The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-04-10
MEET TO DISCUSS
STEEL RAILS COST
Representatives Of Institute
and Road Administration
Hold Conference.
WILL REPORT TO HINES
Price Fixing Middle Holds
Back Business According
to Trade Reviews.

ministration and several members of
the general committee Of the American
Iron ana Steel Institute met with Chair
man George N. Peck OF the. Industrial
Board OF the Department OF Commerce
In the once OF Judge Ebert II. Gary,
chairman Of the Steel Committee, yes
terday, when the disagreement between
the Industrial Board and Director G en-
eral Walker d. Hines regarding agreed
, steel rail- prices was discussed. They
considered also production costs with a
view OF determining whether or not
lower steel rail prices naight be made.
The meeting was much protracted and
u was not until late In the afternoon
That II finally broke UP and Judge Gary
and Chairman Peek issued the following
Joint statement:
AT the request Of George N. Peek.
chairman Of the Industrial Board of
the Department of Commerce, a meet
Ing was held between II. g. Lovett,
Henry Walters and II. b. Spencer, rep
resentIng the Railroad Administration,
ana few Of the members of the gen.
srat committee OF the American Iron
and Steel Institute. for the sole purpose
of discussing the subject Of producing
costs OF certain lines of steel in which
the railroads are especially Interested
10 was understood that the representa-
would report the information obtained
TO Director-General Hines"
As to the results of the conference
NOBODY who was present would make
any comment Judge Gary declared that
the 5oint statement contained all that
there was to say at the time and Mr. Peek
likewise refused to add anything to the
formal statement. Whether or not any
concessions in rail prices were decided
Rnt,t1 ,At ~
INFORMED quarters II was declared that
the steel men made plain that they could
make no further reductions in prices
submitted TO the Industrial Board and
accepted by that body. In that connec-
ton. IL was pointed out that published
utterances Of Judge Gary and recent
statements Of other steel men were to
the effect that rails could not be pro-
duced At a cost less than that figured on
IN preparing the previous schedule OF
prices.
Who Attended Conference.
The representatives Of the Railroad
Administration at tho conference in
eluded Judge r. 8. Lovett and II B.
Spencer. members Of the Advisory Com
mittes on Steel Purchases recently ap-
pointed by the Director General, and
Henry Walters. The steel men present
included. besides Judge Gary Charles NJ.
Schwab. John A. Topping. william u.
Dickson OF the Midvale Steel and Ord
nance Company and Eugene @. Grace O..
the Bethlehem Steel Cooperation.
The steel trade Is taking n very OPP
timistio view Of the steel tansie at
Washington and are drm in the belief
that II will result In an open market for
steel and steel products. In that con-
nection the Iron Trade Repietp has 70
say: AN open market in iron and steel
has been brought 90 Immediately in
prospect by the price differences In
Washington that homo buyers and SELL
ers already are inclined to accept II as
an established fact. Unless the next few
days shall develop a tangible and salts
factory adjustment of the controversy
various producers are likely to consider
Themselves freed Of any obligations I'M
der the establishing price agreement.
While the Railroad Administration IL
making its chief assault upon the rail
price, because that Is the principal mill
product which II buys direct, its accept
ance OF the schedule on other heavy ma
terials some consider assured. Further
more, It Is a question IL our govern
mental departments are financially COM
United to the agreed prices. II IL pretty
certain that a request for the Govern
rnent to reopen tho price question would
receive nothing like the unanimous sup
port from the iron and steel industry as
was accorded tho original proposal.
Should an open market actually develop
steel producers insist that buyers are
likely to be disappointed in any expecta-
lions Of substantially lower prices"
Await Price Settlement.
The Iron Age In its weekly review also
points out that the rnuddle in Washing
on regarding steel prices has resulted in
holding hack business. The price fixing
wrangle at washington" It says, has
halted business in iron and steel. While
ostenstbly some development from the
repeated conferences between the heads
Of the Industrial Board and the Railroad
Administration Is awaited, tho belief is
Widespread that confidence In coopera-
tive. price maintenance has been shat
tered
Those buyers of steel products who
considered that the recent reductions did
not go far enough have been quick 10
predict competitive prices, and there
have not been wanting. even among pro-
ducers. advocates of an open market as
the shortest road TO q basis that will in
vite the free placing Of orders.
THE outstanding feature in that con-
Hcction Is the growing expectation that
The reimbursement in iron and steel will
take In labor as well as products. All
that has been said about wage mainte-
nance has ignored the fact that 90 per
cent operation of mills, as Is the case
with most Independent steel companies,
has already made inroads on weekly
wage earninga"