Discusses the use of steel in building construction in Britain and contrasts the production of steel for their own use by the Elswick Co. with the mass production of Carnegie's works, with reflections on the latter's methods; gives details of the organisation and men employed at Elswick, which amounted to more than the number employed in the whole of the Government ordnance factories and dockyards put together, and states that they were building a larger tonnage of warships than the British Government and all of their own design; discusses the difficulty of converting Gladstone's holding of ordinary shares into preference shares and of getting a large block of shares like his sold; states that there were 3,100 shareholders, some holding as little as a £ share; is prepared to take Gladstone's holding of shares, but should like a director's qualification of £2,000 to remain in Harry's name; advises him to hold on to shares, as prospects were good, though the following year's dividends would bear the strain of the strike.