New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-08-18
BIG CUT IN STEEL WIRE.
PRICE WAR IS FEARED.
Drop Of Nearly 81 a Ton IN Many
of the Products Expected.

Official notice given yesterday by the
American Steel and Wire Company which is
one of the subsidiary companies of the United
States Steel Corporation Of a large reduction IN
| the prices of the various steel wire produces
| turned out by the company. This acton nae
| been expected ever since it became Known that
the Republic Iron and Steel Company had con-
! tracted to convert 10000 tons of pig iron into
steel billets for the Pittsburg Steel Company
a rate which would give the latter the biilets
at about $40 ton the pool rate being sd
| The American Steel and Wire Companys state
ment as follows
The in steel and wire products went into
sGf on bt RE f6n Ne have we cn ont
circulars agents, notifying them OF tie re-
duction.
The trade circular issued on Tuesday quotes
the new prices wire nails, barbed wire. fence
wire and fence staples, in carload lots. f. o. b. at
Pittsburg. these quotations being subject to inn
mediate acceptance and change without notice
The cuts from former schedules in this circular
vary from 81 10 81 ton. There IS however
excellent ground for believing that the new of
fetal prices will be shaded still further. Accord
ing to special dispatches from Pttsburg. the
cuts will range from Sc to SD ton. according
10 grade.
The normal annual output Of wire products
by the Steel Corporation is about one million
tons year. his IeuuCliOits u tohiSC' '''-
mean the cutting down of the gross income OF
the subsidiary companies manufacturing this
class of product all the way from S6oo"oo
10 S12oo0OoO a year Competent judges in
Pittsburg look for a dissolution of the pools in
all the principal products of the Steel Corpora
ton except rails. At any rate. an open market
in the principal products except rails IS eX-
pected.
An official OF the United States Steel Corpora
ton, whose high position makes him an au-
thority in all matters pertaining 10 trade cohdl-
tons said yesterday afternoon that the reduc-
lions made by the American Steel and Wire
Company would range from 50 to Sll ton
and would cover practically all steel and wire
products but that the prices of rails and billets
would not be affected. In fact, this authority
asserted that any cut in the latter products this
year was extremely improbable
..Competition has been very keen added the
United States Steel official and we have found
il necessary to meet cut with cut. do not believe
that a great price war is imminent. but at the
same time we cannot tell how far matters may
go"
1t is not denied by United States Steel Cor
poration interests that trade conditions are uh
settled gravely. and that tho reductions an
nounced by the American Steel and Wire Con;
pary are the direct result of the Repubhc
con1panv's recent action. BY these cuts the
steel and wire company Will be enabled 10
compete effectively with the Pittsburg Steel
Company which makes specially of the man
ufacture Of steel and wire goods, and which IN
obtaining its billet supply at Sl9 a ton
would have been able to underse a!
competitors 1t is understood that the Amer-
can Steel and Wire Company's new price list
announcement was ordered by the finance com
mittee of the United States Steel Corporation at
Of the members journeyed Il long distance.
Whether or not the rate war will extend from
wire products to other branches of the steel IN
dustry involving the disruption of some OF the
pools cannot be predicted with any degree Of
certainty, but the opinion is widespread that Il
cut in the price OF steel billets cannot we'll be
averted and that the Steel Billet Association
will soon be dissolved.
The Iron Age" a paper which carries much
weight in the steel trade. says. discussing the
present situation:
Considering the fact that the sentlemens agree
owy value the effect upon sentiment OF the receEc
occurrences has been rather surprising. So far as
the great mass or the tonnage OF finished stee' t.
concerned, the situation is nor st all change! J.
great companies which make finished products GO
Ing back to the ore are not affected at all. The
large consumers of steel either have thei.
sion contracts or their sliding scale contracts based
causes. Under these sliding scale contracts the
have been getting their steel az close 10 Slq for
time past. 1t IL only limited number OF
small outside FORCES and rolling mills have
been held up" under the gentlemcns agreement.
and with wide open market for steel ;hcy will
simply be placed in a somewhat better position o
fight for modest share in the finished lines. IN
n market like the present this may have iniu-
The real danger lies In the gathering signs OF a
disntegration among the more serious pools In
Beam Association. II is reported that this struc
ural pool has invited the Lackawanna company 70
enter. and that this invitation has been declined
OH the ground that the pool agreements We're not
being kept The outlook for the maintenance of
prices structural material is regarded e
| particularly promising There Is growing uneasi-
| ness, too, In the plate pool.
The course Of the steel shares in the stool,
| market yesterday did not reflect the current re-
ports that general and disastrous price war IN
! the steel industry has broken out. United States
Steel common, Of which about ninety-ny- hun
dred shares were sold. closed at 12la the highest
of the day, and Il per cent above Tuesday,
close. and the preferred. sales of 3SU,N
! shares. advanced to 593s and closed at $685. a
| net gain of - per cent. The popular cxplana-
| ton OF the strength of these issues was that the
| shorts were covering, the theory thai All
| the bad news was out" But whether or not
| that theory is correct remains TO DE seen Ten
nessce Coal and Iron gained full point as did
SOss Sheffield preferred. the latter on sales ot
| only one hundred shares. Republic Iron and
| Steel common gained Il and the preferred LOST
| Il point. the sales OF each being only five hun
| d-ed shares.