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PRINCIPLE OF CO-OPERATION.
Those industries during the post-War period have been hit in many ways. Foreign competition, labour troubles at home and, in some cases, imperfect organization in the industries themselves, have conspired to produce conditions of almost unprecedented depression, which have been fully reflected in a heavy fall in prices. In the case of the two firms referred to in the preceding paragraph, heavy losses have, of course, also been sustained by the suddenness with which many of the firms' activities have had to be diverted into directions other than those pursued during the pre-War period. In the case of Vickers, the losses ,sustained have been already dealt with in a drastic writing down of capital, and there is little doubt that sooner or later the capital of Armstrongs will also require to be adjusted to future earning power. Speaking generally, however, there is little doubt that the greater economy and efficiency which seems likely to result froin the proposed agreement between these two .eomi-anies embodies a principle which might be advantageous in other directions. Indeed, it is because there have been signs of this new policy of co- operation between rival indushies in the face of severe foreign competition being viewed with favour that special importance and signifieance are given to the Viekers-Armitroag develop- ment of the past Week; •
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