The Birmingham age-herald., 1917-09-29

Washington, September 2s.-(SpeciaL) States Steel corporation, announced that Its directors had voted to increase the pay of Its employees by 10 per cent, fol- lowed by intimations that other large in- dependent steel industries would also in- crease wages, comes the announcement from Washington that the government has fixed the prices to be paid to- iron and steel manufacturers for their various commodities. When it was known that the steel corporation was to begin on Oc tober 10 increase payments to employees by 10 per cent, the inference was very strong in business and financial circles that the managers of the Steel corpora ton and of independent steel industries possessed what they believed to be re- liable iforma tion respecting the atti- tude of the government toward prices for iron and steel commodities. For if 1t was surnlsed or known that the government would esta bish price which would be
 regarded as unreasonable. the steel indus try would not have felt justified in in-S | creaaing wages.
 As the steel industry was represented
 at the government conferences-conspic- uously represented by one of the ablest
 States, E. A. s. Clarke of the Lackawana
 Steel onpany-it Is apparent that the
 counsel and information which were given
 by the steel representatives was of value
 to the government.
 It Is observed that the leaders in the steel industry, especially Judge Gary of the United States Steel corporation, and President Clarke of the Lackawana,
 npolke with some enthusiasm of the atti- tude which was taken by the govern
 nent when the prices of steel commodi- ties were decided upon. This enthusiasm or at least cordial approval of the gov erninenr's action is due to the fact that the prices make 1t possible to speed up production. and provide reasonable profit, and if there are any excess profits the government will be the gainef there by, since these will 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 a good profit possible, but will tend greatly to increase production. and in addition
 will serve to put an end to the uncer-
 tainty which has somewhat demoralized
 the steel industry.
 One of those who is in position to
 know the facts explained recently the falling off in the orders reported by the United States Steel corporation in July
 and in August, by saying that the gov
 ednment was holding back orders, know ing that, when prices were established. 1t l would make enormous demands upon the steel industry. Then again, the uncer- | tainty regarding prices. and to some ex- tent the heavy competition which the de-
 mands of our European allies. especially England represented, made 1t inevitable that domestic orders should be heid back 1 for awhile.
 | Now that the government has fixed the price, and the iron and steel manufac- | turers on the whole are satisfied with
 the figure. it is presumed that the gov ernment will greatly increase It's demand
 for iron and steel products. These will have priority not only~as a matter of l legal right, but because the iron and steel
 manufacturers acting in cooperation l 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 l
 that the autocratic authority given to the l government, whereby it can state what l 1t and others will pay for commodities i will not be so used as to fix unreason- I ably small, but reasonably fair. prices, so that industry can be steadied and speeded up and reasonable profits as- sured If the securities market were not evidently discounting the expectation that peace will come in 1918, this senti- ment would undoubtedly stimulate the purchase of securities.
 It was natural that the appointment by l Secretary McAdoo of Frank A. Vanderlip as chairman of the committee organized by the Secretary for the purpose of un- dertaking a nationwide cana pign for the
 sale of treasury certificates should be spoken of as good evidence that there
 had been restored friendly relations be- tween, the Secretary and President Van
 derip. And if cordial relations had been
 thus established with one of the influ-
 ential leaders in the financial district.
 then 1t was presumed that the Secretary
 had changed front so that he now pro-
 poses to maintain confidence in and