The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1917-09-29
61aa SUMTER. s. G., SATURDAY, SEPTEMBER 2o 1917
STEEL PRICES REDUCED.
GOVERNMENT AND PRODUCERS
COME TO AGREEMENT.
Allies and the Public to Share in
Reduction and Still Fair Prof.
Will be Allowed to Manufacturers

Washington, Sept. 24.-Steel prices
IN the United States were cut in half
today when President Wilson approx
Ell scale Of quotations fixed in a vol
untary agreement made by producers
with the war industries board. The
general public, as we'll as the Amcri-
can and allied governments, will
share in the reductions which will go
into immediate effect, and the agree
ment provides that producers shall not
reduce wages.
The prices will obtain until Janu-
ary l, 1918, to be revised then if in
Vestigation shows they are inequit-
able.
The entire output of American stee,
plants will be distributed under su-
pervision Of the war board which will
apportion it in way best to meet
the country's war requirements.
The new prices and the reduction
they represent in present quotations
follow:
Steel bars at Pittsburgh and Chi
cago, $3.50 per hundredweight. The
recent price was $3.50.
Iron ore, basis, Lower Lake ports:
Price agreed upon $5.O5 per gross ton.
no change.
Coke. Connellsville: Price agreed
upon Sc net ton; recent prices. SIG a
ton; reduction of 62.5 per cent.
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 in
vestigation conducted at the presi-
dents direction.
The chief point of difference that
developed in the prolonged conferen
ees 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 should, and the administration
has supported the Pomerene bill now
pending in congress giving the gov
ernment power to fix iron and steel
prices generally. Inclusion of public
and the allies in the voluntary reduc-
tions will still demands made in
some government quarters that the
steel output be requisitioned under
the national defense act, but the
Pomerene bill will be pushed, it is un-
derstood, that it may be enforced in
event the voluntary agreement does
not work out satisfactorily.
Officials in close touch with the sit
uation said tonight the prices ap-
proved by the president were liberia,
and would allow fair profits to al,
steel plants
In arriving at fair prices for both
producer and consumer the grea;
problem has been to set figures per-
mitting small mills to produce withou,
a loss and at the same time prevent
the larger plants from taking too
great profit. AT one time a plan
was considered by which mills would
have been paid varying costs, based
on cost Of production of capital in
vestment. the entire output of all
mills to be sold in a pool at one
price. This was abandoned as too
complicated.
Virtually the same purpose will be
accomplished, officials said tonight, in
the operation Of the war tax bill.
which will take for the government
large share Of excess profits. The
cost Of producing steel plates in some
Of the larger mills is now about s35
to $26 ton. according to the testi-
mony of Joseph e. Davies, vice chair
man Of the federal trade commission.
before the senate committee which is
considering the POmerene bill. This
will give these mills a profit of $50
a ton under the price of $65, approved
by the president. In the smaller mills.
according to Commissioner Davies te>-
timony the cost runs much higher
Ninety per cent. of the plants, Mr.
Davies said at the time, could sell
plates at $5S and make a profit.
Nothing is said in the White House
announcement as to contracts now in
force, but it is believed they wi1l
stand except in instances where tho
war board decides n manufacturers
product is not essential for war pur
poses and that he must relinoish a
part of his requirements for more
vital industries.