New-York tribune., 1909-02-20
STEEL CORPORATION
WILL MEET CUTS
TO WAGE PRICE VAR WITH
INDEPENDENTS.
Er-Judge Gary Announces Aba'1-
donment of Stand Pa" Policy
BIames Small Concerns.

United States steel Corporation announces the
abandonment OF the stand pat" policy. Of which
it has been a constant advocate for the last
year or more. and practically declares for an
open market for manufactured steel products
The statement. which prepared by ex-
Judge E H Gary chairman OF the board OF
directors of the corporation. reviews conditions
in the steel trade for the last year and half
and saws that until within the last forty-eight
hours 1t had been the belief OF many. II not
most. of the leading manufacturers OF iron ana
steel. that no general reductions IN prices were
necessary or desirable
II puts the blame for the cuts IN prices whicn
have taken place recently the smaller con-
Germs, which it says have become more or less
excited and demoralized for one reason or an
other. but particularly because OF the tariff agi-
tatfon. This feeling on the part Of the sr,an
concerns the statement says. has been some
what extended and has Influenced unreasonaolo
cutting of prices by those who we're opposed 70
changes but felt compelled to meet conditions to
protect their customers
1t adds that because Of these conditions and
the further fact that the stocks on hand Ee the
time the panic occurred have been disposed OF
and the contracts in force at that time com
pleted or taken care OF. thus modifying tbs
necessity for maintaining prices which formerly
existed, "the leading manufacturers OF iron and
steel have determined to protect their customers
and, for the present at least. sell at such nodi-
fed prices as may be necessary with respect 70
different commodities in order 20 retain their
fair share of the business"
PRICES WILL BE GIVEN DIRECT
The prices which may be determined upon and
the details concerning the same. the statement
goes on to say. will be given by the manuract-
urers to their consumers direct as occasion may
require.
While thus announcing the steel corporation's
intention to meet the cuts OF its competitors. the
statement says finally that "the friendly rela-
tions which have existed between the principal
manufacturers will continue. and the inter
course between them for the purpose Of giving
and receiving information and the expression OF
opinions concerning trade conditions will not BE-
abandoned
notwithstanding this pouring oil on troubled
waters" however. it is the general opinion in
steel circles that a price war will result. the
end OF which no foreteH 1t Is recog-
nized. however. that the steel corporation is in
a position to take care OF itself. matter what
the reductions may be- AS the head Of one i'm
portant steel firm put it: The steel corpora
ton will probably win in the end. II
manufacture steel more cheaply than any Of the
other companies"
This is the first time since the organization
of the United States Steel Corporation that an
open market has existed for steel products. with
the exception of rails The year previous TO the
formation Of the trust. which was in 1901. there
was a ruinous price war in which all the pres
ent subsidiaries Of the steel corporation took
part That simiIag war is about to take place
between the trust and the independents seems
70 he the belief in trade circles It is reported
in this connection that the independent con1pa-
nies are organizing to protect themselves
against competition the part OF the steel
corporation
That the price war has already started was
shown in the dispatches from Ptttsburg and
Chicago received in Wall Street yesterday
These stated that the Carnegie Steel Company
had made cut equivalent to 81 a ton IN the
price Of steel bars. that tubes had been re-
duced from SO to So a ton. and structural
steel from 81 so TO 81 % a hundred pounds
which is equivalent TO 81 ton These are the
most severe reductions which have taken place
in years.
BIG CUTS OBJ 1900
In the price war Of 1900. biI1ets were cut from
s33 TO SIT a ton within six months. and rails
from S35 TO S26 In the panic Of 1893 billets
fell to SIS 46. and IN January. 1885. they went
still lower touching S14 70 The low point or
S43 e6 was touched in May. 1897 The low point
for steel rails was reached IN 1898. when thsy
fell 10 SIT a ton Whether the present price
war will affect steel rails remains to be seen
In the statement given out yesterday nothing
Is said about rails but it Is the general impress
sion in the trade that a price war can mean
nothing less than a reduction OF steel rails
The omen market policy Of the Steel Corpora
+ion aItbouRh not announced until long after the
closing hour. was anticipated in the stock mar
ket which was more OF less demoralized all
dav. Steel, common and preferred. both made
new low records for the year. the former touch
ing As and the latter 1111z. after opening AZ
49ss and 1928. respectively
Judge Gary's statement, which followed
three davs. conference ending late yesterday at
ternoon between the leading officers OF the United
States steel Corporation and the heads OF its
subsidiary concerns. at which the conditions In
the trade were thoroughly gone into. follows;
Following the panic of october, 1907. the iron
and steel Industry was IN jeopardy Jobbers
| and consumers throughout the country had pur-
chased large stocks at prices prevailing when
conditions were favorable. and these were
disposed Of Pending contracts for cOnStruC-
zion. which involved large purchases Of iron and
| steel were extensive. Contracts for new fur
naces mills and equipment and for raw and
semi-dnished material had been made by large
/ IN prices would have meant bankruptcy to null
/ tittides To prevent disaster and ruin. and ct
the request of scores who were interested.
i large percentage of the leading men connected
/ with this industry met to advise with
other In regard to the best interests OF all con-
/ cerned and including the general public.
Various meetings followed from time TO tine
| ND to the middle OF June. 1908 Accurate reports
| of these meetings were given TO and published
/ bv the newspapers Partly. at least as a re-
/ suit stability Of prices distinguished from
vide and sudden fluctuations existed until aborf
! the beginning OF 1909. although agreements
| were made to maintain prices and nOtwithstand-
ing small percentage OF manufacturers stood
/ aloof from the conferences.
/ a preceding January I 1909