Omaha daily bee., 1916-01-06
GARY SOUNDS NOTE
OF WARNING TO ALL
LINES OF ACTIVITY
Steel Magnate Calls Attention to
Extraordinary Increase of Pro-
duction Due to War
Conditions.
STOP. PONDER AND LISTEN
Conflict May End Too Soon and
Great Shrinkage in Purchasing
Power Sure TO Follow.
DANGER OF INITIATION GREAT


NEW YORK, Jan. 5.-Elbert II.
Gary, chairman Of the United States
Steel corporation, today issued
statement dealing in detail with pre-
vailing prosperous conditions in the
steel and iron trade, together with a
forecast OF the future of that indus
try.
Reference is made to the European
conflict in it's worldwide application
to economic conditions. Judge Gary
calls attention TO the danger OF over
production or initiation by manufac-
turers and bankers. resulting from
overconfidence, and the aid OF the
government is invoked for adequate
protection of the country's industries.
In part the statement follows:
1T will be admitted by all manufac-
turers of these products that there Is no
reason for complaint at the present time
as TO the volume or urgency OF the do
mand, nor. In most cases. the prices re-
oeived Notwithstanding the cost Of pro-
duction has been larger during the last
five years because of increases In wages.
freight charges. etc.
Production DOubIes In Year.
The rate Of production at present In
the United Statcs is about 100000 tons
Of pig iron and about 100000 tons OF
steel ingots per annum. This Is compared
with a rate Of 100000 tons OF pig iron
and 100000 tons of steel ingots one year
NJ - "a,
S5.OOO,oOO tons OF steel ingots at high
water mark in the year 1918 for pig iron
and 1919 for ingots.
prices could easily lie materially ad-
vanced and, perhaps will be. although I
believe as to some of the commodities.
at least. they are high enough. II is not
certain they can he controlled. for the
reason that the requirements Of pur-
chasers and the offers they make, fix the
prices to large extent,
Apparently about 75 per cent OF the
sales is for domestic consumption and the
balance for foreign use, directly or indi.
rectly. The influence OF the export sales
/ upon domestic sales do not undertake
TO say.
Conditions pertaining TO this industry
reflect, more or less. those OF other lines
and. perhaps. are an indication OF the
general situation. Certainly there are
evidences which cannot reasonably he
questioned OF great prosperity. II is not
my purpose to discSss the reasons for
these satisfactory conditions. They exist
and II now seems probable that they
may continue for months TO come.
Pace is Rapid, Caution Necessary
when there IL possible danger ahead
the locomotive engineer ia directed b!
his rules, formal instructions and sign
to proceed with caution, and sometimes
to stop. look and listen. We may draw
an analogy. 1 would offer words o.
caution. We are proceeding at a rapit
pace. There Is great expansion at present
l fear there is great initiation. some o
the circumstances surrounding the finan
cial and industrial world are peculiar anS
not justified. There win he Jars an
jolts when eyes are opened and thing
become normal We ought TO stop, ponder
reason. We shall be all the better 70
t. Legitimate enterprise and progress
will be benefited. II we read all tn
signs consider the past and reflect upol
the future,
What of the future7 Who can sa.
with any feeling Of certainty II may b
very dark and desperate. II will be thu
in Europe. and we in America will fee
the effects to a greater or lesser extent
The destruction OF billions upon billion
OF property In any country must neces
sarily affect in some degree all othe
countries. Economic conditions IN In
United States may and should be goo
In the long future, with the usual inter
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