Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1919-08-02
u. S. STEEL REPORT
HIGHLYENC COURAGING
General Belief That Improve
ment Will Continue Until
End of the Year

New York, Aug. 2.-The most i'm
portant development in the steel trade
during the last week was the publica-
tion of the earnings of the United States
Steel Corporation for the second quar-
ter of the year. Contrary to the gen.
eral belief, the net revenues recorded
an increase of something over $500 900,
against expectations of falling off
i as compared with the first three months
of the year.
The fact that the good showing was
due in part at least to the smaller re-
serve set up against tax payments is
aside from the question. Naturally,
with smaller earnings than n year ago,
it will not be necessary to pay as much
over to the government as previously.
However, it is probably true that in
line with its former conservative policy
the management of the corporation has
again made liberal deductions for tax
reserves.
The improvement recorded in the
June net earnings over those for April
and May were highly encouraging and
there is now a general belief that this
improvement will continue until the
end of the year. The orders which
have come to hand in the last two
months should be reflected in increases
during the remainder of the year.
On August next the corporation
will publish its statement of untitled
orders as of July 81, and despite the
fact that the operations in many de-
partments have been increased to a con-
siderable extent, it is the opinion in
circles usually well informed that there
will be a substantial gain in the book
ings, confirming THE reports of new
business as published from time to time.
During the past week there were
rumors of large orders having been
placed with the steel corporation and
some independent companies for the
account of the French Government.
However, thus far nothing has been
done in this connection. 1t is admit
ted by high authorities that the .busi-
ness is to be had, but the entire mat
ter depends upon arrangements that
must first be made for credits and
financing.
The labor situation is still one of
the chief topics of discussion when
steel interests get together. 1t is be-
lieved that many companies would in
crease their operations if it were pos
sible to secure the workmen. During
the months following the signing of the
armisticc, when steel plant operations
we're reduced and the number cut down,
there was an exodus of men to other
industries.
The wages being paid by those other
industries and the fact that they are
getting regular employment has made
it difficult to get the men to return, so
that even when attempts have been
made to increase production the re-
suits have not been satisfactory by any
means. Authorities agree that this sit
uation shows no signs of any change
for the better rs yet.
Another point which is being freely
discussed is the inefficency shown by
some of the workers. Whenever there
are more jobs than there are men to
! take them it has been the experience
| in the steel and other industries that
it was impossible to get efficiency from
the men employed. Therefore, this will
not change until there is an improve
ment in the supply of labor available.
So far as the markets for steel pro
ducts are concerned, the Improvement
noted in the last few weeks continued.
The principal business which came tc
light during the last week was the in
vitation put out by the Navy Depart
mcnt for bids on 10000 tons of plates
shapes and bars for use at the Brook
lyn navy yard. 1t is probable that al
the leading makers will name quotations
for this business.
In the bar market the feature of thu
week has been the improvement in th'
export demand. Some orders have CONF
to the domestic makers, with Japan th'
leading purchaser. Some good Size
contracts have been placed by tina
country. The domestic buying con
tinues brisk, according to leaders il
this branch, and the outlook is as goo'
as it has been at any time this year
Some leading plate manufacturers ar
said to have admitted there is posi-
bility that the premium on plates, a
compared with bars and shapes will b
reduced However, they are not will
ing to discuss the matter for publica
ton. The Pennsylvania Railroad ha
an inquiry out for 1000 tons of plates
The company has just placed one ordc
for 5000 tons. subject, of course, t
approval by the regional director o
railroads.
The wire makers, who advanced thei
prices during the last two weeks, hav
not taken much business, nor do the
care to accept contracts, according t
an official of one of the companies
They believe that prices will advanc
further. Thus far no change has bee
made in the quotations of the America
Steel and Wire Company, the leadin
interest, nor is it considered likely j
| authoritative quarters that the advanc
: by the independents will follow. Th
wire market continues active with
/ Io,-o frnp, inhharS aud mn n ~