Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-12-28
]. s. STEEL'S POLICY.
70bE UNCHANGED.
Conservatism Of Morgan and
Taylor Pointed out as
Indication.
BY j. G.. ROYLE,
In The Star

NEW YORK, December .2s.--Ldke
all Gaul. the executive control of the
United States Steel Corporation now
Is divided into three parts. But close
students of the industry and Of the
affairs Of the great corporation began
to realize today that the election Of J.
p. Morgan As chairman Of the board
and ,MyrOn =. Taylor as chairman Of
the finance committee. like most cleo.
,tions. did mot Involve any great
change lin financial policy or indus
trial policy.
The election has not added a ton tn
the orders of the company, nor
changed operating activity in the
slightest. Its results and, the fact that
1t is over, however. have brought "A
certain amount of comfort and assur.
apce to investors. The supreme au.
thority which formerly rested in the
hands of Judge T.. II. Gary now Is
divided. but there is nothing to indi.
cate that the policies followed by the
former chairman of the board will be
materially changed.
Farrell Chief Of Operation.
president James A. Farrell. known
as one OF the greatest steel statesmen
and production experts in America,
will have complete charge Of the phys
ical operation and sales OF the corpo.
ration as in the past. The chairman
of the board no longer IS an executive
officer, AID j. r. Morgan probably will
not concern himself with the daily ac.
tiyities or problems OF the concern.
The Steel Corporation. however. al.
ways has been known AS. a Morgan
company" and the head Of the great
banking house which helped to bring
the corporation into existence, un-
doubtedly will hold a steadying hand
on the reins
,Myron Taylor long has been known
as a financial authority. He also
has been known as being closely con-
nected with the Baker interests.
which are among the heaviest hold.
egs OF Steel Corpora ton, stocks. Thus
the election has sufiiced to give a
voice to two Of the leading financial
groups prominent in the corpora
tons affairs. The du Pont interests
as yet have not been represented
places on the board Of directors and
a vice presidency to be filled.
Blow to Divislend Expectations.
The we'll known conservatism Of
| the three chief executives Of the com.
pany has led the financial and bust.
ness interests to believe today that
| the possibility of stock dividend
in steel. with slight increase In
dividend rates. has passed out OF the
| picture. at least for a long time. Steel
men all oversthe country undoubtedly
feel relieved in consequence.
A decided uptrend in steel produc-
ton Is expected both by the Steel
~ a. ~ txrf s.AA "A
lsents after January I. Demand for
structural steel. nails and bars ID
expected to be as heavy as a year
ago, while call for steel for automo'
bile manufacturers Is expected to be
hea vier than last Spring. Farm
equipment manufacturers and some
minor consumers already are placing
orders. Competition. however. il sure
to be keen and profit margins narrow.
James A. Campbell. president OF the
lYoungstown. Sheet and Tube CO. one
| of the largest independents. said to-
| day that he had confidence there
would be no severe setbacks In gen.
eraf business in 1928 and that the
steel industry was due for prosper.
| GUS period. In fact. operations In the
Mahoning Valley have already speed.
ed up this week. The mills are work.
ing at a rate this week 10 per cent
higher than the average for the last
four months.
Industry In Better Shape.
1.-THE situation In the industry Ii
better" AIR. Campbell said. .Sentimeni
has improved. and ] personally be
lieve that steel prices must work
higher. / think we shall have pretty
fair business for the year. at leas,
1.-THE first part OF IL. The railroads
I.will be better buyers. and, 30 will the
Iautomobtle industry and the farmers
The Mississippi flood control plans ol
the Government provide for the EN-
ployment Of thousands, and the ust
Of much steel. These are all signs
OF batter business for the steel In
ldustry."
| Production In the Pittsburgh dis
trict In being stepped up and prices
there are Arm. with slightly risint
tendency. Barges for transport ol
steel and other commodities ION In
terror waters are being built In con
siderable numbers.