The sun., 1919-02-28
tSS REDFIELD
'STABILIZING PLAN
ndge Gary Announces Steel
Men Form No Opinions
at Meeting.
CONDITIONS ARE BETTER
Industry Generally Opposed to
Artificial Readjustment
Scheme, Is Report.

Seventeen representatives OF the big
gest steel producing interests In the
country were present yesterday after
noon at a meeting held In tho once of
Ebert II. Gary. chairman of the Board
kpf Directors of the United States Steel
corporation. The meeting was called
or a general discussion OF the steel sit
nation In the country and to talk over
plans for readjustment from a war to
peace basis with as little disturbance as
possible.
One of the principal topics discussed
was tho plan OF Secretary Redfeld for
the stabillzation of prices throughout the
nation on lower plane. George n.
Peek. who has been made chairman of
the conference board named by Secre-
larry Redfeld for tho furtherance of his
rlan, was at the meeting and gave to
the steel men a long discussion on the
qualification proposal.
No opinions were either expressed or
hnrmed by the producers at the meeting.
according to a statement issued after its
close. Notwithstanding the statement. II
was declared in authoritative quarters
hat the steel industry generally was OPP
posed to any plan for arti8cal readjust-
rnent, and strongly favored the assertion
that the industry should be allowed to
take its own course and work out Its own
readJustment.
At the conclusion of the meeting Judge
Gary issued statement in which he
declared that conditions governing the
steel industry are much better to-day
than they have been generally supposed
10 be. With respect to the unemploy-
nent problem he said that so far as the
Operations information goes there
was less OF Il than was indicated by
some publications.
The only thing which he would say
with respect to prices and production
was that prices are being we'll main
tained,'' which was considered as
very important assertion In view of re-
ports being made in all quarters that
prices OF steel and iron products are
being cut down considerably In order
10 stimulate the market.
In that connection, IL was learned
yesterday that steel producers have con-
tracted large bank loans to keep up
production. Steel being produced I'M
der those conditions is known as high
cost STEEL" and an extremely large sur
plus Is said to have been piled up in
the recent inactive market. 1t Is said
that there is disposition on the part OF
producers to sell that steel gradually.
that no material reduction OF price may
20 necessary.
Would EndanEer Loans.
The borrowings are said to have been
on a 25 per cent. margin OF the product
and II is pointed out that II the price
~ the steel should decline more than
that IS per cent. the loans would. be
teopardized. 1t Is declared that the
principal object In maintaining the price
at as good a level as possible is to pro-
tect institutions from which the loans
were had and prevent unfavorable re-
suits to the steel industry,
The statement issued by. Judge Gary
yesterday follows:
"some OF the leading steel people were
called together to discuss the general
steel situation. Attention was called TO
the recent publications concerning the
tanning by Secretary Redfleld of con-
ference board to take up in the different
lines Of industry questions relating TO
adjustment. We learned that Mr..
Peek, who was mentioned as chairman
- the board. was in town and invited
lin 10 visit US to explain the purposes
II the board. He stated at some length
what was in his mind and asked for the
cooperation of the steel industry. II is
our purpose to consult the representa-
7 ives OF the manufacturers of iron and
steel generally at some future meeting.
md after we have arrived at conclu-
sion 10 report the same to Mr.. Peek
During the discussion to-day no opinions
we're expressed or formed. It is we'll
lnown the steel industry. speaking
Aroady. is in favor of the principle OF
rooneration, hut beyond that we have no
Information to give or opinion to eX-
press. I do not know what will be the
ronclusion reached In this connection
| think am justified in saying that the
steel Industry is In better condition than
it has been in some quarters reported
10 be. So far our information goes
there Is less unemployment throughout
The country than we would be led TO be-
lieye through some OF the public cations"
Expect Big Rail Order.
II was reported yesterday that the
Railroad Administration will announce
IN a day or two its intention to place an
order for 100000 tons of steel rails at
ne new prices While no official con-
rrmation Of the report could be obtained
The sources from which II came are
usually well informed and general ere
dencc was given to the rumor. II the
eport be true. II was pointed out, II
would be n tremendous benefit TO the
steel Industry because IL would release
IN enormous amount of surplus steel
without material reduction in price
which would result II so large an amount
were placed through usual channels.
CHARLES VI. Schwab head OF the Beth
|eaem steel Corporation, was at the
meeting in Judge Gary's office yesterday.
MI. Schwab had just returned from a
trip TO Europe. where he made close
study Of conditions and estimated the ex-
tent 10 which the United States will be
oaIe1-K A><~k Ipply- the war taAsK IN
tinent with materials for reconstruction.
While Mr. Schwab was very optimistic
as 10 the future of the steel industry he
maintained that European builders
would not be buyers Of steel from the
United States for long time
The question OF wages was taken I'D
at the meeting and II was said that the
steel producers were willing to continue
operating on the present schedule IL the
ToTkmen would conceds a modification
II wages. 1t was declared that II such
wage cut would not be accepted the
companies would be compelled to reduce
operating forces and curtail production.
At the meeting were Gary. Peek.
SchwAb, John A Topping. L. A. S.
Clarke, Eugene Grace. ,. A. Burden.
Alva e. Dinkey. L. L. Block w. II. Dom
ner and Samuel Mather