The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1916-09-06
Impossible for Purchasers
to Obtain Contracts for
Early Delivery
PRESENT CONDITIONS
TO BE MAINTAINED
More Than Million Automobiles to Be
Manufactured During the Next
Twelve Months-Pig Iron
Market Is Active
BY HOLLAND

New York, September 5.-(Special)-To
Andrew Carnegie is attributed the re-
mark that steel is either a prince or a
pauper, but to others who had even
greater experience than he in the manu-.
facture of steel and the relation of the
marketing of steel to general prosperity
are attributed the statement that steel is
the barometer of trade. The friends OF
Henry c.. Frick quote him as often hav-
ing made that statement. His longtime
associate, Sylvester Schoonmaker, was
always able to read Mr.. Tricks mind re-
specting business conditions knowing
that If the steel industry was prosper Gus
and promised increase Mr.. Tricks man
ner showed that he was convinced that
general business conditions throughout
the United States would well reflect that
prosperity.
Statements recently made by those who
are of expert authority indicate that never
before in the history of the steel indus
try has it been SO active as at the present
time. 1t fully matches, although rela-
lively, the very great financing which has
been under way for the past year and
half The revival of this industry may
also be compared with the change in the
attitude of American bankers after the
autumn of 1914 toward the money situd
ton 1t is only about year and half
ago that the largest of the American steel
manufacturing corporations reported that
a slight change in the condition which
had prevailed for nearly a year, change
for the better, was noticed. In the fall
of 1914, this corporation was at low ebb
manufacturing concerned.
Its plants were occupied with only about
one-third of their capacity. The export
trade which had been built up by James
A. Farrell saved the situation, SO far as
it was saved, for this company.
1t was necessary to pass dividends. The
managers contemplated the possibility
that unless conditions changed it would
be also necessary to reduce wages. In
fact business was so light that many of
the skilled artisans were laid off or were
working only on half time or less. The
change that has taken place in a year
and a half is one of the most marvellous
of the many features occasioned by the
European war.
Whereas year and a half ago the steel
manufacturing plants were utilizing not
more than one-third of their capacity,
now it is impossible for purche sers of
steel products to obtain contracts by
which they would be assured of delivery
before the middle of the year 1917 OF
course, much of this increase is due to
the very heavy buying of steel in all
forms by tn belligerent nations, although
the greatest of the American steel manu-
featuring industries has not accepted or
ders for war munitions. Its steel prod
ucts, however, have been purchased by
the manufacturers who have accepted or
ders of this kind.
THE BUYING TO CONTINUE
On Septemrr 1, the steel manufacturers
were confident that the heavy buying of
steel products of all kinds would be main
tanned for the next year and possibly for
two years. They report that the order
books are now filled with orders which
cannot be delivered until July of next
year. This is regarded all the more
remarkable in view of the fact that Eng
land and France have been perfecting
their industrial plants so that these two
nations are able now substantially TO
meet the munition needs of their armies.
But these industrial plants need half fin
ished steel and there is no country in
which this can be obtained except the
United States. Instead of a falling off
in orders-ths having been looked for in
the spring of this year-there has been an
increase.
Foreign purchasing of steel products is