The Ely miner., 1936-02-06

ltlatlve in free country. Markets for
iron and steel come from a similar
genius and initiative on the part of
other men who developed the great
transportation systems of this country,
both railroad and automobile, opening
to use every natural resource of the
United States. Similar men of genius
developed the markets for iron and
steel in buildings and bridges, in con-
struction OF machinery in printing and
communication, in agriculture, in power,
oil and gas production, in the canning
industry, in shipbuilding and the ma
tional defense.
If we are to remain a great nation we
must not only continue the efficiency of
our iron and steel industry but permit
it the opportunity to maintain, if not
the leadership of the past, at least an
equality of opportunity with the rest of
the world in it's forward development
in processes and quality. To do this
demands a continued investment of
capital which must either be earned or
must be borrowed with the assurance
that future earnings can return bor-
roWed capital. The steel industry has
passed from individual owners to large
group of shareholders and from in
dividual management to group manage
ment. The ideas of management have
changed from the early days when
workmen were considered in the same
category as equipment. Now We look
upon them as an integral part of the
business as are the stockholders who
furnish the capital. A relationship
exists today between stockholders,
management and workmen which in
actuality unites them in common in
terest, the success of the business en-
terprise in which they are engaged.
The success of an industrial unit does
not benefit alone an individual or any
single group but does benefit all con-
nected Herewith whether management
stockholders or employees.
Legislation inimical to a satisfactory
relationship between these three classes
is against the interest of any of them,
and legislation and taxation which dis
courage capital accumulation, thus pre-
venting capital reinvestment, is not only
working against the interest of these
three groups, but against the welfare of
the whole people.
AS an instance-I call attention to
our Reciprocal Trade Agreement Act
and it's administration. Our markets
are being unsettled by the revision
downward of the tariff on many of our
manufactured products including iron
and steel. How can we maintain our
wage structure and keep up workmen's
present standard of living if foreign
subsidized products are permitted to
compete in our markets?
In many of the foreign countries wage
industry. Coupled with low wages-the
cost of freight from Germany to New
York is only 60Go of the rail transpor-
tation cost from Pittsburgh to New
York
If we are to continue paying high
foreign competitors our workmen must
wage rates as compared with our
foreign competitors our workmen must
have the benefit of protective tariff.
am for wage rates and earnings as
high as business can afford to pay and
should deplore any downward revision
of wages nessitated by reason of ex-
ceSSive importations.
May express the earnest hope that
the governing powers of this nation,
whether Federal, State, or local, will see
the wisdom of Subjecting business at
this time to no further regulatory legis-
lation, at least not until the country
has had time to digest the great mass
of new legislation and regulation which
is hardly yet effective. Until the effect
of these regulatory measures is known,
let us hope that the wisdom of pausing
will be apparent. 1t is difficult to pro-
ceed with business in an orderly man
ner when we are faced with continuing
uncertainties of new situations con-
fronting us, and their effects upon costs
and upon revenues.
Contemplating the measures which
have been designed in the past six years,
first, to stem the tide of the depression,
and more recently, to increase the pace
of recovery, it is not practicable at this
time to estimate the extent to which
they have been of benefit. It is diff
cult to separate the psychological ef-
fectS born of the depression itself and
the play of natural forces toward re-
covery, from the effects created by the
intensive efforts which have been made
to stem the course of the depression
Likewise, as to the permanent effects of
the efforts toward industrial stimulation
which have been attempted, it would
be foolhardy for anyone at this time
to venture judgment Time alone will
provide the answer.
These problems are by no means new
or novel, as many seem to believe, in
respect of relation of Government to
business. Their eventual solution will
determine the extent to which, if any
beyond existing conditions, the Govern
ment may exert its influence and in
terpose its thoughts and direction on
conduct of business which has hereto
fore been deemed as falling within in
dividual prerogatives.
Recovery will continue and eventually
we shall reach a state of normalcy as
uncertainties are eliminated As con-
fidence is increasingly restored We may
expect that the traditional initiative,
courage and enterprise of our people
will again induce a commercial and in
dustrial activity which will tax our cap
acity to fulfill. Anticipating the ap-
proach of that day, which is as certain
as death and taxes, it behooves not only
the steel industry, but industry and
commerce throughout the land, to be
prepared to contribute their full share
to the further economic and social ad-
vancement of our great nation.