The Birmingham age-herald., 1914-02-05
Other Things May Be Re-
spOnsible for Falling Off
In Last Quarter
PROBABLY THE SAME
UNDER HIGH TARIFF
Last Quarter Was Period of Uncer-
tainty All Over WOrld-FiscaI
Statistics Will Prove In
teresting
BY HOLLAND

New York. February 4-(SpecialA-When
the latest report of the United States Steel
corporations earnings was published,
showing as 1t did great falling off as COM
pared with earlier quarters of the past
year, the inference was general that this
was due to the effect of the new tariff
law 1t was customary to hear business
men say that the corporation had been
hard hit by the new tariff and that the
experience in the first quarter of this
year may be quite as unsatisfactory as
was that of the last quarter of 1913.
This, however, may have been a too
nasty inference. 1t was commonly report
ed at the time the Payne Aldrich bill
was under discussion and later, when the
present law was under consideration by
the ways and means committee. that the
management of this corporation would
be satisfied with any tariff rates which
were satisfactory to the Independent steel
and iron producers When the corpora
tion set apart $40 100000 for the purpose of
harmonizing the plants and when it de-
cided to invest $75.000,0oO in the estab-
hshment of a new city at the head of
Lake Michigan, it was frequently said by
those who were familiar with the pur-
poses of this management that one of the
reasons for this investment was that the
corporation might find itself Independent
of any possible tariff legislation.
Furthermore the claim has been fire.
quently made that by reason of the loca-
tion of some of the corporations plants
west of the Allegheny mountains they
We're adequately fortified against foreign
competition by reason of the fact that
transportation charges from their plants
TO their markets We're relatively small
Therefore to assume the great falling off
in the net earnings of the corporation in
the last three months of 1913, which were
coincident in point of time with the op-
erations of the new tariff law, apparently
makes it necessary to assume also that
the corporation was mistaken in its be-
lief that 1t had so established It's plant
and so perfected its business as to make
1t to a considerable extent immune so far
as tariff rates are concerned.
Furthermore, II the corporation were
correct in the assumption attributed to
it by common understanding that any
tariff rates which the Independent steel
companies would find satisfactory would
also be satisfactory to the corporation,
then 1t must be assumed that the inde-
pendent companies are even more serious
~ dAittltd DN luc IeWI ld1lll rates tnHn
is the United States Steel corporation.
The Presumable Facts
The presumption Is strong here that
while tho new tariff rates may have to
some extent affected the iron and steel
industry, yet the falling off in the busi-
ness of this company In the last three
months of 1913 is traceable to general busi-
ness conditions which prevailed In the lat
ter half of that year. Almost all busi-
ness was affected by conditions which
were as influential In Europe as they
were in this country, and 1t is not un-
likely that even though the Payne-Aldrich
bill had been In effect last fall the Steel
corporation would have been compelled
to report a considerable falling off in
business.
The Export Trade
Not until the detailed statistics
are received from Washington will
it be possible to pass jugment upon the
full effect of the new tariff law. 1t
will be very interesting to learn whether
in the last quarter of 1913 the United
States Steel corporation were maintain
ing and especially were increasing Its
expectations. There seemed to be in the
summer and early fall no hint that the
markets already obtained In other parts
of the world by the corporation were not
to be reclaimed. The fact is that the Sec
retary of Commerce, Mr. Redffeld, was
in the summer of the past year conf
dent that the expectations of iron and
steel commodities would be increased and
he has been quoted as predicting that In
the fiscal year which will end on June
20 next the statisticians at Washington
will be able to report that the United
States exported manufactured commodi-
ties of the money value of approximately
81, 800. 900 900.
Recent statistics do show considerably
increased importation since the new tariff
law became effective. This. however, is
no cause for wonder. The expectation
was that the new law would be followed
by increased importations. The vital
point is this: Are our exports to be MAIN
tained and is the prediction that the
new tariff law would stimulate interna-
tional trade, both export and import, to
be justified by the event?
The Discount Companies In England
The disposition to create in this city
a strong discount company which VIII
accept mercantile bills behind which stand
value or bills receivable seems every day
to grow stronger and stronger. There Is
constant reference to statement male by
James Hope Simpson, manager of the
great Bank of Liverpool, when, a few
days ago. he was addressing the asso-
cated bankers of New York. He spoke
of the commercial concerns of London
that are accustomed to buy bills OF ex-
change. saying that it was impossible to
exaggerate the importance of the func-