Show Scrap Dealers Exaggerate Scarcity Cry Cr B By S. S BURTON HEATH NEW YORK There YORK There appears t to be some misunderstanding misunderstanding-abou about an unromantic but highly essential essential essen essen- tal defense item scrap item scrap iem-scrap scrap iron ion Steel mills mis which must have have have i it in order to maintain production c close se to absolute capacity are told that there is i a stringent scarcity Some of them at least believe beleve this But by the best informed s sources this column is told that tha there is plenty of such scrap avail avail- able The inside story would appear t to furnish interesting commentary on th the usual business-as-usual attitude of some of our entrepreneurs I It Involves the thet elementary motive of price prie and its is t boon companion Ii profit In the background is Leon Leor H Henderson's Hendersons price prie ceiling system Our Or informants believe beleve- beleve that In Inthis Inthis inU U this is instance at any rate Mr Henderson is i in the right am and ands s scrap rap iron brokers in the wrong Still Take Profs Profits Nevertheless Mr Henderson has bas been obliged to trim his sails sais temporarily and to permit the I brokers to take down their profits profs unhampered for a while longerA longer A price ceiling of 20 a gross ton in Pittsburgh was fixed on scrap iron after six months of oi watchfulness had convinced the theO theo O 0 P M that speculators were pushIng pushing pushing push push- ing the price beyond all aU reason f This ceiling was subject to variation vari van aton for different locations and grades of f material material It I was provide provided provided pro pro- vide vided f that on contracts made be before before before be- be fore April Apri 3 3 deliveries could be made until Annil 10 at unregulated unregulated prices Thereafter the ceil- ceil cei- cei Ine Ing was to apply Brokers appealed annealed for a longer p period in which to complete de delivery delvery de- de livery ivery lvery on April Apri 3 deals Market observers say that although h there Is plenty of scrap available dealers dealers dealers deal deal- ers conducted conduced an effective campaign campaign campaign cam cam- to justify justy their prices pries on the plea of scarcity So worried were scrap users that efforts are being considered to induce the public to start collecting old iron and steel and turning them in as asan asan asan an act of patriotism Order Extended The end result resul up to now is isan isan isan an order from Mr Henderson ex extending extending extending ex- ex tending to May 10 the period in which deliveries may be made made made- made at the dealers' dealers own prices prices prices-of of scrap sold before April Apri 3 3 He explained that this is designed to avoid inflicting hardships on deal deal- ers But he warned that it i does not affect the price prie maximum on deals closed cosed after April Apri 3 or deliveries deliveries de de- de- de liveries completed after May 10 Experts do not believe beleve that the dealers will wi be able to break the price control control They feel that once this is established there will wi be f found scrap und ample supplies of available Copyright 1941 McClure Syndicate |