Sa

when he learned that only betha has an embargo on

about twenty per cent of the lawyers. It means, only,

amount created actually did that a man in that profession

any work. This problem stuck would starve to death there

in the mind of George Ed—and so would the honorable

ward Johnson, Sabetha's city police judge, appointed as a

engineer, for years. It had been necessary part of the town's

there a long time. He didn't corporation, if he were

solve it, either; let me put that not above want,

down now; but he learned for he never

how to use the holds court.

steam he creIt means,

ated, instead too, that Sa

of letting it betha has

float a way been wise

into the enough to

Kansas sunprofit by the GEORGE EDWARD JOHNSON.

shine, and he The engineer who installed Sabetha's municipal steam-heating system, mistakes of which has given such excellent satisfaction.

told Sabetha

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TOWN WHERE TRUSTS DON'T RULE

255

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what to do and how to do it, a raw, tract for fuel oil at 21% cents a gallon. young fellow whose chief technical train This was two years ago.

Citizens of ing had been gained in a hurry-up course Sabetha bought $30,000 worth of those in the Armour Technological institute, in bonds, and if the law had not required Chicago. While some others in the pro that the whole public have a chance at fession, marooned in small towns, were them they would have bought the entire content to draw their salaries, Johnson, issue, the bankers say. helped by a wife-a Chicago girl—who Being an inland town, a no-river settlewas a graduate civil engineer, figured out ment, Sabetha had to dig for its water. the way, learned the lesson,

Most towns would have bored and gave the town what

the wells and let it go at that. few towns have, in this

But Sabetha's wise men or any other country, a

did more. They pesmunicipal heating sys

tered the state board tem that heats.

of health until its It isn't an easy

experts journeyed task to unravel the

to its borders, and municipal business

marked the best negotiations of the

site for four wells. average American

The site chanced to city or town. There

be on a man's is always so much

farm—all the land to hide. But you

out there is on some can see the books

one's farm

so Sain Sabetha. They are

betha bought the two as clean as the drinking

acres for $1,000, put a water. They show that

well, 140 feet deep, steelthe town began its "Up

cased, at each of the four lift Movement," in 1901,

corners, and promptly when it spent $19,000 THE THERMOFIER-A DEVICE ATTACHED planted the tract to alfor a lighting plant. To

TO THE RADIATOR.

falfa. Now alfalfa, you The steam passes through this apparatus cover this indebtedness and returns to the heating plant as water. must remember, is the the town issued $10,000

golden egg of Kansas. in four per cent bonds, and issued six In this case the crops, four or five in per cent warrants for the remainder, to number, cut from the town farm, pay be paid out of earnings. The bonds, of the interest on the investment. And the course, were paid out of the taxes, at that electric light plant, down town, does the time eight mills on the dollar. Now the pumping. tax rate is six mills.

Sabetha seemed, by this time, to be When a town of 2,000 population gets proceeding rather more smoothly on its electric lights its people, ordinarily, con municipal career than observers in the sider themselves as near Heaven as any near-by towns had believed, or, in some rural inhabitant has an every-day right instances, hoped; but Engineer Johnson to be. But in Sabetha's case this im wasn't quite satisfied. The electric lightprovement was only a beginning. True, water plant was not doing enough work, it dragged along for seven or eight years and the town needed heat. The old probrather discouragingly contented, but then lem about steam came back. It worried came the demand, one day, for water, him to see that white cloud mounting, pure water, and lots of it. So Sabetha, hour after hour, into the blue. A big with its customary unanimity of public hospital was being planned for the town opinion, remarkably infrequent in Ameri —on the lines of the Mayo brothers at can communities, voted some more bonds, Rochester, Minn.—and there was talk of $65,000 worth, at 412 per cent., rebuilt its heating it with steam. Why not do this light plant, put in oil-burning apparatus, for the whole town, Johnson demanded ? erected a storage tank for oil, a tank that He knew, now, just what he needed; a holds 22,000 gallons, constructed a smoke simple little attachment for the radistack that cost $1,400, and made a con ators, a little attachment with a big name,

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