Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-01-08
STEEL TRADE Waits
ON LOWER PRICES
Reports That Independents Will
Cut Prices Below Corpora
tion's Level

New York, Jan. 8. - The new year
has not brought any developments In
the steel trade on which definite fore
cast Of the immediate future can b,
made, except to say that conditions are
not changed to any extent. Buying OF
steel is still at minimum, some con =
sumers being out Of the market en-
tirely at present because Of inventory
time.
There are some authorities, however,
who are looking forward for improve
They make the point that indications
are that consumers will soon begin
thinking about their future require
ments, and when they are convinced
that prices are at low level and no
further reductions are likely in the
near future. they might be expected to
place some fair orders.
Reports have reached local interests
that there have been offers by some In.
dependent companies to cut prices
slightly below the levels Of the United
States Steel Corporation on certain
products. These advices, however,
have not caused much surprise, and 1t
is possible that more of this will be
heard in the coming weeks.
1t must be remembered that there are
u
with books bare of orders. Naturally,
they will make strenuous efforts to get
business in their particular lines, ana
as some of these makers have a sur
plus Of material on nnnd they are likely
to make low offers from time to time
in order to get funds.
However, thus far there has been no
indication Of an actual price cutting
campaign. 1t is realized that IL such
n development came the United States
Steel Corporation won d be in position
to meet such competition, but 1t is not
likely that cut throat methods will be
allowed to come about because it would
be disastrous to all the companies, and
more so to the independents.
There were many observers who be-
licvcd that the railroad business during
December and squirt that was ex-
pected to follow the price reductions by
the independents would result in larger
business In that month than in the past
half year. Apparently, this belief was
unfounded. for, despite the railroad
buying and other purchases, it Is esti-
mated in some quarters that the untitled
orders Of the Steel Corporation as Of
December 81 last will show a decrease
Of something around 100000 tons,
and might even be in excess Of this
figure.
The reduction Of the dividend on the
stock Of the Midvale Steel and Ordnance
Co. during the past week did not come
as a complete surprise in the steel
trade, although the financial district
was not prepared for the cut from 81 to
y cents per share. However, the ac-
ton was conservative. as the entire di-
vidcnd for the year had been earned in
the first nine months Of the year.
Some observers have expressed the
opinion that more than one of the other
Independent companies will find it ne
to the shareholders, but no official in
formation is obtainable although meet
ings are scheduled to be held this month
by Bethlehem, Republic and several
others.
In local quarters the warehouses and
iobbcrs are shading prices in an effort
to attract buyers. There is no demand
however, and consumers are out Of the
market except for actual immediate re-
Quirements. Some jobbers. however,
are still holding to their original prices,
believing that the situation will improve
in the near future.
A report came from Pittsburgh dur
ing the week of steel merger to take
in the youngstown Sheet and Tube Co.
the Lackawanna Steel Co., the Pitts
burgh Steel Co. and eight other smaller
concerns, but could not be confirmed in
this city. and many steel interests are
not inclined to credit the report of such
merger.
However. it is believed that event &.
ually it will be necessary for some OF
the independent steel companies to get
together for self preservation. A COM
bination would permit reductions in the
overhead expenses and make for more
economical operations. During the
past few months there have been many
merger reports, all Of which have failed
to mutcrialize.