New-York tribune., 1918-01-06
Further Changes
In Steel Prices
Regarded Certain
Pooling of Profits Sug-
gested to Help Out
Smaller Producers

Further regulation of iron and steel
prices by tho government is merely
postponed by the recent announcement
OF President Wilson that the present
schedule remain operative until March
81 1918. The postponcmcnt of several
contemplated changes is concession
10 the steel and iron makers, who con-
tended that the three months period.
e"oeo january /, was too Short for a
thorough test Of present prices.
Inc important feature of the new ar
rahgement is that contracts made now
Tor delivery after April 1 shall bear tho
Price IN effect at time of delivery. In
other words, buyers contracting before
March 81 arc protected against anv al.
vance and will get the benefit of rednr-
.iohS u any arc made. Such a condi
slon is not expected to be conducive to
forward selling, as iron and stool
mixers feel that they have nothing to
gam by selling ahead. They arc likelv
to await developments before selling
1or delivery after March 81. Consc,
9uentiy the business done during the
nrst 'hree months of this year will be
''os'ly OF hand-to- mouth character.
Pooling of Profits Suggested
=, Present prices it is reported by the
reoeIal Ifade commission, give ample
Pronts to the large producers. but in
some instances arc less than the nro.
4uctlon costs of the smaller companies
IN II, view OF this condition Commissioner
Murdock presents the radical proposal
OF poohng the products of the steel in.
oustry so as to give each producer a
reasonable profit while maintaining
lower prices than would be possible If
margins OF gain were based on costs
OF the relatively small manufacturers.
commissioncr Murdoch in IL report
"nich is not signed by other members
OF the commission, says:
Il have come to the conclusion that
the only way in which the government
can meet the situation is to bring
about a pooling Of every industry by
"hlch every factory will work at top
speed and each receive share of the
tota net profits based on its costs and
productivity. The industry would or.
ganize itself, put in it's own efficiency
men and forget competition. If we are
to put industrial America uron war
basis we must fix prices and guaran-
tee prices OF needed products And we
"'USC NUb NOWU lNe production OF nom
essentials. ! am not prepared to say
that such radical change would con-
tlnue after the war. But while we are
at war it seems to me that we have
IN Germany all the competition we need
1t is possible that after the war in
meeting German products in foreign
trade it would be we'll that American
industries should be pooled, under tho
theory that such plan would make
for better and cheaper goods"
Government Control Expected
1t seems certain that comprehen-
sive scheme of 1eadjustment of iron
and steel prices will come on or be-
fore March 81. Bills now pending in
Washington. providing for government
control Of iron and steel production.
may represent the next stage In the
relations between the government and
the industry What the ultimate effect
of more drastic control of the iron
and steel industry will be cannot now
be foretold, but it seems certain to
competent observers in the trade that
the old order of things will never fully
return, and that the industry will en-
ter upon a stage Of cooperation and CO.
ordination, under Federal supervision,
that will to some extent end price
competition and make for more eco.
nOmical production.