The Birmingham age-herald., 1915-04-30
Tennessee Company Transaction


 Saving he held no brief for the standard on company. he suggested thal wtile It may have done any number of things wrongful it had been a phenomenal cons mercia1 success and the government might have tried the experiment of regulating and controlling il.
 The south has recently had two stril- ing Illustrations of what cooperation on large scale can dc. he said. T refer to the Tennessee Coal and Iron company and your cotton difficulties of last fall.
 Take the case of the Tennessee Coal and Iron company Birmingham knew for years that it had vast quantities of ore and coal Several efforts were made to build up the steel industry at that point but those efforts mel with setbacks and reyerses. Progress was slow. largely for two reasons: First, because more cap ital was needed second because more experience was needed.
 "rhe Steel corporation bought the Ten nessee Coal and Iron company; the neees- sary capital was furnished the necessary experience was furnished. and success was the prompt reward. Mir Morgan did not furnish the capital personally, out of his own pocket; he gathered 1t to- gether from all over the world, a little here, little there; vast number of
 
 to the enterprise. There was co-opera- ton everywhere operation from Ala bama' s natural resources of ore and coal. cooperation from Pittsburs with its years of experience with ore and coal; co-oper- ation from New York in interesting capi- tai. cooperation from Europe in furnish- ing capital all resulting in a great ex- ransion in the business and bringing in- dustriai success and benefits to the peo- pie of the south. This transaction was approved at the time by the republican President in office
 Every once in a while the question is raised by politicians and by the govern ment as to why business men do not al- low industries to grow up naturally and under competitive methods. instead of trying to obtain cooperation through con- solIdation The Tennessee Coal and Iron incident Is a striking illustration of why. If 1t had been left in It's original condi- ton 1t would doubtless have kept on grop- ing and stumbling and making slow prog ress. By associating itself as 1t did with the Steel corporation the necessary CO., operation was secured and industrial sue cess was obtained in two or three years that might possibly never have come at all or at best would have been many years in coming.
 Cotton Crisis Last Fall
 ''Take the incident of your serious diff culties last fall In marketing your cot ton crop. Again you needed co-operation You were crippled without it. Your orr dinary channel for marketing cotton was unexpectedly closed. You needed financial assistance You needed some method of adjusting your situation. and bankers from all sections of the country offered to join in the undertakings Secretary Me- Adoo took the position that the bankers ought to adopt the policy of loaning money to cotton planters only on the con- dition that they would reduce their cot ton planting for the following year This was direct and specific attempt to re- strict the output of cotton, to restrain trade in cotton, and to use the money power for that purpose This was dons with the approval at the time of the demo- cratic President in office
 "Common sense dictated that you needed and ought to have cooperation Tn your steel crisis at Birmingham. Common sense dictated that you needed and ought to have cooperation in your cotton crises last fall But | want to point out to you the conditions under which these two transactions were made and what con fusion has followed.
 Two Presidents Differ
 First, the Tennessee Coal and Iron transaction, as have said. was approved at the time by the republican President in office. No question has ever been raised as to the satisfactory nature of the busi- ness results accomplished. The south has not complained, the north has not com plained, capital has not complained, labor has not complained consumers have not complained: nevertheless shortly altar the transaction was put through demo-
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