Salt Lake Telegram | 1941-01-07 | Page 3 | Control Looms for Iron Prices

CONTROL LOOMS 1 FOR IROpCES WASHINGTON. Jan. 7 (INS) Unless the price of iron and steel scrap is reduced voluntarily by at least several dollars a ton, "drastic steps looking toward control con-trol will be recommended," Leon Henderson, head of the price stabilization sta-bilization division of the national defense commission, announced Tuesday. Following a meeting with members mem-bers of the iron and steel scrap industry, Henderson announced the ultimate objective is to bring the market to a level not to exceed ex-ceed $20 a ton for No. 1 heavy melting steel scrap at Pittsburgh. "Representatives of the trade agreed with government authorities authori-ties that current prices on scrap are sevreal dollars per ton higher than is necessary to bring out the tonnage required to support present pres-ent capacity operations of the steel industry," Henderson said. "Those present at the conference confer-ence agreed that although requirements re-quirements for scrap are at a record level, the supply will be adequate to meet all needs, provided pro-vided available material is released re-leased for consumption. Scrap trade authorities also agreed that a reduction in prices will thaw out frozen supplies." The defense commission- also said that the proposed voluntary reduction "of at least several dollars dol-lars a ton" had been urged on the industry. "Unless this voluntary action is successful, drastic steps looking look-ing toward control will be recommended," recom-mended," Henderson declared. The price of scrap metal, a vital necessity to this country's steel industry, long has been a headache head-ache to defense officials. The current meeting with scrap dealers deal-ers and brokers followed a session two weeks ago with members of the steel industry. At that time it was pointed out that, while the price of steel was remaining at its normal level, the prices of scrap had moved upward. In order to keep down the price of steel, it was pointed out, the price of scrap also must remain unchanged.