The Washington herald., 1917-08-11
HOLLAND LETTER
The Biggest Daily
Financial News Feature Of
the Counhy's Best Newspapers.

capital had decided to construct a
large shipbuilding plant near Mobile
when another announcement was
made Of a plan of the Emitted States
Steel Corporation also, to establish
a shipbuilding plant on the Mobile
river. This latest undertaking is to
be made by the Tennessee Coal and
Iron Company, of course with the
authority of the United States Steel
Corporation, of which 1t is sub
sidiary.
So it would seem that at Mobile
there are speedily to be established
two very large shipbuilding plants
and possibly others, both OF which
will be able to build and deliver to
the government in less than a year
perhaps as many as forty vessels.
The Chicago corporation, which Is an
influential concern has contract
with the government of approximately
S1O, 900 600 CO. In return for this money
the Chicago company Will construct
as speedily as possible, eighteen com
possite steel and wood ships, and the
work will probably begin before the
end of August. 1t Is announced that
the company will launch the first
ship in the holiday season of this
year and will execute the entire con-
tract within a year.
To construct the ship yard and to
carry out the industry will require a
large amount of money for not less
than one thousand skilled expert ship
builders will be employed and the pay
roll will aggregate 10000 month.
Presumably the shipbuilding plant,
which will be constructed by the Ten
nd uf1I
be Of larger capacity than the one
which is to be undertaken by Chicago
caDital. When it was announced that
the United States Steel Corporation
had perfected plans for the establish
mi mt OF a shipbuilding plant of very
large capacity, possibly the largest in
the United States, at tidewater, near
Newark, n. J., none but the managers
of the Steel Corporation knew that 1t
was, also, in contemplation to estab-
lish n yhipbuildlng plant upon the Gulf
Of Mexico, or, in fact, anywhere else
in the United States. There had been,
II Is true vague rumors that the cor
porati6n might deem 1t eXpedtent to
build a shipbuilding plant somewhere
upon the Pacific Coast. probably near
Seattle. and it may be that some rea-
son existed for these rumors.
The government at Washington can
now contemplate. with satisfaction,
such an increase in shipbuilding plants
as will make 1t possible to furnish,
during the year 1918, as many ships
as are needed for government service.
The question is sometimes asked what
will become of these great plants
which represent new capital, heavily
invested. after the war is ended?
Should the war be continued even for
two years and then the demand for
shius cease these plants might be
found to represent only an emergency
investment and so greatly depreciate
that large amounts would have to be
charged off. But the wiser view
seems 70 be that adequate shipbuild-
ing facilities. accompanied by favor
able legislation. will provide the United
states unexpectedly with great mer-
chant marine. This will be necessary
IL this country Is to obtain such share
of the worlds trade as our industrial
facilities and our natural resources
justify.
OF course not even James A. Far
reu. himself, or Charles NJ. Schwab,
could have forscen ten years ago that
the export trade in steel and iron prod
ucts would. in twelve months ending
y Llt ~. Aalts Dt VI AAAN -AAShASS
Of 81 900 900 900. Mr.. Farrell began to
serve the United States Steel cor
Doratlon in 1903 as world reaching
salesman for the commodities made
bv the corporation. At that time the
United States was far behind Great
Britain and Germany in exports of
iron and steel. But a year or two
later II was announced that we had
captured foreign markets to such an
extent that the money value OF our
exports of iron and steel could reason
ably be expected to reach, In short
time. $200,OOO,O0O a year, that was
looked upon as an extraordinary
achievement. Mr.. Farrell was some
times spoken of as the most success
full and ablcst salesman in the United
states and it was undoubtedly his
triumph in this department that led
to the selection Of him as president
of the United States Steel corpora
ton. Now the Washington authOri-
ties report that the money value of
the export os iron and steel commodi-
ties i'm twelve months, which ended
on June 80 last, was somewhat over
s., 900, 100000. OF course this increase
in money value of these exports is in
part explained by the high prices
iron and steel commodities COM
manded. But the high prices were
themselves the result of very great
competitive demand. The allies and
the leaders in American domestic in
dustry were 50 anxious to obtain iron
and steel commodities that they bid
and overbid, seemingly not restrained
by the inevitable rise in prices.
For this reason $1,000, 10000 worth
Of iron and steel commodities ex-
ported to other nations is to be
traced to the war in part. There
were, however, heavy exports in iron
and steel to neutral nations and there
seems to be no reason for doubling
the ability of the steel industry Of
the United States to hold markets
We have now obtained with neutral
nations and gain other markets after
the war is ended.
A para graph has been recently pub
lished which tells of an income re-
ceived by an Usage Indian of 10000
a month on account of royalties or
leases due to the discovery of very
rich properties upon land of which
he stood possessed. OF this income
the Indian spends only $50 a month
but presumably he has been COM
PEELED to part with some portion of
it on account of the income tax.
This case is typical, however. of
conditions which have prevailed in
Oklahoma and which tend to re-
flute, to some degree, the statement
that the income tax is so levied as
to place the great burden of it upon
the States of the East and the Mid
die West. The income tax paid by
the citizens of Oklahoma in 1916 as
reported by one of the leading pa
pers of Oklahoma, rank that State
as seventh in the list of the highest
personal income tax paid by each
State. This new State was only ex-