New-York tribune., 1921-02-27
FOresee Price UpssUing

Steel manufacturers are inclined ID
| believe that when the turn in buying
eventuates into reality prices will
swing back toward the corporation
base. They point out that there are
limitations to the price reduction pol.
icy, which a-s rapidly being reached.
and brand suggestions, evidently ems-
mating from buying sources, that pre-.
war prices are a possibility as unrea.
| sonable and unwarranted.
Though wage rates have been re-.
duced 20 per cent among the inde-
.'endents, affecting all classes Of work
crs, they point out that the going rate
for common labor Of 81 cents IS double
the rate which was paid in January,
1915, before the series Of advances
started The same situation exists
with respect TO wages paid semi-sklled
and skilled workers. Another big fac
tor in preventing the reestablishment
IN the near future of pre-war prices is
the matter of freight rates, which have
Deen advanced several times.
1t is pointed out that the assembly
charges on raw materials entering into
production of pig iron are now as
much IS iron sold for in come trans
actions before the war. II is also en-
phasized that, while costs of raw ma
terials have substantially reduced from
the peak rates, they are still considers
bly, above the prewar levels.
Limitations upon price reductions
are therefore manifest, say makers OF
steel, unless costs are still further re-
more normal basis. 1t is considered
likely that the major steel-making
groups in the Pittsburgh and Youngs-
town districts will endeavor to have
freight charges revised. contending
that the railroads have no right to
enjoy the benefits of high rates when
their operating costs have declined
with other costs.
Orders for various grades and sizes
aggregating several thousand tons
have been booked by Mahoning Valley
makers within the last ten days, war
raating the resumption of idle units.
The Youngstown Steel and Tube Com
pany, Republic Iron and Steel Com
pany and Newton Steel Company will
start mills next week. One interest
this week shipped fifteen carloads of
galvanized sheets to consumer in
Texas.
The increased operating rate for the
first week in March prefaces a gen
aral Improvement, manufacturers be-
ieve. February marks the low spo: IN
buying and operation in the last five
yecrs, and all district Independents
will show unfavorable reports for the
first quarter. Most of the business
which has been booked in the last
month Is for small tonnage and for
immediate shipment.
The wave of depression in the stesl
business has hit the Homestead and
Duquesne steel plants and schedules
are five days instead of the usual SIX
week. All the blast furnaces in the
Homestel- works are in operation,
while two at the Duquesne plant are
undergoing repairs, and a few Of the
bar mills at the Duquesne plant sre
closed down. These two largest plants
of the corporation are operating from
70 to so per cent, which is the slowest
for these plants in years.
A slight improvement has been shown
at the Cambria Steel Company's plant
at Johnstown during the week. Cam
bria is now operating at about go per
cent Of its normal basis. They are
now working on 10000 tons Of the
10000 tons OF steel rails ordered By
the Pennsylvania Railroad.
Conditions at the Lorain Steel Com
pany at Johnstown, a subsidiary Of the
United States Steel Corporation, are
about normal. All mills are in opera
ton.