Executive View by Marshall Loeb: Rebel with Many Causes

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Byrom despairs of the rigidities that prevent companies from allying to exploit technology and the economies of great size and cooperation. To remain competitive in the world, he says, U.S. steelmakers should be building modern plants with 10-million-ton capacity at deepwater ports. Since no one company can justify spending so much, the Government should allow several steelmakers to join in such projects. To stop the alarming erosion of America's capital base he contends, companies should be permitted to take their full depreciation allowances within one year—so long as they invest them all-instead of being obliged to stretch them over many years. Fast depreciation would cost the Treasury some tax revenues, but only for the first year. After that, tax collections would go up because profits would rise— and so would investments.

Instead of myriad local water districts, he continues, the U.S. needs large regional authorities to handle pollutin and potability and development of water resources. A Constitutional convention might even be called to reorganize America's rigid international boundaries. Says Byrom: "I dont think the state of Pennsylvania should exist. And the world is sufficiently interdependent that we will come to realize, maybe 50 years from now, that the concept of sovereign nation states is fallacious."

Strong talk from a corporate chief. But Fletcher Byrom's business is to deal with change. He is unsure what kind of institutions should replace those that exist today but of one thing he is certain: we had better start planning right now for the competitive demands of the 21st century.