The Washington herald., 1917-05-26
HOLLAND LETTER
The Biggest Daily
Financial News Feature
Of the County's Best Newspapers.


preme Court at Washington in ordering
reargument OF the United States Steel
Corporation and the International Har-
vester Company cases. as well as others
that have not been so prominent in the
public eye, would have caused the belief
vided in these cases. and, as in cases in
the past, was anxious to obtain a decision
by a substantial majority of the court.
1t may be that this was the exclusive
reason why the Supreme Court ordered
a reaPgunent of the cases to be made
some months later thereby usdoubtedlv
postpOning decision for at least a wear
because the court was not satisfied on
all points presented by the counsel for
the companies or for government when
these cases were argued.
The reasons, however, are regarded
here as excellent for surmIsing that the
court had in view the abnormal condI-
tions which now prevail throughout the
United States, which have been occasion
ed by our entering the war against Ger
many For, II the court had handed down
the decisions compelling the dissolution
of the United States Steel Corporation
and the International Harvester Com
pany a factor would have been infused
into the situation which would have
greatly complicated it,
Corporation Intact.
\ few days ago one of those who are
in high authority in the United States
Steel Corporation, spoke earnestly, and
as he thought, COnvincingly of the i'm
portanCe of the fact that this corporation
is not dissolved ana scattered into frag-
mentary and Independent elements at
this time For it has been due chiefly to
the high degree of efficiency, involving
cooperation but not unreasonable COM
petition. which has enabled this corpora
ton to meet excessive and hidden de-
mands for steel and iron products. Other
steel and iron corporations. independent
Of the steel company, are in like manner
operating to their full capacity. and there
is no evidence that any unrea sonable
agreement which would result in restraint
Of trade has been entered into by all the
corporations whose output of steel and
iron is contributing so greatly to facin-
tate the work Of preparation in the
United States and in furnishing needed
supplies to the allies across the sea
Should the rearguinE, which the Su-
preme Court has ordered in these two
cases, be made late in the fall or some
time next winter, the probabilities are
that the counsel who represent the gov
reply to some concrete Illustrations which
will be possible for the counsel who
represent the steel company and the
harvester company to call to the atten-
ton Of the supreme Court For, in the
next six months or nine months, the ad-
vantages obtained by the United States,
and therefore by the people, consequent
upon the high development of efficiency
and Of cooperation illustrated BY the
organization and operating methods of
these corporations, can be clearly set
forth.
On the other hand. very likely It will be
possible to show that were these cor
porations dissolved. production of one
| of the commodities greatly needed by
the United States would inevitably be
| considerably limited.
Struggle for Trade.
Furthermore, when the war is ended,
there is undoubtedly to be a world
reaching struggle for command of trade.
In that peaceful but strongly competitive
battle for trade, the Steel CORPORATION
! and the International Harvester Com
pany should take a leading part But II
these corporations be broken to frag-
ments. their capacity to enter success
fully upon the worlds struggle for trade
would presumably be considerably i'm
paired.
At all events, the Supreme Court has
| by It's action advantageously postponed
decision on these cases, unless a ma
| jority Of the court was already prepared
to declare that the two corporations are
not operated in violation of the Federal
statute.
Many thousand persons. with the Sec
retary of the Treasury at the head of
! this great company. are now earnestly
occupied with an attempt to market an
U fueNH #
5000 m0oOO. From one point OF view, this
! is a competitive undertaking. for it seeks
money of the people which might he in
vested in business or In bonds or in stock
| But one of the leaders of the financial
| district said today that It is cooperation
upon the grandest scale this country has
ever known.
Cookies Methods Different.
! Moreover, It is an effort which is not
! stimulated by any desire for profit on
the part Of those who have taken part
In 1t. In this respect, It differs from the
| sensational and highly successful efforts
made by Jay Cooke to market vast is
sues of government bonds at the time
| fed in his efforts by the promise Of
| commissions and great deal of money
| was expended in the form of commission
! Moreover he operated chiefly through
banks and bankers and was aided also
| by the righ rates of interest which these
| government bonds carried. But looking
at his undertaking from the point of
| view Of comparison with present-day
conditions, his work was as difficult and
magnificent as is the proposed floating
Of the 5000 O0o. 900 loan. For the country
was not as rich then by billions as it is
now. and there were scanty settlements
in the region beyond the Mississippi, or
at least the Missouri Valley, where now
many millions of new wealth are yearly
! developed
| Cookies campaign was in great meas
ure a campaign of temptation. although
he appealed to patriotism. He offered
bonds bearing a high rate OF itnerest,
so high as to tempt investors. The ma
tion-wide campaign which Is now in full
swing Is chiefly a campaign Of educa-
tion with intent to persuade and instruct
the people so that they may share with
banks and with very rich men in fur
Inishng needed money to the government.
The belief is now general that this cam
paign of education is to be very success
full, and it will prepare the people for a
later loan, which. IL the war be con-
ha offn will