Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1917-09-25
STEEL PRICES CUT
|NHA[F, $65
President Approves Agreement
Made by Producers With War
Industries Board.
GOES INTO IMMEDIATE EFFECT
General Public, as Well as Amer
lean and Allied Govern
nents, to Benefit.
GOES INTO IMMEDIATE EFFECT
tBy Associated Press. ]

prices in the United States were cut
In half to-day when President Wilson
approved scale Of quotations fixed in
a voluntary agreement made by pro-
ducers with the War Industries Board.
The general public. as we'll as the
American and allied governments. will
share In the reductions. which go into
immediate effect. and the agreement
provides that producers shall not re-
duce wages.
The prices will obtain until January
/. 1918. to be revised then IL investi-
cation shows they are inequitablc.
Tho entire output of American steel
plants will be distributed under su-
pervision of the war board. which.
exercising the powers of priority of
transportation given the government
by Congress, will appor,ion 1t in
way best to meet tho country's war
requirements.
The price agreement was reached
after months OF negotiations between
steel producers and government off,
cials. The prices were based on cost
of production estimates made by the
Federal Trade Commission after an
investigation conducted at the Presi-
dents direction.
DIFFERENCE OVER WHO
SHOULD SHARE IN CUT
Tho chief point of difference that
developed In the prolonged conferences
was over the question of whether the
public and the allied governments
should share in the prices to be fixed
President Wilson has insisted that they
..l,
supported the Pomerene bill now
pending in Congress, giving the gov
ernment power to fix iron and steel
prices generally. Inclusion of the
public and the allies in the voluntary
reductions made in some government
quarters will still demand that the
steel output be requisitioned under
the national defense act. but the
Pomerene bill will be pushed. it is
understood. that 1t may be enforced in
event the voluntary agreement does
not work out satisfactorily.
Officials In close touch with the
situation said tonight the prices ap-
proved by the President were liberal,
and would allow fair profits to all
steel plants.
COST OF PRODUCTION
AROUND S35 A TON
The cost of producing steel plates
in some of the larger mills is now
about S35 to s36 a ton, according to
the testimony of Joseph Z. Davies,
vice chairman Of the Federal Trade
Commission, before the Senate COM
mittee which is considering the Pom
creme bill. This will give these mills
profit of $40 a ton under the price
of s65 approved by the President. In
the smaller mills, according to Com
missioner Davies's testimony, the cost
runs much higher. Ninety per cent
of the plants, Mr.. Davies said at the
time. could sell plates at s5s and make
profit.
Nothing is said in the White House
announcement as to contracts now in
force. but 1t is believed they will stand
except in instances where the war
board decides a manufacturers product
Is not essential for war purposes, and
that he must relinquish a part of his
requirements for more vital industries
1t Is the intention of the government
to use to the utmost its powers to con-
troll steel distribution. This may mean
IN some instances. it was said tonight.
the shutting down of entire Industries
where 1t appears the steel these in
dustries are using can be used more
elsewhere Building
construction and other industries tina,
use steel, which already have felt the
pinch of the steel shortage, will feel
IT still more sharply as the war prog
resses.
INDUSTRY DIVIDED
INTO THREE CLASSES
The War Industries Board in an
order issued to-day divided Industry
into three classes. directing that pref
erence in transportation of iron and
steel and other products be given to
them In the order of their Importance
as related to the conduct of the war
Class a, comprising war work, comes
hrst; class B, comprising Industries in
directly related to the war, second
ana class G, comprising all other in
dustries, last
The reductions will not affect navv
purchases for a time. as Secretary
Danieis already has contracts for 600
ooo tons of steel at prices lover than
those named to-day. This stee, u,i,1
De sufhcient to carry through the 1916
1917 building program. The navy prices
are 700 short t,n for shane. and sss
short ton for plates.
Future navy contracts will he. n,,do
at the higher prices.