Evening star., 1950-12-26
u. ). Steel Industry
Courts Matchmaking,
Economist Asserts
Spe:ial Dispatch 10 The Stor

CHARLOTTESVILLE, Va, Dec.
26.-Drift toward naturalization
Of the steel industry in the United
States is mot something planned
by radicals in Washington; it is
a current set UP by the private
behavior of the industry" thinks
one of the Nations foremost con-
sulting engineers.
While our businessmen gaze
IN horror at the British Parlia-
ment voting to nationalize steel,
are We not drifting toward ma
tionalization here?" asks David
Cushman Coyle, economic con-
sultant for the subcommittee on
the study Of monopoly power in
the House Judiciary Committee
writing in the Winter 1851 issue
of the Virginia Quarterly Review,
just published at the University
of Virginia.
American steel is partly though
not totally socialistic. and suffers
the characteristic absence of logic
inherent in socialist planning, T"
writes Mr.. Coyle, who states his
opinion that the public interest
would be better served if one cor
poration, United States Steel were
not occupying one third of the
industry.
Findings of the committee under
the Craftsmanship of Representa-
tive Celler, Democrat. of New
York indicate. according to MI.
Coyle. that United States Steel's
inefficient operation places the
whole steel industry in danger.
Huge Firm Is Low in Profit.
United States Steel has been
for IL years at the bottom of the
as profit maker, writes
Mr.. Coyle. who has had his own
firm OF consulting engineers in
Washington since 1880 and who
hase served many Government
committees, commissions and
agencies.
United States Steel makes
about half the rate of profit as
such companies as Inland, Armco,
and National. which are roughly
one-eighth as large. The smaller
companies have no visible ad-
vantages: they get the standard
prices, pay the standard wages.
have no better chances to choose
locations and products. and a less
favorable access to ore and trans
portation: yet they make twice
the profit on the stockholder in
vestment.
The public interest would seem
to be better served if United
States Steel were not occupying
one-third of the industry, but if
instead we had eight independ-
ents of the size and gen.
eral efficiency of Inland and
Armco. For in the picture
OF a nation facing long-term
heavy demands on resources and
manpower, any important case of
unnecessarily high costs is a point
OF weakness, whether the high
costs result in high prices or only
IN low profits available for ex-
pansion."
charge All You Can Get"
United States Steel and somt
other large corporations some.
times set prices below what the
trafflc might have borne in peace
time. Mr.. Coyle admits, but in
time OF national emergency or
war the policy is charge all YOU
can get away with"
Socialism pokes in its head at
TINS point, writes Mr.. Coyle. so
that whenever United States Steel
raises prices, land all the boys
follow along. they pack their
orle1 cases for a trip to
Washington. There they ex-
plain it all to the Joint Com
mittee OF Congress on the Eco
Aloi4ilC report, now costs have
gone up, they need such and such
profits to maintain growth, so
prices have to be as per-"
II some Congressman should
ask what about the law of supply
and demand. Mr.. Coyle writes
that. the steel men talk the Ian
guage OF public utility executives
Justifying an increase in rates" :"
II this should go on, he pre-
diets that Congress may soon be
telling United States Steel what
it is expected to do.
Ne&u NorL