Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1917-09-27
Of STEEL
IS GUT IN HALF
General Public, U. s. and Allied
Governments to Share in
Reduction.
WAGES REMAIN THE SAME.
President Approves Voluntary Agree
ment Of Producers and War
Industries Board.

Washington. Sept. 24.-steel prices in
the United States were cut In half to-day
when President Wilson approved a scale
of quotations fixed in a voluntary agree
ment made by producers with the war in
dustries board. The general public, as we'll
as the American and allied governments,
will share in the reductions, which go into
immediate eeffct and the agreement pro-
vides that producers shall not reduce
wages.
The prices will obtain until January 1,
1918, to be revised then II investigation
shows they are inequitable.
DISTRIBUTION CONTROLLED.
The entire output of American steel
plants will be distributed under supervision
of the war board. which, exercising the
powers of priority Of transportation given
the government by Congress, will appor-
ton it in a way best to meet the coun-
try's war requirements.
The price agreement was reached after
months of negotiations between steel
producers and government officials. The
prices were based on cost of production
estimates made by the federal trade com.
mission after an investigation conducted
at the Presidents direction.
PUBLIC ALSO CONSIDERED.
The chief point of difference was oveI
the question of whether the public and
the allied governments SHOULD share in thu
prices to be fixed. President Wilson has
insisted that they should. and the ad
m~inistration has supported the Pomerent
bill now pending In Congress, living the
government power to fix iron n stee
prices generally. Inclusion of the publi'
and the allies in the voluntary reduction
will still demand in some government
quarters that the steel output be requisi
toned under the nationel defense act, bu
the Pomerene bill will be pushed it is un
derstood that 1t may be enforced in even
the voluntary agreement does not worl
out satisfactorily.
officials in close ouch with the situa
ton said tonight the prices approved b!
the President were liberal and would al
low fair profits to all steel plants. Som
OF the larger concerns, they said, woult
make handsome profits at the price
named and production, they declared
should be stimulater accordingly .
STILL MAKE GOOD PROFITS.
The cost of producing steel plates ii
some of the larger plants is now abou
$35 or sac a ton, according to the test
mony of Jose Davies, vice-chairman o
the federal trade commission. befor
the Senate committee which is consid
ering the Pomerene bill. This will Civ
these mills a profit of $40 a ton unde
the price of sos approved by the Presi
dent. In the smaller mills. accordin
to Commissioner Davies testimony tn
cost runs much higher. Ninety pc
cent. of the plants. Mr.. Davies said q
the time. could sell plates at $58 an
make a profit.
The rodtlnfinna uutll mt oHont -
purchases for a time. as Secretary Oar
iels already has contracts for 600, O(
tons Of steel at prices lower than thos
named to-day. This steel will be sui
: f1cient to carry through the 1916-191
building program. The navy prices al
, $50 a short ton for shapes inc $5S
short tone for plates.