The San Francisco call., 1909-02-21
STEEL TRUSTS CUT
AID TO PROSPERITY
Reductions in Prices Hailed as
Likely to Increase Building
Activity in Country
Railroad President Says Good
Results to Follow Can Not
Be Computed
[Speciial Dispatch 10 The Call

[Special Dispatch 10 The Call
businessmen declared today that the
reductions in the prices of steel, an
nounced Friday by Judge Gary, chair
man of the executive board of the steel
trust. meant return of prosperity.
President W. C. Brown of the New
York Central said the good results that
will follow will be too numerous for
computation.
President Paul Starrett of the George
A. Fuller construction company and
President Robert E. Bowling of the
City investing company We're equally as
hopeful. but none OF the three believed
there would be a steel war. They said
that the return of building activity
would soon make the demand greater
than the. supply and that all the steel
mills would receive more orders than
they could fill.
Il regard the cutting of the prices of
steel as one of the highest Importance
to the businessmen Of the entire coun-
try" said Brown.
Whatever construction we are TO do
in the present year has been arranged
for and the contracts let but it is not
in this respect chiefly that the rail-
roads of the country are to benefit.
1T will be IN increased earnings
with the return of business activity.
This return has been slow enough, but
within the last few months it has been
marked and the reduction in steel
prices ought to hasten it and help busi-
ness of all kinds.
Schwab Discredits Report
PARIS, Feb. 20.-Charles NJ. Schwab,
who has been in Paris for the last two
days, departed tonight for the Riviera.
Before leaving he saw The Call corre-
spondent at the Hotel Meurice and in
reply to a question regarding E. H.
Gary's steel trust policy announcement.
he said: II have received no news OF
Judge Gary's announcement. For this
reason L can not discuss it, but L am
inclined to believe that the report you
bring me, as well as what / have seen
in the Paris newspapers. is either un-
founded or exaggerated.
Price of Rails to Remain
NEW YORK, Feb. 2O.-Assurances
that the price of steel rails will not
be cut as a result of the price cutting
in finished steel products were given
today by men in high authority in the
steel manufacturing business. The re-
port of leading steel producer said
that the United States steel corpora
tion, Cambria steel company, the
Lackawanna steel company. the Beth
lehem steel corporation and the Penn
sylvania steel company are opposed to
reduction in the price of rails. 1t
was stated by steel official today that
the SPhpdnIQ nf in fbp
steel mills will not be changed until
the new tariff rate on steel is known.
Wages Not Yet Affected
PITTSBUG, Pa, Feb. 20.-Concerning
report that the wages of the steel
workmen probably would be reduced on
account of the open market arrange
ment, it is said, unofficially, in steel and
iron circles here that wages will not be
affected at all.
1t is believed, however, that if the
tariff reductions are large a cut in
wages will follow Immediately.
1t is said that by the first of the
week more cuts will be announced in
the prices of iron and steel.
James A. Campbell, president of the
Youngstown sheet and tube company,
who also represents large independent
interests, said today:
Every one is for himself in regard
to the prices for iron and steel and
there will be no united action by the
independents. Prices will be made by
individual concerns and there will be
no attempt at concerted action"
Price War Not Feared
BETHLEHEM, Pa, Feb. 2o-The an
nouncement that the United States steel
corporation will cut iron and steel
prices does not seem to worry the Off
cials of the Bethlehem steel company.
President Schwab is in Europe. Alocal
official said today that he does not fear
price cutting war; as the independent
concerns can not compete with the steel
corporation.