The New York herald., 1921-02-10
U. S. STEEL NOT TO
CUT PRICES NOW
Gary Declares Slashes by In
dependents will Bring No
More Business

The United States Steel Corporation
will not cut the prices OF its products at
this time That question, which has
been worrying the steel industry and
the financial district for weeks. was
answered yesterday by Judge T.. II.
Gary, chairman of the board of direc-
tors. in a statement on the business sit
uaton in general, and on prices and
wages in particular. Judge Gary re-
ferred to cuts in prices made by in
dependent steel manufacturers to below
the schedule agreed TO by steel makers
in conference with the Industrial Board
in March, 1919. and declared that on
many products the corporations COM
petitors could not sell below that
schedule and make a. profit. To the
independents plea that prices were cut
to bring in new business Judge Gary
said cutting of prices will bring no
more business"
THE companies" the Judge said, re-
ferring to independents which have
slashed prices. have been claiming that
they could not afford TO sell at the
Government prices of March. 1919, be-
cause those prices were lower than their
actual costs. and ] know from our
books that as to many OF the products
competitors to sell at a profit unless
they receive as much as or more than
the government prices. The unreason-
able cutting of prices will cause a great
deal OF injury to those who have large
inventories, and the others who have on
their books. large tonnages of. untitled
orders which would be affected.
1T seems to me any manufacturer OF
steel who at the present time is conten1-
plating reductions of selling prices be-
low the basis fixed by the Industrial
Board must have in mind the intention
of reducing the wage rates accordingly
and thereby charging the difference to
the working people. and II so IL seems 20
pc that this Is manifestly wrong and
unfair. Every manufacturer must know
that the cutting of prices will bring no
more business and that he will there
fore, in the long run receive no larger
volume Of orders and receive no larger
profits. / have no means Of knowing
what the intention OF the independents.
so called. is. do know that all of them
by long experience have learned that
stability of prices within fair and reason
able limits is generally Of advantage 20
themselves, to their customers, to their
employees and to the general public.
so far as our corporation is con-
cerncd we stand for fair prices. neither
unreasonably high nor unreasonably
low for fair treatment to competitors.
customers, employees and the general
public. We think that is good prin-
ciple and a good policy. We have no
present intention of changing our selling
prices, and as to the subject of reducing
wage rates the matter has not been up
for consideration"
Judge Gary answered the criticism
voiced by John Shelton Williams, Comp
troller of the Currency. in his annual
report regarding the steel industry by
setting forth the facts which have gov
erncd the various cuts In prices since
the armstice was signed. "If Mr.
Williams will come to my Office" Judge
Gary added. 81 would be glad 10 give
him full information in regard to our
prices and our costs. | think ! could
show him that so far as we arc con-
cerned we have endeavorcd to be rea-
sonabe.''
He criticised the Government for it's
delay in paying compensation due the
railroads and said that the situation
created All endless chain of delays in
payment. which hurt business very
markedly.
These moneys ought to he In circu-
lation at this time" Judge Gary as
serted, land would be of substantial
benefit to the business world"