The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-04-24
SAY OPEN STEEL
MARKET Is HERE
Not Generally Recognized as
No Tendency to Cut Prices
Exists, Says Review.
FINISHED LINES IMPROVE
Stabilizing Plan Regarded as
Having Failed, Declare
Trade Periodicals.

The Immediate presence Of an open
market for steel and steel products IL
forecast by the Iron Truds Recie,p in its
weekly article on the steel situation. It
declares that the failure of the price
establishing movement Is generally reeog-
ntsed and the statement OF Judge Z. II.
Gary. chairman of the board OF directors
OF the United States Steel Corporation.
that the Government price plan is dead,
says that periodical. Is accepted as
correct appraisal of the present state Of
affairs.
The IRON A ge says that an open mar
ket has existed recently, but has not been
generally recognized because of no dis
position to cut prices Operations have
been very limited and the general basis
OF operation. It states. is about 30 per
cent Of capacity, the Steel Corporation
operating at 10 per cent. in the Chicago
district and so per Gent in the Pittsburg
district. It was reported yesterday that
the Duluth plant of the Minnesota Steel
Company, subsidiary of the United
states Steel Corporation, IL to be closed
Judge Gary yesterday would neither
confirm nor deny that report, referring
all Inquiries TO Duluth. The plant has
approximately $4,000 tons annual ca
pacity.
"Fruitless weeks of waiting for WASH
ington to put in working form its plan
OF general price reimbursement have un-
done largely whatever recovery the iron
and steel market has been able to attain,
says the Iron Trade Revtetp. with fall
ure OF the stabilizing movement gener-
ally recognized the industry finds Itself
obliged to make a fresh start on a lower
plane OF prices with order books greatly
depleted and production declining. Judge
Gary's statement that the Government
price plan Is dead Is accepted as q cor
rect appraisal OF the present state OF
affairs and recognized as forecasting i'm
mediate presence OF an open market, II
IL does not actually signalze restoration
OF such conditions. Were 1t not that
business is in such a contracted state
influence of the new market conditions,
probably would be more plainly ap-
parent.
Finished Lines Improved.
New business in finished lines, gen.
orally speaking. is on low basis OF
20 tonnage compared with mill capacity, yet
tho situation is a little better than in the
preceding week when the market was ex-
tremely dull. The leading producer in
the Chicago district has been entering
ne-s tonnage at about 25 per cent. o.
that being shipped. MIL activities In all
lines largely come within the range OF
20 70 SO per cent"
The Iron A. e points out that there is
little deviation from the schedule Of
prices adopted recently at Washington.
Wages have been maintained by vir-
,uaily all large steel companies. and II
IS not believed that any great cut in steel
Prices can be made at present
THE open market that has existed
recently In steel products has not been
-s'eneraily recognized because Il did not
show widespread and sensational price
cutting" says the Iron Age. THE in
dustry. without any concert, has been
limiting operations to the business COM
ing in. In the past week that has meant
further shutting down Of blast furnaces
and curtailment OF working time at steel
works. ,..
Little interest has been taken in the
bulletins OF further parleys over prices
at Washington. The steel trade has
regarded the staoiliEing episode as ended
when executive approval was withheld
from prices in which the Government
had asked the public to have confidence.
Little Motive for Price Cutting.
The deviation from the so-called
oricial prices are small and are the ex-
cept!on. New business IL on so limited
n scale tina. price cutting has little
motive. and. since costs increase as out
put fails OF, the chances Of the much
heraided deep cuts have grown less.
The belief that output has reached or
even gone below bare wear and tear
basis has even given rise to a more
cheerful feeling, particularly in the
Chicago district
"All the large stee! companies have
maintained wages. In some commun-
tiles whore an iron or steel plant was
the chief dependence workmen have &C
cepted some reduction in wages to pre-
vent shutdown. Southern steel
company has reduced wages 10 per
cent. Some blast furnace reductions
have come also.
"Foiiowing the advance OF $1,000 In
pig iron by British makers announced
last week, effective May /. our cable
tells OF advances in England for the
home trade of S1i per ton in plates.
sI.65 per ton IN steel bars and $3.50
in steel rails. British export prices
are no longer under government con-
troll, but subject to individual negoti-
ations. Cnde. new quotations. mill
prices OF plates are s7s.22 compared
with 1885 per gross ton in the United
States. Bars there are $685. and here
352.64 Rails IN England are 5000
~ this country sac. How much ocean
carrying charges absorb this difference
Is indicated IN the search, not yet sue
cesful, by a New York export house for
a quotation OF $3.50. delivered New
York. on 5000 tons OF plates to meet