The Birmingham age-herald., 1916-02-25
Schwab Tells Why Large Combinations Have Not
 Injured Independents
FINDS ELECTRICITY
 LARGELY TO BLAME
Instant Communication Has Made Cooperation Natural Outcome of New COnditiOns-A
 Look Ahead
By HOLLAND

New York, February 24.-(Special.) Charles M. Schwab was quoted as having said in an extemporaneous address he delivered a few days ago that the day of industrial specialization, cooperation and combination has come and will re- main. The cause is not desire to se- cure and concentrate into a few hands a monopoly. The cause is purely economic and scientific, and can be traced back to the wide use of electricity, the instant communication between distant parts of the country, rapid transportation and the mastery of science over some of the forces of nature
 In Mir Schwab's examination before the master who was appointed to take testi- mony in the proceedings brought by the department of justice at Washington for the dissolution of the United States Steel company, he stated in concrete form what, in the address recently de- llvered. he put in the form of a general statement He was referring, when tes- tifying, to the United States Steel cor poration and to it's relation with or in- fluence upon independent companies.
 He was emphatic in asserting that there could be no centralized monopoly in the steel industry. The United States Steel corporation had properly obtained the share of the steel industry business which it's capital and organization and business methods justified. But In doing this, it had not injured independent com panies. Up to certain point, all of those engaged in the steel industry had interests in common, such as, for in- stance, the elimination of cut-throat com petition. All of them, however, were in the market for business, but there were no unfair methods now adopted whereby business could be secured.
 Mir Schwab is in line with those who are leaders in American industries in the belief that the results which have fol- lowed the great expansion of electricity in commercial use and the improvement and expansion of railroads so that quick transportation is given were inevitable and are to the advantage of the people.
 In the first of the addresses George w. Perkins has now for some years deliv- cred, one at Harvard and a similar one at Columbia university, he asserted that in- stant communication by telegraph and telephone, the triumph of science in in dustrial undertakings and rapid trans portation are new forces which compelled specialization cooperation or combina- ton, the results of which will be economy in the cost of production, the obtaining of wider markets, while at the same time maintaining or increasing the wages paid skilled artisans.
 A CONCRETE EXAMPLE
 Since Mir. Schwab delivered this infor- nal address, the comment has been made A. ~ illustrating the truth of his statement by new undertakings in which they are iden- tified. MT. Schwab has greatly enlarged or is about greatly to enlarge the capac- ity of the Bethlehem Steel company. If his plans are carried out, he will bring into closer relations than were before possible his very large iron mining inter ests in Chile with his manufacturing plants in the United States. He will be in position constantly to reduce the cost of production, and in that way be pre- pared to meet the stupendous demand for iron and steel products which he is cer- tain is to be made by industries of all kinds in the United States.
 MT. Corey has undertaken through CO., operation and combination and the in- yestment of large capital, also to perfect industrial plants, under one control which will represent the new principle of econ- omy i'll the cost of production and skill fully perfected organization and system in the manufacture of iron and steel com mOditieS.
 A LOOK AHEAD
 Presumably neither of these men is chiefly inspired by the desire of adding to his already large fortune. Each of them is in possession of wealth which is greater than that of Commodore Wander bilt when the latter abandoned the steam boat business and took up railroading. The wealth of each of them is greater than the combined wealth of Commodore Vanderbilt and Daniel Drew, as that was when it was said that the commodore and MT. Drew could, if they desired con trol the money market of New York What Mir. Schwab and Mir Corey are impelled by is the ambition for achieve ment, the proper pride such as the great eaders have always taken in initiating and then building up very great enter prises
 MT. Schwab renewed the other day a prediction he made some time ago that the United States woud produce within the course of a year or two, possibly this year, some 40, ,000,0o0 tons of pig iron. When he first made this prediction, he in- timated that the production might be reached by the year 1920 If the demand be so great that the furnaces of the country produce this year or next year HSsNNpiNVV reasonable inference that the steel and iron industry of the United States is to reach unheard of proportions, and that, too, no matter when the European war ends. That, too, is understood to be the view of MT. Corey, and certain prepara- tions which the United Statel Steel cor poration managers are understood to have in mind indicate that these man. agers also believe that the United States is eteTing upon an era of unprecedented activity in the iron and steel industry. The thought which Mir Schwab meant to convey to his hearers is this That it would be impossible for the great demand for iron and steel products-both domes- tic and export demand--to be met unless the industry was highly specialized, per fectly organized and behind it stoood very large capital
 FORNEY JOHNSTON
 IS CALLED UPON
 rUo G0rrDWN AWAY