OCR Interpretation


The day book. (Chicago, Ill.) 1911-1917, January 16, 1914, NOON EDITION, Image 6

Image and text provided by University of Illinois at Urbana-Champaign Library, Urbana, IL

Persistent link: http://chroniclingamerica.loc.gov/lccn/sn83045487/1914-01-16/ed-1/seq-6/

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REPORT OF CALUMET CONDITIONS IS MADE BY
NATIONAL SOCIALIS'
. A very clear report on conditions
in the strike-bound "district of Qalu
met has been made by the special
committee appointed by the National
Socialist Party to investigate the
strike.
The committee, which consisted of
Congressman Victor L. Berger, Ghas.
Edward Russell and Seymour Sted
man, made an exhaustive study be
fore turning in its report which will
be published in its entirely in this
week's edition of The Party Builder.
The committee soon found that the
most terrible thing" about the strike
has been the wave of crime and law
lessness due to the imported gunmen
in the employ of the company.
The report carries a review of the
various murders and shootings com
mitted by the gunmen and of the at
titude of the company is standing be-
thind them.
The report concludes with a re
port on the finances of the company:
"We believe that all of the de
mands of the strikers were just and
reasonable. Beyond' a doubt they
should have been granted. Probably
no other emplpying companies in this
country couldso easily afford to con
cede such moderate requests. Among
these companies, and appearing as
the holding company for most of the
others, is the Great Calumet and
Hecla, which has made a larger an
nual profit on a smaller investment
and for a larger period than any oth
er similar enterprise in the United
States and possibly in the world.
Fabulous fortunes have been built
from its great profits. It wealth may
be gauged from the following facts
taken from the sworn statements of
the president of the company, also
published in Copper Hand Book
about it:
"It has a capital stock of $2,500,
000, of which less than half, or only
$12 of eaph $25 share has ever been
paid in. "That is to say, the cash ac-
' PARTY COMMITTEE
tually invested in it has been $1,200,--000.
On this investment has been
paid -to and including 1912, dividends
to the amount of $112,500,000, or $1,
125 a share, or about $100 of profits
for every one dollar of investment.
The annual report, Feb. 27, 19i3,
gave the value of each share as $540,
$12 having been paid for it. The divi
dends in the last few years have been
as follows:
Per cent Per cent
1897 160 1905 200
1898.. 200 1906 280
1899 .400 1907 260
1900 280 1908 80
1901 180 1909 109
1902 100 1910 116
1903 140 1911 96
1904 160 1912 72
"Besides these great profits, the
salaries paid to officers and directors
seem beyond all reason. The presi
dent of the company receives $100,
000 a year. Mr. McNaughton In his
capacities as vice-president, general
manager and director, receives $85,
000 a year, the Secretary and treas
urer and each director, draws $20,
000 a year.
"In recent years, the company has
bought out of its surplus profits, and
by issuing securities, a controlling in
terest in seventeen other mining
companies, and now in addition to its
huge dividends earns the interest on
$8,519,000 of notes that is issued to
aid in making these purchases.
"To a company earning such enor
mous profits, such demands from its
employes as were made in this in- ,
stance were the veriest trifles. That
such companies should contemptu
ously refuse to so much as treat with
their employes seems to us one of the
most remarkable instances we have
ever encountered ofthe arrogance
of wealth, as the companies' method
of combatting this strike afford ohe
of the most alarming instances of
wealth's lawlessness.

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