New-York tribune., 1920-10-31

Competition
In Steel Trade
Independents Refuse TO Cut
Prices to Corporations
Level, Except to Fill Out
Orders; Boom Expected
spro.o, D&spotoA to Tho Tribune


PITTSBURGH, Oct. 30.--In spite Of
cancellations from various sources and
q generally dull market, the independ-
ent steel companies have tenaciously
hung on to their premium pricos for
various steel products and are waiting
for favorable turn of affairs to re-
store the steel business to it's previous
status, chief amonA which may be men
TONED the election, tho resembling Of
orders Of the Interstate Commerce
Commission depriving steel manufac-
turers Of the use Of open-top cars for
shipping steel and an opening up Of
requirements in the building and rail-
road industries.
Here and there an Independent has
taken business under tho top price to
fill books for the dull period, but in
varably has gono back to the upper
price level. There are several reasons
why the Independents are not dropping
down to the price level Of the United
States Steel Corporation, one OF the
most influential being the mutual fear
of competitive situation which might
result in slashing.
The building situation is assumin,
brighter prospects. All present signs
point to brisk resumption soon after
the first of the year, and it is the be-
lief of the steel industry here that
once resumption OF any sort of build
ing program gets under way there will
be q rush such as this country has
never seen before. A leading brick
manufacturer here said his company
already had made contracts for deliv-
cry of 100000 tile brick to Texas, and
for delivery of other large quantities
to other Western and mid W estern
points, and that his agents reported a
stirring in the business icld which
would indicate the letting of important
contracts soon--frst for public build
rs. then for Office buildings, schools,
churches, and, lastly, for residences
All this would mean tremendous mar
ket for steel products. as the country's
building schedule is at least two years
in arrears.
Tin plate and tube mill products con-
tinue to stand up firmly and neither
shows any material change. The de-
mand for tubular products, especially,
is heavy and is greatly in excess of
capacity.
The car shortage, or rather the revo-
cation of the few existing permits for
open top cars to steel works, has re-
suited in closing down some of the
smaller plants in this district, notably
down the Ohio Valley, where at New
Martinsville several steel working fac
tories have been forced to shut down.
The declarations made by Senator
Harding as to the tariff policy pro-
posed when the Republicans come into
power have proved pleasing to the steel
interests here. which is the home of
the old-fashoned Republican tariff
now largely forgotten by younger gen
Grafton. The need for a return of the
former protective tariff policy of the
party is pointed out here as being OBJ
vious, especially in view of the present
low rate of exchange with Europe,
which serves to protect European man
ufacturers, while this country, with a
nominal tariff on steel of per cent,
faces the possibility of being invaded
by the foreign steel manufacturer when
his own industrial conditions are more
settled. The danger is not considered
here as imminent, but the need for pro-
vlding proper machinery for protection