Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-08-18
pRICE-FIXING TALK
ABSORBS STEEL TRADE
rxnect War Industries Board to
Assume Fairly Generous Atti-
y tude Toward Corporations

prce.Axing by the Government was the
.,.orbins topic of discussion not alone in
,n. steel trade during the last week, but in
.,ocr market and financial circles as well,
n,r,ne the early part Of the week unofficial
-.norts we're circulated that the price Of
.,.., would be fixed at between S65 and $40
+. ,on by the Government. and while orders
,o- current business in the trade are being
,.t.n at a much higher level Of prices, the
..,,,or. from washington were accepted with
.oue degree Of satisfaction. In the trade
.,.r. is a general feeling that the war in
austries board at washington will assume a
,airly generous attitude TOWARD corporations,
"a that manufacturing enterprises need
.,,,rtain no apprehension as to the prob
.bls outcome of a situation which has been
commanding the attention Of the entire
sountry for several weeks.
government orders have been let on
n,rly liberal scale, some Of which have been
taken with the understanding that an ad-
hstment Of prices will be made later on
thst will be satisfactory to all parties con-
earned, There were numerous reports as to
understandings that had arisen between
ofbcial Washington and some Of the steel
manufacturing companies, but they were ac-
cepted with a grain of salt after the facts
were established. For instance, the state
nent was made that the Bethlehem Steel
Corporation had refused to manufacture
steel rails for France because the Govern
msnt insisted upon their being furnished at
price below the actual cost to the corpora
ton to manufacture. Both officials of the
company as well as members of the Council
q National Defense in Washington denied
that such state of affairs obtained, assert
Ing that the Bethlehem corporation had
ayresd to 20 ahead with the business and
accept the adjustment that would be ar
ranged later on.
It Is recognized that the steel companies
not only have made a lot of money since
the beginning Of the European war, but that
the outlook for the future is favorable. par
tcularly as the requirements of the United
States Government will absorb only por-
ton OF the annual output of such organiza-
Ton The important element in the present
skuation, however, is that of arranging
nthfactory price a which supplies will be
nlshed foreign Governments. Some of
Mhrge iron and steel interests have main
uhtd right along that the United States
ersrnment should obtain concessions which
iAould not be granted to the Allies. Event
aly however, this is expected to be ad-
R0ed IN manner not distasteful to the
nanufacturers.
Iaere was considerable discussion of the
rooaole excess profits taxes that will be
imposed upon industrial companies generally
throughout the country and 1t was diff
euit 70 nnd any one who would venture a
Hosltive prediction as to the ultimate out
ecme OF this important subject In the case
tne United States Steel Corporation it
~ maintained that even though some of
ny estimates that have been made should
y = naiized, this corporation would still earn
~, 4. Vast $40 a share on its common stock
~ year. While the Steel Corporation, in
: nsasure' may be regarded as in class
i1en In this respect, the fact cannot be
ssnsd that the smaller companies also
w experienced period OF prosperity
snparaileled In their history.
was pointed out that the supply of
.esl IN the form of billets. sheet bars and
s.os IN the open market Is increasing and
.Hss are yielding somewhat There was no
pHeciaDle price change in finished ma
sIais although billets were offered some-
w ."ss more freely and sales were reported
- = 80 MIL, or IS a ton below the previous
49, rig iron was somewhat easier, al
- ~usn there was no apparent indication
p0Itive weakness. Stocks were about
OF those On hand a year ago and
ssvuseere ~ still have their books we'll filled
.'.I .n vroers. In June iron and steel exports
~ new high record, but in July,
~ ~ me enforcement of embargoes the
;ss,s IN this respect was smaller. which
s'es that the June exhibit will long
-'sao at high point.