The Washington herald., 1917-07-18
HOLLAND LETTER
The Biggest Daily
Financial News Feature Of
the couahy's Best Newspaper.

Aside from the, immediate impor-
tance of the gathering of representa-
tive steel men, Of the United States,
in Washington a few days ago, on the
invitation Of Secretary of War Baker.
there Is an incidental thought voiced
occasionally by leading men of affairs
which this conference inevitably
caused. Here were the Representatives
of the so-cslled steel trust, of the
Bethlehem Steel Company. and of
various independent steel manufactur-
ing industries. They represented. as
a whole. the entire United States, so
far as steel making is concerned. The
conference was. in its chief purpose.
not unlike the underlying purpose
which 1t was said was the object OF
the once famous and now abandoned
Gary dinners. For the steel men of
the United States. In cooperation with
the War and Navy Departments, yir-
tually 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 Justice at Washington,
that combinations Of this kind are
unla awful
But the exigencies of the war. and
especially the necessities of the gov
ernment at this time. appear to be
compelling combination, coordinat ton
and the creation of single units.
These are not regarded as in restraint
Of trade. and IT Is commonly believed
that the great lesson which will be
taught by these combinations and CO.
ordinations, will be well learned by
the American people, so that after
the war Is ended, there will no longer
De opposition to reasonable combina-
tIon' coordination and common under
standing provided only the govern
ment is able, wisely, to regulate the
operation Of these industries.
IN recent number OF a monthly
statement. issued under the eye OF
Frank A. Vanderlip, 1t was reported
that highly competent engineer who
Is an expert in industrial practice has
stated that the Industries of the United
states, on an average, are not realizing
over 20 per cent Of their possible ca
pacity. But these industries which
are now brought into cordial and un-
ined support Of the government. may
and probably will, develop such high
ly 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
government commissions, in their ef-
forts to obtain greater efficiency in
the industries, have practically sus-
pended the enforcement and opera
ton OF the Sheman antitrust law.
Since the Supreme Court postponed
decision in the case of the United
States Steel Corporation and the In
ternational Harvester Company, the
opinion has been held, without dissent.
that all of the justices of that court
recognize that the exigencies of the
time compel coordination, co-opera-
ton and unified industries, by means
of a common understanding respect
ing their operation. The government
is trying to bring about such econ
omies and efficiency in the various in
dustries, as reflect the economies and
efficiency which the United States
Steel Corporation and the Internation-
al Harvester Company were organ
lied to accomplish.
1t was q body OF men unsurpassed
for business ability. and as leaders
in industry, which met the Secretary
factors in the steel situation of which
the government must have good
understanding. The chief OF these
factors was reflected by the question.
when and how the steel companies
could meet the stupepdous demand
which the government will make upon
them in order to effectually carry out
the nations stupendous war program.
Apparently the most cordial relations
were established between the Secre-
tary of War and the members of this
committee. and especially with Charles
NJ. Schwab. This cordiality was Wis
IDLY manifested when the Secretary.
arm in arm with Schwab, departed
from the conference.
Schwab Is referred to as one Of the
leading factors in support of the gov
ernment. at this time One OF the
reasons for this view is to be found
in the fact that although the Bethle-
hem Steel Company has earned enor-
nous profits. by reason of its partici-
patton in war business. nevertheless
II has placed the greater part Of these
profits back into its plant, so that
its capacity for production may be
increased, and that the corporation
may turn out greaer and greater
quantities OF steel and build more and
more ships. Only a few hours be-
fore Mr.. Schwab. with the other rep