The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1917-09-25
STEEL WORKERS
GET SANE WAGE
THOPRICES CUT
+ e d eral Government
Slashes Steel Figures
From 400 to 70%o
ALL BUYERS WILL
GET SAME FIGURE
Supervision of Distribution
Will Be Maintained To
Supply War Needs

Washington, Sept. 25.-SteeI prices
in the United States were cut in
half yesterday when President VIII
son approved a scale Of quotations
fixing in a voluntary agreement
made by producers with the war
industries board. The general pub
| lie, as well as the American and
allied governments will share In the
reductions, which go into immediate
effect, and the agreement provides
that producers shall not reduce
wages. ....g
The prices will obtain until Jan. /,
1918, to be revised then IL investiga-
ton shows they are inequitable.
The entire output of American steel
plants will be distributed under
supervision of the war board. which,
exercising the power of priority of
transportation given the government
by congress will apportion 1t in a
way best to meet the country's war
requirements, The new prices and
the reduction they represent in pres
ent quotations follow;
The New Prices.
Steel bars-Pittsburgh and Chicago
basis, prices agreed on $500 hun
dredweight; recent price $3.50 hun
dredweight; a reduction Of 47.3 per
cent.
Steel shapes-Chicago and Pitts
burgh basis, prices agreed on SO hun
dredweight. Recent price S6 hun
dredweight, a reduction of so per
cent.
Steel plates-Basis Chicago and
Pittsburgh, price agreed on 1924
hundredweight; recent price 81 hum
dredweight, a reduction of 70,5 per
cent.
Pig iron-Price agreed on s3s gross
ton; recent price S5S gross ton, a re-
duction of 4S.1 per cent,
Other prices agreed on, all subject
TO revision Jan. /, 1918, but to be-
come effective Immediately follow:
Iron ore, basis lower lake ports,
price agreed on, $5,05 gross ton.s No
change. Coke, Connellsville, price
agreed on IS net ton, recent price SIG
ton. a reduction Of 62.5 per cent.
Months Of Negotiation,
The price agreement was reached
after months OF negotiations between
steel producers and government on
Gals. The prices were based on cost
of production estimates made by the
federal trade commission after an In
vestigation conducted at the Presi-
dents direction.
The chief point Of difference that
developed in the prolonged confer
ence was over the question of wheth-
er the public and the allied govern
ments should share in the prices to
be fixed.
President Wilson has insisted that
they should and the administration
has supported the Pomerene bill now
pending ia congress giving the gov
eminent power to fix iron and steel
prices generally, Demands were made
in some government quarters that
the steel output be requisitioned un-
der the national defense act, but the
Pomerene bill will be pushed, 1t is
understood, that II may be enforced
in event the voluntary agreement
does not work out satisfactorily.
Officials in close touch with the
situation said last night the prices
epproyed by the President were
liberal and would allow fair profits to
an steel plants, Some of the larger
concerns. they said. would make
handsome profits at the prices named
and production, they declared, should
be stimulated accordingly.
Will Allow Fair Profits.
In arriving at fair prices for both
producer and consumer the great
problem has been TO set figures per-
hitting small mills TO produce with
out a loss and at the same time pre-
vent the larger plants from taking
too great a profit At one time, a
plan was considered by which mills
would have been paid varying costs,
based on cost Of production and
capital investment, the entire output
of all mills to be sold in a pool at
one price, This was abandoned as
too complicated and too difficult of
administra ton.
Virtually the same purpose will be
accomplished, officials said, in the
operation Of the war tax bill, which
win take for the government q large
share of excess profits.