Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-05-22
Believes Theory That Reduc-
ton Will Not Hurt BuSi-
ness Is Borne Out.
STEEL TRUST TO RESUME
BIG ALABAMA PROJECT
Underwood Believes He Has Won the
First Important "Try-0ut' of
Revision Doctrine.

Oscar Underwood is mach elated to-
day because of a practical demonstra-
tion of his theory that tariff reduction
will not hurt business. He says It's
q clear case of 1.-The proof of the pud-
ding is the eating"
II all comes about from a telegram
received from Judge Gary of New York,
chairman of the board of the United
States Steel Company, often referred to
as the steel trust. announcing that at
. meeting OF the finance committee
yesterday it was determined to push
to completion the work on the great
steel and wire nail plant at Corey.
Ala. which was held up about two
years ago.
This property is owned by the Ameri-
can Steel and Wire Company. a sub
sidiary of the United States Steel Cor
poration. 1t is located in Mr.. Under
woods own district. The project con-
templated the construction of an i'm
mense plant. the building of a new
town and great boom in industry.
Work Was Suspended.
Two years ago work was suspended
WREN MIR. Underwood introduced his first
tariff bill in the House reducing the
duties OF the steel schedule. At that time
1t was regarded as attempted coercion of
the House leader and was taken so seri-
ously that Mr.. Underwood found II ad-
Nisabie to bring the case before the
House and openly voiced his defiance of
the steel trust
few weeks ago efforts were made to
lnduce the steel trust to complete the
project President Harding of the First
National Bank of Birmingham and SEN
ator Bankhead OF Alabama visited New
YORK and had talk with Judge Gary
about il.
Following the conference they came to
washington to ask Attorney General
McReynolds for assurance that the gov
ernment's suit against the steel trust
would not kill the proposed improvement.
The Attorney General. however, would
immunity and the hopes of the Alabam-
lans went down. 1t now falls out that
the steel trust sees its way clear to 60
anead with the work. nevertheless.
View Of Underwood.
Aside from qualification over an inn
portant local improvement which this
decision warrants. Oscar Underwood
takes additional unction to his soul. He
sees in IT indiSputable evidence that the
steel trust does not fear the effects OF
the tariff bill or it would not be willing
10 put additional millions in this notable
industrial undertaking. He thinks it is
clear refutation of the charge that busi-
ness will slack down and all progress
be halted as result of tariff reduction.
But there are two sides to this view.
The claim has been made that although
general business may suffer the steel
trust will be a sure beneficiary of the re-
duction of the steel schedule 1t is claim
ed that the low figures will put out of
business the independent steel manufac-
turers, wito do not have the marvellous
and complete facilities OF the steel trust
and that thus the field will be left en-
tirely TO the trust.
Not Dependent on Tariff.
Steel trust officials have more than once
intimated that the trust is not dependent
upon the tariff: that IL has outgrown the
need of protection. and that with its own
ership of the bulk of the iron ore in tho
ground. OF steamship lines and railroad
INES To transport IL and with the country
wide organization of the trust. il csn
I've where others will die
IL Is an interesting economic nronosi-
hut