The Birmingham age-herald., 1915-10-12
Midvale May Become Intense Competitor of U. s. Steel >
 Corporation
HARMONY WOULD BE
 BETTER FOR TRADE
Some Leaders Claim Steel Industry Should Have Understanding Sim liar to That of New York Banks
By HOLLAND

By HOLLAND
 New York, October n.-(Special. .)-All sorts of conjectures have followed the resignation of the president of the Carne- gie Steel company, A. c. Dinkey. and his election as president of the Midvale Steel company. Some have ventured the opin- ion that the Midvase company expects now to enter into intense competition with the United States Steel corporation and will be the better fortified to maintain such competition not merely because Mir. Dinkey is one of the abest steel manu- lecturers in the United States, but also because he is familiar with the methods and the purposes and personnel of the United States Steel corporation.
 Others have ventured the opinion that Mir. Dinkey's election as president of the Midvale and the association with him of E. C. Converse, who has long been prominent in the United States Steel cor- poration, justifies the inference that there may be some close alliance between the Midvale and the United States Steel cor poration in contemplation.
 V ing testimony which was given before the master who was appointed to take 1t in the proceedings brought by the depart ment of justice to dissolve the United States Steel corporation were much im- pressed by the unanimity of the testi- mony given by the independent steel man. ufacturers. and especially by Charles Nj. Schwab, which revealed that while com petition is strongly maintained between the stee! corporation and independent manufacturers. nevertheless 1t was healthy competition conducted upon hon orable business lines and in full recogni- tion of the fact that the steel industries of the United States as a whole have certain interests in common which, if maintained, serve various independent steel corporations and the United States corporation as well.
 The circuit court of the United States, which decided that the United States Steel corporation was not so organized and has not been so managed as to be in viola ton of federal statutes made it clear in it's decision that it had good understand ing of certain community of interest In which all the steel manufacturers of the United States share and which is not inconsistent with intense, although highly honorable competition.
 What the Testimony Showed
 This testimony and the decision of tha federal court are regarded by leaders in the financial district as fully justffying the belief that whatever may be the plan of the new owners of the Midvale and of it's new president, they do not involve on the one hand, runous or cutthroat competition with the United States Steel corporation, or on the other hand. do not point to anything like combination or even aliance
 months before his death, at a time when he was speaking of the policy of the United States Steel corporation, declared that none of the managers entertained the slightest idea of increasing the number of subsidiary members. One feature of the fundamental philosophy upon which the United States Steel corporation is based, MT Ream said, was the impor- tance of avoiding anything that looked like tendency toward monopolistic con- trol When the Federal Steel company was reorganized. reorganization, MT. Ream said, which furnished much of the inspiration for the organization of the United States Steel corporation, there were a number of independent steel companies which were anxious to be taken in by the reorganized Federal Steel company but it was thought the wiser part not to take them in. Furthermore, Mr. Ream said, it was the principe and policy of the United States Steel corporation to maintain competition. but to conduct that competition along lines which did not conflict with the laws or sound business policy.
 At the same time there could be and ought to be general common interest MT. Ream illustrated this by referring tc the Clearing House association of New York city, saying that 1t numbered among its members almost all of the banks oi New York. These banks have been and are now earnestly competing with intent to secure new business and prevent thu loss of business already obtained, bu there are certain matters of common in lterest appertaining to the entire bankint life of the community and entailing { spirit of cooperation which are repre- sented to the New York Clearing House association. That, Mir. Ream said. Is { method which should prevail with thu steel industries of the United States. II seems incredible to some of the lead CTS in the financial district that after tn satisfactory experience of the Steel cor poration and of the independents ther will be any disposition to change the pol | icy.
 l Some of the leaders are persuaded tha | in view of the stupendous stimulus whicl American industrial organizations have re
 ceIved by reason of the demands whio' have come from countries across tn sea it is inevitable that there be a stron tendency in the direction of creating larg
 units doing this, of course. carefully S
 that the federal statutes may not be vic
 lated demonstration has already bee
 made that large units are essential if W are to maintain and increase our foreig 1 trade. There appears also to be a grow 1 ing belief that whenever and in wha manner the European war be terminate
 our domestic industries will have receive such a stimulus by reason of the war a
 will make it inevitable that they maintal at least the greater part of their activ ties. In addition. some of the great bans CTS are now persuaded that we are likel soon to see investments upon lare ueala i,, A,vavican A epterpriaps CaDitRl h,