New-York tribune., 1909-02-21
STEEL BUSINESS In AIR
CIT IN WAGES EXPECTED.
Market Badly Demoraliaed and
Break an Shares FOUOJcS.

Decentralization in the steel business has al
ready set in as = result Of the United States
steel Corporations declaration for an open mar
ke+ following the violation Of the ~gentlemens
agreement 10 maintain prices by some Of the
independent companies Prices Of nearly all
e-ades Of dnlshed steel products are down from
81 10 sl2 ton Reports that the price Of steel
rails had been CIT from SOS. at which it mas
been held Cor the last eight years, to S25 ton
were officially denied both here, by IN officer
Of The United states steel Corporation and in
Pittsburg
one result Of the price war that is now going
on steel manufacturers say, viii be a reduction
in the wages Of all steel workers The reduc-
tiorss j. is said viii probably be put into effect
by AIay-l bv some of the independent COM
ranfes The steel corporation viii be the last
10 lower the wages Of its employees. it is be-
Iieved.
Notwithstanding the cuts in prices that have
been made. there has been little buying. as con-
suners are holding off in expectation Of further
concessions Many OF The independent manu-
facturers gave il as their opinion yesterday that
no impetus 10 tn steel business would result
from the open market action Of the steel cor
poration but slat, on the contrary. the direct
effect would be TO dissuade buyers from giving
orders With a fixed price for steel products,
they said. CONSUMERS did not hesitate 10 buy
vr-hPr
present conditions they VIII hold off fearing
that some competitor may buy at lower price.
VIEWS OF JOHN A TOPPING.
John A Topping chairman of the board Of
the Republic Iron and steel Company. said with
regard TO the open market policy of the steel
corporation.
"As 10 the effect Of the action taken serious
results have already followed as is reflected by
tte heavy cuts in prices Of almost all steel COM
rnodities and the market is badly demoralized-
Prices under present conditions will rapidly
reach cost level. and under these conditions
corsurnption should be stimulated. Labor will
necessarily he involved in a general readjust-
rnent toward lower cost, necessitated by the
change in trade conditions and in anticipation
Of tariff revision. That the disturbance in the
steel market viii he farreaching in its influence
goes without saying
That The steel corporation means to carry the
price war directly into the enemys territory was
81 own by the announcement yesterday that Chi
caEo was 20 be the steel price basing centre Of
she entire West. Independent manufacturers in
the West we're the first 10 break the gentle
mems agreement Of last June. and have been
the most persistent in underselling the steel
corporation ever since, and the making of Chi
cago the war centre IS regarded by the trade as
evidence that The latter concern intends TO con-
Duct fight 10 a finish against these independent
A
earnings equal TO SIS a ton on its steel. as
against earnings Of only from So to SO ton for
the independents il is evident that in q finish
fight the trust" viii be the survivor
That the present price war viii postpone for
an indefinite period any action looking toward
an increase IN the dividend on the common stock
OF the United States Steel Corporation was the
o0nceasus of opinion in financial circles yester-
day It was pointed out that average reduc-
= TirfS nod ste cfS
would make great inroads the earnings Of the
steel corporation as well Of the independent
companies. and that consequently lean state
rnents Of earnings from the former could be ex-
rected for some tine to come
EFFECT IN STOCK MARKET.
The official announcement of the steel corpora
tons intention reduce prices 10 point nee
essary to bring il fair share Of the business.
which appeared in the morning papers yester-
day, although discounted to some extent on Fri
DAY, caused a further break in the Steel shares.
and the rest Of the market fell in sympathy 10
the lowest level in most instances since the pres
ent downward movement began.
United States Steel common stock sold down to
&c at which it,closed, after opening at 47Es. AS
il closed on Friday 4S2s. the net loss for the
day WIS 29s points. The total transactions
amounted to 133. 500 shares which was exceed
inglv large for half days trading. Yesterdays
and the high record price Of 5Ss4 reached by the
stock last fall in the upward movement Of the
stock market following the election Of Mr. Taft.
Steel preferred also showed net loss of 29s
points at the close Of the market yesterday.
After opening at l111z il dropped TO 1095s at
which figure it remained until the end. There
were even more violent breaks in the stocks
Of other steel companies. Republic Iron and
steel common broke AZ points. TO Ia and
closed AT IS14 a ne loss Of points for the day
The rrferred dropped from SO TO % z, at which
il closed at q net loss for the day S points
colorado Fuel and Iron fen over points 10
s0sk. and bethlehem Steel, both common and Q
preferred, lost Z point