The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1913-08-18
ENORMOUS STEEL PRODUCT.

ENORMOUS STEEL PRODUCT.
Ths production Of iron and steel is q
fair gauge Of the Importance Of a nation
IN its civilized industries Judging by
this gauge the United States is the mos,
industrious civilized nation on the face
Of the globe, by far. The yearly pro
duetion Of steel in the world, according
to the last available report. is 5s,377,ese
tons. The production Of the United
States comes pretty near being half of
this. The output Of steel in this coun
try for the hrst siK months OF the pres.
ent year was nearly 14,oo0, 900 tons, or
at the annual rate Of close TO 9s, ,oo0, 900
tons. Double this would be $4,000, 900
\ tons, which would leave q surplus of
only a little more than 1000, 900 tons
over half Of the world q production, for
all other countries
The greatest steel producing country.
outside OF the United States, is Ger.
many, with 15,ol9,s tons, according to
the latest figures. Great Britain comes
next, with 6-565,23l tons. 30 that the
United States produces well above the
combined product Of Germany and Great
Britain. To speak of our iron and steel
product as an "infant industry" is
therefore a curious perversion Of Ian
guage.
The production Of steel in the United
States for the hrst six months of the
present year is thus stated and com
mented upon by Financial America, a
leading New York financial and COM
mercial paper;
sndar year steel production reached a level
Tar beyond any previously attained The
output OF the United States Steel Corpora
ions subsidiaries alone has been estt-
mated az not far from Z, 100000 tons. while
the total production OF nll the plants Of
the country may be placed at nearly A.
ooo. 600 tons, or at the annual rate OF be-
tween 81, 900. 900 and 2S, 900, 900 tons Only
year or two ago a rate OF output SO
enormous would have been considered dis
astrous as there seemed to be no way IN
which SO vast quantity Of steel could be
consumed, for some years at least and
year did not keep pace with production. as
evidenced By the falling OF OF tonnages
on the books of all the leading steel max
Ing concerns during the period,
The untitled tonnage on the books Of
the United Stattes Steel Corporation de-
clined 2lA,s47 tons on June 30 last from
the =, niSh level Of nearly 100000 tons
mately 81 per cent, while the other COM
pan!es that have reported. tho Republic
Iron. & Steel Co. and the Lackawanna
per cent and 30 per cent In tonnage re-
spectively. In the ga me time. Tho average
decrease in orders generally was proba bly,
somewhat over rs per cent. and II new
Ina @,,fI ~ al
sumption. this may be placed at between
10 900. 900 and II. 0oo, 900 tons against the
output named-,nearly 100000 tons.
Apparently. however. tho amount of
steel actually put into use during the six
months under review has been greater
than output. According TO trade authori-
ties stocks at the end OF the half year were
s ss low. , or lower i than on December 81 last.
output Of 1900, 900 tons been
taken up but part OF the stocks on hand
1t the end Of last year have been neces-
sartly employed TO meet the enormous re-
yuirements Of the country. In other words.
the steel mills Of the country have been
turning out every ton Of the metal pos
sible without creating any large surplus
of stocks to carly over into the second
nslf Of the year.
Under these conditions u would seem
that the falling off In business in recent
months has not been due TO the inability !
of consumption TO keep pace with output |
One Of the causes may be found IN the
immense tonnage total carried into 1918 |
by the steel makers. On January I orders
bly, 100000 tons. (this estimate is prob
ably a conservative one) or more than a |
half years possible production. This be-
ng so the placing Of large orders was rem
needs were already supplied. or
contracted for. for some time Purcha g.
srs also found themselves In a position
where they could not hope to get deliver
nn nj 80 Tnr IL
10 q year. that they were naturally
iisincliued 10 tie Themselves up by con-
tracts.
What 10 probs bly the most trnports mt |
srs Is that they believe that by waiting |
until steel companies are In a somewhat !
weaver position In regard 10 tonnage they |
VII be able TO force price concessions. |
This belief is strengthened by the i'm |
pending tarin cha nses.
Whether the nanufa cturers or consum-
.Is Will hold out longest lie to be seen. |
The steel makers claim that they are we'll |
satisfied with the situation. They have |
'eversl months business booked and they |
ire sanguine that, while consumers may |
.on Of the year which is normally dun |
hey must come Into the market shortly |
specially II general business is good as
8 hoped. The consumers. on the other |
u imnediate supplies OF steel and can |
therefore anord 10 walt little.
To illustrate the position OF ths ma nu-
o scturers the case OF the steel corpora |
Jon may serve. The average net decline |
n It's untitled tonnage since the nrzt OF |
he year has been 3si. s3b tons, and the
otal Of business booked on August |
amounted TO 5.3ee36 tons, so that. n |
business continued coming ir for the re-
Ave months at the same rate az
n the previous seven md production were
% be maintained also at the high level |
cached In THAT period. the corporation
would beEfn the year 1914 with over a.
100, 900 tors OF orders, or sufficient 70
issp it's plants operating az full Until the
md OF March OF that year.
But IT, as suggested the actual con-
sumption q, steel has been equnl 20 or
anger than production. II 10 obvious ,ha,
renewed buying movement must be Wit. !
k.nfr - IL i