The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-04-16
RAIL ORDERS IN WEEK
TOTAL $4,000 TONS
Pennsylvania Railroad Leads
in Buying-Great Call
for New Cars.

Interest in he steel trade last week
was largely centred IN tho rail situation.
Tn most important development came
when the Pennsylvania Railroad an
n~ounced the placing Of orders for 2o5 900
tons Of heavy section rails. including
1875, 900 tons for lines east and $4,000
tons for lines west Of Pittsburg. 1t Is
understood that the rails for the Eastern
lines will be 1870 pound sections. but
| that less heavy sections will be used for
lines west. None Of the large steel com
panies had received definite advice OF
their proportion OF the Pennsylvania ton.
mage up to oon yesterday. when most OF
the offices closed. II the percentage used
last year holds In tho distribution this
| year the United States Steel Corpora
ton interests will be awarded 90 1900
tons. while the Pennsylvania and Cam
| bria Steel Companies will each receive
t5,10O tons and the Lackawanna and
Bethlehem Steel companies will each be
asked to roll 1890 tons. Because or
the sale OF the Cambria Steel Company,
recently merged with the Midvale Steel
aud Ordnance Company. and the dis.
posal Of the Pennsylvania Steel Company
to the Bethlehem Steel Company
the trade expects to hear that there mas
been n change In the distribution OF
, orders.
The rail mills have reaped an un-
usually rich harvest In the last six
weeks. That Is from a tonnage stand
| point, but from the anglo OF prices TIC
advantage has been with the railroad
companies. when tho Increased cost OF
production Is taken into consideration
The enormous volume of business placed
since January I Of course Is largely due
10 the decision OF tho rail companies to
advance the price Of standard AS well
As l!ght section rails. Definite action
was taken by the United states steel
CORPORATION subsidiaries and by the
Lackawanna Steel Company last week,
when official announcements were made
OF an advance Of s. per ton. elective
May I, for delivery after May !. 1871.
Probably three-fourths OF the tonnage
sold by the rail mills since January !
will not be delivered until the frt and
second quarters OF 1917. II will DO re-
called that about 1900 900 tons OF rails
we're sold In 1915 FOR 1915 shipment ana
probably 500. 900 tons additional Were
taken for this years delivery to do.
nestle roads. Several hundred Thousand
tons were also sold for export during the
current year.
In tho pa.t week rail bookings FOR
1917 shipment aggregated $4,000 tons
Including eos 900 tons for the fenrsyl-
vania liailroad system. Tho orders OF
hftecn other roads amounted to lso,5Oo
tons. n was reported that the railroads
placed additional contracts for between
100, 900 and 200. 600 tons, details or
which are still withheld. Not including
the tonnage concerning which details
are lacking, the rail mills have taken
orders since April I amounting TO $50
600 tons. Since March | tho bookings
have aggregated 800. 900 tons. while the
contracts taken since January l have
amounted TO tho impressive total Of =
10000 tons. This is within 100, 600
tons of the total production for 1916.
The lucrative character Of rolled steel
products distributed on domestic and for
eign account during tho first quarter OF
this year Is evident IN the indication that
the net earnings Of the United States
Steel Corporation In January, February
and March amounted to SCI. SOC. 600.
This is practically $4,000. 600 more than
WAS earned by the corporation during
the last quarter of 1915, when earnings
exceeded the previous max quar-
tcrly net revenues by over 5000. 900,
This estimate of earnings is based upon
shipments during the first quarter OF this
year only slightly under 1000. 900 tons.
and average net earnings of $l5.il a ton.
During the fourth quarter ~ 1875
shipmcn's Of rolled products by the sub
sidiary companies OF the steel Corpora
ton aggregated about $3.50, 900 tons.
With net earnings OF "A little more tina
81 ,ooo 600, II Is Indicated that the net
revenue was At the rate or $3.50 per
ton. but IN December the net earnings
ru,- 20 Sii.13 per ton from SiJsu per
ton In October. These estimates are
made from the monthly earnings given
IN the last quarterly statement and the
estimated shipments. The latter aver
aged about 10000 tons IA month.
The extraordinary performances of the
steel companies during the frs, quarter
Of this year stand u as achievement
which are not likely 70 be eclipscd Tor
another year Mt least, when capacity
will be greater.
The railroad companies placed oricr-
last week for 1856 ears and 5000 steel
car UNDERTAKINGS calling for about rs, oOO
tons of steel bars. plates and shapes
The locomotive builders reported orders
for 10 additional engines, 10 OF which
are for export. The principal order was
for 40 locomotives ordered by tn" South.
ern Railway from the Baldwin com,
pany. including 81 santa Fe and /.
I .i''AllAsblH I y iN. ANU l'.NVb tpIt vi
steel will he required In the construction
of tho engines ordered.
"
one interesting feature Of tho week.
DEVELOPMENT was the Increased dcmant
for steel rounds hillcts and forging.
for the manufacture Of high cNplosiy,
shells. An additional contract for 200.
900 tons Of round steel bars, it was re,
ported. WAS placed. largely with eastern
Pennsylvania mills, In fact. II was sal,
that tho Eastern steel Company hat
taken "A contract for 700. 600 tons o
round bars for France. This error prob
ably arose from the fact tina som,
, strong financial interests identified witt
|, the Eastern steel Company. nave beer
: prominent In securing war contracts
, but none OF this business. there II reason
, to believe, WAS placed with the East IT
! Steel COMPANY. Indeed. to execute sucl
an order II would be necessary for tn,
Pottstowu mill to erect new building
and install new machinery, which woul,