Steelmen on Steel

Steelman on Steel

In Washington last week to testify against the so-called Wheeler Anti-Basing Point Bill were the presidents of the two biggest steel companies in the U. S. Montana's Senator Burton Kendall Wheeler proposed to abolish by law the common industrial practice of quoting prices which include freight charges from a "basing" city regardless of whether the commodity is actually shipped the specified distance (TIME, March 23). U. S. Steel's William A. Irvin and Bethlehem's Eugene Grace spoke for the industry most bitterly opposed to any change in this system.

Their defense of a practice which has been generally condemned by public and private authorities was hardly strengthened by the fact that Messrs. Grace & Irvin flatly contradicted each other in their opinion of what would happen to the steel industry if the basing point system were disturbed. Mr. Irvin foresaw a dire collapse in steel prices, fearful mortality among small steel companies. Mr. Grace blandly declared: "Doing away wim the basing point system would increase prices through a decrease in competition."

However, Messrs. Grace & Irvin were in perfect harmony on one subject--prospects for the steel industry over the next few months. Having suffered a sharp set-back during the period when Pittsburgh mills were under flood water, the industry last week more than recovered all lost ground, operations rising to 64 1/2% of capacity. Iron Age, amazed by the demand for steel for immediate use. particularly from the auto mobile industry and construction projects in flood areas, predicted still further improvement in the most basic of U. S. industries. In Washington Messrs. Grace & Irvin revealed that their respective companies were currently operating near the industry's average--notable because both Bethlehem and U. S. Steel have large stakes in heavy structural steels and rails, have long run far below the industry as a whole. Bethlehem's Grace, who is never given to overstatement, told Senator Wheeler that "business in this quarter ought to be the highest in some time." Said U. S. Steel's Irvin: "The outlook is favorable. We ought to keep going for the next couple of months, at least, as well as we are now."

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