The Washington herald., 1917-06-23
HOLLAND LETTER
The Biggest Daily
Financial News Feature of
the Counhy's Best Newspapers.

In his recent visit to Birmingham.
Ala, George w. Perkins gave to the
city the title OF the Kingdom Of Bir-
mingham." He was one of a party
of the finance committee of the United
States Steel Corporation, that visited
Birmingham so that they might, face
to face with the opportunities there
offered, come to some decision respect
ing an investment which the corpora
tion decided to make for the purpose
Of improving and expanding the Biz
mingham plant Already since the
Tennessee Coal and Iron Company be-
came one of the subsidiaries of the
United States Steel Corporation, that
corporation has expended about S32,-
C0O,GoO in improving the plant. A
was found imperative that furnaces
and also steel plants be rebuilt, and
Furthermore that there be such har-
monizing or coordination OF the opera
tion Of this plant as would make it
possible to reduce the cost Of produc-
ton. Very likely much more would
have been expended were it not for
the fact that the Department Of JUS
tice at Washington is seeking to OBJ
tain decision by the Supreme Court
for the dissolution of the United States
Steel Corporation. II such decision
be handed down then the Tennessee
Coal and Iron Company will probably
be disjointed or separated from the
steel corporation. While this remain
ed in doubt it did not seem expedient
to put any more funds into the Bir-
ming ham plant than were needed for
perative Improvements.
Now that the Supreme Court at
Washington will probably not hand
down a decision in the case of the
United States Steel Corporation before
the end OF the war, the corporation
deems it expedient to make new and
large investments for the purpose OF
bringing ultimately this great plant
up to its full capacity for production.
The markets for its products are look
ed for in the South. the Southwest
and ultimately in South America. BY
reason of the distance from it's sister
kingdom, that of Pittsburgh. there
can. be no unreasonable trade agree
ments between the plants, each having
by reason of its location its own natu-
raj and reasonable territory in which
to market its products.
Judge Gary and Mr.. Perkins, of the
finance committee. having looked
over the Birmingham plant a few
days ago, decided that 1t was the bet
ter part to expend as soon as possible
at least 81, l,OOO.OO in further improve
ment of the plant. Undoubtedly this
$l1, 100000 is not the end, but is mere
ly the beginning, as 1t certainly will
be the beginning of very large invest
ment of funds in the Birmingham
plant, in case the Supreme Court sus-
tains the decision of the lower court
that the United States Steel Corpor-
alton is not organized or operated in
violation. of the Federal statute.
The decison to place $l1,O00000 in
improvements in the Birmingham
plant adds another to the very great
items of expenditure which has char
acterized the steel corporations man
agement during the past year. And
in this consideration the dividends
paid upon the common stock are not
included. The corporation has SUBJ
scribed SIS, 100000 to the liberty loan.
1t has declared an extra dividend
which will yield 5000 900 for the Red
Cross fund. 1t has made a large con-
tribution to another fund, and 1t is
about to begin constructive work,
which, when completed, will establish
upon tidewater, near Newark, one of
the largest and possibly actually the
largest shipbuilding plant in the
United States.
1t has always been the belief Of the
managers of the steel corporation
that the two great centers of the
iron and steel industry in the United
States are to be in Pittsburgh and in
Birmingham. The Pittsburgh dis