The Iron Age 1917-11-01: Vol 100 Iss 18

Rpt ee ye Intense Patriotism at Institute Meeting Members Stand Loyally Behind the Government—-Many Send Sons to War—Gary, Schwab and Other Leaders Tee, Piao | ET aly vB TE * eon nae «ame “ies ‘ Speak with Deep Feeling—Large Attendance at Cincinnati HE thirteenth general meeting of the American [ror Cincinnati, last Friday, was dominated by a spirit of sions and the banquet were held in a hall elaborately and beautifully decorated the United States and its Allies and all of the proceedings were in harmony wi the display of beautiful flags. The speeches were uniformly marked by expressions of loyalty to the Goverm The singing of patriotic songs was a feature and the feeling at times was so intense that the delight ful humor of some of the prominent members, especially Mr. Schwab and Mr. Butler, was welcoms for it relieved the strain without any undue levity, for no man who spoke was loyalty than Mr. Schwab or Mr. Butler. There was possibly a little disappointment in his opening address, did not give more specific information in regard to the plans ment concerning price fixing. But after all, the proceedings at Washington are regarded a the general plan of supporting the Government was enthusiastically supported rell remarked, “If Germany should win we would not be thinking about prices The attendance was large for a meeting held out side of New York, as 600 members and guests were i tribute registered, and 580 attended the banquet. The hosp »f the press tality of Cincinnati was dispensed under the leader f many thousands ship of such members as D. B. Meacham and James I. not one word had appeared the newspapers Stephenson, the chairman of the committee on arrange- Joseph G. Butler, Jr., vice-president Brier Hill Stee ments, and was of the heartiest kind. The welcome Co., Youngstown, Ohio, spoke of the splendid record extended by the American Rolling Mill Co., Middle made by Youngstown in sub ing to Liberty bond town, Ohio, and the Andrews Steel Co., Newport, Ky., He said the city had been given the raising of $5,000,000 whose plants were visited by numerous members Sat n bonds, but that two companies had subscribe: urday, was also extremely cordial. Hon. Charles P amount. Mr. Butler referred to the criticism by Taft, although not a member of the Institute, took Clark—which has since b retracted by the a leading part in the entertaining, and the visit to his of the House—in whi he had alleged that home, where his magnificent collection of paintings was of financiers was discouraging the subscribing Inspected, was highly appreciated. The members’ erty bonds. Mr. Butler se ondemr evinced keen interest in inspecting the much-discussed terance Barnard statue of Lincoln, which is located a short Following Mr utler’s brief remark distance from the Taft home. The luncheon at the said that he did not feel disposed to Country Club, at noon Saturday, was greatly enjoyed alty of Speaker Clark, whose son While it is always a pleasure for the members to National Army He believed that if greet their time-honored leaders and hear their words visit New York and ascertain the facts he woul of wisdom, it is likewise highly gratifying to recognize the injustice of the statement which he had younger men who appear on the program, and of the Judge Gary then paid a hearty tribute to President men of this class at the Cincinnati meeting Eugene Farrell, saying that he had been working night and P. Thomas, president United States Steel Products day to do his bit in helping to carry this war to a Re ona Wichelaa Longworth, member of Congress fron successful conclusior “I know,” he said, “that Mr Cincinnati, i ik gtr ag a nai? haa carried off the greatest honors. Farrell does not feel like talking, for he has sent The opening session Friday morning will never his two boys to war, but we must have a few word be forgotten by those who attended, for following the from him.” able address of Judge Gary came a number of short, Mr. Farrell spoke briefly, referring especially to the informa! speeches, of which patriotism was the key importance of carrying out the shipbuilding plan of hote. A number of those who spoke had demonstrated the Shipping 3oard. He said that it was proposed their loyalty to their country by sending their sons to construct 3,000,000 tons of vessel capacity in 18 to the front. Judge Gary was so deeply moved that months, and this would support 700,000 soldiers in it was difficult for him to speak on this subject. Presi- foreign lands; but fully double that tonnage must be dent James A, Campbell of the Youngstown Sheet built. There is the great importance of all connected & Tube Co., when called upon, spoke only a few words, with the industry working together. “If we lose,” he but his sentiments were enthusiastically received. said, “we will not be thinking of prices. Let us help “There is not,” he said, “much worth while in this world one another and help the Government. While we are to-day except to win the war.” hopeful that the war will be over in the spring, I fear 1035 as orat relat ee et 1036 it will be a long struggle; a great deal depends on the men in this room.” W. A. Rogers, of Rogers, Brown & Co., who has two sons in the army; Piesident Clarence H. Howard, Com- monwealth Ste2l Co, St. and others, spoke briefly. Then Mr. Schwab was called on, and, as usual, was most enthusiastically greeted by the audience. He told an amusing story of his troubles in borrowing money the Liberty Loan. He said that he had gone to numerous bankers in New York, and told them he wanted all the money he The president of one bank said to him: Schwab, don’t that $2,000,000°7” “Oh,” he said, “I had forgotten all about that.” Mr. Schwab, in commending Judge Gary’s speech, said it was a natural outpouring of the heart, on ac- Louis, to subscribe for could get. “Why, Mr. you know you already owe us THE IRON AGE Novemhy 1917 count of having been hastily prepared. H of the 80,000 employees of the Bethlehen poration and of the 600,000,000 tons of ord 90 per cent was of Government busine proud and happy that it was his privi‘eg share in directing this great work for ment. He spoke of the conference at \ and said that Judge Gary’s policy had minded, not being for the benefit of an, company or class of people, but to promot interests of all concerned. Following Mr. Schwab’s remarks, Judge Gary upon all those present to rise who were wi their utmost to increase the production steel and help the Government in every w; The entire audience arose, after which there was ing of America. Patriotic Speeches Made at the Banquet Congressman Longworth Tells About the Billions Appropriated—Mr. Butler Pays His Respects to Senator LaFollette—Other Responses The banquet Friday evening was opened by the sing- ing of the “Star-Spangled Banner.” toastmaster Judge Gary was Hon. Charles P. Taft as Mr. Taft spoke briefly, dwelling principally on the Liberty loan and the splendid which had been made by Cincinnati. He re- ferred to the time when Cincinnati borrowed $10,000,000 to help the building of a Southern railroad, on which it paid 7.3 per cent interest, while now the city has sub- scrived for $38,000,000 in Liberty bonds, introduced First and “Cincinnati’s Citizen.” record on which the Government will pay only 4 per cent interest. Hon. Nicholas Longworth said it seemed like the irony of fate for a member of the Ways and Means Com- mittee of the present Congress to be introduced to an audience of manufacturers of steel after that committee had been such an important factor in lowering the tariff and raising taxes, but he wished heartily to commend the attitude of the manufacturers of iron and steel for their unselfish action in regard to matters pending in Con- gress during the past few months. He said that only a few months ago it was estimated that it would be neces- sary to appropriate $4,000,000,000 for war expenditures. Congress was finally called upon to appropriate very much larger amounts, and the appropriations for the session amounted to $21,500,000,000, a sum 20 times the National debt before the war and four times as great as the total debt of the country, the states, the cities, the viliages and townships of the United States. He compared the appropriations of the United States with the expendi.ures up to date of foreign countries, show- ing that the United States is already far in the lead; but he cailed attention to the fact that of the total appropriations, $7,000,000,000 was for loans to the Ailies, $2,500,000,000 was for contracts, and a consid- erable part of the expenditures will add to the per- manent wealth of the Nation. He said he believed that not more than 25 per cent of the cost of the war should be paid for by taxation, and this declaration was re- ceived with hearty approval. He however, that no matter how much the war may must be fought to a finish, so that peace wiil be permanent and for all the world. Commenting briefly on Mr. Longworth’s speech, which he highly praised, Judge Gary said that the present war shows that we have all been too selfish, too much devoted to business, and he warmly commended insisted, cost, it the men and women who are now doing their duty to their country. Frank Billings of the Tod-Stanbaugh Cleve- land, spoke of the splendid work which is being done Co., at Cleveland by the bureaus which were orga manage the movement of iron ore and coal duri: present season. He also spoke of other modern met} of transacting business. When midnight arrived Judge Gary said: formal part of the program is ended; what is wish?” Immediately from all parts of the hal shouts for “Schwab,” “Schwab.” man of the Bethlehem Steel Corporation responded with another happy speech. He told some stories, but also spoke in a serious vein, saying the time had com not only to talk patriotically but to act patriotically. Calls by the audience for “Uncle Joe” brought Joseph G. Butler, Jr., of Youngstown, to his feet. Hi told of his experience at a recent meeting at Atlanti City at which he had advocated the sending of Senat LaFollette to Germany just as President Lincoln | sent another “copperhead,” Vallandigham of Oh within the Confederate lines during the Civil War Mr. Butler said that his speech at Atlantic City had not attracted much attention in the newspapers, | later the same idea was taken up by ex-President Roosevelt and thoroughly exploited by the press of th country. He facetiously charged the ex-President wit! stealing his thunder. President Farrell was then called upon and sponded briefly, speaking in words of high commenda tion of the Cincinnati committee on arrangements for the meeting. Other speakers were Capt. Robert W Hunt, Chicago; C. H. Howard, president Common wealth Steel Co., St. Louis; H. C. Bush, Cincinnat J. H. Dempsey, Cleveland; George P. Early, America! Steel & Wire Co., Pittsourgh, and Robert W. Campve! Illinois Steel Co., Chicago. D. B. Meacham Extends Hearty Greetings Many Industries of the Queen City—Living UP to Ideals of Many Years Ago—Its Influence on Culture The popular chair Tron In welcoming the members of the American -™ and Steel Institute, D. B. Meacham, partner of Roge" Brown & Co., said: ; “Cincinnati greets you most cordially. We appre ate the honor conferred on us by the presence 0 a institute, with the attendance of men so distinguis?® in the world of iron and steel. err a ak »¢ and your ‘Your patriotic support of the Government and } er 1, 1917 ‘sacrificing efforts in assisting to prepare secute the war are well known. You are as leaders in the humanitarian movements esigned to improve the living conditions of yyvees and to bring aout a closer relation be- tal and labor. Notwithstanding the many blems facing you during these unparalleled pe you will all remain to-morrow, and allow y ou a day of social entertainment. opie assigned to me is ‘Cincinnati and Its In- Every city has its individuality and its char- eem to be perpetuated. In a book entitled 1841,’ by Charles Cist, is the following: mechanic interest here has long since dis they meant to supply this market with what from the Eastern cities, it would not do ke as good work, for the weight of prejudice was against them, and unless they could show h was manifestly of better materials, more re strongly put together and finished in a they felt it was impossible for them to over e of the current. We then made it a settle hazards and sacrifices to drive out the East We knew that we had as good or better mate- right kind of workmen could be got, and Ss our expenses we must for so desirable an our profits until we could carry our point rkmen were accordingly engaged and brought wages, and every effort made to instruct our the latest improved patterns and models, and of a few years by the time our boys became or went into business for themselves, we accom urpose, and there is now not $5 worth of work here where $1,000 was imported ten years ago mpetition here is who can make the best piece who will make the cheapest one e determination in 1841 to make only the best onsistently adhered to by our manufacturers, that is the reason why Cincinnati products are throughout the world. Cincinnati occupies 72 square miles, with a population of 410,000. In- ie contiguous cities on both sides of the river, population of this industrial district is about 600,- [he United States census of 1910 showed that er cent. of the people were native Americans, which greater proportion than that of any other large the United States. In 1910 male aliens over 21 rs of age formed only 2 6/10 per cent. of the popu- The principal products of manufacture are: ools, soap, rolling-mill products, clothing, ind shoes, printing and publishing, slaughtering ing, furniture, lumcer products, leather, sheet special machinery, printing inks, chemicals, ng machinery and women’s clothing. \ distinctive and unique feature of Cincinnati is its ty of sustantial industries. According to States census of 1914, in this industrial dis- were 2623 manufacturing establishments, neluded 92 of the 264 industries recognized sus. This diversity of industries is an ex- luable asset to a city, and gives it advan- one that is dominated by a single line. THE IRON AGE 1037 “The National Social Unit Organization made a care ful and widespread survey and selected Cincinnati as the most typical American city and one in which the citizens of all nationalities and beliefs worked in best accord for social betterment, and its first experimental station is esta bh} Va ished here. Our people have a firm con viction that the real success of an industrial city rests chiefly on a well educated, self-respecting working popu lation. Many agencies are operating efficiently to bring about the results desired. “I could tell you of the historic past of our city and of its varied industries and achievements; of its place in the musical world; of its colleges and conservatories of music with thousands of students from the great South and Southwest; of its unexcelled Symphony O01 chestra and its Music Festival, which was the pioneer of those now held in various cities. Regarding these musical festivals the highest authority writes: They have beyond question exerted ) re powertf nflu ence for musical culture thar ny other inst kind “Our Zoological Garden is said to be the best in the country. Our Exposition was the forerunner of the one held in Philadelphia in 1876, which had our di rector in charge. Our Art School has started on their careers many of the most noted American artists. Our city owns a railroad, a profitable asset, which it had the foresight and sagacity to build to open up the South It has a great municipal university, with thousands of students, which has introduced vocational methods now being extensively copied; and its new general hospital is one of the largest and best in the world. The Cin cinnati water works demonstrated to other river cities the possibility of eradicating that awful scourge, ty phoid fever. I could emphasize the beauties of our resi- dential sections and our 2500 acres of parks, but some of these we expect to show you tomorrow “An address like this is occasionally a vehicle carry ing a heavy burden of statistics, but our committee has guarded against too great a tax on your patience by presenting to each member a copy of The Citizens’ Book, which contains a series of carefully prepared articles by well qualified writers, covering the various functions of our city’s life. It is used by all our pub lic school teachers, and is, I think, an example in an educational line that other cities would do well to fol low. Please read it and take it home to your children, so that the rising generation also may know more about the ‘Queen City.’ Allow me to call especial attention to its introduction: This is a book for the citize for the citizen w would know what h city wa what t . nd how t Db ime o r the citize who wants his « grow | ter ho leals for it mpro t Ww eekir for ! or he citize wl t rh vit ! I make Cincinnati a community wl h contribute th greatest possible good to each of its member “In closing we again thank you for coming, and hope that when you depart you will carry away many pleas ant recollections.” Judge Gary Tells of Work at Washington Calls for Hearty Support of the President—Reviews the War’s Progress and Emphasizes the Importance of the Part ng the meeting to order, Judge Gary ast annual meeting of the Institute refer- ide to the appointment and the activities ommittee and sub-committees of the iron lustry. These committees were appointed ing as auxiliary to the Advisory Com- Council of National Defense. However, in lal legislation of a recent date concern- of a business nature between the Gov- ate interests, it was, from an abund- lecided to abrogate the appointment of ees; and immediately thereafter your onsultation with his associate directors named a general committee and also representing the different special lines The general committee and also the Steel Makers Are Taking sub-committees, directly or through the general com- mittee, have been reporting their recommendations from time to time to the War Industries Board at Wash- ington consisting of Frank A. Scott, chairman; Judge Robert S. Lovett, Robert S. Brookins, Bernard M. Baruch, Hugh Frayne, Admiral Frank F. Fletcher and Col. Palmer E. Pierce. This board in turn has reported its recommendations to the President for decision. From the published accounts you are familiar with the re- sults which have been reached. Many Disappointed “Many of you were disappointed when the prices of the commodities in which you are particularly inter- ested were announced. You had expected larger figures. You had been receiving from your customers, in the 1038 ordinary course of trade, much more favorable results. Your profits will be less than you have believed you are entitled to. Your costs of production and con- struction are increasing by leaps and bounds. Many manufacturers have struggled for existence in periods when business conditions were bad, trusting to the future for improvement, and they have argued that if the law of supply and demand should govern under such circumstances it should control at all times. “All these things have been considered by the iron and steel committees, and by the representatives of the Government as well. It is only stating facts to say that the former have endeavored to represent the manufacturers conscientiously, intelligently and force- fully and that the members of the War Industries Board have at all the hearings given patient atten- tion, thorough investigation and careful consideration to every claim presented, with the sole purpose of doing justice both to the Government and to the individual. Insisted Upon Higher Prices “The members of our committees have insisted upon higher prices than the ones finally agreed upon, but they consented to those which were fixed because they were influenced by motives of patriotism and also be- cause they were convinced that, in the main, the prices came within the original proclamation on the subject by the President which, from the standpoint of the Chief Executive of the nation, was reasonable. “If, as between the different products, semi-finished and finished, disparities in prices are discovered, then, so far as practicable, they should be removed. The intention of every one connected with the ascertainment of facts and the determination of prices is above re- proach. “It may be suggested that some of the producers may realize larger profits per unit than others owing to greater diversity of commodities, favorable location, better organization, larger production or other facilities which tend to lower costs, but, if so, the progressive rates of Governmental excess profits tax, depending upon the relative net earnings of the different pro- ducers, will largely offset the differences in net result. It is estimated some of the manufacturers will be obliged to pay to the Government as high as 50 per cent excess profits tax. The Committee’s Work “The committee representing the steel industry has labored hard and faithfully in the performance of its duties. It has carefully considered every suggestion which has been made, from time to time, by those engaged in the industry relative to their rights, inter- ests and claims. The facts concerning capacity, advan- tages or disadvantages, and the claims of cost and profits of each, have been gathered, so far as prac- ticable, with the purpose of determining the relative positions, rights and obligations of all; and these have been honestly presented to the War Industries Board, and, before its appointment, to the Secretaries of War and Navy, and to various boards created by the Presi- dent or by the Council of National Defense. The general committee has met frequently in New York and Washington, giving these matters attention in pref- erence to all others and regardless of personal comfort and often without adequate rest. Omitting the chair- man, who has been frequently relieved of work and favored in many ways, I state with emphasis for the benefit of those who are not fully informed that the other members of the general committee, as well as the members of the sub-committees, are entitled to the gratitude of all others who have been interested in this work. In the collection and distribution of figures affecting the different branches of inquiry the American Iron and Steel Institute has rendered valuable assistance and is entitled to and has received much praise from the members of our committees and also from the Government’s representatives. Efficient Agencies at Washington “And the members of our committees, better than those who have not had similar experience during the THE IRON AGE November last year, recognize with appreciation the com; and efficient work that has been and is bein; ne the large number of Governmental agencies Wash. ington. There has been created a vast bu . as ganization, with scores of departments, and — number of sub-departments, which are ca - the greatest of all great business undertak notwithstanding the unfavorable criticisms w} hs been made, many, if not most of which, ar unjustified, it should, in truth, be said this co] bination of diversified, ramified and intricat: activities, involving almost every phase of social, commercial, financial and industrial life. has almost been, whipped into a smooth running p ‘ chine. That mistakes have been made, that ston: have had to be retraced, that sometimes action has bee; too hasty and other times too deliberate, that red tane rules, created by legislation or otherwise, occasional have interfered with the best results, may be assumed: but with patience, skill, persistence, vigor and s recess, the great varieties of business enterprise as time elapsed have been better and better co-ordinated and the whole structure developed nearer and nearer to the point of perfection. I do not hesitate to say that, so far as there has been opportunity to observe, the results in Washington have excited my surprise and admiration ally Management of Business Men “The most wonderful feature of this work is not its magnitude, nor even its results, which are becoming exposed to the view of the general public, but rather it is the fact that the work is very largely under the management of very able business men and women who are volunteers and are devoting their time and skill and energy without compensation, or hope or desire for re- ward of any kind, except in the consciousness of duty performed. There are large numbers who have disre- garded personal interests, their personal comfort, and many, even their personal health. These men and women are outclassed, in disposition to sacrifice and serve, only by the members of the Army and Navy who bare their breasts to the destructive forces of warfare. “Of this vast civil army of effectives, before which the representatives of the institute and itsmembers have appeared, is the War Industries Board, already referred to. The members of this board have other matters of interest which need attention. Some of them had hoped to retire from active business and to enjoy a well earned rest; some of them are in the very prime of life and were actively connected with important business enterprise, with every prospect of a long and successful career. All are possessed of vigor of mind and body. Not one of them personally considers himself or any other individual or any interest that may appear before the board. They have no one in mind to favor or & punish. They are considerate and respectful, but they are obdurate when a claim is presented which seems to them to be unfair or unreasonable. They serve their country by their effort to be practical, discriminating, reasonable, just. And the assistants to this board, rep- resenting a diversity of talent and experience, are great benefit to the board in the ascertainment of facts and the application of principles and comparisons. Some of them you know personally, and with the high quall- fications of all of them most of you are acquainted Present Duty “Reference has been made to the general business organization of the Government and its membership for the purpose of suggesting to each of us present day our duty in this time of trouble and sadness; and to the character, disposition and qualifications of the members of the War Industries Board for the purpos of making prominent the inference that the steel com- mittee could not, if it desired, secure from this board at any time a determination or recommendation the President which was unreasonable; and that every ’ would be ashamed before such a body of men to urge any claim he did not believe to be sound and proper.’ Judge Gary then proceeded to review the history of the war in Europe. Speaking of the plan of the N l, 190% rmans to precipitate an international wat nany might dominate Continental Europe, n, United States and nearly all parts of the id that it usually happens that the worst some fatal mistake in the execution of ans, however carefully studied, and Ger- two great mistakes at the outset. She be- he could enter Belgium and France with tion and was mistaken, and she also was in iming that she could violate her solemr Belgium without offending the sense of ecency of the entire neutral world. In con ve Gary said: members of the Iron and Steel Instituts vhat has been said thus far, as from a long THE IRON AGE 1039 maintain existing wage rates, salaries of officials and extensions necessary for war purposes Up to the present time we have no reason to complain of the attitude and action of the Government, although we have been disappointed in some respects. It is up to us t prove our continued loyalty to the Government; but more than that, our loyalty to ourselves in the perform ance of duty. Even though there should be dissatisfac tion concerning prices or the details relating to pro duction or distribution of tonnage, still production and deliveries must continue without interruption or dimi nution, leaving any question at issue to be settled at a later date. So long as the attitude of those in control of Governmental affairs toward producers remains as it is at present, it must be the effort, as it will be Jos. G. ButTuer, Jr PHILLIPS EUGENE P. THOMAS SOME OF THE PARTICIPANTS IN THE MEETING OF THE AMERICAN IRON AND STEEL INSTITUT! AT CINCINNATI quaintanceship I believe they do, then it rmine and to follow the lines of duty. We tion of the highest importance in the Uur country and its allies in the inter- t are in need of every pound of steel produced in this country, and which can ar purposes. To insure this supply every having relation to the subject must, ruption, produce to the fullest capacity the control of the Government ‘through nstituted agencies. No excuse for neglect, ruption will or can be accepted by the lhe Administration desires and intends nd reasonable compensation, sufficient to the pleasure, of every one of the latter to do his part unselfishly, wholeheartedly and assiduously If Defeat Should Come “If our country is defeated in the pending military conflict, your property and business and mine will be of little value. We will have retraced our national steps a century and a half. The wealth of the country would be seized and retained as prize money by other nations We have been forced into the war and we are com- pelled to fight in defense of our persons, our property and our sacred honor. There is no escape. We are in the war to the end, however costly and bitter. No man, no country was ever engaged in a more righteous Sy Sd he As 1040 THE IRON AGE Noven l, 1917 vil or a more compulsory defense. If we do not do every- more valuable than ever. Progress and thing practicable to uphold the hands of the President be in evidence on every hand. The war and to add to the success of the defense against the a real, substantial benefit to the entir. foreign aggressor, we are less than men; we are moral strength and power of this cou weaklings; we are poltroons. I believed for a long similar countries will be greater than « time we could and would be kept out of the war, but we believe the Allies can and will win th there was no escape. It was forced upon us. The may be pronounced optimists for the long President delayed as long as he consistently could. We “On the battlefields of Europe men must now fight with every weapon within our reach. thousands and tens of thousands. Our so: We must liberally subscribe to the Liberty Loans. We or other relatives will soon be active pa must cheerfully pay our taxes, and, of still greater fear the rolls of the dead or injured may importance, we must furnish steel in larger and still across the ocean within a few months, although | } larger quantities. If we succeed in this war; if we do for the contrary. These men who hav our duty, life here will be worth living. Our country offered their persons as a sacrifice to a n will occupy a place in the front rank of worthy nations. appealing to us by thought, if not by wo Democracy in its truest sense—one that means ‘a_ assistance as we may render. Every dollar y whole people, unified, with one law for rich and poor, everything we do, every sacrifice we make wil equal opportunities for all men’—will be firmly estab- in protecting the patriots who are abroad in defence lished. A basis for preventing future prolonged wars of our rights. We must not, we cannot, withhold any will be secured. Our properties, our businesses will be thing that will be of benefit to those splendid men.” . Great Merchant Marine Without Subsidy Earnest Plea for American Ships by President Thomas, Who Discusses Important Effects of the War on Export Business Eugene P. Thomas, president of the United in 1871. In the event of the retrocession of both t States Steel Products Co., New York, read a paper on France, her annual production of iron ore would be “The Export Trade as Affected by the War.” He was_ raised to 43,000,000 tons, while that of Germany would listened to most attentively and was heartily congrat- be reduced to 8,000,000. In addition, France y ulated by many on account of the very forceful and have a new annual production of 16,000,000 tons of clear manner in which he discussed his subject. —an important addition to her capacity to develo; In beginning, he said that foreign trade, instead of her own iron and steel industries, instead of feeding being merely a contributing factor, has become an in- those of Germany. dispensable element of our industrial prosperity. He “Whatever the distribution of the European or referred to a very important part that metallurgy has_ supply, it may be confidently asserted that our capacit) played in provoking and prolonging the present conflict. after the war will represent nearly, if not quite, as Then he said: “When the Germans seized and, in spite much as that of all other steel-producing countries of the Allied victory on the Marne, held the Briey basin, combined. We shall thus be as urgently in need they expected the prompt collapse of France. For foreign markets for our products as the Germans ever this basin contained nine-tenths of all the French de-_ were.” posits of iron ore, and of 127 blast furnaces in active operation in 1913, 95 were in the war zone and in the possession of the enemy. Thanks to the British navy, Continuing, Mr. Thomas said that there is no reasor France still possessed the freedom of the seas, and to fear the post-bellum “glut” of steel which somé from England and the United States were poured in Ssimistic observers have prophesied, at least during the supplies of munitions of war pending the utilization first few years after the advent of peace. of unworked deposits of inferior ore outside of Lorraine. “The destruction which has followed in the tr A new equilibrium between supply and demand was of war has been so thorough and widespread,” said finally established, but it is no exaggeration to say that Mr. Thomas, “the depletion of existing stocks so com- for months the very existence of France hung on her plete and the suspension of antecedent enterprises s supplies of steel. So also, for that matter, did the much the rule, as to preclude any doubt about the victorious advance of Germany.” steel-making capacities of the world, during th . of rehabilitation, being fully employed. In addit to all this, the regeneration of the shipbuilding Representatives of six important industries, address- dustry in this country will continue to provide a tre ing the Chancellor on May 20, 1915, assured him that mendous outlet for steel, and the coming demane ‘ if their production of ‘iron and steel had not been structural shapes may be partially gaged from t doubled since the preceding August it would have been fact that building statistics show that new construct impossible to continue the war, and dwelt upon the has been greatly curtailed as a result of the war ™ great value of the iron-ore deposits of Lorraine. quirements. The same statement applies to Europ As to present and future producing capacity of the a whole no less than to the more progressive se world, Mr. Thomas said: “Stimulated by the demand of other continents, and there can be little quest created by the war, the productive capacity of this that after the war the demand for steel will be § country has been enormously increased. The same _ cient to keep the industry on a stable basis for 2 thing has occurred, although not to so great an extent, siderable period. in Great Britain, Canada and France, while new iron and steel industries have been created or expanded in i other countries, as in Australia, India, China and “As for the prospects of the more distant tu Japan. After the war, we shall find ourselves probably there is one point which cannot be too strong!y ma with an annual capacity of 35,000,000 to 40,000,000 tons on, because it is frequently lost sight of, and th Mill Post-Bellum Demand Capacity in Germany Increased e ER - Under New Conditions of finished steel, and if the domestic consumption is not the incalculable influence of the material develop™ greater than its maximum in the past, it will leave of the world of conditions of peace under w! probably 8,000,000 to 12,000,000 tons to find export mar- have been made safe for, and there will . kets: in other words, from 30 per cent to 100 per cent opportunity for commerce and industrial enterp’™™ more than the present abnormal steel exports, which are Take the one item of railroad construction, largely for war requirements, two great continents—Asia and Africa—has ! “England, with 8,000,000 tons before the war, will tofore dominated not by commercial, but >y ! have 12,000,000 tons after it is over. The productive ca- considerations. After the peace, which we ®* © pacity of France and Germany must largely depend on agreed in assuming will not be a German Pe s the future of Lorraine and its ore deposits, as well cloud will rest on the international] status % * ’ the as of the coal in the valley of the Sarre. The coal mines enterprise as the Bagdad Railway. It wi!! be 0 * were acquired by Germany in 1815 and the iron mines’ chief links in the great chain of over!: 1, 1917 and Asia, stripped of all the perils to peace that inhere in so-called “peaceful Its operation, as a purely business un- promote the construction of a network Persia; it will be linked with the India » one side and the completed Cape to Cairo other. It will be part of a great inter- vhway that will draw closer the bonds be- continents and will cut in two the time traveling from Europe to Australia. s is but one of the great world enterprises cure peace among nations, divested aqually and the desire to make war on each other, a stimulus and support hitherto unattain- hould be safe to predict that the 10 years the conclusion of peace will be such an era id construction as the world has not seen. i re the railroads go, into lands old and new, re be created a demand for the utmost volume ictures in the service of an improved agri- irrigation, of mining, of the utilization of wer and of the processes of an expanded and industry. No ‘glut’ of steel should be in the saner, soberer and chastened world emerge from the stern ordeal of the awful strus by which it is now convulsed, because what the process of reconstruction will simply be ginning of an unexampled development of the productive energy of the newly enfranchised nations. Must Work Toward Common End it should be recognized that our share of this will be small or great in proportion as we are ordinate our vast and varied productiveness mon end. The necessity of balancing imports tabilizing exchange; the creation of an American marine; the necessity of compensating the of additional capacity by increase of exports, he advisability of meeting the combination of our petitors in foreign markets by the use of similar weapons, would seem to be among the rudimentary re- rements of the situation. It is manifestly of the greatest importance, for example, that we maintain mports of necessities, such as manganese ore from nitrates from the west coast of South America, from the Straits, wool, coffee, rubber and other These extensive and valuable imports be balanced somehow, either by the maintenance n export trade with these countries or in the triangular fashion of equalizing them by ex- to other countries which make the required pay- } our creditors in goods of their own. of the European countries now at war will be the most urgent necessity of exporting their s to the greatest possible extent as a means litating exchange and of paying for needed We may expect, as a consequence of the ce gained during the war, that the manufactur- tions of Europe will have learned the absolute essity of organization, co-ordination and co-opera- If we are to meet them in foreign markets on equality, it will be necessary not only that sh methods of mutual co-operation, but that ernment aid and protect us at least as effec- 11t1es ; experier THE IRON AGE 1041 tively as our competitors will be aided and protected by their respective govecnments. A Lesson Learned “Our country has had to pay dearly for our abject submission to the decay of our merchant shipping in foreign trade. But the lesson has been learned, and with it has come a recognition of these fundamental principles: We must be enabled to freight our products to foreign markets at a cost not exceeding that which will be available to our competitors, and this will be possible only if we have an American merchant marine unhampered by restrictions from which our chief com- petitors are free. The British shipping industry which for generations has been and is still by far the greatest in the world was built up by the exertions of the men engaged in it. It prospered because it was free from restrictions to which its competitors were subject. Theor:es to the contrary notwithstanding, we cannot have, in time of peace, an American merchant marine worthy of the name unless it be profitable to operate it without subsidy or subvention. This is manifestly not possible upon any practical or permanent basis so long as it costs more to operate an American steamer in ocean-going commerce than a foreign steamer in the same trade. Unsubsidized steamers have always been able to make a better showing for their owners than the subsidized ones, and it is certain that while a large majority of the British lines have received no subsidies from their Government, they have nevertheless grown and prospered and have found no difficulty in com peting with the subsidized lines. I repeat that what is necessary for the future growth and the American merchant marine is that it be placed upon a footing of equality with its chief competitors; with a fair field and no favor, repealing all laws which ex- perience has shown to be detrimental to its growth, thereby leaving American enterprise free to achieve a success equal to that which the British shipping in- dustry, unhampered by restrictive laws, has been able to accomplish. The Steel Industry’s Efficiency “The present plans of the United States Shipping Board, involving the building of millions of tons of ocean-going steamers, are not of greater consequence to the future of the export and import trade of the United States than they are to the maintenance of the steel industry on that high plane of efficiency and maximum output which it has reached during the past year. There has been afforded through the unexpected exigencies of this war a hitherto undreamt of oppor- tunity for Governmental assistance in the upbuilding of a great merchant marine, as well as a striking illus- tration of the means by which American manufacturers can co-operate under Government sanction and super- vision for the supply of materials in enormous quan- tities. Idealized by the patriotism and loyalty which it has exemplified, we have had a close affiliation between the Government and the great industrial activities of the country, the value of which in solving the special problems of the present is of good augury for the service it may render in meeting the demands of the future.” success of Wonderful Development of the Iron Business Joseph G. Butler, Jr., Tells of the Marvelous Progress Which He Has Witnessed—The Biggest Thing Kaiser William Overlooked paper on “Fifty Years of Iron and Steel,” Butler Jr., of Youngstown, Ohio, said in part: ng me with a place on your program the vidently regarded half a century as long any man to be actively engaged in the iron ‘ustries. As a matter of fact, my experience ers a period of 60 years, for I became . erk and assistant manager at the iron roll- P ' James Ward & Co., Niles, Ohio, in 1857, ig spent three years as a clerk in the store ith that enterprise, during which time I .ccomplishments the musical art of speak- ing Welsh and also acquired the ambition to become an ironmaster. “These 60 years cover the greatest progress the world has ever known. They have brought forth so many startling discoveries, so many striking inven- tions, so many achievements, enriching and broaden- ing human life, that merely to mention all of these would be a tedious task. Most of these were the work of American genius. They are the fruits of individual liberty and just reward for individual effort first known to the world after our forefathers had established freedom in enduring form upon this continent. The mere 1042 contemplation of this progress should serve to remind us of our obligations at this time, when civilization is turning the sharpest corner in its history, and when the right of men to self-government and self-develop- ment is threatened as it never before. has been threatened In Early Days “Sixty years ago, there was no such thing as the steel America. The trifling production of ‘blister’ steel, amounting to about 2000 tons per year, was not worthy of that designation. But the iron busi- ness had already laid the foundations of its future great- ness. And this in spite of the fact that we had then comparatively no ore, no efficient fuel, no adequate machinery and very little of the practical and scientific knowledge so widely diffused to-day. “When I entered the iron business in business we made iron without coke, a task resembling that of the Hebrews who were compelled to make bricks without straw. We had what would now be considered no ore, for the chief supply was derived from an occasional pocket in the hills or gathered from swamps or the beds of creeks. We had no furnace tops, no blast stoves, no hot blast as we know it now, no metallurgists, and, in the light of the present experience, no markets. We knew nothing of the value of gas, natural or manufactured, a fuel indispensable in the manufacture of iron and steel in large quantities. 3ut we did have grit and energy—the determination to do our best, and the same pride in doing things that we have now. “There were some compensations, of course. The payrolls were not so large and we were not troubled with a shortage of cars to move our product. I re- cently came across a statement issued by the superin- tendent of the Ward furnace, operated under lease at Youngstown, about the time of my entrance into the business. It said: ‘Our next payroll will amount to something like $200. We ought to have at least $20 in cash.’ The payroll referred to was for one month. The cash was needed to give some of the men for some special purpose. As a rule, they were paid in store goods. Among some other furnace records of these days I have seen an entry reading: ‘Paid James Dobson $6 to git married.’. At some of the furnaces in that locality, it was the custom to give the men a dollar in cash at Christmas and the Fourth of July. At other times, they got along without any money. From all of which it will be seen that many things, among them getting married and running a blast furnace, were done with less capital than at the present time. “There was at that time no thought of making steel at the ordinary iron works. The equipment consisted of one or more small heating furnaces, one or two trains of rolls, perhaps a forge fire or two, a few puddling furnaces and occasionally some machinery for making cut nails. The product was usually either simply pig iron, or merchant bars, a commodity which, by the way, has not changed its name in the whole 250 years since iron was first formed by forging into that shape. The a little money Bessemer Process “The steel business was really born in America when the Bessemer process came into use here, which was not until about 1864. The idea of removing carbon and silicon from blast-furnace iron in this way was un doubtedly first conceived by an American, failed to develop the machinery for its consequence, reaped very little benefit although he use, and, as a from it. Wher William Kelly, who first decarburized iron by means f an air blast in a furnace he had erected for that pur- pose at Eddyville, Ky., about 1850, came to file his claim for a patent in 1856 he found that Henry Bessemer had filed similar claims and beer few days previously. Kelly had years on his scheme, which was identical in principle, but he had not yet made it a commercial success and did not at- tempt to make steel in that manner. Nevertheless, his use of the pneumatic process first was not disputed and he was granted an interference as against the Bessemer patent. “T recall distinctly a visit made by this man to Niles while I was a member of the Ward family, being em- ployed in the Ward store, about 1854. granted patents a worked for He came there THE IRON AGE Novembe: 1. 1917 Al to enlist the interest of James Ward, the an authority on the iron question, in beh; periments, and was a guest at the Ward ta ei occasions. How far he succeeded in his ae be judged by the fact that Mr. Ward said that he was crazy. “The invention of the Bessemer proc its perfection and development, is genera as the longest single step in the march of p has brought the iron and steel industries ent stage, but there are other discoveries me even more important. We cannot ma! out iron, and therefore of even more mome: in thie invention were such things as the discovery the Lak, Superior ore ranges, the invention of the the use of coke and its economical manu development of high blast temperatures, and, in view of its recent rapid adoption, the Siemens-Martiy open-hearth furnace. Kelly’s Troubles “As has been stated, I met Mr. Kelly when he y trying to make his great discovery a practi ERs I saw him on a number of occasions later, when he w working to unravel the skein of litigation that i the Bessemer process and prevented its adoption in thi country until ten years after it was patented her can recall the announcement in the technical jourr of that day of the discovery by Robert Mushet, a Scots man, that speige