Evening star., 1938-06-28
us. STEEL AWAITS
PRICE RESPONSE
Wage Decision Is Expected
to Depend on Trend
of New Orders.
By the Associated Press

~ the Associated Press.
. NEW YORK, June 22-United
States Steel Corp. was reliably re-
ported In steel circles today to be
awaiting the effects Of its recent price
slash before pursuing the matter Of q
wage cut.
In any event, 1t was explained, it
would take the corporation 20 days,
under its agreement with the c. ]. O.,
to put reduction into effect. The
20-day period would begin after it had
issued notice to the G. I. o. for neeo-
tiations, and notification has not yet
been given.
Other steel companies were mum
as to their plans. but the price cuts
announced by U. s. Steel last Friday
were understood to havt been put into
effect generally.
At q. s. Steels Offices there was no
comment on the wage matter and some
sources close to the corporation said
that its officials were not yet in COM
plete agreement on the matter.
Decision Delayed.
Nevertheless, 1t was definitely un.
derstood that nothing would be done
on wages for the moment. With a
little better inquiry already reported
Tor steel. and buyer uncertainty
thought to have been considerably
overcome by the new prices, steel men
were hopeful that business would pick
up.
They said the industry generally
would operate at substantial losses,
with the present wage and price
schedules. without a big gain in the
volume OF business.
The American Iron g. Steel Insti-
tute estimated this weeks mill OPERA
tionS for the industry at 287 per cent
OF capacity, up Z Of percentage point
from last week, and comparing with
26.1 a month ago. This was small,
however. compared with the IS per
cent rate Of year ago.
Attention had been focused on the
wage matter since Saturday, when U
8. Steel issued a brief statement that
none Of its officials had given any as.
surances a wage reduction would not
follow the lowered prices.
Identical Prices Fixed.
Big Steel. in making its reduced
prices public, announced identical mill
prices on specified list of products
at its three main producing centers-
Pittsburgh, Chicago and Birmingham
Previously, there had been a differen-
tial on finished products between Pitts
burgh and these other centers, with
prices lower at Pittsburgh.
In the so-called multiple basine
point system In use in the industry
other companies either sell on a Pitts
burgh base or on a base located else
where, the latter bases invariably car
rying higher price than Pittsburgh.
Steel observers thought that United
States Steel's action in establishing
Identical prices at the three basine
points would create difficulties involv.
ing other basing points.
They therefore expected re-estab-
lishment Of the customary difIerential
but would not speculate as to amount
should q normal differential be MAIN
tanned between these points and Pitts
burgh. they pointed out, the confusion
within the industry would tend to be
minimized.
Not only steel producers, but a di-
versifled list Of customers of the in
dustry are vitality concerned in this
problem. they said, adding that an
identical price for steel complicates
the customers own marketing in pre-
cisely the same way as that of the steel
makers.