The Birmingham age-herald., 1917-07-18

New York, July 17.-(Special )-Astde from the immediate importance of the gathering of representative steel men Of the United States in Washington a few days ago on the invitation of the Sec
 retary of War, MT. Baker, there is an incidental thought voiced occasionally by leading men of affairs In this city which this conference inevitably caused. In Washington were the representatives of the so-called steel trust, of the Beth lehem Steel company and of various in dependent steel manufacturing indus tries. They represented as whole the entire United States so far as steel mak- ing is concerned. The conference was, in its chief purpose, not unlike the under lying purpose which 1t was said was the object of the once famous and now abandoned Cary dinners. For the steel
 men of the United States in co-opera-
 tion with the war and navy departments virtually agreed to coordinate their in- dustries, to perfect a single steel making unit, to effect a combination which on the face of 1t appears to negative the
 position taken by the department of JootiSC dt w WeSilIlSlOI Lildt COIIlblHdtlOIS of this kind are unlawful.
 But the exigences of the war and es- pecially the necessities of the govern ment at this time appear to be compeil- ing combination, coordination and the creation of single units. These are not regarded as in restraint of trade and 1t is commonly believed that the great les
 sn xyhicl, wi no fa hxyt nations and co-ordinations will be well learned by the American people so that after the war is ended there will no longer be opposition to reasonable combt- nation, coordination and common under standing provided only the government
 is able wisely to regulate the operation of these industries.
 In a recent number of monthly state ment issued under the eye of Frank A. Vanderlip it was reported that a highly competent engineer who is an expert in industrial practice has stated that the in dustries of the United States on an aver age are not realizing over 20 per cent of their possible capacity. But these in- dustries which are now brought into cordial and unified support of the gov- ernment may and probably will develop such highly effective organization as may lead Congress by and by to modify and perhaps to repeal the sherman anti trust law
 President Vanderlip says that the gov ernment commissions at Washington in
 their efforts to obtain greater efficiency in the industries have practically sus- pended the enforcement and operation of
 their sherman antitrust law.
 Since the supreme court postponed de-
 cision in the cases of the United States
 Steel corporation and the International
 Harvester company the opinion has been
 held without dissent that all of the jus tices of that court recognize that the exigences of the time compel co-ordina- tion, cooperation and unified industries by means of a. common understanding re- specting their operation. The govern
 ment is trying to bring about such econ omies and efficiency in the various in-
 dustres as reflect the economies and efficiency which the United States Steel corporation and the International Har- vester company were organized to &C., complish.
 It was body Of men unsurpassed for business ability and as leaders in indus try which met the Secretary of War in Washington to discuss with him various
 factors in the steel situation of which the government must have good under standing The chief of these factors was reflected by the question. when and how the steel companies could meet the stu per dous demand which the governmnt will make upon them in order to effec- tually carry out the nations stupendous l war programme.
 ] Apparently the most cordial relations were established between the Secretary l of War and the members of this com
 mittee and especially with Charles M.
 Schwab This cordiality was ysibly
 manifested when the Secretary. arm in arm with MT. Schwab, departed from the conference.
 1 MT. Schwab is referred to here as one
 of the leading factors in support of the government at this time. One of the l reasons for this view is to be found in l the fact that although the Bethlehem l Steel company has earned enormous profits by reason of it's participation in war business, nevertheless it has placed ] the greater part of these profits back into it's plant so that it's capacity for l production may be increased and that the corporation may turn out greater and l greater quantities of steel and build more and more ships.
 Only few hours before, Mir. Schwah I with the other representatives of the | steel industry was in conference with
 the Secretary of War he participated in u demonstration which points to greatly
 increased capacity for shipbuilding. The announcement is also made that MT.