The Birmingham age-herald., 1915-11-06
DOMESTIC DEMAND !. FOR STEEL CAUSES
 ACTIVITY ABROAD England and France Both Affected by the Increas-
 ing Prices Here
RAILROADS BUYING
 IN LARGE QUANTITIES.
For First Time in Several Years They Are Purchasing Equipment to Meet Enormous Demands
 Upon Them
By HOLLAND

By HOLLAND
 l New York November 5.-(Special.) 1.-Two reports which seem to be inconsistent and
 even paradoxical when one is compared
 with the other were published early in the week upon the same day. One of these reports came from Paris and was
 published under a Paris date line. The other was based upon authoritative in- formation respecting the production and
 marketing or iron and steel
 | If the report from Paris be accurate 1 then France and England have been dis suaded from buying steel products in the | United States on account of the high l prices which American manufacturers are said to have charged for their products. As a result, France and England are en- deavoring to make in their own manu- | featuring plants the steel bars and other products which few months ago they were anxious to buy in the United States. Therefore, within short time England and France will be able, having re- equipped their mills and enlarged their plants, to make substantially all the iron and steel commodities they need
 It is pointed out this morning that there may be another reason why England and France are turning to their own steel manufacturing plants than the alleged ex- cessive charges made by the American manufacturers. That reason is to be found in the remarkable increase in do- nestle demands for steel commodities. Our l own steel industry is driven to it's ut-
 most capacity and there is an object les- son demonstration of this in the record made by the United States Steel corpora | tion in eight months from January 1 of l this year.
 When a manufacturing plant even
 though it be as large as the United States
 Steel corporation, is selling its commod- l ities at the rate of 60.000 tons day, it is to be inferred that other steel industries are marketing their commodities in pro- portionately large amounts. It may be | that by reason of this excessive demand,
 for which there is no precedent, it has ! been found necessary by American manu- l lecturers to quote prices to those from | England and France who are seeking
 American steel which would fairly repre- sent the extraordinary demand.
 |
 of the lessons which the steel industry of the United States is now teaching is the | relation of the railroad companies to these demands. For the first time in two or three years the American railroad com panies are in the steel market for equip ment of all kinds and in large amounts. | The managers confess that the extraordi- nary conditions which have arisen with l in the pase eight months explain these de- | mands. Howard Elliott president of the New Haven Railroad company, is per suaded that this company must, if it | is to meet the transportation demands which will be made upon 1t, spend as much as $25000,000 for new equipment in all kinds and he could make good use ] of s5o.0o0.0N0. Almost all of the trunk 1 lines are getting ready to buy new cars. one of them purposing buying 25,000 new I cars which are to be delivered as soon as possible.
 l If Great Britain and France are now re- | training from buying steel commodities in | the United States, as the report from
 Paris alleges to be the fact, the falling | off or cessation of orders of that kind I does not appear to have any other effect upon the steel industry of the United States than is disclosed by the operation
 of the plants to their full capacity.
 | In the circular which is issued monthly
 under the supervision of Frank A. Van
 
 1 bank, attention is called to the fact that I trade and industry are increasing and rapidly increasing, the effect being spe- 1 cially noticeable in sections of the coun- | try where year ago business was stag nant, practically prostrated. Encouraging l as report of this kind is regarded by MT. Vanderlip and his associates, never theless it is thought expedient to call at- ! tention to what may prove to be a dis
 turbing factor in this situation, for much of this prosperity, the circular asserts can | be traced to the vast business which has | been created directly or indirectly by the l European war, and 1t is assumed that much of this business is likely to come | to an end any time. Therefore, it is the | part of prudence for American business | men to keep constantly in mind the con-
 tingency that the war may speedily end and when it does business will be to a considerable extent affected thereby. In reply to this monition, attention is directed to the vast increase in domestic | business of all kinds and especially in the
 business which the railroad companies are now offering to the manufacturing of | steel and other commodities of which the 1 railroad has need.
 l Some time next month the association i of manufacturers whose output is chiefly
 marketed with the railroads will meet at
 its annual session in this city For two
 or three years members of this association l have at their annual meetings not been
 in the best of Spirits. Their business had fallen off woefuly. the railroads were
 not buying machinery, tools, apparatus
 and equipment. It was necessary to lay off many skilled artisans and the busi- ness as a whole was carried on from hand l to mouth.
 1 This year the representatives of this business, which is one of the largest in
 the United States, will come together in
 the best of spirits. They will be able to report that the railroads are buying l equipment in large amounts and will con- tinue to buy. If the railroads maintain their demands, then it is inevitable that