The Birmingham age-herald., 1915-10-18
TIME OPPORTUNE l FORFORMAT|ONOF B|G COMBINATION Schwab Recently Quoted as
 Foreseeing Long Era Of
 Stupendous Prosperity ! MEANS INVESTMENT ON ENORMOUS SCALE Capital Will Be Put Into All Lines of Development So That Whole Nation Will Feel Impetus
By HOLLAND

New York, october 17.-tSpecial.) i've f must wait perhaps for several months, certainly for some weeks, before we ean l learn whether the great combination, the I first great one of the kind in some years, which the new Midvale Steel company represents is to identify the beginning of very great investment in American indus- trial organizations, with a view to devei- oping our natural resources and lncreas- ing our command of the markets Of the world. This was the statement made py one of the leaders in the financial dis- trict this morning when speaking of the new and great Midvale Steel combination. There seems to be prevailing opinion that the moment was opportune Tor tnis combination, and several reasons are | given for that view. One of those reasons is to be found in the reports which nave come from the clearing houses In the United States that tell of their September experiences. Bank clearings are looked upon as furnishing fairly good barom- eter that tells of trade conditions. The clearngs in September aggregated lit tic over sl5 O0o. .00o00o, or a little more than twice the amount reported a year ego in other words, the banks of the uniteu States show an increase of little over oo per cent in comparison with September of 1914 That month was the ebb or American business life in recent years. If bank clearings have increased over bo per cent as compared with last year. It is reasonable to presume that business throughout the United States has in creased proportionately. Furthermore' the statistics which reliable authorities &l,at tlo a whole is in excellent shape, there nav ing been a great decrease of indebtedness.
 Another req son given for assuming that the organization of the great Midvaie corporation will Identify the beginning of the long-promised prosperity-a prosper ity that Charles NJ. Schwab has been quoted a, saying is likely to be the great esr any country has ever known, ana also certain to be continued for several years It would not have been prac- ticable year ago to perfect a compina- ton of this kind. The capital could not have been found for it. and if capital IS now found for it it must be due to the fact that men of capital believe they are now justified in making heavy invest ments If capital makes investment Of this kind in expanding one corporation it is not unlikely that other capital VIII be found for like purpose for other con
 cerns.
 Then, again, there is to be continuous demand for some years for the Kind or commodities which the Midvale Steel com pany purposes manufacturing The United States will be a large purchaser os commodities which are needed to per feet our preparations for defense
 Another reason which has been given for believing that the time is peculiarly
 propitious for such combination as the
 Midyale is the fact that there is better Understanding not only of the purpose of the antitrust laws, but also better un- derstanding on the part of the people of the fact that combinations whereby
 great units can be perfected. if that be
 done without violating the law. are es- sertial if we are to command foreign
 trade. and are important if we are to
 secure the highest economies in our do-
 nestle trade. When the government at
 Washington began it's proceedings against the United States Steel corporation Tor
 the purpose of dissolving 1t the public did not possess the understanding 1t does
 now of what the Fundamental principle
 in com binations really is: that it is not
 monopolistic, that 1t does not seek un- fairly to control trade, but that It does
 contemplate great economies in manu-
 featuring and in marketing commodires
 and at the same time maintaining high
 scales of wages.
 What Will Carnegie Think?
 If this combination had been under
 taken in the spring of this year it would
 have been unheeded by Andrew Carnegie.
 He was at that time somewhat prostrat-
 ed by the first serious illness he has ever
 had In other days when MT. Carnegie
 has suffered from some mild though pain
 ful attack he has never permitted him.
 self even when in pain to lose interest
 in the great affairs of the day. In the
 spring of this year his friends thought
 that these matters no longer concerned
 him. Through the kindness of Charles M.
 ecbwab, Mir, Carnegie was taken from
 New York in MT. SchwaD's car to Bar
 l4arbor. Me The change was of almost
 inn nediate benefit to him. He has obeyed
 his physician all summer, taking heed
 only of those things thar were necessary
 for his convalescence and restoration to
 perfect health. This morning one of his
 intimate friends reported that Mir. Car
 negie is now in as good health as he
 has been at any time in recent years
 and is about to return to New York Hc
 Is sure to- be intensely interested in the
 developments now in progress in the steel
 industry in the United States. No one
 will rejoice more, than MT Carnegie at
 the pre-eminent position in that trade
 which Mir Schwab has attained He also
 will be plea sed at the references which
 have been made to the association of the