The sun., 1919-04-25
REPLOGLE SCORES
STABILIZING PLAN
Says He Is Opposed to sheme
Which Disregards Supply
and Demand.
WANTS. AN OPEN MARKET
would Cause Activity to Start
and Bring Higher Prices
for Products.

j. Leonard Replogle. formerly pirec-
'or OF Steel Supply for the Government
ana In charge Of the distribution NJ
s'eei ana steel products during the war.
~ the hrst steel man to Issue a state.
ment In which. the plan for establishing
prices undertaken by the Industrial
board Is roundly scored. Mr.. RepIorle
declared that he is unalterably opposed
10 any plan which will eliminate the
supply and demand factors in the es-
adjustment OF prices for steel and steel
prooucts He believes that an open
market, unrestrained by artificial price
nxing. would result in marked activity
III the industry, at the same time bring
ing higher prices for the products.
business was showing a slight but
consistent Improvement at the time the
hedheld committee was organized" said
MT. Keplogle In statement issued yes
terday, and while buying was far be-
low normal, operations at the mills
We're on fairly satisfactory basis,
many OF the non-war industries whose
steel requirements were curtailed or ac-
count OF the necessities of the war had
were depleted and they felt the neces-
sity OF buying at the best prices OBJ
tainable. Business was actually i'm
proving.
THE announcement OF the plan arti-
hcially to regulate prices Immediately
caused cessation in the buying move
ment which had started. About three
months have elapsed since II was an
nounced that II was the Intention Of
the Redheld committee to help stabilize
business. but the only effect of this an
nouncement and the deliberations since
that time has been 10 retard the devel-
opment OF business generally. The law
Of supply and demand is a natural proc
ess which cannot be helped by artificial
tees. regardless OF how capable they
may be.
would Create Uncertainties.
"As / understand IL the Attorney
General has not passed on the legality
of the plan. which Of Itself Is bound TO
create additional uncertainties even X
the authorized buying agencies of the
Government and the manufacturers are
In complete accord as to the basis OF
prices. There are many high cost pro-
ducers OF many commodities who. on
the basis of supply and demand, might
he temporarily forced TO suspend oper-
atoms until improvement in volume of
tonnage and values resulted In such
conditions as to enable them to operate
at a profit but ! question very much
whether any governmental agencies or
trade committees have the right to ere
ate artificial prices or conditions which
make II impossible for a large percent
age of manufacturers 10 operate at
profit, necessitat!ng a shut down of
many industries and unemployment Of
labor.
"As I understand It the agreements
entered into are conditional on the main
tenance of present wage schedules
There may be many plants IN this coun-
try where employees. after full recog-
milton of the situation would gladly ac-
cept a slight revision In the wage
schedule rather than be thrown out of
employment and have their revenues en-
tirely cut off.
AIN any event this should be matter
a. between the employer and the en-
ployee. and while there Is a general
recognition that until living costs are
materially reduced. no radical revtsons
in wage schedules are possible, we do
not feel that IL Is proper to make agree
ments OF this kind. certainly without the
consent OF the employees themselves.
believe that the schedule of prices an
nounced is fair and reasonable and at
least 80 far as rails are concerned that
the prices are proportionately lower
than obtained in pre-war times The
modern heavy high speed train demands
a rail- of very high standard. necessita-
ting the very best Of materials and ex-
IRENE care In manufacture. Speoifica-
tons are difficult and inspection IN the
last four or five years unusually severe,
resulting in n comparatively small yield
from the ingot. The old $40 price on
open hearth steel rails has netted the
manufacturers n lower margin profit
than the average yield from other steel
products--the steel mills specializing in
rail realized very little profit, some OF
them having been unable to pay any
dividends 10 the stockholders FOR many
years prior 10 the war.
VIII Hold Back Early Expansion.
Judge Gary has shown that the labor
increase alone on rails Is now 3l94s
a ton in excess Of pre-war costs; with
out taking many other factors OF In
creased costs into consideration It would
appear that the prices of s45 per gross
ton for Bessemer rails and s47 for open
hearth rails are as low as should reason
ably be expected. I know that the
costs OF several OF the mills are In ex-
cess OF the prices quoted.