New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-02-20
Reduction of Prices and
Wages May Be Discussed
Friday by Institute Dirse,.
ors, Pittsburgh Trade Hears
Buyers Await Outcome
Independent Mills Wi,bov,
Orders as Stagnation Pre-.
walls; Leader Is Workins
Special Dispatoh to rbe rr,,,,,,,,.

Of the business. Stagnation .eo,..,4
designates the situation. Dead wea.s
be more fitting description rsa
only mills showing any signs Of via,
ity are those OF the United St,tn.
Steel Corporation, with every i,ai..
ton that nothing can keep them onsy.
! March. sA
ITS up TO Judge Gary" seems IN he
the resume of the whole sitnat ~ =
There is an indisposition to buv sfssi
while the Corporation maintains n~,css
at the industrial board level. becapss
customers feel that those prices ana
the corresponding wage scale cannos
long be maintained and look for an
utterance from the head Of the Gov
pora ton, to the effect that pnJsr
pressure it has been found expeaisca
to make slight reduction in sell;ns
prices, which announcement. it il feIs
here, viii be the forerunner of a nost-
/ ing of wage reduction notices IN II.
Steel Corporation mills.
A meeting of the American Iron and
Steel Institute has been called for na~,
Friday in New York and it is tbonsht
there is a possibility that pressure
will be brought to bear on the iudes
| at this meeting or Incidental 10 Il.
which will result in the clearing awsy
| of the only obstacle now standing ini
the way of complete readjustmer
| not only OF the steel business. but 81
the whole Industrial and commercial
fabric of the country, which is waiting
on steel to debate.
No New Business
The rather sensational price cutting
by the Midvale Steel ard 0rIreaes
Company has resulted in practically no
/ new business being brought out. Not
all the Independents have followed the
Midvale lead, because nothing was TO
be gained by the mere announcement
Of lower price schedule when no
/ buyer would venture into the marked,
no matter what the momentarv induces
ments. But after the Corporation shall
have shifted to lower price level and
lower wage scale it is felt that the
consumer will again venture to place
some business, on the belief that levels
cannot go much lower and that orders
for pre- ling requirements would bet
ter be placed as early as possible to
avoid the rush bound to come later
along in the season.
1t is appreciated here that the posi-
ton of the Steel Corporation is pecui-
lar, especially in view of the irrey-
ocable orders it carries on it's books,
business booked with the agreement TO
be taken at the Industrial Board prices
no matter what the market, and which
business will have to be satisfied by
reimbursement in the event the cor
poratlcn cuts prices.
In the mean time, while awaiting the
final clearing up of the situatop,
already reached levels lower than ever
before known in the independent mills.
Under Steel Corporation Level
On lower cost basis by reason Of
the 20 per cent wage reduction, effee-
tive February Is, Youngstown inde-
pendent iron and steel producers are
accepting business under the Steel Cor
poration level of prices. AS yet, how
ever, the lower prices have failed to in
duce buying in any volume, purchasers
as rule placing orders for only small
tonnsges. Practically the bulk of the
I business now being placed is for imne-
| date delivery, and orders are put
through the mills in record-breaking
time.
Shenango Valley steel manufacturers
can see no immediate improvement in
business, and some even predict that
the situation may become worse until
the second half Of the year.
Manufacturers assert they are now
| in better position to go into the mar
ket and compete for business against
competitors ON a low cost basis. They
! point out, though. that the common IL
! Dor rate of 81 cents, with time and
! half for overtime, compares with ~
cents paid by certain Eastern mills
and with SO cents paid in Buffalo,
straight time.
Will Benefit by Cut
employees in the Mahoning Valley
mills will benefit by the wage reduc.
tion," states leading maker. las !.
enables US to go into the market ana
compete with companies that have re-
duced wages and secure business which
| we could not otherwise get. Some de-
partments of our plants have hereto
fore been operating at an actual loss.
Now we hope to be able TO operate our
mills more regularly and give our mea
| greater employment We could NOT
meet the price cuts instituted by tas
Midvale company under the Old COSY s
| basis and we were temporarily Ioreeo
| out of the market. Under the READ
| justment, however, we are on a COM
| petitive basis. 1t has been the eXpefi.
ence of the Youngstown district tna.
/ the mills have operated here when otnel
| districts were idle and Whist we wahss
to do now is get back TO work ana
/ keep the plants running"
JMst how the reduction VIII aHee'
| production costs is illustrated by tae
I case Of the Sheet and Tube Company:
which last year shipped 821, 1896 tons % o.
steel and paid $24,s92s699 in wages. Vl
| the same basis the cut viii produce ~
! saving Of about Sc ton, or So,uOV'uVV
year. The Brier Hill Steel Compahs,
| likewise paid $13, 071 ,072 in wages aho
| produced 495,670 tons Of steel. as q,
| saving therefore on this basis WIZ
exceed SIS ton.
Ebert H. Gary, chairman OF ths
| United States Steel Corporation, wnss
! asked about the institute meeting, ssis
| yesterday that a meeting Of the dllse
tors of the American Iron and Stes
! Institute would be held in New f9'
| next Friday, but explained that Tan
would be the regular monthly sessle'
| of the institute board. Judge Gary de
elined to say whether the general sup
ject Of prices would be taken up fas
confined his reply TO the bare announce
| rnent that the meeting was the reguisl
monthly session of th& directors.
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