New-York tribune., 1918-01-24
Steel Famine Is
Threatened by
Fuel Shortage
Throughout the
Country About Half of
Full Capacity

DraStic curtallmcnt OF steel opera
tions has resulted from the recent or
der of the Fuel Administrator and
from the difficulty of obtaining enough
coal to keep mills and furnaces going.
Output of the United States Steel Cor
porations plants, it was learned yes
terday, is less than 60 per cent of ca
pacity. Despite the fact that the cor
poration is an integrated concern, pro-
ducing its own coal, it has been unable
to get a supply, much Of the output
having been diverted to other uses.
Those companies which must rely en-
tirely upon outside sources for a sup
ply of fuel are reported to be suffering
more than the Steel Corporation, and
in steel trade circles it is said that the
total output currently is less than so
per cent of capacity, with the chances
that production at the maximum of cx-
listing facilities will not be reached for
some weeks in any event.
If production in January and Feb
ruary should be no more than so per
cent of capacity, one-twelfth of the pos
slbe output in 1918. it was pointed out.
will have been lost In the first two
months of the year.
A steel man said yesterday that there
is need for every ton of steel that can
be fabricated, though demand from un-
essential industries has fallen off con-
siderably.
1t is expected that earnings of steel
producers in the first quarter Of this
year will be greatly reduced as a re-.
suit of the curtailment of output and
shipments.
Improvement Not Permanent
reports from all districts except St.
LOUIS, where conditions have not been
acute, fall to show that the fuel con-
seIVatlon campaign has brought about
foundation for permanent imnrovo.
ment in the industry.
.,,,, Improvement OF consequence. saws
Inc Iron Trade Review" can come
only from a sustained relief from
tralhc blockades which have been
strangllng industry for a number Of
weeks. '''1 ~
The Iron Age" estimates that H..
nVe days ended Tuesday brought a
curtaiiment Of 10 to Is per cent from
lhe already restricted rate of recent
weeks. Probably 70 per cent of the
olast furnace, open hearth steel and
coke oven capacity was kept in opera
.'on' put all Bessemer plants were
down, the government not buyinp con-
mills were run as had been engaged in
producing for ships and shells. includ-
ing plate mills and some structural and
boiler tube mills.
AS a result of the restricted opera-
tons OF furnaces it is estimated that
consumption of lake ore during winter
months will probably be 2,5OOO0O ton,
pelo" that OF like period year ago.
New Fuel Priorities
Owing to the new fuel priorities
some observers see the steel trade
drifting into state Of helplessness
that BODIES no good even for work con-
sldered important to the war. Exemp-
tlons from the closing order, it is CON
tended, do not meet the case if fnc1
needed to keep iron and steel works
gong has been diverted to uses higher
up on the preferred list.
"A large amount of structural steel
Tor government work is under inquiry"
The Iron Age" states. "Government
needs III France are still unsatisfed.
Inquiries on behalf Of the Signal Corps
call for 500 buildings December book
ings of fabricatng works were ap
parently more than in November, whe,.
the high record of the year, II per cent
OF capacity, was made.
Some agricultural implement manu-
facturers have come into the market
for early requirements in both soft
and hard steel bars, on a scale pointing
to large production in the coming sea
son. In the automobile trade a rather
more hopeful view is taken, some max
ers looking for about so per cent of
their normal output.
Government awards are being made
on 4,400 cars for use in France, 400
being of narrow gauge.
Some buyers of finished steel for
commercial uses have found it easier
to place contracts for plates, shapes,
sheets and bars and mills have been
rather more inclined to accept export
business on which permits have been
obtainable."