The sun., 1909-02-21
NO CUT IN STEEL RAILS
pRICE or S2S MAINTAINED BI
FIVE COMPANIES.
The Five Are the Only Important Manu-
facturers of Rails-some Independ-
Cnts 10 Cooperate With Trust In
Price Ilsts-NO General Trade War

injuries from consumers and a slight
Increase in orders. Inquiries we're par-
ucularly plentiful from the bulding
rrFdes and the orders for structural
-reel we're said to be more abundant
nan in any other branch OF the business.
r-t,e were reduced materially, and
though consumers naturally hesitated to
place large orders for future delivery until
assured that the bottom price had been
secured several sales agents said that
the new policy had already stimulated
trade.
II had been inferred from Judge Gary's
statement on Friday that the "modifica-
,ion- of prices would include steel rails.
aailroad men who inquired for the new
schedules yesterday found that this was
not the case as far as the five most i'm
portant manufacturers OF rails were
concerned. These FIVE, the United States
steel Corporation. the Cambria, Iacka-
wanna, bethlehem and Pennsylvania
companies. were maintaining prices at
the Did rate OF s2s ton.
These companies" an officer OF one
Of them said. have tacit understanding
which will keep the price Of steel rails
al s?s a ton. do not think that such
minor cuts as may be made by small
companies will have any real effect on the
trade as a whole, for these minor CON-
panies are unable to influence the trade to
any appreciable extent"
In connection with this cooperation
between the FIVE big producers OF rails,
i became known that some OF the most
important OF the independent com panies
propose to maintain the same schedule
of prices as does the United States Steel
Corporation. Among them. it was de-
cared in well informed quarters there is
iion. They have agreed to reduce prices
on everything except rails aud they have
also agreed to inform one another of the
prices charged on the various products
whenever a change is made. The steel
var, in other words. starts out without
any conflict between many Of the indie
rendents and the big corporation.
The United States Steel Corporation and
the independents which had maintained
prices put the policy of open mark ct selling
into immediate effect yesterday with cuts
all along the line. II was announced that
chicago is the price basing centre for the
Western field. As the worst Of the cut
ting has been done in that part Of the coun-
Try. this announcement is taken to mean
that the corporation will carry the war
INTO Africa.
While the prices quoted yesterday were
gwen direct to consumers and we're re-
garded as confidential It Is understood
that structural shapes are now 81 40
hundredweight, which is 81 n ton on.
,he biggest reductions are said to be in
'Ibes, which some Of the independents
ere reported to have cut as much as $40
q ION
In the stock market Steel stocks went
N Il. V..aI Mt n
.'dng quotation of AZ to Az, at which
rJ1 shares changed hands. 1t closed
i %. Steel preferred dropped from lllH
- lO95s, its lowest for the day. There
cIc transactions in 1885, shares OF the
ep.nmon and $500 Of the preferred.
81 present while there is now no stan
ard schedule it is thought that most
the big competitors will keep their
uotations at approximately the same
..ure by constant reference to each
hers prices 1t is suggested that Judge
,'ary lad some such method OF maintain
ag stability Of prices in mind when he
Used his statement on Friday by Gssert.
rrg that the intercourse between the
Ir,ncipal manufacturers for the pur-
rose Of giving and receiving Information
"il not he abandoned.
Another factor which will tend to pro- |
Guce harmonious market. steel men said, |
b, the fact that the manufacturers don't
I
luere will be competitive bidding. but the
,g,tomer who adopts the buying policy |
If running in and out OF offices will find, ,
.alesmen say, that the prices quoted TO
m won't be good from the time he shuts I
he door. /
Some of the independents do not take ,
an optimistic view OF the situation. John /
\ Topping, president OF the Republic :
iron and Stee! Company. said yesterday
rhdt he was apprehensive for the future
We regarded the market as badly demor-
WED
Under present conditions he added
prices will rapidly, reach a cost ieyei.
consumption should be stimulated, but |
labor will be necessarily involved in .
general readjustment toward lower cost,
In other quarters IL was believed that
ihe present situation is transitory and
'Ia' as soon as the trade returns 10 nor
mai the Steel Corporation Will again dom'-
late the market.
Here is the situation" explained one |
manufacturers representative. The
II Ills Of the country are turning out say
.uly half the product they are capable
= The United States Steel Corporation,
Tuich controls normally about 20 per
mt of the total output OF the country,
.nIer present conditions could stop work
c'''relv and the present demand could
almost be met just the same With the
independents underbidding the schedule
which the corporation maintains " ~
'hY lous where The new business lis gong
IS soon as the mills return to full capacity.
however, the Steel Corporation can again
establish standard quotation WHICH the
''hers will observe
1t was also said that Judge 6ary's
announcement implying an open market
j. only an official recognition OF the fact
that the gentleman's agreement OF June,
1915 has not been lived up to in good
faith by all OF the participants. While
u is not charged that any one broke "
absolutely steel men say that the Offenders
saved themselves on a technicality by
taking their payment in securities whose
face value equalled the amount OF the
contract at the schedule quotations, but
which were selling below par,
PIrTsBURG. Feb. 20.-No development
m the steel industry in recent years has
,dGsed so much comment as did the acton
laken in New York on Friday when the
uitad Steates Steel Corporation and
I,me Of the larger independent pro-
ducors declared an open market.
The wages of many thousands OF steel
WORKERS will depend entirely upon the
action TO he taken by manufacturers
WIN the recent reductions in prices
here is said to be so little difference be-
tween the cost OF production and the
selling price that the employers VIII he
compelled to reduce wages. This. how
ever will not be done until the price
schedule has been arranged.
here is great uneasiness among steel
Workers Many OF these men who were
without employment for several months
have reen reinstated in the last month
VIM" no official statement has been made