The Washington herald., 1917-07-27

building these hotels have contracted
for many thousand tons of structural
! steel. One OF the hotels represents an
investment by the Pennsylvania Rail-
| road Company. The other is to be
paid for by funds furnished by the
New York central Railroad Company
Both are brought now to an impassee
for the reason that the steel industry,
of the United States regards the de-
mands of the Federal government IA
imperative, whereas the work upon
these hotels may be procrastinated.
That involves, of course. considera BILE
loss for the longer the delay in con-
structing a hotel that is to cost tell
millions or more, the further distant
is the time when here can be earn
ings upon the investment.
1t is the hope, however, of the steel
manufacturers that Notwithstanding
the demands of the government there
may nevertheless be opportunity for
meeting some of the orders for steel
products for domestic industries that
are not occupied with manufacturing
munitions for war. This is especially
true OF the building industry.
Those who have made a careful
volved in the excess profit tax are
somewhat perplexed when they con-
slider the possible effect of prices fixed
by the government for the commodi-
ties furnished by the steel industry.
There appears to be a growing i'm
preston that the government will,
through its proper representatives or
commissions, so adjust prices as to
nahla the stool inHlIGfrNr to
a net profit Of 10 per cent. But If
that be all the profit that the industry
can secure while the war lasts, then
it is inevitable that there must be a
great reduction in the estimate of the
amount of tax which will be derived
from the excess profits made by the
steel industry. In other words the
government will get its steel commo-.
dities at a price which represents no
more than 10 per cent profit. In that
way the government will be a gamer.
but on the other hand the government
will receive little or no taxes from the
steel industry, since there will be lit
tie or no excess profits. This is spo-
ken of as being one of the paradoxes
of the situation.
The presumption has been strong
that the greater part of the excess
profit taxes would be paid first by the
steel industry. next by the manufac-
turers OF munitions and no small part
of these taxes will be collected from
the manufacturers of powders and
other explosives. Copper is also ex-
pected to yield very large return to
the government through excess pro-
fit taxes.
The one commanding fact in the
situation, SO far as the steel industry
is concerned, Is the unprecedented at
titude of the leaders of that industry.
towards the government, whereby with
cheerfulness and real patriotism, un-
tnged by any sense of profit, the in
dustry has placed itself in full CO.
ordination to the government.
One of the incidents. of which infor-
ma ton has within a day Or two comes
to New York, which is spoken of with
qualification, is the report that Mime
apolis, Mimi. has now become the
actual head-waters, so far as naviga-
ton is concerned of the Mississippi
river 1t was appropriate that a United
States steamer, the Dandelion, should
be the first vessel driven by steam to
navigate the river from St Paul, being
able to do this by passing through the
locks at the government high dam.
having made this passage the Dane
lion tied up at Minneapolis municipal
warf.
The trip Of the Dandelion demon
strates that water freight service
from Minneapolis down the Mississ-
ippi Is attained and the effect of it
will be felt as far south as New Or
leans. The next thing to be under
taken is the improvement of the navi-
cation of the Mississippi through its
whole length from Minneapolis to the
sea