Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-07-09
CRISIS IN CANADIAN
STEEL TRADE SEEN
Coal and Iron industries Also
Are in Need of imine-
diate Action.
] BIZ j. c. ROYLE.
Aal 7ispat.h 70 T'hs star

SpeeiA Nspahsh 70 TIE STAG.
NEW YORK, July 9.--Anaeriean in
vestoFs and financiers see d consid.
cradle similarity In the situation now
racing the coal. iron and steel In,
dustries Df England and the position
IN which those industries find them
: selves In Canada
Canadian business men admit that
the coal, Iron and steel Industries OF
the maritime provinces, operated an.
DER the British Empire Steel Corpora
ton, are threatened with extinction
unless the dominion government takes
come redsai action during the coming
year.
The Dominion Iron and Steel Co..
chief subsidiary of the British EN-.
pire Corporation. which Is a hoiding
company has applied for a friendly
receiver, and during the next year
q receiver win administer the piafsts
and the financial structure of the
company will be reorganized.
Threatened With Extinction.
The plant from the Dominion
management and stockholders recites
that unless the Dominion government
adjusts tariff matters 50 that the COM
pany may meet foreign competition on
-
profit to- carry the heavy interest
charges demanded by its bond issues
It is threatened with extraction and
must scrap its plants and throw thou
sands out Of employment.
Coal strikes in Nova Scotia fields,
depression in Canadian business gen.
orally and the importation of steel
products from France and Belgium
where, under deprecated curreneies,
they may be produced cheaply, are
blamed. Sit is freely asserted that
either the plants must be closed or
the priceS of steel products cut 20
low that interest charges and de.
probation cannot be cared for.
Under the receiver, the company
will discontinue bond interest pay.
nnents and conserve working capital,
in the fervent hope that the new
conservative government will 50 re-
wise the Canadian tariffs that In.
dustry III general will be Atahiiized
that railroads win need more rails
and cars,.and that there viii be IN
end OF dumping foreign goods from
countries with depreciated e,frrenctes
on the C&nadiaR markets. .s
Ask Tariff Protectioa.
A 20 per cent tatiff projection is
what the British Empire StAei Cor.
pofation asks. President Roy M.
wolvin peints out that 10 accomplish
its purpose it must be an ad yaloreIn
duty and states thai while the specific
duty In 1915 gave protection Of eD.a
per cent on pig iroia, today It affords
only protection Of I25 per cent
steel s sos. or snss tse war
years, but the eurfeE&ysoG France and
Belgium, m which W0gEmen In those
countries are paid. has dropped. ID an
even greater extent so that Belgium
bars now can be shipped to Fort VIII
liam cheaper than from Nova Scotia.
The Dominion iron ana Steel ewRs
tremendous ;OFe Adepesits iii New
Foundland. and has tremendous tn-
vestments In Its plants In Nova
Scotia. People of those sections feel
that adjustments must be made to
assure continuation OF the industry.
Some hsve gone 50 far TO take the
IN Britain and demand = government
subsidy.
Employs About 2O,A00.
The entire British Empire steel
organization provides employment
fer about 10000 people, The coal
mines are paying their way now that
the strike, alleged 10 have been
fomeHted TO q large extent by Com
rnmnists, has been settled. This
strike, which did tremendous dam
age to equipment, lasted from March
to August Of last year. 1t Ii only
the steel plants which demand Cow
ernmefsf assistance.
The drive Of the Nova Scotia pro-
ducers % directed against European
competitors rather than those OF the
United States, but they say the steel
industry OF Nova Scotia hangs IN
the balance. and that the receiver
ship Il only temporary palliative.