New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-05-25
THREATENS CUT IN STEEL
Republic Company Crowded Out
of Its Share of Tonnage.
GARY HOPEFUL FOR PEACE
Bars Now offered in Pittsburg
for S125 Per 100 Pounds, a
Reduction of So a Ton.

! the largest OF the concerns outside of The
United states steel Corporation. in an
nouncing yesterday through John \. Top
ping chairman OF the board that on ac-
/ count Of the low prices OF iron and steel
| bars made by some ~ the smaller manu-
| facturers his company had been unable 10
secure what il regarded as a fair propo~-
ton of current tonnage. and had been IN
able to maintain an economical operation
on that account and that the board had
therefore determined on a more aggressive
sales policy.
The change OF policy was decided upon
by the directors OF the Republic company
a. a meeting yesterday. and its announce
ment by Mr.. Topping was made TO the
representatives Of the other important steel
manufacturing companies II is understood,
at luncheon in the Railroad club, at
which they were present as members OF
the American Iron ana Steel Institute,
Judge Gary, chairman Of the board Of the
United States Steel Corporation. being the
host. Judge Gary before leaving the city
late in the afternoon for Chicago. said.
'I have seen the statement published By
John A. Topping, chairman ~ the Re-
public Iron and Steel board. and have con-
suited many Of the prominent and repre-
sentative men connected with the steel in
dustry. Just what the outcome Will be
cannot say al this time I believe. how
ever, that the friendly and cooperative re-
lations which have heretofore existed will
be continued by the steel interests sener-
ally Our principles and policies have here
tof0re been stated and published ! cannot
be more specific for the present"
The depression in the steel industry has
been matter Of common knowledge for
many months. relieved only by a period Of
comparative activity in the first quarter
Of this year. and there has been shading
of prices on many products by the small
outside manufacturers The Steel Corpora
ton. however. and the big independents
among them the Republic Iron and Steel
Company. the Jones & Laughlin Steel
Company. the Lackawanna Steel Company
and the Bethlehem Steel Corporation. have
up 10 this time stood in general agreement
20 maintain prices. although there has
been for some time a persistent rumor that
the open market policy might be adopted
before long. many interests urging that
only through granting concessions in prices
could a large business be secured and in
consequence OF the widespread impression
that this course would be decided upon
many extensive orders from consumers
have been withheld.
A week or so ago IL was reported that
a cut was about to be made i'm the price
Of steel bars Of which the Republic COM
psnv Is next to the largest producer In
this country; and Yesterday it was learned
that bars were being offered in the Pitts
burg district al s. p a ion pounds. reduc-
ton Of 50 a ton from the official" price.
Reduction for Entire List.
The Republic company is also large
manufacturer Of other steel products. in
Guiding tubes. spikes bolts nuts and bill
lets and # is said that il will probably
announce soon reduction in it's entire
list Of products. None of the other com
panies associated with it in the under
standing as 70 price maintenance, which
has existed since the ending Of the open
market Of February 1899. has yet taken
action in regard TO lowering prices. as Is
indicated by Judge Gary's statement. but
it would not surprise Wall Street If the
move Of the Republic company should be
met by them.
The policy Of the Steel Corporation has
been uniformly in favor Of price main
tenance. although the corporation took
prominent part in the cutting OF rates two
wears ago. The most recent expression Of
its views was made by its president
James 4 Farrell. in a speech az the an
nual dinner Of the American Iron and
Steel Institute two or three weeks ago. iu
which he said that he did not believe that
any business could he forced hy change
Of prices. adding.
we have cot 20 sacrifice our order
books unless We want % precpitate con-
dition OF affairs which. as Mr.. Schwab
saws. means an era Of low prices and per-
haps a continued situation in that line
II We have patience. 7 am satisfied that
Within a very short time we are going
to be very we'll pleased with the trade
conditions IN this country
In the general reductions Of 1909 steel
rails were not affected, and It is believed
that whatever readiustments may he made
in other prices AZ this time the figure on
rails will be held al SIS a ton. a which f.
has ruled since 1901 Announcement was
made only a day or two ago that the Mis-
souri, Pacific had authorized the purchase
of 400oo tons OF rails. and it is commonly
understood that other large systems. which
have been pursuing a hand .to-mouth policy
in the matter Of buying rails. will soon
have 10 come into the market in order %
put their lines into condition 10 handle tho
heavy traffic which IL expected 10 develop
when the Improvement IN general bust
ness. Of which indications are now seen.
shall come.
Big Cuts in War Of 1909.
I'm the price war Of 1880 the cuts were
from 81 10 81 a ton. Consumers did not
rcsrond Immediately 90 these reductions.
Int orders later became heavy. prices then
rising rapidly. Prices are al present con-
.,derahly lower than they have been for
several years. even taking the current Of
fetal quotations az the basis OF calculation.
The shrinkage from the average OF 1907
has been between s. and s6 a ton. and
prices are now about equa' 20 the average
in 1909
The news of the independent attitude
assumed by the Republic Iron and Steel
/ onpany. which was interpreted rs mean
/ in~ a period of unrestricted competition
/ IN, business among all Of the steel manu-
! lecturers large and small. caused weak
ness In the stock market throughout the
LIST. steel common declined n. points and