But in the case of United States Steel this usually unfavorable factor is really a tower of strength. It is, in fact, deliberate. It is part and parcel of the Corporation’s policy of giving the wage earner as large a share as possible in the proceeds of operations. And it has been possible to increase the worker’s share of gross sales in recent years without injustice to stockholders only because of the ploughing back of profits of previous years into new plants, increasing the investment, and enlarging capacity. Because of this policy, it has been possible for the Corporation to show increasingly large earnings on its shares, although capital’s percentage in gross receipts has declined. It is hardly necessary to say that there is no intention of letting the decline go beyond just limits. Although the Corporation’s management has always shown recognition of the rights of the worker in this as in other ways it has never lost sight of the equally important rights of the investor and the latter has no cause to fear that it will ever do so. In 1901 on a net investment of approximately $815,000,000 the Corporation, to pay bond interest, preferred dividends and 5 per cent. on its common stock, had to earn approximately $85,000,000. To-day, to pay the $80,000,000 required for the same purposes, it has a net tangible investment of between $1,700,000,000 and $2,000,000,000. The following table illustrates how increased investment and capacity permit the big company to show large earnings on its stock with a much smaller return on its investment or capacity to-day than was possible in 1901. ------------------------------------+----------------+------------- | 1920 | 1901 ------------------------------------+----------------+------------- | | Actual investment | $1,800,000,000 | $815,000,000 Interest and dividends at 5 per | | cent. on common stock. | 80,000,000 | 85,000,000 Per cent. on investment. | 4.4 | 10.5 Per ton earnings needed on iron | | capacity to earn interest and | | dividends | $4.34 | $11.42 Per ton earnings needed on ingot | | capacity to earn interest and | | dividends | 3.58 | 9.02 Per ton earnings needed on finished | | steel capacity to earn interest | | and dividends | 4.94 | 11.01 ------------------------------------+----------------+-------------