Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1918-12-21
STEEL MEN ADVOCATE
CHANGE IN CONTRACT
Under New Form Buyer and
Seller Will Be Bound to
Obligation

New York, Dec. 81.
EFFORTS by domestic consumers to cam
eel their contracts on the books of the
steel companies during the last week has
resulted In a decision to make important
changes In the forms Of contracts which
VIII De made In future between the steel
company and the buyer. The matter
VIII be handled by the committee on con-
tract obligations of the American Iron
and Steel Institute.
This Is one of the old standing cono =
mittees of the institute and Il ia the
general expectation that the question
VIII De taken up within the next few
lays for the first time and n decIs,on
on the new forms reached in time 10 he
presented to the directors of the insti-
tute at the next monthly meeting about
the middle Of January.
Although no information is available
on what the committee will do, il Ia
certain that under the new contract the
buyer. as well as the seller, will be
bound to whatever obligations have been
made regardless of what the quotations
Tor the various products might do in
the meantime. Heretofore, buyers have
considered their contracts merely as
optiotls on so much capacity Of n steel
mill. and often, when the time came for
filing specifications, the contracts would
be Cancelled II the prices hadedeclined
from the levels when the original order
was placed.
All his will be eliminated when the
new forms come into effect. And the
steel men of the country will welcome
the change, as 1t will mean that the
disadvantage under which they have
been working for years will be done
away with, and the buyers will be
held to regard their contracts just as
religiously as the steel men have in the
past.
There nave been some rather large
cancellations of orders from the United
States Government as we'll as from for
eign nations in the past week or ten
days. according to some of the leading
steel men Of the country. but such
action has been expected and liz Likely
to be continued during the entire tran.
sition period from war to peace condi-
lions.
In the case of some French war con-
tracts. however. requests have been
made for substitutions Of other prou-
ucts for the war materials that had
been ordered, and 1t Is considered likely
that this matter will be settled satis-
factorily, for the steel will be taken In
various forms which can be used by
manufacturing concerns in France.
All the leading steel companies man.
agements are firm In their position that
the reduction in prices nnounced after
the meeting in Washington last week
will not prevail on business taken be-
fore that time, nor on orders which are
to be shipped during the remainder OF
this year II such a thing Is possible.
The new prices are ruling only or
orders which lave been placed since
last Thursday on deliveries over the
first half of next year., despite the fact
that some companies came out with an
nouncements of immediate reductions to
meet the new levels. The Youngstown
Sheet and Tube Company after send
ing out the revised schedule, followed II
with a supplemental notice that the
prices are not for spot material II any
Is to be obtained or sold, but only on
new business for 1919 deliveries.