Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1918-01-26
STEEL BUYERS TRY
TO RESCIND ORDERS
Inclination by Some to Repu-
diate Contracts Placed Be-
fore Price Was Fixed
NEW YORK. Jan. 26.


"Repudiation of old contracts is gain
ing in popularity" Is the way one steel
trade authority described the present in
cllnation on the part Of some buyers
TO get out OF their orders, which were
placed before the Government fixed steel
prices last September
While the steel manufacturers do not
look with favor on this action on the
part Of some buyers ana there are likely
10 be some prolonged disputes on the
question in the future, there are some
points which can be made in favor Of the
consumer who purchased at the high
prices.
1t has been n common custom in the
steel trade for some consumers who
turn out finished products to purchase
their semifnished material ahead, and
this policy was continued up to few
months before the Government named
maximum prices for steel
The deluge of orders to the steel manu-
turers, and later the urgency Of the
Governments demands, put deliveries
far off, and as a result some shipments
would be made in the next few months
on contracts which were made early
in 1916, long before, there was any
thought of price fixing.
The buyers who had made these con-
tracts, in the meantime, have had prices
for their finished products fixed by the
Government, so that in "A number of in
stances the present maximum would not
permit them to dispose Of their products
materials for which were purchased at
high levels, except at loss
Therefore, it is pointed out that the
action of getting out from under
should not be too severely criticized.
However, this cannot be said for all con-
slamors. Some of the steel products on
which contracts were Cancelled were to
be used on articles which We're ordered
many months ago and on which old
prices probably will be demanded, These
consumers are merely making efforts TO
increase their profits by obtaining their
raw materials at "A lower figure Whether
they will be successful In their efforts
remains to be seen.
There is more anxiety in the steel
trade over the fuel situation than any
other factor at present In the leading
districts. in the East, the shortage is be-
coming even more acute than 1t has
been ana shutdowns are frequent and
in some instances prolonged.
This is especially true of the Pitts
burRh district local authorities assert
Despite the fact that the mills in that
neighborhood are almosb in the heart
OF the coal fields, so to speak, they are
not being supplied with sufficient fuel
Tor uninterrupted operations, and the
most strenuous efforts to bring about
relief have not been successful thus far
Just how serious the fuel situation
really is was indicated this week when
il was learned that number Of plate
mills in eastern Pennsylvania, which
were granted exemption from the fueI
order of DR.. Harry a. Garfield because
they were making plates for vessels fOI
the United States Government, failed tc
take advantage of their exemption.
This was caused by the fact that there
was not enough fuel on hand TO con
tinue operations and the shutdown wa:
longer than the five days called for IN
the fuel administrators order. OF
course, the severe winter weather con
ditions were responsible. and in lead.
inE quarters II is stated that there is nc
actual relief in sight, as the railroads
ara still congested with traffic.
The steel man at present is not in an
nnYlables position. The problems con,
fronting him are many and varied and
taIl for the closest study ia reaching q
ttc|s'on.