The sun., 1916-12-22
'SCHWAB OPTIMISTIC
ON POSTWAR TRADE


American people by providing SO large a
quantity OF ordnance materials for the
use OF It's army and navy. We at Beth
lehem have felt great satisfaction dur
ing the last two and a half years at
our affairs having been placed upon
such a basis that In spite Of the great
increases in the costs of all materials
we were able to supply all ordnace
products to the United States Govern
ment at exactly the prices prevailing
before the war in Europe began. We
have felt that this was something worth
doing for its own sake.
Larger Guns Needed.
again, we felt that It would be a
mistake for the United States Govern
ment to undertake the building Of a
Federal armor plant. Some oficers
Of the Government said that we had
charged them too much. We did not
concede that. but we were willing to
waive debate on the point and offered
to make the armor for the Government at
any price the Government itself might
consider reasonable.
AT the present time our navy il be-
ing rebuilt n enlarged. Greater ships
are to be constructed and larger guns
VIII pt bEtu tlb tNth oNioit ~ tiN
history OF the country. Realizing the
need. we have already undertaken out
OF the profits derived from other busi-
ness. to construct at a cost OF $4,000 900
n plant ntted to build sixteen inch guns.
the plant to be OF use for no other pur-
pose. We rave received no assurances
from the Navy Department. n under
no conceivable conditions can the orders
which we may receive for this plant
ray n fair return on the investment. But
we felt that we mus, do this to play our
part in protecting the nation. II was
something worth doing for Its own sake.
Mr.. schwab's speech.
Mr.. Schwab's prepared speech was as
follows:
The Lotos Club usually bestows it's
honors on artists and men or letters.
But Arthur Brisbane once said that II
Michael Angelo and Shakespeare were
alive to-day they would probably be
running railroads and steel mills.
Those who in the golden age of art
painted or carved or wrote beautiful
things did so primarily for the o v Of
art itself. So may I not assert that III
in an age Of industry n man devotes
himself to industry FOR industry's sake
he Is following the same artistic instinct
u YIN W w ~ NV ~ ''''ifs ~
cause II is fne"
"A business must be profitable II II is
to continue "a exist. but the glory or
business is to make 1t so successful that
you can do great things because they are
great and because they ought to he done.
ITO make money Ia a good thing. but
IL Is a far better thing TO be able 10
| create opportunities for other men to
| work out tteir own salvation In life
--G.A. --l -Aataa
you must pardon me II l speak OF
| concrete things and II those concrete
things revolve around the chief Interest
| In my business lfe-Bethlehem Steel.
Though Bethlehem has prospered. the
| fact about Bethlehem In which ! most
| keenly rejoice is that whereas In 1917
| we employed $4,000 men. in 1915 some
| 7O.o 900 men are on our payrolis now. In
1915 our total payroll was 322.6oo. 600
N 1916 II Is at the. rate OF $i2.0OO,o00 q
| year, of Sc. 200, 900 a month.
Average $1,000 q Man. =.
.Thc average earnings Of each wage
Garner in our employ were a little over
5000 per man In 1912 whereas our
figures for 1919 show average earnings
OF nearly $1,000 per man. an increase
Of more thar 80 per cent.
..Thc labor problem IL far from belnf
| solved, but ~ the or INDUSTRY
can develop some universal pan whicr
will make labor not only well paid pu'
banny in doing the work itself one of ths
greatest possible boons 10 mankind VIII
have been realized. .
Inquiries are sometimes dnade as 10
n,he,hcr II may he n cesslry for the
Government to build plants to supply
the nation with munitions OF war wh'ch
may he required for its preparedness
nrouranmc. We have said to the Cow
eminent that our ordnance plants are
at its disposal at n fair operating Cost
plus a small margin. thus saving the
Government the cost OF the investment
and the cost of depreciatlon-items
which we ha We already amortized. This
again is something we feel Is worth
doing for Its own sake.
Time Tor Preparation.
This Is tire for great vision. fol
study and preparation. No man can
foresee the problems with which the
United states Is face to face. We have
one-twent!eth OF the population OF thu
world and one-third of its tangible
wealth. When peace comes all other
nations will contest with us the trade
supremacy OF the world. Many method.
will be suggested by which We may re
tain our present position and make 4
moro secure. But | desire 10 make {
concrete suggestion.
Il am a shipbuilder. The Bethlehem
Steel Corporation is building fully one
third OF all the ships now under con
struction in this country. We are com
pletlng every week one 10. 900 ton mer
chant ship fully equipped. besides battle
ships, submarines and smaller vessels
But We must note these striking facts
more than one-half OF all the ship
building in the United States to-day ar,
for foreign owners. Statistics show tha
the American merchant marine on Jun
80. 1914, amounted to 2,02I, 900 gros
tons and on jun 80, 1916. 1t Is creditc,
with 2.S53,O 900 gross tons, an Increase o
tS26 900 gross IONS. But this growth !
not all due to new building; 622 90
gross tons was due TO the transfer o
foreign vessels tmostly American owned
to American registry, The increase du
to building IL only 100000 gross tons.
Panama Canal Tolls.
'Of course. 80 long az the war last
and the United States remains neutra
} nothing will prevent n tremendous I'm
crease in the American merchant ma
| rine. The real point, however. Is tina
: II present dues. wages and other re-
, strictions upon vessels flying the Amer
: lean flag prevail after the war. Amer
can owners will again transfer the
vessels TO foreign registry.
Successful ship operating IL do
pendent wholly on the ability OF Amer
can registered shIDs to COmDets with IN,