New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-04-27
Thursday, April 26, 1911.


The steel industry seems to be
thoroughly modified for war and is
meeting the governments demands
efficiently and expeditiously. what
is almost as important, it is willing
tc supply all the war steel that may
be needed at prices far below those
prevailing in the open market. The
announcement that, in compliance
with the governments request, lead
ing manufacturers Of plates, struct-
ural shapes and bars will furnish
these products at $3.50 per hundred
pounds for plates and $3.50 per
hundred for the others shows how
far they are prepared to go in that
direction. The current open market
for steel plates is Sc a hundred
rounds. so that the price made on
them for the government is less than
half of what the private consumer
pavs. The difference between the
market price and that paid to the
Government on other products
named is large, but not so great as
in the case of plates.
\ Wall Street is chiefly concerned
with the question of how this cut IN
prices will affect the earnings Of the
steel companies, and that, in turn
depends upon the proportion of their
output which will be taken by the
government. Definite figures on that
point are not available, but reliable
estimates indicate that direct mill
tary requirements will be under III
per cent Of capacity and total re-
ouirements under 20 per cent. In
this connection a statement by John
A. Topping, president of the Repub-
lie Iron and Steel Company, in the
May Worlds Work." to be issued
Saturday, is of unusual interest Mr..
Topping says, IN part:
At the present time the United
States. it is estimated, is producing
At the rate Of 100000 tons of in
COTS per annum. or more than one
half the production Of the whole
world. This output Of crude steel
means a finishing capacity possibly,
Of 10000, 900 tons, approximately pro-
portioned as follows, based on best
records available: Rails. 100000
tons; structural shapes, 2,500,O tons;
sbeared and universal plates, $780,
600 tons; sheets and black plates for
timing, 100000 tons; wire prod
ucts. 100000 tons; merchant bars,
100000 tons; tubular products, g.
100000 tons; miscellaneous rolled
products, 100000 tons; semi
finished steel used in forging, in
Guiding experts Of semi-fnished
products, 100000 tons.
As a mere suggestion of the pos
sible requirements Of the army and
navy. assuming that shipyard re-
ouirements, both for our merchant
marine and navy uses, are classified
as war necessities, it is not probable
there would be consumed more than
one-fourth of the total output OF
structural shapes and plates. That
would represent only about per cent
of our total production. If we as
sumo that the United States when
fully equipped will consume one
third Of the estimated consumption
of munition steel now used by the
Allies, this munition demand in itself
would not in all probability represent
more than ~ per cent Of our total
production, so that the combined
uses of the army and navy appar-
emily could hardly exceed TX to 10
per cent Of the total capacity Of the
country.
There would, however, be add
tional requirements to be met OF
collateral character, such as motor
trucks, steel cars, barbed wire, etc,
MnlCn might lHCitooo wv 'ON"' w
mands from 10 to 90 per cent. Six
TO eight million-odd tons of steel is
a large order, but when you trans
late it into percentage of total pro-
duction and spread the burden over
all. it can be taken care of without
serious difficulty if proper cooperation
is maintained between all interests,
viz, labor, transportation and gov
eminent.
Government protection through the
navy and our merchant marine will
1 doubtless be required to insure full
supply of ferro-manganese ore. This
material is essential for steel max
ing. Although the comparative
. amount used per ton is very small,
the aggregate Of the country's re-
quirement Is large, ard all of it
comes from Europe, Asia and South
America, and it should be the duty
Of our navy to see that this supply
is kept constantly flowing to US.
The steel industry is perfectly ca
pable Of meeting every demand which
the government can make upon il,
provided maximum production is
| maintained. For this accomplish
ment IL will require the loyal