New-York tribune., 1921-05-29
Speclal Dispalch 70 The Ttiblne


PITTSBURGH, May %. The remarks
made by Judge Ebert H. Gary, presi-
dent of the American Iron and Steel
Institute at its nineteenth annual
meeting in New York Lriday are inter
preted here among steel men to fore
ca ast further adjustments in both wages
and selling prices in the steel indus
try. Coupled with the judges state
ment are persistent rumors from cor
poration sources in this district that
the Steel Corporation has about made
up its mind to make new adjustments
early in July. The entire situation is
believed here to depend upon wages and
living costs. The dlIatoriness with
which retail merchants have met their
responsibilities in the period OF read
justment is on eOf the holding back
facotrs, according to leading steel men
here, who say that wage cuts cannot
consistently be made in the face Of
continued high prices for the commodi-
ties Of life, and that selling prices for
steel cannot be further reduced so long
as wages remain where they arc. One
leading manufacturer here to-day de-
clared that throughout the steel indus
try it is the belief that steel is being
manufactured and sold to-day at an
average loss Of S5 to ST ton, condi-
tion, he stated, which is bound to come
to an end before very long.
No indication has arisen during the
week of any renewed interest upon the
part of the steel consumer. and various
rumors that prices are being shaded
are regarded here as merely form of
buyers propaganda" inasmuch a steel
at its present price is being sold q a
loss, and shading that price schedule
would only increase the loss. Further
more. it is pointed out that the price
reductions already generally adopted iu
the trade have not brought out an add
tional ton Of new business. which indi-
Gates that the steel user is not going
to purchase until satisfied that the
whole industry has been completely re
adjusted.
Industrial depression in the Shenan-
go Valley continues and leading steel
interests assert that so far as they can
see there will be no pronounced im-
provemcnt until the coming fall
There has been a slight Improvement
in the automobile industry that has
benefited some of the plants which
make frames and sheets. but they do
not anticipate that steady operation
of these mills will continue for any
great length Of time One OF the lead
ing steel men of the district said that
were operating at sixty per cent Of
capacity by the end of this year,
There is little new business being
booked. The same schedule Of opera
tIons s being maintained by the Amer
lean Steel g. Tinplate company at Far
rell. The tin mill is running sixteen
hot mills, nine turns a week, The
sheet mill continues at full operation,
but it is said that the orders received
cover only two weeks operation The
American Steel & Wre is running
about three days week except in some
departments that specialize on wire
products. These operate for longer
periods. Many OF the laborers who
workd in the mills have Sc
,ured Jobs on state highway building
1t is said they are being paid 25 cents
an hour, for ten hours work. At the
10000 men, idle or working part time
n the Shenango Valley. All of the
fourteen blast furnaces are idle, and
stocks of pig metal are not being re
iuced to any great extent.
All the mills at Homestead we're in
operation this week except the Howard
Axle works mad as a result very few
nen are idle on the streets.
Evidences multiply that prices are
being shaded by Mahoning Valley iron
md steel producers in an effort to at
ract tonnage, though the low current
operating rate Indicated that the in
low of new orders is at a very mod
arate rate. That the industry will be
obliged to still further revise manu-
,acturing costs and reduce quotations
s an opinion ventured in conservative
circles. The belief prevails that such
.hanges may be brought about by mid
summer, at which time the market is
to show more positive evi-
ience that it has reached the turn.
Aside from the business recently
placed by the Ford Motor Company
he bulk of the inquiries have been
confined to bundled lots One Valley
producer states that he has not re
,eived a carload order for the last
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