The New York herald. [volume] (New York, N.Y.) 1920-1924, 1922-09-14
STEEL CORPORATION
PUTS RAIL PRICE UP.
Advance Of So a Gross Ton to
Become Effective Oct. H.
Had Been Expected.

The United States Steel Corporation
has increased TO s43 a gross ton the
price of steel rails. effective October /,
and covering deliveries for the first
half of next year. The present price Of
| $40 a ton, which was announced in
October OF last yssr. represents a re-
duction OF 81 per ton from the level
obtaining from March, 1919. until that
time.
The move. which has been anticipated
in the local steel trade because OF the
recent increase in the rate or wages
for day labor at the corporations plants.
comes at time when the tendency OF
all producers of steel is toward slightly
higher prices and also at a time when
the railroads are planning their expendt-
lures for 1923.
The formal announcement by The cor
poration was made by Judge Ebert III.
Gary, chairman OF the board. as follows
THE United states Steel Corporation
has made to its subsidiary companies
the following recommendation Until
September So 1922. the price of stand
ard rails will continue to be $40 per
gross ton base. e. o. b. mills. for de-
l:veries to be made in about equal
monthly instruments prior to June so.
1928. Commencing October l. 1922, the
price will be increased to SAB per gross
ton base, +. Q. b. mills. for same deliv-
cries"
The railroads are admittedly very
short of new rails at present, and for
ward business is expected to be cx-
ceptionally heavy over the year end.
Reports circulated in the financial dis
trict indicate that a number or impor-
tant systems are about to make COM
mitments in the matter OF 1923 deliv-
cries.
The feeling recently has been tlRt the
leading producer OF steel rails would an
nounce an advance in the selling prEc
at an early date. consequently, yester-
DAYS statement created little surprise
independent manufacturers are under
stood to have been quoting prices from
So to IS per ton above those OF the
steel corporation
The highest price paid for steel rails
was s55 for bessemcr and ST. for open
hearth during the months when the war
demand for steel was at its peak The
ending Of the war and subsequent can
cellations of contracts resulted in the
disbandng Of the Industrial Board early
in 1919. at which time the market was
declared an open che. the Steel Corpora
ton and independent makers arriving ri
prices OF S45 for bessemer and OF SAT
for open hearth rails as fair estimate
of the situation.
Reduction OF rails to $40 last year
came at time when the steel market
was greatly perturbed by the wave of
depression and prices were fluctuatinG
considerably. Tie announcement Of the
corporation at that time was regarded
as long step toward prize sterilization.
Since the advance by the Steel Cor
poration in the wage paid to day. labor.
an advance which was promptly met by
all the independents, there has been a
tendency to mark up prices on the
lighter steel products. Uncertainty sur
rounding the coal situation this winter
and next spring also has been a factor
in the price unsettlement during the last
few weeks.
Not since the termination of Federal
control have the railroads been able to.
build up their rail situation to normal
point, officials assert. although in few
cases steps have been taken to meet the
situation. The demand from abroad,
however. has been considerable, recent
purchases having been reported by Boz
livia. while additional requirements Of
$4,000 tons are scheduled to be met at
later date. Japan has figured promi-
nently in the call for steel rails in the
local market.