The sun., 1909-02-20
US, STEEL WILL CUT PRICES
RI RPOSE TO "RETAIN THEIR
FAIR SHARE or BUSINESS"
independents Hopeful. However, That
the Concessions VIII Not He 90 Heavy
ss 10 Be DemsrsI,zins aumsrs
Downtown % Cuts Already Made.

80 10 Be DemeralixtnE -num sr
Downtown q Cuts Already Made
Judge E. II. Gary. chairman OF the
United States Steel Corporation, issued
statement yesterday In which he said
The leading manufacturers Of iron ane
steel have determined for the present a
least to sell at such modified prices a,
may be necessary In order to retain thei,
fair share OF the business
The Steel Corporation was organized
in 1901 largely as a result OF the price
war OF 1900. in which the price OF steel
bies vent down from Sss a ton 10 Al
within six months and rails from sss
to s'o. Ever since its organisation the
corporation has been steadyins influence
on prices. and this announcement that n
will hereafter depart from observing any
schedule Is taken to imply that another
price war threatens.
Judge Gary's statement is az follows;
Following the panic OF October. iso,
the iron and steel industry was In icon.
srdy. Jobbers and consumers through
out the country had purchased large stock.
a. prices prevailing when conditions were
favorable and those were undisposed OF.
Pending contracts for construction which
involved large purchases OF iron and steel
we're extensive. Contracts for new fur.
naoes. mills and equipment and for
raw and semi-hnished material had been
made by large numbers. An immediate
and radical reduction In prices would have
meant bankruptcy to multitudes. To pre-
vent disaster and ruin and at the request
OF scores who were interested q large per-
centase OF tho leading men connected with
his industry met to advise with each other
In regard to the best interests Of au con-
orrned and including the general public.
Various meetings followed from time to
time up 10 the middle OF June, 1905 Ao-
Cura;e reports Of these meetings were riyen
TO and published by the newspspers
Patty at least as a result stability Of prices. |
rs distinguished from wide and sudden |
71c'ustionS existed until about the be- |
sia1SnS Of 1899. although no agreements
were made TO maintain prices and not !
outstanding a small percentage OF manu-
fscturers stood a,oof from the conferences,
for year preceding January I, 1909.
there was gradual though not entirely
regular Improvement In the iron and steel
lrade and an increase In the sales made,
rs an illustration the average daily book
lnss OF new business OF subsidiary COM
psnies OF the United States Steel Corpora
lion were s.sa2 tons for December, 1907.
$50 tons for June. zoos, and 90 osS ton. for
December. 1908. During these months1
The total capacity OF these companies was
about $1,000 toes per day.
tntu within the last forty-eisht hours
Z has been the belief OF many IL not most
Of the leading manufacturers OF iron and
steel that no general reductions IN prices
we're necessary or desirable. However.
durtns the lest two days many OF the manu- I
iactarers have been in conference for the
purpose OF giving to one another all the IN
Information and facts obtainable concern
ing actual conditions In detail. IL appears
hat for one reason or another. including
particularly the tsrin agitation. many OF
the smaller concerns who have not been d
disposed to cooperate during the last year
have become more or less excited and G
demoralized and have been selling their n
products st prices below those which were !.
generally maintained. This feeling has
been somewhat extended and has Influenced y
reasonable cutting OF prices by some Of q
hose who were opposed to changes but
felt compelled to meet conditions in order q
10 protect their customers. As q result F
N these conditions'there has been q mat erial n
decrease in new business during the last II
m1nth Tor the reason. as stated by con- e,
suners, that they proposed to walt until
amer they were satisfed bottom prices had
been reached Ia
10 view Of the circumstances stated, and m
the further fact that the stocks on hand aI
at the time the panic occurred have been tr
disposed OF and the contracts in force at ~
nat time have been completed or taken =,
are OF so that the necessities for the main -. -
snanee Of prices which formerly existed IN
ave been modified. the leading manufac-
urers OF iron and steel have determined to ca
rotec' their customers. andfor the present nj
east sell at such modified prices as may tit
e necessary with respect to different -.
commodities in order to retain their fair VI
hare OF the business, The prices which az ~,
lay be determined upon and the details u VI
oncerning the same will be given By the -, III
lanutacturers to their customers direct ~
: occasion may require. r.,
Inc friendly relations which have existed a"
e'ueen the principal manufacturers will n,
'nonue and the intercourse bet ween them
v the purpose Of giving and receiving
formation and the expression Of opinions j
'ncernine trade conditions will not be tol
osndoned. NJ,
Inc issuance Of the statement fol- be,
wed an informal conference OF Thurs hir
~ with number OF the leading indie ms
'ndents. The situation was thoroughly frc
'nvassed but no agreement was reached n, ma
either side. The independents, 1t 10 an. on
lderstood refused to be bound By the fou
esent scale. and the corporation, in pie
e~ OF the fact that there 10 an enor- ,,,
ous tonnage shortly expected to come VIC VIC
10 the market from the Pressed Steel Bio
" Company as we'll a. from other manu- Tn,
curing sources. found itself compelled va.
take the stand II lid. ira
The attitude Of the United States Steel n,
rporation, ii is said. has been con- was
latory from the start. but the aggres- lost
'eness Of some Of the independents tho
10 have been underbidding and reach oo soo
out in addition for the customers Mn
ts big rival has forced the corporation nj
o abandoning the one price policy the
Ich its officers say II has always stead sun
ty maintained. Org
however, the independents profess to '"'
'e no fear that the rate cutting will
10 extremes. An officer Of one Of the
gest Of the independents said that IL Wir'
cut went deeper than $50 a ton il
I'D surprise him 1t can't 20 much n,
er he said. -or we'll all be making shin
y al loss. and the feeling bet ween the hun,
companies In still too cordial n var- n II 3