New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-04-09
LACKAWANNA STEEL
EARNINGS SLUMP
Quarter Deficit of S445,2O7,
Against 1912 Surplus
of S742,520.
OUTLOOK GLOOMY,
SAYS E. A. S. CLARKE
Anti. Trust Legislation. Tariff and
Delay in Freight Rate In.
crease Blamed.

Publication yestei lay OF the report OF
the Lackswanns Steel Company FOR the
quarter ended March 81. showing a dehcit
for that period or t445,2O7. against sur
plus in 1912 OF s7i2,53o. brought forth the
declaration from President z. A. ;.
Clarke that the present outlook for All
the steel companies was very gloomy.
His own plants. he said. were now oper-
atinS at only 80 per cent of capacity.
Antitrust legislation and tariff revi-
sion. together with the delay Of the Inter
state Commerce Commission in granting
tho freight rate increase asked for by the
railroads" added Mr. Clarke, have
caused a stagnaton I'm the steel business
all over the country.
The question Of reducing wages has
been discussed In steel circles. but in
view Of the high cost OF living and the
fact that men are already working on
part time, this is not liable TO take place
unless made absolutely necessary. How
ever. il is poor economy 20 continue TO
nay present wages when conditions are
so bad"
Mr.. Clarke said the steel companies
had large amount OF sealed orders for
equipment in their possession awaiting
the freight rate decision. but these orders
will not be executed unless tho rates are
advanced. So far as foreign competition
for railroad equipment Is concerned. he
asserted the United States has little 70
fear.
Trade publications in the iron and steel
industry report wages likely TO be reduced
II present conditions continue. orders are
said TO lie declining and mill operation
slackcnng.
The Iron Age" will say to-day:
1T now seems likely that wages will be
reduced at iron and steel works II condi-
lions as to prices and demand continue as
unsatisfactory as IN recent weeks. Reduc-
tons have already come IN fact, al the
plants OF some Of the smaller companies.
our statistics show 9,S47,SS7 tons Of coke
iron produced last month. or 1888 tons a
day. against 1.ssS.s7O tons in February. or
s., i03 tons day. The March rate thus
represented q 200 900 tons a year esumst-
ing charcoal iron. or an increase Of 5000 .
coo tons a year over the February rate.
Steel works furnaces contributed 800
TONS or inc $50 tons q Gay increase ldSt
month and all Of the net gain Of nine
active blast furnaces shown on April I.
The daily capacity OF the 227 furnaces in
blast April was 1911 tons, against Il 500
tons q day for 2lS furnaces on March L.
The Steel Corporations ingot production
this week is 20 per cent OF capacity; for
most OF March il was 50 per cent
The Iron Trade Review" tomorrow
will say There are further indications
that the uncertain atmosphere is caus-
ing the withholding Of requirements which
otherwise would have been placed by this
time, particularly among the railroads.
The time and manner OF the release Of
these accumulated needs apparently will
determine the turning point I'm the mar
kets present inactivity. New business in
iron and steel continues OF modest pro-
portions, and both order books and mill
operations are declining. The Steel Cor
porations orders for March are expected
10 show falling of Of at least 100000
tons