New-York tribune., 1921-02-10
Gary Plans No
Cut I'm Wages
Or Steel Price
Says U. ;. Corporation Has
No Reductions i'm View:
Surprised al the Repori
of independents Action
No Foreign Competition
Secs Danger Alike i'm I'm
reasonably iiigl, and Low
Charges for Products

The United States Steel Corporation
has no present intention of cutting
slther prices or wages, according to
Ebert ii. Gary, chairman of the Beard
OF DIRECTORS, who expressed surprise
yesterday concerning statements that
some of the independent producers
have been Offering their products under
me Steel Corporation or Industrial
Board level, Judge Gary declared that
the corporations competitors could not
sell at profit unless they receive as
much, or more, than the so-called gov
erHment prices,
Although admitting that he did not
know definitely what was in the minds
of the Independents, Judge Gary said it
seemed TO him that their intention
must be to cut wage rates, thus charg-
ing to the worker whatever price cuts
may be made. This, he thought, would
be unfair. Price cutting, in his opjn-
ION, will bring in no more business and
those resorting to it can receive only
temporary advantage.
Believes in Price Cuts
While stressing the point that he
believed in reasonable price reductions
OF all commodities whenever and
wherever practicable, Judge Gary said
that unreasonable cutting of prices
would cause great deal of injury TO
those who have large inventories and
TO others who have on their books
large tonnages of untitled orders, which
would be affected.
We have within two or three days"
he added. received an urgent request
from large purchaser of our com
modities to maintain the present basis
of prices, stating that he believed a
contrary attitude would likely bring
about Generalization. and IN some
cases insolvencies. Every manufacturer
must know that the cutting of prices
Will bring ne more business and that
he will, therefore, in the long run, re
ceive no larger volume of orders or
realize any larger profits. No one
manufacturer can secure an advantage
over others except temporarily, and
then the whole matter will be evened
up by his competitor cutting his prices
so far as our corporation is con-
eerned we stand for prices neither un-
reasonably high nor unreasonably low,
for fair treatment to competitors, Gus
toners, employees and the general pub
lie. If at any time, in these respects,
we are convinced we are wrong, we will
act accordingly and do the right thing "
Questioned regarding the allegations
of Comptroller Williams in his annual
report that steel prices were too high,
Judge Gary said that two price reduc-
tions had been made between the date
of the armistice and March, 1919, ard
that the Steel Corporation had since
maintained and was still maintaining,
the Industrial Board level, although
both wage rates and transportation
costs had since been increased.
No Foreign Competition
Referring further to Comptroller
Wiliams's remarks, Judge Gary said
Il think l could show him, so far as
we are concerned, that at least we have
endeavored to be reasonable I be-
lleve the steel industry generally may
be counted upon to adhere to a fair
and reasonable policy with reference
TO selling prices and also to the wages
of workers. Circumstances beyond
their control will, Of course, determine