Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-08-27
ADVANCE IN Stiff
TRADE WIPED OUT
Industry Struggles Hard "a
Hold Gains of Recent
Weeks

New York. Aug. 27.-The iron an,
steer industry during the last week ws. y.
engaged in a hard struggle to bold bs
ground gained in recent weeks, Accord.
ing to reports received from ,o,,...
important centers. Some reports sVus st.,us
that the trade was holding its owp "tea h,si
from other reliable sources i, out
learned that the week was one ~ S,a Mas
appointment, and In many lines tho IL,
proVement recorded in recent weeks m.. .
somewhat eliminated. In brief. h,,s,
ness during the week showed sliah,
decllne over the previous week in css
tam departments Of the industry so
cordlng to men who are in close touc,
IL must be remembered. bowever
.I .nat .he month of August, even in nor,
,nal times, is not a good month In tbo
INDUSTRY. and the fact that business l.
not coming in any large volume ia NJ, a.
surprising to many. Even with ,h;s
considered, the bushes done durin, s ths
iast week was by far much smaller tbae e
the industry anticipated. '"""
irominent men in the iron md s,so,
industry now argue that certain IN,
portant factors must ultimately bo 70.
adjusted before the industry can enior
anything like n real boom. These mo- mo-,
assert that until the general business S ot
the Nation has been relieved of tbo
heavy burdens placed upon II in tho
way OF excessive freight rates industrr
IN TINS country cannot revive TO anv
great extent, and without q nation.
VIDE expansion of business the bosic
INDUSTRY cannot and will not forge
ahead. io'se
The iron and steel industry has b.cr
DONG Its share in readjusting cond.
tlons so as to lower costs. Wages have
been lowered. and may be further 70.
duced, in order that prices may be made
attractive to the buyer, but the trade
contends that so long as Transportation
charges remain at the present high Level
mere IS no prospect fer cheaper steel
It has been pointed out in this connec.
ton that the freight charges on the six
tons OF fuel and raw material which
enters into one ton of steel imposes n
Darrler TO further price reductions, I'm.
less made at the expense of the produc.
ing companies.
1t is said that many of the most i'm.
portant consumers are refraininp frnm
entering the market not only because of
present price of steel at the mill, but
because of the cost to transport II. They
are not buying ton more than thev
require For current use. The fact thnt
this hand to mouth business is not fall
ing off and that whatever orders now
placed are for immediate consumption
and not for stock il an evidence Of n
slightly more healthy condition in the
trade.
In brief, the iron and steel industry
IS insisting upon an immediate reduc.
ton OF freight rates. Without such re-
lief the consuming public cannot be at
tracted even though by reduced prodnc.
tion costs and active competition in tha
trade prices at the mill are brourh,
down by the producing companies to
an irreducible minimum.
Cut Throat Competition
An element of doubt in the prpser,
situation tends to make consumers skcp.
tical about prevailing prices. and makes
them believe that keen rivalry for busi.
ness now making itself felt in the In.
dustry will ultimately develop into cut.
throat competition. The larger con.
sumers of steel products are fully aware
of what is now going on in the indus.
try, and they believe that despite what
upDPdTS 10 De DetIer trade sentiment
materially lower prices will come very
soon.
If there was any doubt In the minds
of consumers of steel products on this
point it was dispclled few days ago
when they read the statement issued by
Judge Ebert II. Gary, chairman Of the
United States Steel Corporation. in an.
nouncing further reduction in tinplate
and sheet steel to meet the lower prices
quoted by leading independents This
statement confirmed the oft-repeated
assertion that the corporation would
meet price reductions established by It's
competitors. AS matter of fact, the
corporation has been meeting competl-
ton in prices of the Independents foy
some time. past. Independent manu-
facturers know of the attitude Of the
corporation because they were tod
months ago that II price cutting became
drastic they could expect the corpora.
ton to establish lower lsvels similar to
those made by the independents.