The star. (Reynoldsville, Pa.) 1892-1946, 1909-11-17

New steel orders over the last four
months have been coming in at rate
that would warrant the statement
| that temporary lull in business was
| near at hand. 1t would be impossi-
BILE for steel companies to. continue
| booking business at the rate reported
| In September and October for any
great length of time. The belief pre-
| vailed that buying would show consid
erabie reaction by the first of the cur
| rent month, but instead the demand
has developed record-breaking proper
| tions. All the mills are congested and
would welcome a slackening up in de
mand in order TO allow them to catch
I up with deliveries.
No better proof Of the extraordinary
activity of the steel industry could be
had than in the daily average orders
of the steel corporation for the first
| three weeks of the current month. AC-
cordlng to a high authority, orders
have been averaging close to 10000
tons day, which Is at the rate of
| 2l,O00,000 tons year, not including
| Sundays. Should the steel corporation
continue to book business at this rate
for the next six months and operate
full capacity, it would have full
years business on it's books at the
end of that period. This would mean
congestion in the worst form possible
and throw the entire industry into
state of confusion. 1t is because OF
this that the steel companies have eX-
ercised such extreme caution in ac-
cepting orders for steel. No specula
81, 49, 10 ntfaYN md
and orders are immeditely cancelled
when not specified against on the
dates agreed upon.
Many OF the steel companies are
now asking advances of vi to 81 a
ton on steel calling for delivery in
the first half of next year AS re-
| suit, it will not be many weeks before
prices for material are close TO what
they were in 1907 unless some con-
certed action is taken to check the
advance. So far the large companies
have maintained prices at what con-
sumers regard as reasonable level.
The former realize that exorbitant
prices mean Generalization in the
end, and it is because OF this that
they are not taking advantage of the
heavy demand for material by success
sive advances in quotations.
The steel corporation today has an
untitled business on its books close
to 100000 tons, or approximately j.
100000 tons below the high level
reached in the latter part OF 1906.
I These 100000 tons, however, are
more substantial than the S,5OO,OOO
tons reported three years ago. II will
be remembered mat the corporation,
as we'll as other steel companies, were
then not so particular as to the char
acter Of the business booked as they
are today. AS one steel manufacturer
put 1t, nearly all the business now on
the books of the steel companies Will
be specified against, whereas in 1916,
GO per cent of the untitled business
was of the doubtful class.
The railroads are regarded as the
greatest consumers of steel Many
trade authorities estimate that the
railroads consume close to 40 per cent
of all the steel produced in the United
States. For the past several weeks
the railroads have been the heaviesl
buyers of steel and equipment, and
orders from this source are expected
to reach large proportions before the
end of the year. Based upon actual
orders ard inquiries, the equipment
companies are assured activity for the
next twelve months. This will also
mean activity for the blast furnace
and steel mills.
There are no indications Of falling
off in the reduction Of finished stee
for six months. New business could
fall off rs per cent and the steel com
panies would have all they could dc
to execute orders calling for delivery
up to the end Of April. There has
/ been a seasonable falling off in the
demand for certain lines Of finished
steel, but this has been more than OIL
set by the demands from the railroad:
and equipment companies.
The earnings of the steel companie.
next year will establish new high rec
ords in the event of a continuation
| of present activity. One steel manu-
| facturer estimates that the combined
! net earnings of the blast furnace ant
| steel and allied mills OF this ccuntr!
next year will run in excess OF $500,
100000.
| kv,- -h I'M crtn county rOllr