By Kenneth Warren
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Additional info for Big Steel: The First Century of the United States Steel Corporation, 1901-2001
I shall not feel satisfied until we are producing 500,000 tons per month and finishing same. And we'll do it within five years. Look at our ore and coke as compared with the others. If you continue to give me the support you have in the past will make a greater industry than even we ever dreamed of. Am anxious to get at Conneaut. " Carnegie responded enthusiastically, "I like your talk-five years development at Conneaut will put C. S. Co. where she belongs. "19 Despite-indeed partly because ofSchwab's confidence, for most steel companies years of doubtful commercial prospects seemed to lie ahead.
In fact, it was extremely difficult to make a well-reasoned evaluation of the immense agglomeration of physical plant and even more so of the mineral resources. In summer 1902 Schwab valued the Corporation's holdings of iron ore at an extraordinary $ 700 million, compared with only $348 million for production plant and real estate. ) The "principles" guiding Schwab's ore valuation were, firstly, that the holdings could not be duplicated at any price and, secondly, that US Steel would have to pay that much to obtain this amount of ore.
In the course of a concise account of the new combination, Peter Temin recognized that it solved the crisis created by vertical and horizontal integration in the 1890s, made easier the running of pools, and yielded great promotional profits. Still, he rather frowned on "the conventional story" with "all the appropriate drama. "27 Long before, Frick's biographer, George Harvey, had made what seemed a reasonable conclusion: "It was the stern reality of the actual situation, in vastly greater measure than either the eager pleading of Judge Gary recounted by his biographer [Tarbell] or the eloquent portrayal of possibilities by Mr.