The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-08-21
Make Big Profits When Business IL
Brisk and Sell Abroad when
Times Are Dull.
SOMETIMES RUN AT A LOSS
FOR THERE Is NO n IN SENDING
Steel TO EUROPE.
Armor Plate, On which the Front In
Large. IL hut One Per Cent. of To-
tai Value of the output.


stan correspondence or the Journal
P~1TTSBURG, Pa, Aug. 0.-The Carnegie
company. the most powerful of the con-
stituent companies of the United States
Steel group. has never been able to learn
at what point the losses in times of depres-
sion become so great as TO make IL proper
TO cease producing steel. Carnegie himself
has given a great deal of time to this one
point. and says he has never yet found the
losses so great as would warrant a closing
down OF the mills. This is not saying that
production is always profitable. Every
Pittsburger who is in the iron and steel
business will frankly tell you that I'm hard
times he suffers more than anybody. Car
negie has tersely described it by saying
that steel is either a prince or a pauper.
But in the days of pauperdom the manu-
facturer dislikes TO close his mill. The Carr
negie people do not close theirs. They de-
crease the volume OF production. but they
continue TO produce iron and steel at a
less. Their enormous capital and resources
enable them to Go this. II is in these times
of depression when they lay the founda-
tions for enormous profits when good times
come back to them. They are making con-
tracts when other people cannot afford TO
do business. They are taking care of old
customers, seeking new ones. establishing
new uses for their products, and generally
keeping up a hustle. The Carnegie force
is never permitted TO let up. In fact. the
work Is harder when there is but little bus
mess than when there is plenty. This Is
on the principle that the newspaper mans
work is easier when he has plenty of news.
When there is but little it is hard to get
and even more difficult TO handle.
This policy recalls the testimony before
the Industrial Commission In Washington.
when a textile manufactures said that the
use of the foreign market was TO keep the
mills In operation in times of depression.
He said the profits for American manufac-
turers came from the home markets. and
that there was no need OF denying IL. One
OF the officers of the Carnegie establish
ment, in discussing this phase of the steel
business with the writer. said: I'VE are
not paying so much attention TO foreign
markets now. The Carnegie people are not
particularly interested in the manufactured
products OF steel. We make steel billcts
and the larger forms and shapes OF iron.
The business OF the United States Steel
Company will gradually extend to tho
manufactured products. When the home
market ceases 10 be so attractive We Will
go for foreign trade harder than we are
now. AS / understand IL the United States
Steel Company is making extensive ar
engagements TO drum up this over the ocean
trade. Most assuredly we Will sell cheaper
than at home. AT home we make our best
profits. We do not beg the question. Our
mills never close. We are always after
business at the market price. In good times
we make enough money TO stand the losses
in bad times and still have something left
We sell at a loss abroad for the same rea-
son that we sell at a loss at home in bad
times. What we desire is to keep our
mills going. They must not stop. Later
on our whole foreign trade may show a
direct profit; Certainly it will in some parts
OF the world. At present the foreign trade
has another value to US"
Another surprising thing which one finds
out about the steel business of the Carne-
g.es is the smallness OF the armor-plate
department, compared with other produce
ton. Here is one OF the two places In
| America which supplies armor plate for
this government. A new place Is being
constructed, but / understand Its output
is not yet available. The Carnegie plant
at Homestead produces most OF this plate.
Ii also supplies plate for the Russian and
japanese governments, and Is considering
proposals for the French government.
Enormous prices are charged Tor this
| armor plate. and the profit is correspond
.ngly heavy. In the last Congress there
was a good deal OF talk OF reducing the
price arbitrarily. with the alternative that
no armor would be purchased II the price
fixed was not acceptable. This was ex-
pected to be a punishment which would
bring the Carnegie people 10 time, as IL
| was assumed that rather than have the
mills crippled the corporation would sub
init 10 the cut; The armor-plate business
cent. of its total volume OF business. IL
the entire armor making department. was
taken away Dy the BONeInInenA, IL IL very
| likely that Il would be able 10 get along
on the other 90 per cent. OF its business.
In this connection, however. II may be
noted that the Carnegie policy OF saving
| business for dull times will probably work
out i'm the armor making business. II Is
| making very little armor now. Later on.
when the ships now under construction
can no longer wait for their outer protec-
| ton, the Carnegie plants will doubtless find
time 10 furnish the plates.
Furthermore. / am told that when the
dull time comes the steel plate making es-
| adjustments expect "A boom In shipbuild-
ing, which will help out the dull times.
The United States Steel Company expects
10 control all the shipyards of the Atlantic
| coast. In the scheme OF furnishing bust
res for itself ~ will boom the shipyards
and the shipbuilding just at the right time.
II is also expected that the American Steel
| Companies will produce the plates for the
great foreign ships which are now building
in England, Scotland and Ireland. In fact,
in brief. IL probably will be found 10 be the
| policy of the United States Steel Company
| to so manage a number OF these industries
which IL partly controls so that they viii
| furnish a market for the output or mills
OTTO CARMICHAEL.