New-York tribune., 1920-10-17
Seek Higher Steel
Tariff to Prevent
u. S. Market Break
Manufacturers Insist Euro
pean Competition Will
Endanger Big American
Industry Unless Checked
Special Dispatch to The Tribune

PITTSBURGH, Oct. l6.--tnless a
tariff is erected as a barrier euiiic;ent
ly high to afford protection without
entirely shutting out European made
when tho market here viii be flooded
with foreign steel products to the
complete Reorganization Of the Nmeri-
can manufacturer, worker and con-
sumer in the opinion OF progressive
steel manufacturers here and through
out the steel world to-day.
1t is asserted that, in view of the
present rate of exchange so greatly
favoring the European steel manufac-
turer, and with Europe's funded and
unfunded debt to America running
into billions Of dollars, the tariff is a
subject of vital importance at the pres
Is ra sed chaotic conditions cannot be
prevented.
There is no doubt that at present
there is more competitive situation
in the steel trade than there has been
so far this year. but in view of the
fact that all steel mills face serious
shortages Of iron ore and coal for the
coming winter-the National Coal AS
soclatlon's statements with regard to
fuel ng-and also in view
OF the fact that the building program
for the United States is almost two
years behind schedule, it is anticipated
that the demand for their products will
shortly increase and markets will be-
come stabilized.
In addition to the delayed building
program Of the country, the steel
which will be required by the railroads
for rehabilitation. upon which their
freight rate increases were predicted
will keep the mills busy for a year.
once they start placing their orders,
which is expected to be soon.
What IS going on in the steel market t
Is really more Of an adjustment within
that market than it is Of an adjust
ment to meet the average of other
markets.
For long time the independent steel
companies have been rcceiveing a
higher price for their products than
the Steel Corporation, due to the fact
that Judge Gary has opposed any in
creascs in corporation domestic prices.
especially while the export market Of
tered such tempting inducement to
snip abroad. The gap between the
prices OF the independents and the cor
poratlon is slowly closing up, however,
lirst by the Independent prices receding
next by the corporation prices
IN some products moving up and in
others showing signs Of advancing soon.
The outcome will undoubtedly be
of the market at prices
somewhere midway between the indie
pendent and the corporation prices.
Two factors have contributed to
making 1t appear that there is a super
abundance of steel OF the market,
while as matter of fact there is not
rlrst, the easing up Of the railroad
situation has permitted the shipping
out OF thousands of tons of material
which was rolled in the spring and
early summer and piled on the Ground
at the mills because there were no cars
IN which to make deliveries. This
movement, which has been going on for
about five weeks, has created the i'm
preston that there is more than an
ample supply
Second, the easing up of the railroad
situation has also permitted the re-
sumption of immediate shipments. from
the mills, which has added to the tom
mage en- route and further deepened the
supply.
The fact is that many customers of
.he mills are only now receiving steel
ordered and made many months ago.
and at the same time the mills are op-
eratlng at nearly maximum production
for the first time in long period. In
other words, more steel is moving to-
day than the mills are turning out.
because the railroads are not only
handling all that is being produced,
but are cleaning up the accumulations
as we'll
A significant factor in the situation
is that warehouse shipments, instead
of decreasing, as they would if there
were an oversupply of material being
rolled, have actually increased.