New-York tribune., 1917-12-02
Cteel
Developments of a Week
in the Great Basic
Industry

Shortage OF pig iron grows more
serious, and the next step may be more
drastic government control, the effect
Of which will be to cut OF shipments
from steel plants and foundrics not
strictly on war materials. During the
past week there has been an insistent
demand for iron from many Of the
large steel companies. including prac-
tically all OF the subsidiaries Of the
United States Steel Corporation. A
conservative estimate is that there
have been inquiries for an aggregate
OF 100000 tons OF pig iron in the Pitts
burgh district alone, q large part OF
which must remain unsatisfed because
of the sold-up condition of blast fur
naces aud their inability TO attain ca
pacity production without larger sup
ply of coke.
Government control of pig iron would
mean that blast furnaces would be
obliged TO ship iron to war plants re-
gardless of contracts on their books
from other consumers. Many COM
panies which took war contracts when
pig iron was $50 per ton or higher
objected to that price and did not place
orders for their full requirements for
this year, relying upon the government
70 obtain the iron for them at the
fixed price If they ran short. They are
short now. and the authorities in Wash
lngton are receiving so many requests
for Communicating orders that serious
interference with regular contracts has
already occurred. lt is apparent that
under present conditions a pig iron
contract will not insure supply un-
less the consumer is on war work.
Coke Scarcity Unrelieved
Apparently there is nothing in sigh.
70 relieve the scarcity of coke. Con-
nellsyille ovens have been producing at
about 90 per cent of capacity during
the past week and are behind on con-
tracts. with no supply for prompt ship
ment TO relieve urgent needs of blast
furnaces and fouudries. Unless sup
| plies Of coke are obtained speedily
there will be further shutting down of
! blast furnaces and foundrieS, which are
already working at only partial
/ capacity.
As further complication, there is
| developing a scarcity of iron and steel
scrap. Embargoes on railroads are in
/ terfering with shipments. The impor-
dustry is indicated by the fact that
about 100000 tons are consumed escil
year. This year IL was expected the
record would be 100000 tons, but re
/ cent curtailment of shipping facilities
may reduce this considerably.
Nearly all of the troubles which be-
set the iron and steel industry are
traceable directly 10 shortage OF labor
at the coal mines and coke ovens and
| insufficient labor. cars and motive
power on the railroads. The pre-
ponderance Of priority shipments worG
against the rapid movement Of freight
at terminals. Yards are so crowde1
with cars that il is almost impossible
Tor the railroads 20 assemble trains
within the time usually taken. Aside
/ from the various remedies which the
! Railroads War Board has suggested
| for immediate improvement OF the
situation. there is unquestionably the
need for large additions to rolling
stock, especially locomotives.
Russian Orders Halted
/ The Russian situation will have ;he
/ effect OF releasing considerable capRc'
l ity for locomotive and car building, as
4 it now appears certain that under pres
eQt cOnQltlOnS tHlS ROFerHihchN Wa ~
permit exports TO that country. Ma.
/ chinery and supplies. which were boxed
and ready for shipment, have been
/ held up.
/ Plans OF the Baldwin Locomotive
/ Works TO build a locomotive shop on
the Trans-Siberian Railroad have beer
suspended, and the order may be per
manent il Russia makes separate peace
with Germany. More than 10000 cars
and 1900 locomotives were recently or.
dered By the Russian government, and
The productive capacity which these or
ders would have employed will undoubt'
/ edly be diverted to American needs
7 Such relief, however, is not expected
I 20 come for several months.
The effect Of coke and coal shortage
and the railroad situation is greatly "a
decrease production at steel plants
For example, in youngstown. Ohio, the
plants of the youngstown Sheet and
I Tube Company and the Republic Iron
and Steel Company have been operat'
I ing at about 80 per cent of capacity
owing 10 lack Of Coal both for open
hearth furnaces and for by-produc'
coke ovens.
A great scarcitys Of semi-finished