The Washington herald., 1918-12-18
STEEL TO LEAD
TO PROSPERITY
Financial World. Waiting
for Gary's Views, Hol-
land Declares.

\ rev days ago sinai BIOHp %
men who are of influence in American
industries and who have been recently
looking ahead so that they might
forecast Industrial conditions in the
United States when peace Is estab-
lished, agreed after several discus
.sions that four Industries are to De
maintained and probably Increased IN
,the early months OF readtustment.
They spoke Of these Industries as nrst
OF all copper. next oil. then cotton and
then agricultural products. IL was
also said that II there could be good
understanding Of the outlook for the
steel industry that would be favorable.
then at least FIVE leading industries
OF the United states would be in ex-
cellent condition to maintain and in
crease the prosperity which has char
acterized them in war days.
The hope was strong by experience
that Judge Gary would at an early
day set forth his views respecting the
immediate future Of the steel industry.
II he were to do that and in so doing
make it plain that he looks into the
future with confidence then It would
be certain that all American indus
tries will prosper because all the
others are directly or indirectly de-
pendent for their prosperity on the ac-
tivities of the copper. oil, cotton ana
agricultural Industries
Only a few days passed after this
statement was made in private when
Judge Gary did speak for publica-
tion. His views were presented to
the meeting of the American Indus
trial leaders which was held at At
lantic City. 1t has been said of this
meeting that Il was certainly the
most important Of all the gather
1hgs Of American business men since
the European war began. Business
was represented by a larger number
than ever met before and the gath
ering was probably the largest of
the kind ever held in the world.
Therefore the opportunity was fav-
Orable for such comments as Judge
Gary was disposed to make. His ad-
dress. evidently prepared with grea [
care and after a thorough study of
present and prospective conditions
in the steel industry. has been,
since its delivery. one of the i'm
pOrtant topics for discussion among
men of finance and Industrial lead
ers. The first Impression after read
ing the address was favorable. Now
after three or four days have passed
since Judge Gary set forth his views
that impression has become substa n
TALLY a general conviction that he
spoke with accuracy and with ad-
mlrabIe foresight.
wages and Prices.
Judge Gary is spoken of as being
characteristic Of the policy adopted
by the United States Steel Corpora
tion. especially since the European
war began. For Judge Gary asserts
that In his view ii is inevitable, If
the industry is 10 prosper. that wages
be maintained at the present rate
although. on the other hand, it will
probably be advisable to cut prices.
In one Of tire darkest seasons in
the entire experience Of the steel cor
poration In the rnidautumn of 1914 the
question arose a. to what was the
better part to take. The late Norman
B. Ream who was perhaps as influen-
cial as any other one in the manage
rnent Of the corporation. spoke of tile
discussions substantially In these
words: We were confronted with two
alternatives. our surplus was very
low. Our business had fallen almost
10 the lowest point in its history. II
was therefore deemed impossible tC
paw dividends to the common stock
holders and at the same time main
tain the rate of wages we were pay
ing. One OF the other must be cut
Wits one accord all of my associates
in the corporation decided that wages
must be maintained even though the
common stockholders were deprived
Of their dividends"
By the beginning of 1915 the Steel
Corporation observed a change in It's
business conditions. Henry p. Davi'
son. Of ]. P. Morgan and Company
spoke Of that change. slight as it was
in 1915, as making II certain that the
ebb in the Steel Corporations cOndi-
. ton had been reached and that th'
tise was beginning to turn. Mr.. Dayi'
son predicted that the tide would &c
on with an impetuOus rush, princi
palIy because England and France
we're placing unheard-of orders will
the corporation. 1t did return with
impetuous sweep so that at last sub.