The Birmingham age-herald., 1918-01-13
JUDGE GARY ON
 NEED OF EXPANSION
By HOLLAND

New 1OfN, January Al- - NSF0Niet'' About IS months ago Judge E. H. Gary intimated that he had some reasons for surmising that the European war would be brought to close in the course of few months. In his address at Chicago on Saturday of last week Judge Gary stated that no one could now tell even approximately when the war would end It might continue for three or four years, whereas, on the other hand, it may be of a sudden terminated within a few months. If this should happen to be the case the end will come because of the operation of causes of which now no man has knowledge or of which he can make any forecast.
 Judge Gary's address was made at the beginning of 1918. and at a time when it was reported that the last part of De- cember. 1917, was the dullest the steel trade had experienced since 1915. This statement however. had reference to the commercial markets. For domestic man. .ufacturers in December bought compar- atively little steel The reason for that was not obscure. The government was exercising its power to commander the products of the steel mills so that these were occupied chiefly with the produc ton of government work.
 This, however, was not the reason why Judge Gary told his Chicago hearers that the war might be prolonged perhaps until three years have passed. The steel mills of the United States will be able. If other conditions are favorable to supply the government with all the steel that Is needed for war purposes and fairly well to meet domestic demands. Two of these conditions refer to the increasing scarcity of labor to which Judge Gary made impressive reference, and also to the congestion of traffic. Under the skillful guidance of Director General Mc- Adoo, the probabilities are strong that the congestion of traffic will be ended or at least the condition greatly inn proved Therefore. If there can be se- cured fairly adequate supply of labor and satisfactory transportation eondi- tions the steel industry will again be speeded up perhaps to a hundred per cent. of it's capacity.
 PREPARING FOR THE FUTURE Not the least significant feature dis covered in the address which Judge Gary delivered at Chicago is his reference to l conditions of the future as they may arise after the war Is ended It has been known by those who are in close associa- tioI with the management of the United States Steel corporation that Judge Gary and his associates have discussed among themselves and to some extent among | those in whom they felt it safe to con | fide the condition of unpreparedness of
 our industries for after-thewar condi- tions. The industries will be called upon | after the war is ended to do quite as
 much in the way of output as they have
 been called upon for output since we entered the war.
 l Judge Gary says that there should be no stfnting in building plants, improving or expanding existing plants, for the
 conditions which we shall be compelled | to see after the war is ended will be far | different from those which have hereto | fore arisen after a long period of pros- | perity when reaction at last sets in. The ] managers of many corporations in the l past, when prosperity was abaundant, l expanded their plants, invested large amounts of money in improvements and | then, when reaction came, found them l selves with empty factories on their l hands and with no returns for the | money invested. That was because re- | action had carried them below trade and 1 industrial demands.
 Jurdge Gary asserts that this will not | be the case after peace comes. The new | condition which we shall then face will | be due to two causes. One Is the evi- dent preparations which both Germany 1 and Great Britain are making for secur- l Ing a great If not predominant part of | the worlds trade when the war becomes
 
 , edges that some part of the endeavors oi ! her government is now directed toward | preparation for commanding great world l trade after the war ends. The managers | Of the Steel corporation have known for | q year or more that notwithstanding the
 economic condition in Germany, the gov | e1nment is speeding up the building O! l new ships so that they may be ready for | Germany's trade with the world after
 the war is ended and Is also cultivatine | industrial activity along lines of whicl
 avail can be made when peace comes l Therefore if we are to be able to meet | this peaceful but energetic commercial | struggle, keeping as much of the world trade as we have obtained since the wal
 began and also increasing that trade, we l must be prepared. through the perfectins l of our transportation systems, through ] the utilization of labor so that it can be quickly returned to the industries foi | the part We must take in this struggle | for the worlds trade. Clearly, then, ac- 1 cording to Judge Gary's intimation, the
 many hundred millions which have beer | and are still to be expended in the con 1 struction of new plants and the improve; 1 ment and expansion of present ones wifi ] be of advantage even when these plants <! and improvements are no longer needed | for the war work
 l The government, according to Judge | Gary, Is now the chief buyer in the mar | kets, where the products of industries
 are placed After the war is ended 1t is I inevitable that other nations than oui | own will approach these markets for | American products, since these will be vital in rebuilding industries, repairing 1 damages, and improving railroads in the countries that have been devastated by l war. Our industries should, theref fore be prepared to meet these demands l Ordinarily Judge Cary would have | sounded note of caution lest there be over expansion of industries in this time 1 of great activity. Now he ventures the l opinion that expansion of plants, im- l provements. and construction of new I plants are not to be considered as alarm | Ing, but on the other hand as something l that will be of great avail after the war | is ended. This will be in sympathy with 1 the work of preparation for the days of peace which Judge Gary's associates be-
 lieve to be almost as important as prep aration for war.
 jCHTEE nE EEnEDAT