The Birmingham age-herald., 1911-06-24
A DULL IRON ORE
 SEASON EXPECTED
Because of Last Years
 Heavy Cargoes
DEPENDENT ON STEEL
When Trade in Latter Improves Iron and Ore Will Begin to Pick Up,
 Says Authority-Cut on Wire Products

NIIe
 New York Special to Cincinnati Enouirer.
 A high authority in the iron ore trade today stated to The Enquirer that there was little likelihood of any decided ac- tivity developing this year, although there would doubtless be some improvement in the ore business, as the steel and iron trades improved, and if the activity in tho two latter markets became great enough rush of ore traffic might be wit ressed at the close of the season. On the whole, however, 1911 could not but be comparatively dull ore season.
 "As business in steel picks up there will be betterment in the iron market, and when iron becomes active ore will do better" said this authority. "A lot of ore was brought down last year and a lot of pig iron was accumulated before it became apparent that the depression in steel would be as extreme as it be- came. Consequently, renewal in activity in steel will eventually prove to be the foundation of the iron and ore trades. They will follow steel and cannot lead it. The ore trade is nearly stagnant, iron shows little improvement and steel shows a big improvement. I expect the increase in the activity to continue until it extends to the ore market, but antici- pate that considerable time will elapse before ore is again active"
 Cut on Wire Products
 Steel trade circles were principally in- terested today by the developments in the wire branch of the trade. Announcement of a reduction of s2 per ton in wire prod ucts came simultaneously with rumors, not denied, that certain officials of the American Steel and Wire company had been summoned to appear before the fed eral grand jury here to answer questions in an investigation of an alleged illegal agreement in restraint of trade between manufacturers of wire products. The agreement is understood to have reference to pricemaking.
 The reduction in wire products cannot be said to have been unexpected The possibility of such a reduction was hinted at when other steel products were reduced by the United States Steel corporation on May 29. Recently the demand for wire products has been very light in anticipa- ton of cut. The new prices of the American Steel and Wire company, estab- lished by the reduction, are wire nails jobbers. carload lotsp $1 TO; retailers, car load lots, 1.75; cut nails, western makers, jobbers, carload lots, s1.S0; painted barb wire, jobbers' carload lots, s1.70; retailers, carload lots, $1 80, with 30 cents for gal vanizing; plain wire to jobbers, carloads, S1.50. and to dealers. carloads, s1 55 pol ished staples, s1.s0, and galvanized staples S2. June, July and August are usually the dull months in the wire industry, but, notwithstanding. the plants of the Amer ican Steel and Wire company are oper- ating on basis of between 75 per cent and 30 per cent of capacity
 Gary on Steel Orders
 Before sailing for Europe Chairman Gary stated orders of the Steel corpora ton thus far in June had been 2s,000 to S0,000 a day against 23,00O to 24,00O tons last month, with specifications better than for many months and mills operating 6s per cent of capacity. The Steel corpora tion's crop reports were good on the aver age, he said. MT. Gary made point of the fact that the export orders of the Steel corporation were large, running at the rate of 100000 tons a year, much larger than the general estimate, which was 100000 tons a year. With orders or the whole coming into his corporation
 
 rate of S,7OO,000 tons is indicated. Deduct ing export business of 2.o0O, 900 tons would leave domestic orders coming in at the rate of 6,700,0o0 tons d year.
 In view of the fact that the Steel cor poration since organization has produced in a single year not less than 6S0O,000 tons of steel, 1t would seem that the pres ent rate of domestic orders Is about as low as it can get. When the Steel cor poration was organized its export busi- ness was small.
 A very favorable feature of the steel situation is the decidedly firm tone in the price of structural and fabricated steel Only little while ago this was the weak est spot in the steel situation. The de- mand has undergone large growth, and 1t Is estimated that the railroads yes terday took between 15,000 and 10000 tons of fabricated material. The inquiries in dicate that in July some large structural steel and rail orders will be placed
 Another Good Spot
 Another good spot in the steel trade Is found in the market for steel sheets, both black and galvanized. In several instances independent mills, which were able to run al only 50 to 60 per cent of capacity are able this week to run full. There-was a cut of $4 a ton in the regular price Of sheets on May 29, there having been slight shading before that time, but rarely, IT ever, equal to $2 a ton. Sheet bars. the raw material, were cut S2 a ton at the same time, but even allowing for this sheets are lower relative to raw material than at the extreme cutting prior to May 29, and buyers apparently have come to realize this fact. Mills absolutely refuse to cut the new prices, saying they scrape bottom as regards the relation with cost of production. Present buying is for both a,.l 1alt nd keeps up at the present rate a slight ad- vapca in prices may occur within a month