The Washington herald., 1909-03-14

New York, March 13-Buying. which de-
veloped for the first few days after the
Steel Corporation announced its change
in price policy. has subsided. and con
sumers appear Indifferent as to the course
OF the market
No pronounced increase in orders is ex-
pected by manufacturers and consumers
until the contents Of the new tariff bill
are known. Drastic cuts in the duties on
steel are believed likely. In certain quar-
ters the elimination Of the duties on iron
ore and pig iron is looked for, which in
Itself is a disturbing element. as sharp
competition on the part Of foreign iron
producers will be invited.
Then again consumers expect further
readjustments in the prices Of certain
classes of steel. including wire products,
tin plate. and rails. which so far have
not been touched. This has resulted in
a falling off in orders for light finished
material. which was in fairly good de-
mand previous 20 the reduction in the
prices OF structural steel, plates, bars. &c.
Views of "A Manufactures.
One OF the leading steel manufacturers
summed up the situation as follows:
The amount Of business now being
booked by various steel companies is less
than % per cent Of capacity. perhaps 20
per cent. Tariff agitation is keeping con-
sumers out OF the market. They realize
that the prices for steel are very low, but
.hey fear unfavorable developments be-
fore the new tariff bill becomes a law
There Will be no strikes. but It is not 10
be expected that a general reduction in
wages can be put in force without some
sor. Of demonstration On the part OF the
working classes. There will have 10 be a
liquidation OF labor. the adoption Of a
reasonable tariff bill and a general indus
trial readjustment before we can expect
any pronounced Improvement In business.
THE steel companies continue TO oper-
ate on a basis Of between 90 and 50 per
cent. but I look 10 see production fall OF
within the next two or three months.
which will be the natural result OF the
Industrial readjustment The Steel Cor
poration, I understand. is receiving at
the rate of between 1890 and 10000 tons
OF steel business a day. The independ-
ent companies are getting less Under
such conditions anything but a shrink
age in production would be surprising.
The steel cOmpanies-and the Steel
Corporation is not excepted-wil present
some slim statements OF earnings over
the next few months. Unless there is a
change for the better, certain steel com
panies will find 1t difficult to earn the IN
terest on their bonds. let alone dividends
on their respective stocks. I am an op-
tmist so Ear as the future is concerned
but there are yet many obstacles TO sur
heF
permanent improvement"
Expects Wages TO BE Cut.
One steel manufacturer figures that a
reduction in wages ranging between 10
and % per cent will mean a total shrink
age Of Sl0o,oO00o0 a year in the income Of
employees Of steel and iron companies and
allied concerns. He argues that with
such a heavy shrinkage in income. 2 re-
ductica in the cost Of living must neces-
sarily follow
The net earnings Of the United States
Steel Corporation for the current quarter
are expected TO show falling off of sew
eral million dollars as compared with the
preceding quarter. The second quarter Of
the current year Will reflect the sharp
contraction in steel prices, and earnings
Will reveal a shrinkage more severe than
reported IN some time past.
Wage reductions. anticipated dividend
cuts by certain steel companies. the fail
uFe or me Deering Coal Company. pass
ing of the common dividend OF the PafI-
way Steel Spring Company. unfavorabIe
steel reports 10 be issued over the next
iew weeks and disturbed Industrial condi-
uons in general have been responsible
Tor the small recovery IN the shares of
the steel companies from the sharp break
following the announcement OF the open
policy Of manufacturers