Evening star., 1931-05-09
BY JOHN F. SINCLAIR.

OF the world To-Day. II the Interna-
tional Chamber of Commerce would
restoring international trade the re-
suits would be far-reaching. I am
surprised that this attitude Is not more
| pronounced than 1t is"
In these words Aloyse Meyer, presi-
! dent Of the European Steel Cartel,
sharply outlined his views regarding
the steel industry and the business out
look of the world. Mr. Meyers home
| Is in Luxemburg, small independent
state lying between Germany and
France, but which, despite its size,
| steel plants. AS the head Of the
European steel combination, his views
on that subject may be taken as rep
| resenting those Of Continental steel
men.
"The European Steel Cartel was
| formed by the steel manufacturers of
France, Germany. Luxembourg, Czecho-
slovakia, Belgium, Hungary and Aus
tria." said Mr.. Meyer. 1T now has
about 70 per cent Of the European
business. The balance Is controlled by
England and a few countries who
have not yet agreed to enter the COM
bine. We are a mutual organization
and attempt to control output as well
as distribution In Europe proper"
Running at so Per Cent.
"Are your plants running at as large
q capacity as those in the United
States at this time?" I asked him.
Probably more. understand that
under so per cent capacity production
now. We are using our plants at a
capacity slightly exceeding so per
cent" he reDlied
What part of the steel business Of
Europe do the United States manufac-
turers supply?" was the next question.
IF you refer to finished steel, such as
automobiles, American competition Is
very keen. But II YOU refer merely to
steel rails, steel plates. etc. it Is very
small. should say Americas world
equal to about one-fourth of our de-
mands Roughly, the United States
steel mills produce about one-half of the
steel manufactured throughout the
world. All the other countries COM
bined supply the other half"
do you believe with other Europeans
that American wages are too high and
that they must come down to a lower
level If America is to maintain Its
present position in world trader"
American Standard Higher.
without a moments hesitation this
European steel leader replied:
mot at all. don't believe my posi-
ton on that subject has been made
clear. believe that the United States
due to certain peculiar conditions within
its vast free-trade area, is enabled to
pay not only higher nominal wages
than those of us who live in more linn
tied trade areas but that the United
States can also, through its magnificent
system Of mass production, give the
workers a much higher real wage than
we have so far been able to do. That
means that the American standard OF
living is higher than ours and the
chances are that 1t will renian so Tor
some time to come. How long / do not
know, but until we find formula which
will do for Europe what mass production
methods have done for The United States
we can only hope that we may approach
the wage scale that Is existing in the
United States"
But Mr.. Meyer was not quite satisfied
with his answer. so he proceeded to
make it more clear:
You see," he continued, wages in
America per unit of product are not
so high. Take one of your automobiles,
you pay higher wages per hour than any
one in the world, but American ma
chinery is 30 tuned and skillful that the
United States is able to make the wage
factor smaller per car than We can.
The result is that every country in
Europe is seeing more and more Amer
ican cars being bought. This is in spite
of stiff tariff walls which exist, unfor-
tunately, in nearly every country"
Must Lower Tariffs.
"You mentioned the word 'unfortu-
rx,ffH NAL
What do you mean by this?"
II believe that we have got to get
away from these growing tariff walls If
the world trade is to expand in the
future. This steel cartel Of ours is an
attempt in that direction. The United
States of Europe, economically speaking.
is not only possible but the force OF
circumstances Is making 1t absolutely
necessary. I am from Luxembourg.
am not German. or Frenchman, but
the size Of our business makes me, so
far as trade goes, an internationalist.
No country today. under modern ma
chine methods, can hope to sell all that
1t produces or manufactures within its
own boundaries. Every time an inyen-
tion permits one man to do the work
of 10, that economic fact forces trade
farther and farther over the borderline
an attempt to keep people employed by
a swapping of goods Of the machines
of one country for the machine prod
ucts of another"
do you expect the European Steel
Cartel eventually to include every steel
company doing business In Europe?"
I asked.
Mr.. Meyer looked puzzled for q mo-
ment for the question did not exclude
Russia.
with the possible exception Of Rus
sia, which is playing It's own game in
the industrial field see no reason
why we should notA be tied up to-
gether," he said. I'm fact, perhaps in
the days to come we'll be able to work
out plans to include these powerful
companies Of the United States and
Canada as we'll as those in Japan and
in South America. The cartel, to be
most effective, should be worldwide" ;"
Reconsider War Debts.
"In your opinion, what can the
United States do which 1t has net
already done to cooperate in getting
the world back on its feet?"
"As I said at the beginning, the
world has lost confidence in its busi-
ness leaders. This is an unfortunate