The sun., 1919-05-10
U. S. STEEL HOLDS
TO BOARD PRICES
Subsidiaries Are Maintaining
Schedule Rejected by the
Rail Administration.
GARY FORESEES ACTIVITY
Predicts Other Companies Are
to Follow Attitude of Steel
Corporation Interests.
GARY FORESEEs ACTIVITY

The subsidiary operating companies o,
tho United States Steel Corporation are
maintaining risidly prices for steel and
steel products according to the schedui.
approved several weeks ago by the In.
dustrlal Board of the Department O,
Commerce. That schedule was rejected
by the Railroad Administration, with IN.
result that the plan for stabillzing s,ee,
prices was abandoned. Announcement,
to that effect was made yesterday bv
Judge Gary, chairman of the directors
Of the Steel Corporation. The Judge de
clared that he believed such would b.
the attitude OF other steel manufacturer
In discussing the outlook for the III
ture. with the price stabilizing plan
abandoned and steel prices allowed TO
take their course in accordance with
he law Of supply and demand, the Judge
predicted period of great prosperity
for tho United States, saying There IL
good business ahead. II Is for the hes.
interests of the whole country, producer
and consumer, employer and employee
and the general public, 20 take advan-
tage OF the extraordinary resources Of
the United States by standing together
for greater progress and prosperity thar
We have ever before experienced"
Judge Gary wss requested to commen,
eral Walker D. Hines concerning the
conference on Thursday between repre-
sentatives OF the Railroad Admlnistra.
ton and the iron and steel industry, In
which the DtrectorGenera declared that
the prices made by the steel producers
and approved by the Industrial Board
were too nigh, and that at those figures
the manufacturers of steel would be
making as large profit as they d'd
during the war. In reply to that reques.
the Judge said:
Time for Cooperation.
I'VE desire to avoid any controllers,
with the railroad department or an"
other Government department 1t .s a
time when all interests should cooperate
in aiding to facilitate the movement for
improved industrial conditions, which r.
certain to take place, II 1t Is not already
in evidence. The statement of the nj
rector General. If it had been made afte-
full acquaintance with the facts ard fig
ures and had been accurate in all ~
spects. would not, in my opinion. have
any bearing upon the exact present SIT
uation.
ION the present basis the cost Of pro.
duction. as shown in the books OF the
manufacturers and verified by the Fed
eral Trade Commission. would not per
NIT any further reductions in selling
prices without a lowering in wage rate
our subsidiary companies are strictly
ma ntalning the scale of prices approved
" the Industrial Board Of the Depart
ment OF Commerce. and II seems to me
that will be the attitude Of other manu-
tacturers FOR the reason, II for no other.
that their costs Of production will not
allow any further reduction In selling
prices. They have voluntarily made two
substantial reductions since the arnls-
tice was signed.
IT regret that opinions between the
railroad department and the iron and
steel industry should have differed The
business relationship has always been
pleasant and We should Ike to see II
continue without Interruption"
No Attempt to Fix Prices.
In reply to questions concerning al
open market for steel and steel products
Judge Gary said:
There has at all times been an open
market, and an opinion to the coutrarr-
is Il misconception of facts. There has
been no effort to establish fixed price
The fact that a seller cannot or will NJ,
reduce his selling price or that pur
chaser cannot or will not pay the price
asked does not modify the fact that III.
There is good business ahead. II .s
for the best interests Of the whole couu-
try. producer and consumer. employee
and employee and the general public 20
take advantage of the extraordinary re-
sources of the United states by 4tandiu-
together for greater progress and pros
perity than We have ever before expert.
cuced."
More or less satisfaction In the ou;-
come OF the stce! tanglo was espresso
by some steel men and others in the
financial district yesterday. Some Q,
them have been outspoken in their de
nunciation OF the Redfield stablizing
plan, aud the announcement that tNa
plan has failed and that steel prices wi
be dependent on market conditions
henceforth was very gratifying to then.
An immediate improvement in steo
business is looked for as a result OF the
decision to abandon tho stabilizng plan.
When the plan was first adopted and TIA
price schedule arranged and approve
by the Industrial Board business showed
unmistakablc signs 81 immediate t.
provemert As soon AS the Railroad A.
mlnistration announced its unwilinErts.
10 accept the prices the business inua-
dately declined once more and since
that time II has remained almost ~ &
standstill, pcuuing settlement of the Gov
troversy steel men look Tor an cary
resumption Of the deferred business nov
that the price question has been sett's-