Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1909-02-20
STEEL TRUST OBLIGED
TO BREAK ITS PRICES,
Finds Business Leaving, Through Others
Cutting, and Announces That I'll
Will Protect Its Customers"

| New York, Feb 19-An open"
market in the iron and steel trade that
| manufacturers believe Will lead to Il
stimulation Of the industry was created
| late today when former Judge Ebert
| Fl. Gary, chairman of the directorate
| of the United States Steel Corpora
ton, made an official announcement
| that The "Leading manufacturers Of
iron and steel have determined to pro
tect their customers, and. for the pres
ent, sell at such modified prices as
may Dc necessary with respect OF diff
| t, rent commodities in orGer to retain
their fair share OF the business" The
prices which may be determined upon
will lie given by the manufacturers t.
their customers direct.
The action of the leading manu-
luctur"rs III cliectinS an open market
followed q series OF conferences that
have i, en- held here for the last three
days by Judge Gary and the heads
OF the various subsidiary COMPANIES of
the Steel Corporation. together with
officials of other steel manufacturing
companies.
Judgn Gary in tho official statement.
says that the smaller steel manufac-
turing concerns. iCr one cause O.; an
other, particularly the tariff agitation.
have become more or less excited ana
dcmora;iZcI ana have been selling their
products Below thosr. generally main
tanned and this led 10 NnrcasCnab bic
price cutting by certain manufacture
ers. WIN though opposed to change,
lett the nee, ssity of protecting their
customers.
The following is the statement con-
cerrin& the attitude of the leading
manuiu tuners. which was made pub
lie ~ Judge Gary after the meeting
Of tho steel makers today:
Following the panic of October, 1907.
the iron and steel industry was in ieop-
ardy. Johbers and consumers through
out the country had purchased large
stocks at prices prevailing when cOndi
tons We're Favorable. and these We're I'M
disposed of. Pending contracts for con-
Struction which involved large purchases
of iron and steel were extensive. Con-
tracts for new furnaces, mills and equip
ment, and for raw and semi-finished ma
terial had been made by large numbers.
An immediate and radical reduction in
mutitudes To prevent disaster and ruin,
and at the request Of scores who We're
interested, a large percentage Of the
leading men connected with this indus
try met to advise with each other in re-
gard to the best interests of all con-
cclned and including the general public.
Various meetings followed from time /"
time lp to the middle Of June, 1905. Ac-
Curate reports Of these meetings We're
given to and published by the neWSpa-
pers Partly. at least, AS result, stafll-
ity of prices as distinguished from Wlde
and sudden fluctuations. existed Wltli
about the beginning OF 1909, although no
agreements were made to MAINTAIN prices
and withstanding Il small percentage
of manufacturers stood aloot from the
conference.
For Il year preceding Jan, l. 1899, there
was a gradual, though not entirely reg
uIar improvement in the iron ana steel
trade and an increase in the sales maze
AS an illustration, the average dallE
| bookings of new business Of subsidiary
companies of the United States steer
CORPORATION were S322 tons for Deem
Der 1907. 1919 tons for June, 1908, ana
| ~ 6s5 tons for December. 1898. During
| these months the. total capacity of these
| conpanics was about 5000 tons per day.
| .,7ntil within the last tS hours it has
hean il,c belief Of many, if not most OF
the leading manufacturers OF iron ana
| steai that no general reductions III
nri.,es were necessary or desirable.
| However, during the last two days
many of the manufacturers have been
| no
TO one another all the information ana
| facts ohtainable concerning actual
conditions in details. 1t appears for
one reason or another. including par
ticularly the tariff agitation. many OF
the smaller concerns VINO nave ho'
haan disposed to cooperate during the
last ,ear have become more or less ~
cifed and dcmoralized and have been
selling their products at prices pei"N
those which were generally mait'di'i'"'
This feeling has been somewhat 'A-
tended and has influenced unreasohaoie
| emitting of prices by some Oh thoSe
who were opposed to changes pu, are
| compelled to meet condlticis III oi"ei
to protect their customers. AS a re-
| s,,lt of these conditions there mas peeh
| = material decrease in new business
during the last month for the reason
as stated by consumers, that they pro-
nosed to wait until after they were
satisfied bottom prices had peeh
reached.
I'm view Of the circumstances stat
cd and the further fact that the stocks
On hand at the time the panic occur
red have been disposed of and the con-
tracts in force at that time have been
completed or taken care OF so that
Inc necessities for the maintenance
of prices which formerly existed haze
heen modified the leading manufac-
turers of iron and steel have deter
| - T., ,,rotnct their customers and.