El Paso herald. (El Paso, Tex.) 1901-1931, 1916-04-08
PRICES LIKELY
To REMAIN UP
Material Contracts For 1917
Indicate Even Higher
Prices For Cars.

Detroit, Mich, April S.-With raw
materials costing more than ever be-
fore in the history OF the industry.
manufacturers see no hope for reduc-
tion in prices for some time to come.
Enormous demand for steel and iron
from all sources cause a situation that
the makers here will not attempt 10
solve. They are going ahead and con-
tracing for deliveries Of what they
will need far ahead into even the third
and fourth quarters of next year. The
shortage is being seriously felt by the
hic manufacturer and the small con-
sumner as well-all are in the same
There no longer Is any tendency for
purchasing departments TO discount the
present conditions. Several weeks ago
there were a few who held the view
that conditions would improve as the
spring advanced, but evidently their
method of figuring was all wrong. for
each week sees increasingly high prices
for everything that goes into a car
Nor is there any hope that with the
cessation Of hostilities abroad there
will be any betterment Of prices. On
the contrary, all now believe that with
a great foreign demand opening up
when industries OF Europe again take
up peaceful pursuits, the expectation
OF iron and steel and other materials
VIII be enormous for the next two or
three years. at least. and that any
hoped for lessening Of prices on the
PyaeinE Future Contracts.
Some very telling arguments are ad-
vanced by T. j.. Watts. chief engineer
OF the Hump Motor Car company, who
believes. with most others. that we are
in for high prices for some time to
come. He says in part:
AT the present time. the steel COM
panies are contracting for the third and
fourth quarters of this year at the
present market prices. which are high.
In order to protect themselves on tha
raw material. the steel companies are
now contracting for pig iron. \ coke.
steel scrap and alloying elements. the
prices Of which are extremely high.
Practically al OF the ferro- manganese
used IN the manufacture Of steel is inn
ported from England. The latest QUO
tation made on this product was 1925
per ton, in comparison with $40 per ton
before the war started The last week
the British government declared an en-
barge on the expectation Of ferrO-man-
ganese. and it win have to be obtained
from some source, as yet undeveloped-
The railroad companies are ordering
very heavily to keep their rolling stock
and rails i'm condition. In the first two
months Of this year 641 locomotives
were ordered, approximately 10000
freight cars OF various types, and the
rail tonnage will be over 10000 tons.
Russia Using steel.
The Russian government last week
contracted for 10000 tons OF rails. The
locomotives viii have the tendency to
keep the price OF tubing up. as there
are thousands Of feet OF this material
used in every locomotive.
The shiphuildinE companies are
buster than az any previous time. and
the contracts held by the American
shipyards viii keep them busy through
out 1915, part Of 1917. and some boats
are being contracted for with delivery
these boats will also require an I'm
mense amount OF tubing. and the decks
and plates for the hulls viii require
4 large tonnage Of cheap steel
No Steel from Europe
At the. present time there is very
little steel being produced in Europe
and with the destruction OF railroads
and railroad equipment and bridges.
there is going 10 be an immense de-
mand for steel after peace is declared
steel men estimate that the expectation
VIII be very large for at least two or
three years after the war Is over
Sne OF inc minor reasons for the
nigh price OF crucible saeels is the lack
OF pure graphite for crucibles and the
increase In price of the crucibles now
IN stock. In one or two cases steel
mills have had to shut down their
cruciDle plants until such time as they
can get more crucibles
The steel mills are all expanding
as rapidly as possible but II will be
several months before the additions
VIII be in condition to make anv an
steel
we cannot possibly escape the. Of
tects or this general increase. What
we gain I'm one place by purchasinr
manufacturing, or designing skin 0r
py getting parts from companies which
nave raw materials I'm stock. we lose
elsewhere Many of our gains are tenn
porary, while our losses are permanent
Nor does there seem to he apv relief
IN sight, At the present time II is
impossible to tell what the outcome
viii be" '1O'iS