New-York tribune., 1920-11-27

in the steel trade that with prices in
the principal finished commodities
down to the level of the industrial
boards schedule. and wages and other
items OF cost reduced. the long and
anxlously awaited adjustment in the
steel trade Will be over. The industry
VIII start forward on new era, vi tn
prospects OF increased business for the
next several years, owing TO the delay
ing building program of the country.
the vast and immediate needs of the
railroads and the stimulus which the
settlement of the steel industry to its
bottom level viii give all industries
pNlsn use steel products"
Wage Cuts by January
Pressed for more explicit state
ment on the date and probable amount
OF the wage reductions, the informant
said; should say that the cost Of
produclng steel Will be greatly reduced
WITHIN the next few weeks Ry the
middle of January wage reductions and
other elemental costs should be III full
effect
Are you prepared to say approx
mately what these wage reductions Will
average among Independents and steel
corporation plants % was the next
question.
NO; am not A basis already has
been considered by several of the larg-
est Independents, but they are waiting
on the United States Steel Corporation
to make the first move
1t was then pointed out shat the
speedy readjustment of the steel in
dustry now under way Will result in
stablllzlng and readjusting other lines
OF business, with the consequent low
erlng of prices on all items entering
INTO the cost of living, since steel is
regarded as the business barometer.
and the inevitable result will be to
make the dollar that steel workers rs
earn worth 100 cents, even though their
pay IS reduced, instead OF being worth
only 60 to 70 cents, as at present.
Tariff Program Planned
Leaders in the steel industry here
are preparing to take up the question
of a protective tariff as soon as the
industry is settled on its new basis.
and anticipate being ready to present
their claims to the new Republican
congress. The aspect of the tariff
question has cnangeG materially since
the war. according to experts on the
subject here. They call attention to
the fact that the difference in the rate
OF exchange with Europe and the ORR
ent has caused new and entirely diff
ierent situation, calling for a tariff so
constructed as TO protect American
manufacturers and workers from being
Obliged to meet the competition of
foreign products manufactured at for
elgn costs, but brought here and sold
at prices enormously profitable when
converted back into foreign values.
NOII\T
dependent steel companies of the
workers, announced to-day that they
would meet the reduction Of prices an
nounced by the Jones & Laughlin Com
pany, Of Pittsburgh, the cut to be ef-
fective at once.
Heads of the three largest indie
pendent corporations here declared a
REIMBURSEMENT in the cost of both coal
and labor would have to follow. They
said that wherever labor costs with
the independents were higher than the
United States Steel Corporation the
wages would have to be reduced
Little surprise was expressed in
local steel circles yesterday over the
announcement from Pittsburgh that
the Jones 4 Laughlin Steel Company
one Of the largest Independents, had
tanned by the United States Steel Cor
Toration since March 21, 1919 1t is
believed that other independents, in
Guiding Republic Iron and Steel. Md
vale, Lackawanna and Bethlehem, will
soon announce similar cuts.
Steel men declared yesterday that
the plants Of the country are at the
present time running at only so per
cent of normal, which means that con
sulners have given practically all their
orders of late to the Steel Corpora
tion because Of its more attractive
prices. In some quarters Of the trade
j. is predicted that further price re-
ductions will have to be followed by
wage cuts, as it is claimed that the
mills cannot continue operations at a
profit on the basis Of current wages.
The Jones & Laughlin Steel Com
Iany is the second Independent pro-
ducer to reduce its price on bars to the
Steel Corporations level of 2.55 cents
I. pound. The Inland Steel Company.
of Chicago, has for the last week or
two been Offering bars at that figure.
although for the smaller sizes prices
have been held around 8 cents in the
Chicago territory.