The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-03-06
DISCUSS REDFTELD
STAB1LIzING PLAN
Steel Men wrl1 Meet in Wal
dorf-Astoria to Consider
Price Scheme.
READJUsTINa Is NEEDED
Opinions as to Methods Of How
to Rearrange Values Are
Different.

Ono Of the most important gatherings
in the history Of the steel industry will
DO held to-day. when q hundred or more
prominent men. representing the biggest
steel producers in tho country. will
meet at the waldorf-Astoria Hotel for
discussion Of the Redheld price
Sterilization plan. Tho plan is conceded
10 be tho most important recent develop
ment In tho industry. acting. A. IL has,
to hold down business in anticipation Of
an even greater readjustment of prices
than has so far been made.
Stabilized prices are regarded as the
need" says the Iron Age in commenting
upon the situation. But there appears
to b. difference of opinion, as to how
stabilisaton OF prices should be made
and continued in effect There have
been three months of them and the
producers count on being able to MAIN
tain them without Government interven-
ton.
This plane might be lowered. but
the suggestion 10 that the strong hands
which produce most Of the steel Of the
country might definitely state the period
In which no change would be made, as.
for instance, UP TO July /. Then buying.
which could hardly have been expected
Il any price In the period of recovery
from war shock and of readjustment,
would matsrialise- Any cut even a
sharp one. which leaves the impression
It further recession at early rather than
future dates would not be conducive 70
developing business 90 .,
~Investment projects involving carry
hn4 charges over long period might not
b pushed forward to any great extent
bot neither would they be, It Is con
tended, under the proposed Department
q Commerce plan, seeing that this con-
tsu1plates no revision of the war rates
u< labor. And the Industrial Board
proposal 10 weakened by the failure OF
Congress 20 provide funds for the rail
roads, thus minimizing the Govern
n3snt's interest as a buyer in new
prtceks .. .3.s..
importance of stabiliEing Plan.
II Is pointed out by the IRON Trade
Revfeto that the item OF prime impor'
lance in the steel trade this week Is the
ytabilixation proposal Tho calling to-
gether of all iron and steelmakers a
New York this week to discuss trade
conditions has operated, to raise the
current expectations Of buyers that den
mite steps toward further price readjust
ment may be near at hand. Whether
such an outcome will materialize Is ar
open question. Small belief is enter
tanned that any movement toward 6
lower price plan will be brought abou
through acceptance of the Redheld sta
Utilization plan, which will be considered
IL one of the chief aims of the Redfielt
proposal Is development OF lower prices
for the Railroad Administration ant
other Government departments the fail
IRE OF Congress to authorize appropria
tons greatly weaksns the effective pos
sibilieies of this plan as trade stimu
liant On the other hand. IL this lack o
funds results in an early restoration Il
private ownership OF railroads the out
come may be beneficial from the stand
point Of steel buying.
1.-THE curtailment of pig iron opera
lions clearly Is shown by the Februar,
production figures. With the exception
Of December, 1917. and January ant
February. 1918. when furnace opera
tons were hopelessly, upset by trafh'
and weather conditions. and OF February
1al7 last month was the first to SHOW
an output below 100000 tons sine
September. 1915. The February tota
- eS''
IN January, a loss of 35S,724 tons tn
number of active stacks at the end o
the month was $50. loss OF sixteei
rom January.
New Rates Worry shippers.
Iron and steel shippers are agitate'
over distribution by the Railroad Ad
ministra ton through the Eastern
Freight Traffic Committee and vartou
district traffic committees in trunk lin
territory Of new tentative mileag
scale OF class rates for trunk line terri
tory. One of the proposed features Il
connection with this scale Is a stron'
probability of an effort by carriers. II
II adopted. TO cancel commodity rates o.
iron and steel products and place Their
on a classification basis. This woul
mean wide disturbances OF relationship
between competing territories. TIL
Pennsylvania and Eastern railroads hav
lifted their embargo against shipment
10 Philadelphia and other Eastern point
and IL Is possblerfor the first time sine
last June to ship to these points with
out securing permit This develop
ment is a direct reflection OF the shrink
age in the volume of traffic and 1t
welcomed by steel mills who will be abb
70 make shipments without waiting unit
the consumer has secured permit.
at is estimated by the fabricate
steel companies that structural develop
ment in this country is two years benin
requirements. A great deal of structurs
business, therefore, is TO come out br
II is not expected to niaterialize unit
III prosp-e-&s buyers have -lsal
assured that the Bottom 81 the mark'
has been reached. In this connectio
u Is of interest to note that one etrut
tural fabricator offered a bet of $5C
that the price OF plain structural shape
would he below &c. Pittsburg, pt
pound before October II.
Some shading OF pig iron prices hs
been done by furnaces In the Pittsbur
and Valley districts. Some of thes
makers have sold iron at 500 at Il
furnace for the base grade. which repr,
sents a cut Of 81"