The Washington herald., 1917-07-13
Steel Capitulates.

II has been a favorite platitude of
Washington that there Is no states
manship in business. The fling is un-
deserved. 1t comes with bad grace
from politicians. The steel men yes
terday furnished one answer to it, and
there have been many others.
To the cynic. their action means
merely that the Presidents manifesto
brought results; that various would
be profteers, seeing they were treed,
climbed down and surrendered with
smile on their faces. OF course, the
President held the whip hand. Com
Wandering was in sight IL the steel
interests had not read the writing on
the wall. But little men would have
preferred to fight It out, even on that
basis. They would have trusted to the
formula, the government will make
a botch Of it," or the government
will not dare to do it," and let it 20
at that.
But the steel industry, fortunately,
. - SS-ANA Vi OA bAB Hty KNOW
Woodrow Wilson well enough to know
he meant every word he said There
fore they reversed the situation in the
twinkling Of an eye. On Wednesday
the onus. the burden, laid upon them;
yesterday they threw the entire matter
into the lap of the government. 1t was
clever stroke. 1t was like a chess
game in which the voluntary assump-
tion of the defensive throws the op-
ponent on his stride. Today the initia-
tive rests upon President Wilson and
his advisers: the supervision or the
entire steel industry OF the United
States is the huge task they have
forced upon themselves.
The statesmen OF Pittsburgh. In a
sense, have put one over" on the
statesmen Of Washington. They have
dropped the helm, and forced Wash
ington to take it. Every mistake,
every olunder, in the management of
most complex and intricate industry
Is now to be fastened upon the admin
istration. The pro-rating of steel
alone is a problem which will tax the
brains of all the economists and ex-
perts that The government can mobiI-
lie. The distributing Of war orders
through the industry is another Job
iulI Of traps and pitfalls Misman-
aged it will mean decentralization
steel is the natural leader Of indus
trials in the market. Depression there
viii mean depression everywhere.
But this is merely an incidental
side of the epochal event in the citv
yesterday. Price-hxing for steel means
price-hxing for the whole range of
raw materials and finished products
that touch war preparation. The Pros
ident says Just price" will be made
The Federal Trade commission now
mas the greatest industrial task of the
decade before it. 1t must ascertain the
cost Of production of steel. coal oil
and other commodities. with all their
endless complexities and variations
hitherto steel prices-and other prices
have been established roughly on q
broad basis of what the marker will
Dear. And in war times, with its
rush orders, the market will hear a
great deal All this is now done away
with. We are TO have a scientific
determination Of prices and of "rea-
sonaole profits" If the prices fixed
are too low, it means disaster. denres-
sion. If too high. the steel interests
nave nothing TO complain of, and in
the meantime have been divested Of 2
huEe load of responsibility.
The consumers interest in all THE
has been indicated by the President
Ihere Will be one price for all. The
governments need for steel naces-
sarily will stand first, but tbers will
De reasonable consideration of do
mesuc requirements. Until the Trade
commission finishes its work. the fem
tatlVe price paid by the governr.rt
Tor steel will doubtless rule the do
mestc market also.
Ihese are mighty times, and the
country Is moving at break-neck
speed. II the government can dis
charge properly the task it has ss-
sumed' it will have accomplished
nothlhs less than an economic reyo-
luton in the land.