The Washington herald., 1917-09-29

Within few days after the United
states Steel Corporation announced
that its directors had voted to in
crease the Pay of its employees by 10
per cent, followed by intimations that
other large Independent steel indus
tries would also increase wages,
comes the announcement from WASH
ington that the government has fixed
the prices to be paid to iron and steel
manufacturers for their various COM
modities. When ii was known that
the steel corporation was to begin on
October ! to increase payments TO
employees by 10 per cent, the inference
was very strong in business and
financial circles that the managers of
the steel corporation and of indepen-
dent steel industries possessed what
they believe to be reliable informa-
ton respecting the attitude of the
government towards prices for iron
and steel commodities. For II it was
surmised or known that the govern
mcnt would establish n price which
would be regarded as unreasonable.
the steel industry would not have
felt justified in increasing wages.
As the steel industry was repre-
sented at the government conferences
-COnspicuously represented by one OF
the ablest OF the steel manufacturers
Of the United States. T.. A. 8. Clarke
OF the LaCkawana Steel Company,
it is apparent that the counsel and
information which were given by the
steel representatives was of value to
the government.
1t is observed that the leaders in
the steel industry. especially Judge
Gary, of the United States Steel Cor
poration. and President Clarke, Of
the Lackawana. spoke with some en-
thusiasm Of the attitude which was
taken by the government when the
prices of steel commodities were de-
cided upon. This enthusiasm or at
least cordial approval of the gov
crnment's action is due to the fact
that the prices make it possible to
speed up production. and provide n
reasonable profit. and IL there are
any excess profits the government will
be the gamer thereby, since these
viii be returned to the government in
the form of taxes. Some of the
leaders in the steel industry say that
these prices will not only make
good profit possible, but will tend
greatly to increase production. and in
addition will serve to put an end to
the uncertainty which has somewhat
demoralized the steel industry.
One of those who is in a position
to know the facts explained recently
the falling off in the orders reported
by the United States Steel Corpora
tion in July anh August. by saving
that the government was holding back
orders. knowing that. when prices
were established, 1t would make enor-
nous demands upon the steel industry.
Then again, the uncertainty regard
ing prices. and to some extent the
heavy competition which the demands
OF our European allies. especially Eng
Land. represented. made it inevitable
that domestic orders should be held
back for while.
Now that the government has
fixed the price. and the iron and
steel manufacturers on the whole
are satisfied with the figure, il is
presumed that the government will
greatly increase its demand for
iron and steel products. These
will have priority not only as a
matter of legal right, but because
the iron and steel manufacturers
acting in cooperation have made
at least tacit agreement that the
governments orders are to be the
first which the companies will
meet.
In the financial district sentiment
has increased every day since the
prices were agreed upon, which re-
fleets the belief that the autocratic
given to the government,
whereby it can state what It and
others will pay for commodities.
will not be so used as to fix un-
reasonably small but reasonably
fair prices so that industry can be /
steadied and speeded up and rea-
sonable profits assured. If the Sc
curities market were not evident
ly discounting, the expectation that
peace will come in 1918. this SEN
timent would undoubtedly stimu- |
late the purchase of securities.
1t was natural that the appoint
ment by Secretary McAdoo of !
Frank A. Nanderlip. as chairman of |
the committee organized by the
Secretary for the purpose or un-
dertaking nationwide campaign
for the sale of treasury certifi- |
Gates should be spoken of a. GOOD