The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-12-15
STEEL MEN OPPOSE
CONTRACT REVISION
Present Orders Must Not BE
Influenced by Later Cut
in Prices.
FEW ASK FOR QUOTATIONS.
Many Sales Offices Umpire
pared to Book Business
at Lower Rates.
FEW ASK FOR QUOTATIONS.
speciai Despatch to THE Sun.


,.--surpa Dec. "a. A thorough
mney Of Intentions OF iron and steel
man regarding their policies Is that
,sv will not consent to any revision
., existing contracts by reason of the
,aduction in prices that are going into
effect upon new sales made for deliveries
.rsr this month. There will be no
regulations requiring any contract re-
,Is,on because Government control
.a.ses on December 81. BY the regula-
,nn announced December 20, 1917, and
-sneated at every quarterly price an
rorncement thereafter. contracts made
.,,ar that date were TO be so worded
.hot the price at time OF delivery
sbould not be in excess OF the GOVERN
,nent price at the time. When Govern
mt control encs December 81 this
reg,,,atIon becomes of no further erect
The wording OF the regulation OF De
Gambler 2S, 1917. as published In the
Otfctol Bulletin, 10 worth perusing ana
was as follows: mo new contracts cah-
,rv FOR delivery of any of said COM
."e,,tiae nr articles on or after April l.
Is1s are to specify a price unless
ooun,ed with a clause making the price
subiect TO revision by any authorised
Irr,tsd States Government agency, SO
mat all deliveries after that date shaii
NOT exceed the maximum price then IN
force, although ordered or contracted
FOR in the meantime
quarterly repetition OF this reguia-
lion merely carried the requisite change
in date. II the War Industries Board
rad set reduced prices for the hrst
cna-ter OF 1919 the regulation would
amply TO existing contracts made since
december %, 1917, requiring that de-
Ureries during the quarter be at not
,hove the prices set In deciding TO
request the War Industries Board to
promulgate the prices now being adopted
by the producers they individually
would have been accepting this neces-
sary contract revision.
The War Industries Boards failure to
ct any prices entirely relieves the pro-
d,rers Of any responsibility under the
rer,,l,t,on. which expires by limitation
A. the end of this month. As to con-
tracts for steel destined for definite con-
strnction Jobs such as bridges, buildings,
patches Of railroad cars. &c, the trade
practice is clear and not open to ques-
ton that the contract price obtains no
matter what the market may be at the
time OF shipment.
Taking Care Of Customers.
IN some cases of steel products used
BY certain manufacturing consumers II
has been more or less a practice. under
the lead of certain largo producers to
stake care" OF customers. year ana
a half ago the sheet manufacturers un-
Sertook a reform in this respect, but
their frst experience after having eff
fected the reform was to find the shoe
on the other foot, viz. there was no Diff
Aculty about buyers being willing to
accent material. hut much difficulty in
making contract deliveries. That there
will be many requests by buyers for con-
tract revision Is reasonably certain, hut
thus far at least no producer Is willing
TO admit the possibility of ~ IN revision.
The whole situation viii be watched with
keen interest.
The announcement at Washington on
Wednesday appraised buyers of steel that
they could look for reduced prices, but
a. the sales offices of the steel producers
rather quiet conditions have been OBJ
served in the trade for the past Few
days. There has been no rush of buyers
70 seek quotations, nor was any eitort
noticed upon the part OF sales repre-
sentatives to effect sales, the policy
seemingly being 10 let the new prices
thke their own course.
The first large reduction in steel
that of the Youngstown Sheet and Tube
Company. which on Wednesday after
noon authorized its branch offices to
book business, for delivery after Decem-
Der l, at the reductions that have now
become familiar, this policy embracing
pipe as we'll rs other commodities, nj
though the company's published pipe
card will probably bear date of January
|, 1919. The United States Steel Cor
noraton subsidiaries in Pittsburg, were
on the old basis Thursday morning but
on the rev basis before the end OF the
day, At the close of business Thursday
here we're still some sales offices In
Pittsburg not prepared to book business
NJ the reduced prices, but they will coon
be IN line with the rest of the trade
large number OF sellers in all finished
steel commodities justifes n quoting or
the market for delivery January l and
later al the reduced prices. Various
prices for Cognate products have not
oeen worked out yet, including such
items as terne plate and various wrought
ron products. Temporarily, at least,
hoops and bands are assumed to have
been reduced by s. ton, the same as
merchant bars. placing them at $50
cents, but there is possibly some ques-
uon whether this will hold Indefinitely.
pihet shipments Increhse'
There has been material increase in
contract deliveries of billets and sheet
bars lately. and in the main they are
fu!ly equal TO buyers requirements, II
indeed they are not in some cases In ex-
cess Of tonnage required. Consumers
are not disposed TO allow any steel to ac-
eunulate on their hands. There Is an
occasional inquiry In the market, but no
IonHages Of Importance are asked for.
when there is occasion TO quote the mills
are quoting fun price limits showing no
disposition to shade, and there does not
@enl to be any immediate market de-
CINE IN prospect.
There are no .r~ports of furnaces con-
seht.ug 10 the cancellation OF any pig
uo" contracts, except in a few extraor-
".hary circumstances, and the attitude
oi INC furnace owners is that contracts
should be carried out according to their
'er'n' The desire to cancel on the part
"l consumers Is the belief that the mar
het Is going to decline and not because
""F DO not need the iron, and as soon
as 'hey feel confident that the market
VIII not decline there will be less In
m'.ence on cancellation OF contracts.
bc DTgSDcgtq nra prIonz ,t,II ~