New-York tribune., 1921-11-15
Naval Holiday
Plan Approved
By Wall Street
Lamont Halls Proposal as
Extremely Constructive,
With Promise of Lifting
Heavy Burden Of Taxation
Steel Takes Sharp Drop
Mitchell Says Diplomacy
Of Hughes Is Kind Amer
ican Public Understands

Without dissenting opinion New
York's leading men Of finance voiced a
vigorous sentiment of approval yester-
day Of the Hughes proposals for =
naval holiday. The developments at
the outset Of the conference at Wash
! ington for the Limitation of armament
were hailed ~ extremely constructive
In their bearing upon the general
situation, and belief was expressed
that they would lead to definite agree
ment among the great powers.
Wall Streets stock market reacted to
the news with sharp decline in tho
shares Of the steel companies, those
which specialize in the building Of war
ships coming under the greatest de-
gree Of pressure. Bethlehem Steel
issues in particular were affected
and the common stock of this COM
pany broke from 57N to 53%, closing
81 points off at SAY. Midvale Steel
and Ordnance declined y &nd U. s.
Steel IN points. Traders sold the steel
shares on the theory that cessation of
naval construction for the ten-year
period as proposed by Secretary
Hughes would affect the business of all
VIC SeSSl coHpaHdeS IN varying QegrceS.
The Bethlehem Steel Corporation, it
was argued, would be adversely affected,
since it has specialized in the construc .
tion of first line capital ships as we'll
as destroyers.
Lamont Praises Move
Thomas w. Lamont, of J. P. Morgan
& Co., said that every business man
interested in seeing his country and the
whole commercial world prosper,
would, quite aside from the humani-
tartan considerations, rejoice at the
concrete proposals which Secretary
Hughes has laid down. "If these pro-
posas are worked out" said Mr.. La
mont, "they, of course, will mean the
Lifting of an enormous burden of taxa
tion which in recent years has proved
such heavy drain upon business and
such a contributing factor to business
depression and unemployment"
Charles E. Mitchell, president Of the
National City Bank of New York, said:
$50 far as I have gauged it public
opinion is unanimously in approval Of
the open, clean-cut, business-like pro-
posals of the Secretary of State on dis
armament. 1t is the kind Of diplomacy
the American public understands"
One of the partners of the banking
behalf of the firm, said: "The pro-
posals are admirable in form and mark
G great step toward the settlement Of
world problems"
Harvey D. Gibson, president of the
New York Trust Company, said he was
impressed and highly gratifed at the
auspicious beginning Of the conference
"The fact that Secretary Hughes laid
down specific program, tangible and
readily understood" said Mr.. Gibson,
"and the splendid reception which his
| sugge stions have met augur we'll for
the conference. At the very outset he
has created thesproper atmosphere for
the conference and heartened all Of its
we'll -wishers."
Splendid, Says Speyer
James Speyer, of Speyer e. Co., said.
"The initiative which President Har-
ding and Secretary Hughes have taken
Is splendid. l think every American
has more reason than ever to feel
Ebert II. Gary, chairman Of the
board Of directors Of the United
States Steel Corporation, A,ain de-
clared that the limitation Of naval
ornaments, as proposed by Secre tary
Of State Hughes, would be good thing
for all business-the steel business in
cluded.
Charles NJ. Schwab, chairman of the
Bethlehem Steel Corporation, said he
did not wish to comment on the dis
| armament program at this time, as he
proposed to touch on that subject at
the asemi-annual meeting of the Ameri-
can Iron and Steel institute Friday
night, when Marshal Foch will be the
guest of honor of The American steel
men. Although Bethlehem Steel COM
mon stocks were heavily sold yester-
day on the theory that the company's
business would suffer from the pro-
posed ten-year naval holiday, it was
pointed out at the company's offices
that the company's armor plate busi-
ness probably did not comprise more
than per cent Of the total sales of
steel products.
The steel companies, as a whole
have contended that there Is little
profit in government business.
In the copper trade it was said that
the volume of copper used by the gov
ernment for ship construction pur.
poses was only small proportion Of
the total peace-time business. How
ever, in times Of war this metal /.
consumed in large quantities. About
100000 pounds Of copper are used in
the construction of one battleship.