Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-07-02
STEEL men FORCED
TO CUT QUOTATIONS
Producers Admit Scarcity of
Orders as Result of
Buyers Strike"

New York, July 2.-Anotner rcduc.
tion in prices for steel products and n
substantial cut in the wage rates paid
to- workers featured the steel situation
this week. Practically all producers are
expected to lower their prices and
wages. This Is being dcne in an effort
to bring about resumption Of buying
by consumers.
Evidence has been Multiplying with
regard to the buyers strike" among
the users of steel products. Practically
all leaders in other industrial lines have
been complaining for months that the
rcadjustment of conditions in this couu-
try generally has been delayed by the
fact that quotations for steel products.
even with the reductions made nearly
three months ago, are too high.
1t has been insisted in some quarters
that only with materially lower steel
prices can the situation be changed. and
| developments Of the last week or two
have shown that this opinion must be
gaining among the steel men themselves.
Officials Of some of the companies have
admitted right along that they are get
ting few orders. as buyers nave hoen
keeping out of the market.
Business generally placed during the
last week has brought concessions in
quotations. On the three leading and
Ensic products. namely, bars. shapes
and plates, there have actually been
offers in this, vicinity ranging from 81
to SO per ton under the sched-
ules Of the United States Steel
Corporation, and while the Steel Cor
poration has not made reductions on
these products to meet competition.
several of the independents have found
80 lo,, &C.,
nres in an effort to share i'll the volume
of new orders that made their appear
ance.
1t can be argued most reasonably
that such an unsettled situation
docs not bring with it any great
demand for steel. Buyers become
frightened when they sec the producers
competing for business and naming low
or figures. Even those consumers who
have definite future requirements hold
off temporarily at such times. in the
hope that eventually they will get still
| lower figures.
Under these circumstances it il con-
sidered good business Judgment to re-
dnce prices at this time. The point can
well be made that If prices are put at n
| lish confidence among the users. II long
step in the right direction will have
Gecn taken.
Apparently the latest move toward
lower figures is being made with this
view. If consumers once become con-
vinced that prices are not likely to be
shaded much further they nrc likely to
show some interest in tie various steel
products. and might cover for some of
their requirements. thus increasing tho
untitled orders on the books of the COM
panies and bring about increased opera
tions with more efficiency and lower
| costs.
Substantial Lowering OF Wages
BY far the greatest Importance must
be attached to the fact that wages also
are to be lowered substantially 1t has
been the argument of some steel men
| right along that the cost of producing
steel was too high when compared with
the selling prices, and every possible
step has been taken to bring about lower
| expenses.
The last expense item to be touched
is that for labor. Steel men generally
have held off on this matter as long as
possible. but they have become CON
vinced that only with lower wage
rate can they make reductions in their
prices. No trouble from the workers
Is looked for, mainly because all the
plants are operating at an unusually
low rate and many men have been
laid off and would be willing to take
the places of those who might quit Uc-
cause of another cut in their pay.
No Increase in Operations
There was no change in the opera.
tions of the steel plants Of the country
during the last week. Independent
mills are operating ut between Is and
30 per cent. with the average about -
per cent. There have been no develop
ments as yet that would lead one to
expect an increase in these figures in
the near future.
Publication of the tariff schedules
caused some comment in the steel trade,
the leading authorities being of the
opinion that the industry will be aided
by the duties imposed. However, there
are some who are inclined to wait for
Developments before discussing the mat
ter. This attitude has been brought
about by the many unlocked for changes
which have taken place recently and
which have left many steel men lin the
air so to speak.
The opinion is gaining ground that
some good business might develop from
the railroads when the situation between
the Government and the carriers has
been finally adjusted. 1t is known that
number of the larger roads are pre-
pairing for the fall traffic and this will
mean steel for repair work, at least.
As has been stated many times in
the past. the railroad must eventually
become important buyers of steel. They
have been allowed to dotcriorate, be-
cause of the lack of traffic, to Il stage
,,,I,, ;t hn
make repairs on an extensive scale or
ronIocn old 'pnuinmCnt