New-York tribune., 1921-02-13
Reductions i'm Prices and
Wages by Independents
Open Way for Breaking
Deadlock Between Sides
Situation More Complex
Long-Awaited Readjustment
in Full Swing, With Oper-
ations at Wide Variance
speoia, Dtapotoh 10 The Tribune

| uuStry during the week Whlcn nave
| altered the whole front. A week ago
there was a deadlock between steel
makrs and steel consumers resting on
| the Industrial Board price schedule,
| with but few wage adjustments in ef-
! feet, and those only in communities
| in which steel company is the domi-
nant industry; in other words, in those
i places only where the steel workers
were i'll no position to resist any re-
duction in wages, as there were no
other Industries to which to turn for
employment.
During &,e first of the week it be-
came known that the Midvale Steel and
! Ordinance Company, with plants in
(! Philadelphia and Coatesville, Pa, and
owning the Cambria Steel Company, in
Johnstown, had determined to break
the deadlock by selling steel products
under the common level of prices--in
| other words, by establishing "open'
prices. The news created no little ex-
citement in steel circles and drew out
| a sharp interview from Judge Gary, in
which he declared it TO be the intention
of the Steel Corporation to continue to
| sell at the Industrial Board level and
not to reduce wages.
| Toward the end OF the week the first
indications Of wage reductions among
the independents who arc not in iso-
lated communities were given when
Brier Hill Steel Company, Youngstown,
and Trumbull Steel Company, Warren,
Ohio, posted notices of 20 per cent re-
duction in all wages and salaries ex-
cepting the wages Of the tonnage men,
reducing common labor from 46 to 81
cents an hour. The action Of these
| two companies is being followed by
| ha,r ;rrI1 f,l,
| Shenango Valleys, but 80 far no sign
of intention to reduce either wages or
selling prices has come from the larger
independents, such as the Jones &
Laughlin Steel Company, Pittsburgh.
Situation Complex
| The resultant situation at the end of
the week, while apparently confused,
with some companies cutting selling
prices but not wages, others with wages
already cut now reducing selling prices
nor selling prices, in reality betokened
the clearing up stage in the sustained
and unnatural situation which has pre-
vailed throughout the industry ever
since the signing of the armistice. The
long awaited readjustment of the in
dustry is now in full motion, and while
it will be slow and tedious, the expec-
fancy of stahilization is higher than
it was while the deadlock prevailed,
which Midvale broke.
| Speculation as to the immediate fu-
ture is futile and worthless. No man
can say what any single steel company
Is likely to do or what the next move
Will portend, excepting to realize in a
/ general way that the ultimate goal, the
settling down of the industry to some
| q hp Sic so hot
preached. Two months ago the opti-
mists thought the industry would be
cleaned up in few weeks and the
| pessimists thought the year 1921 might
as we'll be written off the books. To-
day the optimists see the settlement
postponed and the pessimists see some
thing left of the year for active and
profitable business.
Problem to Solve
The problem of the steel manufac-
turer is to spread his selling prices
and his operating costs as far apart
as ne can, thus admitting room for
protits IN between. Up until this week
the two levels have been so uncom-
1ortably close together that there was
little or no room left for profitable
operation and the larger companies
were Indifferent to new business. Now.
with prices fuctuating and costs com
ing down steadily but certainly, the
steel producer begins to stir himself
and to take keen interest in the de-
velopments of the hour. Undoubtedly
some of the Independents who have
ventured into new low levels of prices
will find themselves loaded up with
unprofitable business later along, but
in the end the sacrifices they make
will be justified bya more quickly
stabilized market.
| From the standpoint of the buyer of
steel products the time is decidedly
unpropitious to place orders, SO that q
greater dullness may be looked for
during the next week or so than has
prevailed hitherto, but this will be
overcome by the fact that the return
to normal conditions is being hastened.
/ At the present time the percentage
OF operation at the independent mills
in the Shenaneo Valley is the lowest in
many years. The plants not wholly
closed are running from 20 to 65 per
cent of capacity. The Savage Arms
| Corporation, Sharon Steel Hoop Mill.
American Steel Foundries, Sharon
works of the Carnegie Steel Company
and ten out Of fourteen blast furnaces
are fiat.
The National Malleable Steel casting
plant is running four days week
while the Standard Tank Car plant, the
Petroleum Iron Work and smaller con-
Germs are running at only small per-
centage OF capacity.
How Operations Compare
The Shenango Furnace Company ex-
poets to start one of its stacks next
week in order to supply hot metal to
the foundry department of the Valley
Mould and Iron Company, which will
resume, How long it will continue
operating is q matter of conjecture.
There has been no curtailment of
production at the Farrell works of the
Carnegie Steel Company, although the
schedule was cut this week in the Ma
honing Valley. The American Steel &
Ware Company and American Sheet T.
Itnplate Company are maintaining the
same percentage OF operation as dur
ing the last two weeks.
A distinct slowing down in operationR
Is noticeable at the plants of the Car
negie Steel Company, in Youngstown.
Some departments have been put on g.
tiveday week basis. YOUNGSTOWN Sheet
ard Tube Company has reduced the
number OF its active blast furnaces to
two out of six.
Or the twenty-five blast furnace. in
the Mahoning Nslley only thirteen are
active, and, of these thirteen six are in
the Ohio works group of the Carnegie
Steel Company. The active units in
clude three of the Republic 1rsn and
Steel Company and the stacks of the
A. NJ. Byers Company, at Girard. But
twenty~seven OF the siXty-six open
hearth furnaces are charged. During
the latter part Of the week resumption