The Washington herald., 1921-02-14
STEEL'S DRASTIC
CHANGES CONTAIN
CLOUDED FUTURE
Possibilities Bind Situa-
' tiOn and Conditions
:E Are Chaotic.
CUTS" ARE SCORED
Many Leading Authorities In
sist Such Action Tends
To DemoraIize.
cuts" ARE SCORED

Expectations have been fulfilled
in the steel trade and the predic
tions made in these columns that
price reductions would be heard OF
in the near future have been con-
frmed. Naturally such a drastic
change in the situation is fraught
with possibilities and at the pres
ent time conditions are quite chaotic,
with no one willing to make a fore
cast as to what might be expected
of the future.
II has been fairly evident for
some time that more than one In
dependent steel company would be
compelled TO lower prices in an ef-
fort 10 get business, although there
are many Of the leading authorities
who insist that such action will re-
suit in Generalization among the
buyers who are not expected TO rush
into the market when there is oven
l remote possibility of a price war.
While the first official adRissIUm
that prices were being reduced came
during the past week, the fact lie
that several of the independents
had been quietly and even secretly
quoting lower figures whenever an
attractive inquiry came into the
market, and past history has shown
that such methods are always fol-
lowed by open reductions.
There is no doubt that the Mid
vale Steel and Ordnance Co, which
made the first public reduction, Of
z srT a. do
Cided to go out after business, will
find considerable competition from
other independent companies. But,
as stated by Judge Gary. the Unit
ed States Steel Corporation is not
contemplating any change at this
time. SO that the price cutting for
while at least, will be between tn"
independent producers.
Cuts Are Contemplated.
1t can be stated on reliable au-
rhority that the plans of the in
dependents call for a wage reduction
Of from Is to IS per cent TO be ef
feCtive in the Youngstown district
IN or about February Is. and some
interests are of the opinion that be
cause OF this proposal the price re-
duction was allowed to become pub
lie. so as to influence the attitude
# the workers in the matter. This
permits the argument that the lower
quotations are responsible for the
wage reductions.
According to some observers close
to the management of the Steel
Corporation. the leading interest is
not likely to make any attempt 20
meet the competition from the
smaller companies, first, because
here is only a moderate volume OF
lew business in sight, and second.
)ecause the order books of the Steel
corporation are still carrying a sub
;tantial tonnage to be filled.
As matter Of fact the point has
we'll been made that the Steel Cor
poration has every reason to con-
tinue its stability owing to these
large untitled orders. and by main
tanning its prices the leading n
terest can continue the present waG"
rates. No doubt the fact that woTN-
ers in the small steel plants are
getting a lower rate will have q
most beneficial effect on the atu-
tude of the employees OF the St"'
rorporation and result in increased
Efficiency which will result ln "a
<light reduction in the costs OF 'h'
big company.
May Seek Cancellations.
Everyone who knows the steel IN
dustry is hoping that it will be pos
sible to avert an open price war. IL
IS felt in some quarters that SOM
interruptions consumers OF ste'l
Who have contracts on the books oi
the Steel Corporation will attemP.
20 get cancellations and replace tN'
business with the smaller Compa
nies which are cutting prices. u
this deveops there is no doubt that
the Steel Corporation will tax
steps to meet the quotations Of It's
competitors.
During January the Steel CorP".
ration is estimated to have shlHN'
out something like 100000 tons.
and the new business received was
approximately 100000 tons, differ
ence of about 35O,0OO tons. This Is
| considered a good showing, and had
II not been for the Withdrawals
from customers, including the ran
roads. the decrease would have been
much smaller than many would have
believed possible. The figures or
shipments and new orders did caus"
considerable surprise in many quar-
ters.
There was not much to the va
rious markets during the past week
Some steel rails orders were placed.
the largest being $4,000 tons by the
Missouri, Kansas and Texas, and
10. 600 tons by the Oregon and Wash
ington Railroad These contracts