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The Iron Age 1933-02-16: Vol 131 Iss 7

1933 Reed Business Information US

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rust, ared cent ow nes ese - of stic 932 ns, 9,- 31, est is- ..THE IRON AGE.. ESTABLISHED 1855 FEBRUARY 16, 1933 Stop, Look, Listen and Act prices collapsed as completely and quickly as though they were built on sand. This situation cannot be accepted with equanimity. It calls for action to save the industry from self-destruction. J as the red figures of 1932 of steel companies began their parade, steel Today’s losses are due to low operating rates and low prices. Most companies had set their houses in order, on the basis of the previous prices, so as to break even when demand would produce volumes of 35 to 40 per cent. At today’s prices, however, a profit at either of those quotas would be impossible. The industry now wallows in a price morass of its own making and apparently lacks the intelligence and courage with which to get itself out. One mill thinks it can take away another’s customer by offering a tempting price bait; its competitor, doubly anxious to retain what tonnage it is getting, rushes to meet the price. The buyer adds to the demoralization by shrewdly playing one against the other. What price tonnage? What price the retention of a customer? Our answer is that a comp…

Citation

The Iron Age 1933-02-16: Vol 131 Iss 7. Reed Business Information US. 1933.