Evening star., 1931-05-23
SCHWAB-F ARIEL
CLASH OVER STEEL
Latter Insists Industry's
Principal Problem Is
Price Cutting.
BIZ JOHN r. srNCLAIR.

yesterday at the Iron and Steel Insti
tute meeting.
Mr.. Schwab, seeing a brighter outlool
for business in prospect-even brighte
than ever before-advsed the Steel In
stitute to maintain the present wag
scale. He said that the depression 1
largely due to the fact that fear ha
seized the wage workers, as result o
which they are guarding every dime o
their savings, since they do not know
when their wages will be cut.
Mr.. Farrell, in his brusque way, re
piled to the Bethlehem'S chairman b!
saying that the real trouble with tht
steel industry lies in price-cutting ant
not in wage and dividend cutting, ant
that conditions In the industry hav,
reached o chaotic state.
1T Is not honest" said Mr.. Farrell
knock of something from our dividend
and reduce wages"
Mr.. Farrell did not mince his words
He said steel prices are altogether toC
low and that the steel executives art
responsible for this. Conditions in tht
industry will not improve until thC
morale Of the steel executives improved
he said, and he referred to steel rail-
selling at SAB ton when they shoulc
be selling at $40.
Due to the Generalization, which The
executives themselves have brought
about, Mr.. Farrell concluded, the rail
read executives and not the steel lead
ers are fixing the price Of steel rails.
The United States Steel head will be
10 years old in 18 months. The pension
system put through by Myron A. Tay-
lor, chairman of the Executive Commit
tee Of the United States Steel Corpora
&x.ke
retirement, at the height Of his mental
and physical powers.
TITS q mistake to retire Jim Far
re1," said a well known steel executive
"At 20, from all indications, he viii be
going strong. He's q powerful man
cne Of those deep-chested Irishmen who
has come right up from the day laborer
class to the very top.
Look at him today. He possesses
abundant health, unusual physical
strength and endurance, and 80 far as
experience goes he has sold more steel
and has made more profits for his
company than any man In history. It's
mistake to retire such leader until
he wants to quit"
George r. Baker, who died at 81, was
attending to business TO the very end.
He was tower Of strength to the First
National Bank Of New York. E. T.
Bedford, who passed away this week,
was still active at 81. Yet both Of these
men were more than IL years older
than Mr.. Fauell is today.
Why should the United States Steel
Corporation-the most powerful in the
tndustry-lose the services Of James A.
Farrell in these times when every vet
eran who has progressive and liberal
ideas Is so badly needed
It's a question many stockholders
will ask corporation oficialS before the
retirement Of this steel veteran.
The silver question has brought forth
all the old panaceas. The bimetallism
of william Jennings Bryan has begun
to find advocates again, and new reme-
dies are offered along with the old.
This is not to say that some good
ideas have not been advanced. The
main trouble seems to be that no ac-
ton has been stirred up anywhere.
Much the same thing might be said of
silver that Mark Twain remarked about
the weather - Everybody complains
about It, but no one ever does anything
about it,"
Senators Borah, King, Ehipstead and
Pittman are four who have ideas on the
subject, and would also like TO see
something done about it. Recently
Senator Borah fired a salvo in the gen.
eral direction Of former President Cool
idge, who asserted that the silver prob
lem arose from over production.
Nothing Of the sortl" says Senator
Borah, and then explains the evil effect
on the silver market through debaSe-
ment Of silver by governments-mainly
In India.
In this case, the idaho Senator has
the better Of the argument. The facts
would seem to prove, rather conclusive
ly, his contention that legal debasement
Of silver is at the root Of the trouble.
Bad business is a stranger TO the elec-
trical refrigeration industry in the
South. The Copeland Sales Co., han
ding the business in that territory, has
been compelled to issue a warning that
dealers must place orders early, as the
demand is exceeding the rate Of pro-
duction at the present time.
It Is not so hard to understand this
growth in the warm climate Of the
Southern States But even in the North
the use Of electric refrigerators Is on
the increase. All new apartment houses
and many old ones, are installing units
Part Of the explanation Of this is typical
American psychology.
Electric refrigerators had Just become
familiar enough before the depression
TO have them taken as a matter of
course by the general public, like elec-
trio lights and bath tubs. Consequently
builders are forced to install them even
though they reduce their rate Of profit
on rents.
IF there are further declines In live
stock prices" said George F. Swift.
president Of Swift g. Co, they will
have the effect of Still further decreas-
ing cattle production, and this will later
result IN extremely high prices for beef
to the disadvantage Of retailers and
consumers"
After pointing out that beef prices
are at their lowest since 1926, due to
heavy cattle shipments for the past six
weeks, Mr.. Swift explained that retailers
should now push the sale Of this meat
The responsibility for reasonable prices
in the near future, he said, lay with the
retailers.
Under present conditions, live cattle
prices are Improbable to producers and
the natural reaction, unless the re-
tailers help the public TO absorb the
stock on hand, viii be for them to cut
their herds. The shortage will later
make beef scarcer and boost prices. The
housewife, too, can help by taking ad-
vantage Of existing low prices and
protect herself against high ones when
the oversupply disappears.
Bugs destroy $4,000, 900 900 worth OF
wealth every year. About 1000 species
are responsible for this appalling loss
Half the damage, or approximately
$1,000 900, may be traced TO SO
species.
The world-famous insect criminal
the boil weeyil-spreadS q trail Of ruin
through the length and breadth Of the
cotton belt that costs the cotton farm
ers last year s163 ,00O, 900 In crop losses
10 per cent of the total crop. The gov.
ernments-State ard Federal-speno
Si,5Q0,oo0 annually fighting IT, The
cotton crop Is the worst sufferer from
the insect invasion. for another para