New-York tribune., 1921-06-30
Four tuiI columns Of in
vestnent questions arrd an
st0ers are published i'm The
Tribune every Sunday.
Second Reduction
In Steel Prices
Expected in July
Cuts Rumored for To-mor-
row Likely To Be Delayed
Until Middle of Month:
Trade Is More Cheerful

The second reduction in prices by the
United States Steel Corporation since
the war will probably be announced
about the middle of July and not On
tomorrow, as has been reported in the
steel trade. 1t is likely that this cut
will be accompanied simultaneously OF
shortly thereafter by another down
ward readjustment of wages, following
the 20 per cent reduction that became
effective on May 16.
1t was intimated in steel circles yes
terday that the next lowering of the
price scale may not take the form of q
blanket reduction as was announced by
Judge Gary in April, but that adjust
ments on certain products will be made
with the result that the general aver
quotations. Concerning wages, the
trade heard that there will be no
change in the hourly rate, but that
payment of time and a half for over
time would be eliminated.
Such policy, it was said, would re-
suit in considerable saving to the
Steel Corporation, as large number
Of the employees work from ten to
twelve hours g day. In some quarters
the saving was estimated at more than
16 per cent where the men work twelve
hours.
Although the present volume of buy
ing in the steel industry, when consid-
cred in the light of the capacity of the
mills, is now at new low level, it is
believed that the next cut in steel
prices will be followed by an increase
in buying, such as did not follow the
reduction that went into effect on May
13. These cuts were from the so-called
Industrial Board level and ranged from
$150 a ton for heavier billets to SIS a
ton for tinplates.
The Iron Age this week, takes a
slightly more cheerful view of the steel
situation and points out that the most
encouraging indications are the actlv-
ity of the Administration at Washing
ton in fastening the payment of the
the prospects that railroad bonds will
be accepted by the government on its
counter-claims, and the placing of a
fair amount of steel for the repair of
cars, with the prospect that consider
ably more will follow.
"The scale of mill operations" this
publication adds, sis little changed
being from Is to % per cent for q num-
Der of independent companies and
about 80 per cent for the Steel Con-
poration. There is agreement in the
expressions coming from several steer
centers, that the falling away in de-
mand is entirely without parallel and
the extent of unemployment is greater
than leaders in the trade had believed
possible. Idle capacity will be increased
on July /, when such sheet and sin
plate mills as work under agreement
with the Amalgamated Association will
close down.
:'In general wage adjustments in the
industry tend to keep step with the
changes in iron and steel prices, with
Indications OF downward course for
both in the next few months"
The Iron Trade Review states that
more new tonnage in the aggregate
has been placed with mills during the
last week than in any similar period in
some time. Railroad buying, it was
pointed out. continues to grow and TO
hold out definite promise of appreciable
improvement in the near future.