The Tomahawk. [volume] (White Earth, Becker County, Minn.) 1903-192?, 1919-05-08
INCH STEEL PRICES
CAUSE DEPRESSION
Officials Resist Attempt to
Bleed Railroads
and Public.
ROADS NEED, BIG REPAIRS
Resumption Of Normal Peace Business
Halted by Inability to Pay Trust
S Exactions-BuiIding and
Manufacturing Dull.
ROADS NEED, BIG REPAIRS
BY A. 3. GILBERT.

Il ment operation Ol IAc 1dAAOouo 10 ~
yealed in the refusal of Director Hines
of the railroad administration, backed
by two cabinet members, to pay the
new prices set for iron and steel.
When the roads were taken over,
the roadbeds and equipment were In
4 wretched condition as the result OF a
long period of financial bleeding. Dur
ing the war renewals and repairs
were kept at the lowest possible point
to supply materials for war needs.
Consequently the railroads need an
immense amount of rebuilding now II
they are to handle the commerce OF
peace. Experts estimate that the rail-
road administration will need about
one-third of the total iron and steel
production of the country for year
or more.
Fixed prices which allow the steel
companies handsome profits would in
the same degree cause deficits in rail-
road operation. But the steel COM
bine has more than bleeding the
railroad administration in mind. The
high profit figures set by the Peek
price-fixing committee are intended
for the entire trade, and the accep-
lance OF these prices by the railroad
administration would make them stick
for the whole nation.
When the war ended on November
II, 1918, successful reconstruction de-
manded a quick drop in the prices OF
iron and steel that the rest of our
business might get back quickly to a
peace basis. At that time Goodbody
& Co., Wall street brokerage firm.
pointed out in it's market letter that
with steel averaging $40 a ton the
net profit on it was $50 a ton and that
this gave the United States steel cor
poration alone yearly profit OF over
$3.50, 100000.
And the suggestion was made that
an immediate reduction to $50 a ton
would still give the Steel corporation
profit Of SO a ton, or $15O,O0O,OOo
year, which would be good peace
return on. its investment. This re-
duction would enable the rest OF the
country to get started on peace bust
ness. Manufacturers and builders
would stop holding back In the hope
OF lower iron and steel prices.
Because this commodity Is in the
hands of q close monopoly which saw
bigger profits in maintaining war
prices, however, no reduction OF any
consequence was made. With COM
petition in the steel trade the neces-
sary peace basis prices which Good
body & Co. recommended would have
come naturally; without competition
the government should have forced
such a basis on the monopoly, but 1t
evidently lacks the necessary practl'
cal power to do. Rather important
officials of the government have acted
I'm collision with the trust to keep up
the war prices, and three other OIL
cials are fighting the trust made deci-
sion with scant prospects of success.
Survey Shows Depression.
E.. The result of the failure to readjust
iron and STEEL our most important
commodities to a peace basis quickly,
is apparent throughout the United
States. A recent survey by the Ma
) tioual Association Of Manufacturers
4 shows that II out OF ~ industrial
groups, including 4,4OO industries, arc
experiencing depression.
Another evidence is the widespread
unemployment and the bread lines OF
our cities which had practically dis
appeared during the war. The num-
Der of workers unemployed In the
whole country has been placed by ex'
perts as high as 100000.
Yet the nation never had greater
need for widespread industrial activ'
fly. Normal building running into the
billions was suspended by the war
Private as we'll as public property has
skimped in repairs and renewals. Our
incubation is low on clothing and 9th
er necessaries of life. Our farmers
are low on agricultural machinery. TIC
these needs should be added a vast
amount of goods we should be work
ing on to rehabilitate Europe.
Where the Blame Lies.
Instead of feverish activity, how
ever, we have stagnation and depres
sion. Part of the blame for this con
dition rests on our peace delegates
( for continuing the embargo on some
OF our most important European mar
kets. Part of it rests on our law
makers for not instituting public
works policy to take care OF the I'm
mediate slack in the change from wal
TO peace. But the major part OF thu
blame rests on our steel trust, To-
nation must depend in the main OF
its normal business and not on orti
hcial makeshifts.
The steel trust, which learned to b.
. 100 per cent. efficient trust durin,
The war In selling chiefly to ona Gus
Dmer. The present fight over rail
II business. Tie present fight over rail
road iron and steel will determine
whether this trust is to continue pro
/ s.ucing Industrial depression or whetn
or its power can be broken by fev
honest government officials.