The sun., 1918-12-10
STEEL MEN WILL
CUT PRICES, BUT
KEEP UP WAGES
Judge Gary's Advice to Get
Back to Peace Basis Is
Accepted by Institute.
OPTIMISTIC ON BUSINESS
Conditions Now Abnormal and
Costs Will Decrease, but
Not to Old Level.

The general committee of the
American Iron and Steel Institute n,
meeting in Washington tomorrow
VIII recommend to the War Indus
tries Board moderate reduction
In the scale OF maximum prices fol
iron and steel products, the reduc
tions and adjustments to be made or
an equitable basis The decision tc
suggest this recommendation was
made at yesterdays meeting of more
than 100 representatives Of all
branches Of the industry held at the
Waldorf-Astoria.
1t was decided unanimously to
give the whole subject over to the
general committee, which announced
its stand for reduced prices and con-
tinued wages. at least until sacrifices
have been made by the employers,
through Elbert Fl. Gary, chairman Of
the board of directors of the United
States Steel Corporation. ~
Judge Gary made the principal ad-
dress at yesterdays meeting and as
tonished his hearers by advocating
lower prices and a continuation of the
present scale OF wages. the highest in
the industrial history Of the United
States. but declared by him to be rea-
sonable in view OF the abnormal cost
Of living.
Summary OF Conditions.
The points made by Chairman Gary
may be summarized as follows:
!. Recommends a moderate reduc-
ton in the scale OF maximum prices,
2, While causing some temporary
losses this would prevent greater
losses In the future
3. Present wages are reasonable
unless and until the costs OF living
are reduced.
T. Costs OF production in the course
OF time will be decreased, though not
to former levels.
aid in the stabilization OF business
g. There should be no danger in
this country OF serious business de-
preston.
T. The next FIVE years in this
country will be the most progressive.
prosperous md successful in its his
. tory. The results will astonish even
the most optimistic Of to-day.
In introducing the subject Of price
reductions Judge Gary said that he
was going to surprise and perhaps
disappoint some of the members OF the
Iron and Steel Institute, and then con-
tinued:
After painstaking and exhaustive
consideration and discussion, covering
the larger part OF two days, the gem
eral committee. or at least a majority
OF IFS members, perhaps all of them.
have reached the conclusion that at
the meeting to be held in Washington
Wednesday there should be recon-
mcnded to the War Industries Board
a moderate reduction in the scale of
maximum prices for our commodities,
commencing January i, tine reductions
and adjustments to be made on an
equitable basis. in consideration of all
the circumstances and after careful
study.
Chance to Help business.
You have a chance to do something
valuable toward sustaining the bust
ness equilibrium Of the country. While
some might suffer losses at present.
perhaps 1t would prevent greater losses
in the future. We would be leaders in
a movement calculated to methodicaIly
readjust conditions in an orderly way.
We might have some influence in
steadying business generally; and re-
member the workmen are more inter-
ested in this question than any others,
for labor constitutes the greater part
of the cost Of production from the raw
down to the finished product
and its use by the consumer.
"If reductions are made now and
accept them willingly.
even though sacrifices have to be
made. we may be consoled by the fact
that we are approaching better times,
lower costs, more natural and sub
stantial basis and that we are prob
ably doing the right thing. feel rea-
sonably confident the iron and steel
men will. as heretofore, especially dur
ing the war be willing to do their part
In promoting the welfare of all who
are Interested. Those who buy our
products will correspondingly reduce
their prices and thus do their part In
the direction mentioned. and so OH
down the line. 1t may extend to others.
Judge Gary ascribed paramount i'm
portance to the labor situation in his
of these questions:
What of the future? Can and will
the management OF our industry exer-
else any stabilizing and beneficial in
huence upon the economic interests of
the country" After reference to ma
terial and frequent increases in wage
rates during the war, he said:
For one believe we have not been
paying more than was proper and just.
The necessary costs OF living have
been growing and unless and until
they are reduced 1t would seem that,
on the average, the present wages are
"It IL urged that on the basis Of the
present scale of wages the employers