The Richmond Virginian. (Richmond, Va.) 1910-1920, 1912-01-29
EEL 6l|RN|N6s
CAUSE INTEREST
/ ENCOURAGEMENT u ExrEcrEn TO
SHOW sNALiEsr 0uARrER
IN YEARS.
LOOK ToWoRLD TRADE
& PANAMA. CANAL WILL OPEN UT
SOUTH AMERICAN PACIFIC
TERRITORY. WHICH Is
VOW DEVELOPING.
LOOK ToWORLD TRADE
ny THOMAS G. suorwELL.

NEW YORK, Jan. 2s.--Ihe pub.
s.ca,lon tomorrow by the United
States steel Corporation of Its earn
ings for the iasl- Qaarter- oflsll Ia
awaited by the financial world with
unusual interest because there are
many reasons for eapec1ing this 10
be the smallest quarter In years "
the dividends are fully earned the
financial world Will be satisfied. Mere
figures will not tell the whole story
and ii may be thai the public win
pe compelled to wait for the annual
pamphlet report to learn what a sur
pr.ssnx growth there has been in
The export business of the great cor
PORTION. IL Is safe to guess that
this export business In 1911 amount.
ed TO about one fourth OF the total
fonrsse.
1iXs feature Of the Steel Trust
business has an important bearing on
tariff reform. The Steel Corporation
cannot compete with English mills in
England or with German mills in
Ges many, but the superiority Of
American enterprise and the greater
productive capacity Of American
workmen makes 1t possible TO COM
pete with both England and Germany
in other countries.
South America liz now the battle
ground OF the competing steel COM
panies of the world. The most dras-
tic tariff reform that could be put
through by Congress would not let
Aoreigners come beyond the actual
seabeard of the United States, for
the minute they were compelled to
pay railroad freight on their i'm
ports their profits would disappear.
The foreigners are becoming alarm
ed At the extent to which the Steel
Corporation has entered other eoun-
tries, and there. is little likelihood of
any attempt to enter the American
market Completion of the Panama
canal viii give the Steel Trust still
greater advantages in South America,
for just now the most important BUSH
mess is being developed on the Pacific
coast.
Look to the World.
In planning this world business 1t
was discovered by tho trust that II
would be compelled to go into the
manufacture OF endless speciaities.
such rs wire fencing, wire for pins.
Bat wire for corsets. and NO ON. There.
was plenty OF money available to
build mills for these various special
ties, but as all business men know
ard as all politicians seemed not to
know. a mill is only half of an en-
teyprfze. knowledge OF markets for
speeialties and ability To handle those
markets comes only from years OF
experience and j. p. Morgan and his
intimate assistants decided that the
cheapest way to get the proper or
ganixation would be to buy concerns
already In successful operation in the
desired departments, and they con-
9idcred themselves lucky in being
able TO acquire wire companies. tin
pIate plants rail mills and armor
plate concerns. at double the ply
sical value of SUCH properties. Hence,
the Steel Trust.
Andrew carnegie's method Of get
ting business was to sell all the steel
he could all the time at the best price
he could. looking only to the imme-
diate future and having no regard
to the building UP of worldwide busi-
ness. The managers of the Steel
Corporation adopted the opposite
policy, believing that more money
could be made ultimately by spending
ten or fifteen years In building up =
foundation In all parts Of the world
10 that should depression come to
any one country. there would at ali
times be n good market somewhere
for the products OF the corporation
The pamphlet report OF the Steel
will prove the wisdom OF that policy,
-as4d- Il fsiasA these patriots " no have
been predicting ruin for investors in
steel
The warlike situation in Europe
contains the elements of an American
boom. When Russian armies were
marching upon Turkey more than
thirty years ago. England rushed TO
the relief Of Turkey and thereby
caused the building Of tens OF thons-
sssnds Of miles of railroad In the
United States. Sentimental persons
have often condemned England for
protecting the barbarous Turk in the
No- called Eastern question" But
England was not protecting the bar
harous Turk at all. She was simply
keeping the Dardaneiies open tn nro-
fact her sources of wheat supply on
the Black Sea. just about that time
tine wuu.prfuf fertility of American
wheat fields attracted European at
sention and In order to develop new
sources OF food supply English finan-
cfers loaned endless millions of money
70 American railway promoters.
Leave Turk to His Fate.
II was only natural that the thing
should be oyerdone for the prospec-
fuses isSned at that time we're ex-
trayagant in their promises Of results
ffA~ acs8ai results have been 70 won
degfui an to make those extravagant
Promises look like the conservatism
Of old men for the results exceeded