New-York tribune., 1920-12-19
New Orders Believed to Hav.
Been Taken ON Lower Ba.
sis, as Operations Show
Cain in Independent Mills
Expect Sharp Wage Drop
Early Revision to Bottom
Level Is Urged to Prevent
Long Period of Inactivity
Special Dispatch to Tho T,,hv,.

paralysis OF all the business of the
country is to be avoided. Steel men
mere point out that it is a case of
either lowering labor costs or e,evo,-
ing selling prices above the Industrial,
poard ievel, to which they recently
descended-and of doing one or ~
other soon. VIC
II is said that u prolonged nor;o,
Of depression in the industry h;ob wh;ob
would certainly follow upon bes;taa.
poilcy, would work incalcuable hsrn,
to the whole country, which hsdi,.
needs the steel, and that an sttemn,
to lower labor costs by gradual
process would prolong indefinitelv thn
period Of resumption of business ';~ ~.
the industry. A quick and heavv wsrn ~
cut may be looked for shortlv 60
the 1st of the year, as the Ekel;hoe'1
OF selling prices going up again is
remote. e"'" 10
I'VE can't get along at the press,+
rate Indefinitely, declared a promirsnt
independent to-day. Cooperating costs
ana selling prices are too close to.
gether to permit of producing at
reasonable profit, and it is inevitable
that this condition be changed soon,
either by an upward turn in seli;na,
prices or a decided cut in the ew,ms wams
scale and in such other cost items s.
can be reduced"
Sharp Wage Cut Urged
1t is pointed out that inasmuch as
steel wages have advanced 140 nor
cent since 1913, it would be futile -
undertake to make reductions of ~
or 10 per cent, as the result would he
10 encourage buyers of steel eommodi.
tHak
slor IN prices was to follow. because
the buyer is, by nature cautions srd
Would interpret slight wage cut as
preliminary to further moves. amons
which would be more cutting of prices
a generous cut in wages down to what
the buyer realizes ought to be the
Hormal relation between costs and
selling prices, would be the signal
that bottom had been reached and
hothlng further was to come and
would certainly result, according to
steel operators, in the buyer coming
quickly into the market with his re,
quirements.
is, therefore, regarded here a.
practically certain that only by max.
ing quick and general wage cut Of
no mean proportions can the steel
business be stabilized and the period
OF depression shortened to the least
possible duration.
A steel company sales manager pointed
out that gradual process of REDUCING
wages would result inevitably in slow.
ing down the buying market for steel
Prooucts TO such an extent that the dc.
preston IN The industry would extens
tnrougnout The summer and we'll into
the fall of 1921, instead of lasting onl,
ca lamltous to the whole country IL j,
said. as the country needs the steel md
prolonged period of depression in tina
steel industry would work incalcujabls
harm to all business and industry and
all warge workers as we'll. II is recesr.
sary, IN the opInlon of men IN the bust,
ness who have riloted the industry
through similar stormy periods, to make
a quick job Of Il and get il over with. SO
That the new business waiting upon the
stablllzation of the industry can be
coaXed out and a busy period of pro-
ductlon ensue at the earliest possible
date
independents to Take Lead
The United States Steel Corporation
mills are known to be in the most f.
Vorable position to continue operation
without cutting wages to any apprecia-
PIE extent, Us IN addition to large un-
hlled tonnage on their books the cor
poratIon itself derives revenues from
various enterprises not steel making III
character which enable it to show earn
ings that the Independents not possess
ing tins advantage cannot exhibit. Rail
roads, steamship lines, mines, quarries
and by-product coke ovens are men
TONED as among the corporations
sources of incidental revenue.
1t is expected that the break in the
present wage scale will be made BY
one of the large independents. posi-
bly, by one Of the Youngstown compa
mes, within short time after the first
of January. Whea the reduction is an
nounced it is anticipated that it will be
sizable and it is also a practical GER
tainty that the lost of the Independent
companies viii quickly follow the lead.
A rough survey of the leading nde-
pendent mills indicates that the average
Of operation for all of them is around
so per cent, which is larger than was
following the reduction in
selling prices TO the Industrial Boards
level, and is an indication that some
business has been brought out by that
Raw Materials Decline
Another significant feature, from the
of the producing interests
has been the sharp drop in raw ma
.erial prices, which all along the line
reect the weakness of the iron and
steel market High grade run-of-mine
gas coal is obtainablc at 81 for spot
lelivery and steam coal at from $3.50
20 S3,75. Blast fur ace coke is be-
ng offered from $3.50 to s6 per ton.
one coke maker Offering up to $4,000
,ons.
In the past week there las been
inner demand for various grades OF
galvanized sheets in the Youngstown
district, emanating from southern IN
erests, the material to be used for
'oofing purposes. Some makers arc
showing interest at this time in
bundled lots. condition that has not
Prevailed for long time.
In view Of the drop in fuel prices.
over quotations for pig iron are be
ieved imminent and price under $50
S anticipated.
The only appreciable difference IN
he pipe situation is that some jobbing
interests are displaying more cars IN
hoosinr specifications, whereas here
ofore they have placed orders some
What freely for all grades.
Payrolls Show Increase
All material now being delivered IS
t Steel Corporation prices, contracts
aving been revised on all commodities
xcept pipe to the lower level.
In Youngstown an indication that
mployment is being we'll sustained is