New-York tribune., 1918-12-17

to the products needed by the govern
ment The industry has not only kept
up to the governments demands for
war steel; it has succeeded in keeping
little ahead Of them. But that has
been accomplished by diversion Of ex-
listing equipment as we'll as the con-
structon of additional steel making
facilities.
Extra Cost Written OF
The additional capacity created dur
ing the war, Judge Gary stated, was
built Mt a very high cost, but this cost
had mostly been written off, having
been charged against war profits.
"Moreover," he said, while this
capacity was built to meet the pressing
demand for war steel, much Of it was
designed with the idea Of conversion
to the production Of steel for civil pur-
poses when the emergency had passed.
Most of it will be so converted with
little difficulty" He added that the
new capacity Is more efficient than the
old.
Asked whether any substantial part
Of the steel making capacity, which has
been working under pressure for sew
cral years, would have to be scrapped.
he answered in the negative.
Few Ordinary Cancellations
"Have cancellations been large ?"
was asked.
They have been rather large en- such
government orders as could be can
oeiled," Judge Gary replied, "and can
cellations of this kind of business are
still being received. But cancellations
of ordinary bookings nave been small"
What about new bookings since tho
hrmlstlce was signed?"
"Ihey have been very satisfactory"
was the answer.
"Do you believe, as has recently
been said, that the demand for steel
Tor reconstruction in Europe will be
trlfiing, for the reason that little steel
was employed in the structures de-
strooyeed?' was the next query.
Il believe that the demand will be
small, but not for the reason given,"
said the judge. "The RACED propertv
will, in all probability, be replaced
with modern structures, and much steel
will be employed in building them.
But the demands on the American mar
ket from this course have been over
estimated. In my opinion, the devas-
tated countries will make every effort
to do this work with their own re-
sources as far as that is possible
even though they may have to delay
rebuilding for an indefinite period.
Probably much of it is not Of an urgent
character"
Predicts Greater Exports
"How about other steel exports
will they be greater or smaller than
prewar exports?' was the next oues-
tion?
"Greater," Judge Gary answered,
without hesitation. II think the non
producing countries, such as South
America, South Africa, China and ia
pan, will be especially heavy buyers.
they have been unable to get steel
Tor several years, and this repressed
demand will have to be met in the
immediate future. am sure, also,
that we may expect a steady growth Of
our export business in steel"
Does the prevailing uncertainty as
to the future of the railroads tend to
hold down the volume of steel orders 2"
was the final question.
Certainly" said the judge. "The
government is not inclined to buv
freely at present, and the railroads are
naturally not in position to do SO.
Moreover, they would be unable to pur-
chase the needed supplies if they we're
returned to their owners under present
conditions"
He concluded by saying that rates
must be adjusted SO that the railroads
can earn enough to pay a fair return
to their owners and attract the addi-
tional capital necessary for extensions.