The sun., 1919-05-09
STEEL MEN WIN
FIGHT FOR OPEN
PRICE MARKET
Railroad Administration in
Final Conference Fails to
Get Concessions.
WILL SEEK BIDS AT ONCE
Redfield Sterilization Plan
Believed Dead-QuotatiOns
Likely to Jump.
WILL SEEK BIDS AT ONCE

uhCly W JuIHp.
wide open market in steel. with
the price completely responsive to the
law Of supply and demand and with
the United States Railroad Admins
tration asking for competitive bids at
once on 100000 tons of steel rails, re-
suited from the final conference yes
terday in the Hotel Plaza between rep
resentatives Of the United States Rail-
road Administration and the manufac-
turers' committee of the American
Iron and Steel Institute.
Some Of the steel men who attended
the seven hour conference said last
night that the decision to fiout the In
dustr1al Board and to refuse to abide
by the prices fixed by that body in an
effort to stabilize the industry means
increased business in the steel trade.
The opinion was expressed freely
that prices would work higher, as
there was in allegiance a considera Bile
volume OF orders which awaited only
the removal of uncertainty.
1t was said in steel circles that the
breaking up OF the conferences means
the end Of stabilization, that the In
dustrial Board will probably 60 out OF
existence and that Secretary Redneld
might resign on account OF the defeat
Of his alan.
Gary Issues Statement.
e. II. Gary, chairman OF the United
States Steel Corporation. who presided,
issued the following statement
After a long discussion the represen-
tatives OF the Railroad Administration
d-the-nan-and- steel- industry have
failed to reach any agreement for re-
duction of the schedule of prices APP
proved by the Industrial Board of the
Department Of Commerce, the former
claiming the prices are not low enough
to satisfy them and the latter insisting
further reductions cannot be made with
out decreases in costs OF production
which would necessitate a lowering of
wage rates"
Judge Gary's statement was approved
BY the following steel officials who were
present:
James A. Farrell. president of the
United States Steel Corporation E G
Grace. president OF the Bethlehem Steel
Corporation A. C. Dinkey, president of
Midvale Steel: B. f. Jones OF Jones 4
L.aughlin; ]. A. Topping. chairman of
Republic Iron and Steel; Names A
Campbell, president Of Youngstown Sheet
Tube; C. H. Mccullough. Jr, OF
Lackawanna Steel H. G. Dalton of
Pickands, Neither Co. ; Leonard Peckitt
president OF Empire Iron & Steel; w. L.
Follansbee OF Follansbee Bros, Co. {; l.
z. Block. vice-presldent OF Inland Steel ;
James A. Burden OF Burden Iron &
Steel; Fs G. Gordon Of Lukens Steel
Co. A.; Johan A. Savage OF ]. A. Savage
& Sons and J. V. w. Reynders OF Ameri-
oan Tube & Stamping Co.
The policy of the United States Rail-
road Administration was defended by
Henry B. Spencer and T. c. Powell.
Walker d. Hines, Director General of
Riverside Drive. keeping In touch by
telephone. At the completion of the
conference Messrs. Spencer and Powell
reported to Mr.. Hines. who issued a
statement late last night explaining his
policy and attacking the Industrial
Board.
Points Made by Hines.
Among the points made by Mr.. Hines.
who announced that he was about TO
call for competitive bids for all kinds OF
steel products. were the following:
!. Reduction In cost OF scrap material
has been SO great as TO make prices pro-
posed by steel interests and the Indus
trial Board as profitable to the steel in
terests as were the higher prices that
prevailed during the war.
2. Prices proposed represent no con-
cessions whatever from war time profits.
3. Steel interests apparently included
In war costs the Increased profits In ore
and on these war costs the proposed
prices are based.
4. Representatives OF the Railroad
Administration remain entirely satisfied
that the reduced prices could and ought
to be adopted without affecting the
wages paid labor in the steel industry.
The statement authorized by Mr..
Hines follows:
'In accordance with the suggestions
from Secretary Redfleld and Chairman
Peek of the Industrial Board. the Rail-
road Administration representatives,
Henry b. Spencer and T. C. Powell. had
conference to-day with representa-
tives of the steel interests. Messrs.
Spencer and Powell offered specific criti-
cisms of the steel prices heretofore pro-
posed and suggested maximum prices
which the Railroad Administratio ion
would feel justified in paying for the
various steel articles which the railroads
use in important quantities including
steel rails. II was made clear that the
Railroad Administration did not wish to
Con ntfnued ON Fifth Pnan