The Birmingham age-herald., 1904-08-21
J. s. SPELLS CUT
 ABSORBING TOPIC Creates Great Stir in the Steel
 Making Circles NORMAL OUTPUT OF WIRE  Iron Age Says Trusts Action Not as GentIemen's Aereement-Was
 Always Shadowy-Effeet on
 Sentiment Surprising.
NORMAL OUTPUT OF WIRE

The United States steel corporations cut in the price of wire products is matter of much interest in the Birmingham dis triot, as the fight of the big trust against the independent companies is expected to be far reaching in it's results. The steel corporation nul4Ified at one blow the eff feet of the agreements rlade by the Re public Iron and Steel company and the Pittsburg Steel company Is selling billets at s13 ton.
 While rails and billets were not af- fected by Thursdays cut, it was realized that a great price war Is imminent and this in spite of the fact that the heads of the big iron and steel companies in New York and Pittsburg would not admit that they had reduced the price of structural steel. An open market was predicted in all the principal steel products excepting rails.
 It Is rumored that the Tennessee Coal, Iron and Roalroad company and the Re public will join the Plttsburg company in making vigorous fight on the trust, but this lacks confirmation.
 Cut in Gross Income.
 The New York Herald of Friday says: "Despatches from Plttsburg announced t4.at the cut extended from $5 to SIP a ton. As the normal annual output of wire pro- ducts of the United States Steel corpora tion is about 100000 tons, 1t was esti- mated that the gross income of the sub sdiary companies manufacturing such products was thereby cut down from $5,- OOO, 900 to s12,OOOOOO a year.
 "There were indications also of general Generalization among the members of the billet association. The beam associa- ton only recently invited the Lacka- wanna company to become a member of it's pool, but the company declined the offer, asserting that the pool agreements were not being lived up to. Prices on structural material have begun to waver and signs of disintegration are evident in the plate pool.
 "In this connection the Iron Age makes the following summary: Considering the fact that the gentlemen's agreement in the steel trade has long possessed a shadowy value the effect upon sentiment of the recent occurrences has been rather surprising Certain demands have been made upon the Republic company in con- neetion with the conversion contract, and have been aatly refused, and there the matter rests.
 "So far as the great mass of the tom mage of finished steel is concerned, the situation is not at all changed, whether bllets are selling at $23 or at $l9 The large consumers of steel either have their conversion contracts or their sliding scale contracts based on pig iron, which has de- elined from natural causes.
 Light Rail Prices Drop.
 Under these sliding scale contracts they have been getting their steel at close to $19 for some time past. 1t is only limited number of small outside forges and rolling mills who have been held up un- der the gentlemens agreement.
 Tn the meantime the selling prices of light rails are showing a further decline and what little business is doing Is being fought for until at times as low as s1S.50 and $19 at mill is being accepted"
 One of the officials of the American Sheet Steel and Tin Plate company said that the sweeping cut would not affect their prices at all
 That" he said Ifs because we made our cuts in advance in June and July, when we reduced sheet steel and tin plate each s a ton"