The New York herald., 1921-02-28
MONDAY, FEBRUARY 2S. 1921.
Blocking the Way to Normal
Prices.

Judge GARY, head Of the United
States Steel Corporation, does not
say his great organization is not go
ing to cut prices and wages. He says
1--WE have no present intention Of
reducing wages and the subject OF
lowering prices of steel products has
not been considered"
This of course could be an exact
description Of the situation at five
minutes to II O'Clock on any day,
and yet at noon the subject could be
considered. prices could be lowered
and wages reduced.
Nevertheless, it Is fair to assume
from Judge GAgY's statement and
from the attitude of himself and his
associates that they deliberately op-
pose such reductions, perhaps Will
fight them to the last ditch. And If
that IS the stand of Judge GARY and
his associates in spite Of all 1t means
to the country THE New YORK HER
AID takes emphatic exception to 1t.
Because the United States Steel
Corporation is entrenched in an In
comparably strong position so far as
concerns It's own affairs Is no justifi-
cation for II to block the path OF
general industry to readjusted eco
nomic conditions and restored busl-
ness activity. Because the United
States Steel Corporation, with hun
Greds of millions of surplus cash
end securities In It's treasury at the
close of last year and 100000 tons
OF untitled orders on its books at the
close of last January has what might
be called a strange hold on the steel
situation is no good reason why 1t
should thwart the efforts OF the whole
country to get back to normal work,
business and life.
1t is true that when independent
steel producers were demanding and
getting all sorts Of prices for their
output the United States Steel Cor
poration stuck to the rates agreed
upon with the War Industries Board
after the armistice. Steel bars, for
example, which may be taken as a
standard in measuring price fluotua-
tions, were sold by that company at
2.35 cents n pound all the while the
independents were far above that
price, sometimes as high, In 1920, as
S.75 cents pound.
But 1t is also true that while the
price Of 2.35 seems low as compared
with the War Industries Board price
of 200 during the war and the In
dependents price Of 450 cents
pound before the War Industries
Board fixed the war prices in July,
1917--it Is true, We say, that this
2.35 compares with 1.50 cents hun
dred in 1914-15. difference of $17
q ton.
1t is true also that after nine wage
increases between February, 1916,
and July, 1920, the United States
Steel Corporation pay scale Is now
$50 per cent. higher than In 1914-15.
But it is also true that the cost of
living never rose anything like as
much as $50 per cent. At its peak.
maintained for brief interval last
year, 1t was scarcely 100 per cent.
Since then the cost OF living has de
clined to a point which leaves the
steel company's wage increase over
1914 twice as much as the cost OF
living increase over 1914.
1t would seem on the face Of It as
II TO continue the abnormal wage In
crease while the cost of living Is
steadily dropping could be only or
chiefly an excuse for continuing the
high steel prices. But whatever
the purpose Of maintaining war
wage scale always out OF line with
other industrial wage scales and
more than ever out Of line now that
other scales are going down as living
costs go down, II Is obvious that IL
the United States Steel Corporation
prices and wages were cut together,
the whole benefit Of the reduction
could go to the public, with the wage
earners Of the corporation suffering
no loss at all MS compared with what
their living cost was at the peak OF
war prices and with the company
itself suffering no material loss, un-
less II chose to make It's price cuts
sink much more deeply thnn its wage
cuts.
When We consider that consumption
Of steel on big, liberal. bounding
scale Is always indispensable to eco