New-York tribune., 1921-03-03
u. S. Set Steel
Prices, Gary
Tells Williams
Corporation Head Makes
Public Letter Replying
to Comptroller's Attack
ON Profits of Company
Quoted Only 1913 Figure
Ten Per Cent Cut Made in
1919 After Industries
Board Ceased to Function

f.. II. Gary, chairman of the board Of
directors and of the finance committee
OF the United States Steel Corpc ration,
made public yesterday letter he wrote
10 John Skelton Williams, Comptroller
of the Currency, in reply to Mr.. Will
iams's criticism Of the prices charged
4ar steel.
In support OF his criticism of the
price policy Mr.. Williams cited only
she profits for 1918, says Mr. Gary.
lointing out that the prices charged
the government.
by inquiring OF Mr.. Brookings, the
chairman OF the price-lixing committee
of the War Industries Board" he says,
you will learn that l always urged
lower prices than those that were gen
orally claimed. This condition (gov-
ernment price-hxing) prevailed until
the close of 1918. What possible crit
icism, therefore, can be made of this
corporation for charging the govern
ment-fiNed prices for its products dur
ing this period ~
AS to the years 1919 and 1920. Mr..
Gary says, the United States Steel Cor
poration and other steel manufacturers
began reducing prices as soon as the
government relinquished control of
them. The average reduction was
about $40 ton by March 21, 1919, ne
says. In spite OF the tendency to in
crease prices, in spite of the higher
cost of labor. raw materials and trans
portation which came in 1920. says Mr..
Gary, the United States Steel Corpora
tion adhered to the prices of 1919.
This policy, in the face OF the wave
OF imitation. reduced the margin of
proiit in some lines of steel manufac-
ture almost TO nothing at all, Mr.. Gary
says, adding that "detailed figures sup
porting these statements cannot con-
sistentIy be openly quoted" but that
he will be glad to show them to the
Comptroller of the Currency if the lat
ter would call at his office.
Mr.. Nilliams's ASSc.c4vn that mills
and mines were closed in 1919 in order
to sustain prices is challenged by Mr.
Gary on behalf of the United States
Steel Corporation as "inaccurate and
untrue IN the reasons assigned for the
fact that the output of steel in 1919
reached only about 75 per cent of ca
pacity."
You entirely overlook" he says,
the controlling reasons which caused
a lossened output of steel. These were
three, namely, the natural halting in
business during the first quarter of
1919 while. business interests were
swinging over their activities from
war time to Il peace basis; the insult
hclency of transportation service rem
dered by railroads and principally, the
general strike in the steel and coal in
dustry, which intcrfered with opera
tions from the latter part of September
to the close of the year
Mr.. Williams's analysis of the earn
ings of the corporation in 1918 and his
assertion that the figures show it could
hAe doubled the wages of its employees
are characterized as "shallow, specious,
misleading and. iewed from d business
and common sense standpoint, inaccu-
rate Mr. Williams. he says, made no
allowance whatever for depletion and
deterioration. or for taxes paid to the