New-York tribune., 1911-01-02
IRON AND STEEL IN 1910.
ReaCtionary Tendencies Mark
CLOSING Months of Year.

The high point Of pig iron production IN
1910 was reached in February, when the
output was at the rate Of 81 l.600cO tons an
nually. From about May TO the middle
of July the production decreased rapidly
thereafter II WAS slow until late In Octo-
her. since when It has been rapid again.
The rate OF production December l was
about q. 700 COO tons, and the rate Decem-
Der 81. counting both furnaces blown out
and furnaces banked. was down close TO
9n.oo0oO0 tons This decrease has not ap-
peared as radical as some reports of steel
works operations would indicate. The un-
explained factor was the merchant fur-
naces which normally make about one
third Of the total pig iron. From 3l,enO
tons TO 100000 tons is a decrease of 81
rer cent. but it can he estimated with con-
fdence that this means about 40 per cent
curtailment by steel works and only about
50 per cent by merchant furnaces. That Is
not all. for last February the steel works
were taking much more pig iron from mer-
chant furnaces than now The difference
amounts 10 perhaps about 10 per cent OF
The merchant furnace production.
The steel works have not accumulated
material. either pig iron, unfinished steer
or finished steel. The merchant furnaces
have accumulated, and have made a
serious position. Last February the mer-
chant furnaces. including charcoal lur-
naces, were making about 105n0D TONS OF
ypig iron a year; at the close OF TINS year
they will be making perhaps 'o"'"V IONS
In February consumption was almost equal
10 production. so the stocks of 100000 tons
represented say five weeks Consumption, /,
at the close of this month consumption VIII
be at the rate Of probably less than "Up,
900 tons, so that stocks OF ZOJOWJ TONS VIII
Tepresen more than fifteen weeks CON
sumption, perhaps even twenty weeks con-
sumption, or, from a rational viewpoint
three or four times as much as at the open
ing OF the year.
new business declined steadily throughout
the year, due in large part 10 the Glspo-
sition of the railroads 10 restrict purchases
10 actual immediate requirements lehnIIS
TIE decision Of the Interstate Commerce
Commission on the application OF lue
transportation companies 10 increase lreishI
rates. Az the close OF the year. acCoInlhs
10 The Iron Age" the expectation or
lower prices was the dominating influence
in steel and iron markets. The United
States Steel Corporation Is operating % per
cent of it's blast furnace capacity, agalnst
- per cent at the opening of 1910, and al
indications point TO the same low percent
age Of operating IN the first quarter ol 1911
Prices for steel in the last year were
falrly wen maintained, hut manufacturers
apparently will have 10 be satisfied with a
smaller margin Of profit in 1911. Whether
or not this smaller margin Of profit on steel
sold Will be Offset by increased produC Cton
remains 10 be seen. II is evident thar from
present indications 1911 will show smaller
earnings than 1910. even II a revival does
set In after the winter months have passed.
The United States Steel Corporation is
considered the barometer Of the steel IN
.dugtry of the country. Its earnings reached
The high level about the mldle of the cur
rent year and tended slowly DOWNWARD IN
tba third and fourth quarter, but the con-
cern. nevertheless. showed earnings FOR the
wear of more than u per cent on the COM
mon stock.