New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-06-01
MAY CUT STEEL WAGES
Independent Manufacturers May
Make 6 Per Cent Reduction.
LOWER PRICES THE CAUSE
United States Corporation Not to
Act Before Next Janu-
ary, if at Ali.

cut in wages by the independent steer
manufacturers approximating per cent IS
,Lelv 70 follow the general reduction In
steel prices decided on at the conference
called by Judge Gary. of the Steel Corpora
ton. on Monday. The cut will probably go
into effect on July 1, when most of the
labor contracts of the independents expire.
Tho steel Corporation will not make cut
before January !. il at all, as its labor con-
tracts run until that date, and it is con-
sidered likely that by that time the steel
market will have so far recovered that
wages will be restored all along the line.
This was about the course followed In
The price war OF 1909. when the independents
cut wages. but the steel Corporation main
tanned its wage scale. Al that time the big
company held on. and prices soon recov-
cred, so that cut in wages was not ncces-
sarv, and no change was made by IL until
April OF last wear when 6 per cent ad-
vance in wages was declared throughout
ifs plants. The cut by the independents IN
1893 was 10 per cent
The liquidation In steel prices Will most
certainly. In my opinion, force hquida-
ton IN labor" said one independent manu-
facturer Yesterday The margin OF prof
81 for the independent manufacturers Is
now very small, and Il IS not unlikely mat
competition will force prices still lower AS
soon as the wage reductions come the
trade will be on a firm foundation 10 re-
sumo its upward march. The high price OF
labor compared with the low price Of steel
f. one Of the obstacles that now lie IN
the wav OF general improvement To re-
duce labor costs is the natural thing Tor
the manufacturers to 90. Everything else
IS liquidating and it IS now labor's turn.
u is understood that at the conference
on Monday the cost of labor was one Of the
subjects considered. and that there was
difference OF opinion between the Steel
Corporation and the Independents. The
difference was not serious. however, and II
IS not considered likely that any trouble
will follow from il.
The cuts in the prices of steel products
announced range from 81 10 81 a ton. They
take in every class OF material except wire
products and tin plates. in which prices
were advanced a few months ago. and
steel rails The reductions are net as large
however. as those made by the Steel Cor
poration after the open market of 1909.
According 10 steel manufacturers. there
0fen q
received on a basis OF the new price sched
ule One of the Independent companies IS
now orerating close 10 50 per cent OF its
capacity as compared TO 50 per cent two
weeks ego Manufacturers argue that as
prices are lower than they have been In
years sufficient business should he attract
ed 20 bring about a large increase in mill
operations.
Concerning the cut in steel prices The
Iron Age" says:
Those who bark hack TO the happenings
az February. 1909 and expect a similar wiz
scramble for business among steel manu-
facturers TO follow the events Of the last
week will very probably be disappointed.
Conditions differ in many respects from
y those prevailing two years ago. Prices OF
steel products have not recently been as
i high by several dollars a ton as those pre-
4 vailing in 1909 before the open market Was
declared. We are emerging gradually but
n Auences outside Of the steel trade. Tho
4 important antitrust cases have been de-
C.ded by the United States supreme Court
end large business interests are freed from
trat suspense. II is believed that railroad
business u banking up by reason Of the
long period Of enforced economy amon%
railroad companies and that within a rea-
eonable time buying IN that direction Will
loosen up.
The Iron Trade Review" says.
Manufacturers do not expect any marked
Improvement in business as result Of the
recent reductions in prices of finished ma
ferals They are NOT willing 10 grant,
however. that there will be further reduc-
tons. which i'm plates. shapes and bars al .
expected by buyers.
Some Of the companies are very conser-
VatIye about making contracts. The car
reCie Steel Comp5ny especially is en-
rnatlc In it, instructions 10 agents that
contracts must be made cautiously and
with distinct understanding that they Will
ie adLar4l