The sun., 1919-03-16
STEEL PRODUCTION
DECLINE Is SMALL
Operations Indicate Output OK
Ingot to Be More Than 70
Per Cent. of Capacity. s
WORK AT MILLS VARIES
Expect Progress Soon in Price
Adjusting Held Back by
Judge Gary's Illness.
WORK AT MILLS VARIES
Special Despatch TO The Sun.


PrTTsBURGi March Is. - Although tho
rate of steel mill operation has declined
in the last week 1t is still much higher
than was expected The February ingot
report of the American Iron and Steel
Institute shows that production during
the month was at the rate OF about S3.6
per cent. of capa city. based on as
sumed' capacity OF 100000 tons q
year. The decrease to date from the
March average is so slight that 1t seems
safe to estimate ingot production for tina
week at more than IS per cent. OF ca
pacity. There continues to be a great
diversity of operation at the different
plants. One large plant that operated
last month at an average OF 60 per cent.
of capacity fell to a little below so per
cent. this week On the other hand. an
important interest which has more than
one plant this month has been producing
at rate Is per cent in excess OF tia
output in the same period of last monti'.
Inc owners expect TO have an average
rate for the month OF nearly 10 PES
cent. above that Of last month.
Many mills operating at the highe q
rates are in some cases doing so merely
to reduce cost of production-not merely.
total cost by distr button Of overhead
expenses. but cost regardless OF overhead
expense, because the last few points os
percentage OF tonnage are obtained willis
out greater labor employment. A few
individual plants this week reported
outputs compared to those OF war
time because rolling schedules can
be arranged to best advantage Dur
ng the war needs for different sizes va
ried so greatly in Importance that eff
Client operation - from the tonnage
standpoint--was impossible
great deal is being said and printed
about price deflation that reflects fairly
good judgment Many manufacturers
recognize that the matter of price de-
nation is a plain, practical question
that its object is obtaining orders, not
winning arguments. They desire that
prices should really be Debated by rea-
sonable amount. and hope that if any
tlng - done there will be reductions
that, will carry conviction. One dealer
said this week that he hoped there
would be no four flushing" There was
much regret in Pittsburg that the meet
| ing scheduled for Wednesday between
the iron and steel mems committee and
the Industrial Board had to be postponed
on account Of Judge Garys Illness. They
| nope for better progress in adjustment
work during next week
Reports from the sheet mills are tina
the new contract forms in selling their
| product have undergone no change BY
reason OF failure of the trade generally
| to adopt the form 1t will be remem-
oered that last December a contract
! form closely resembling the form
adopted by many sheet manufacturers
J two years ago with reciprocal clauses
! for "liquidated damages" was proposed
| on behalf Of the American Iron and
| Steel Institute, which afterward dis
claimed desire to suggest or advocate
adoption of the form, whereupon ths
whole subject was forgotten by the In
dustry. Sheet mills, however do not
consider now the time to alter their
| position with respect to contract forms,
! as, according to w. S. Horner, president
| OF the National Association of Sheet
/ and Tin Plate Manufacturers, cit repre-
sents the best thought of the industry
| In the pig iron market there is very
| little to report, as inactivity FREEDOM
mates with few exceptions Of occa sional
| transactions in resale iron. The great
majority Of furnaces are adherinR TO
| recognized price levels, but more or less
/ theoretically since the test of actual IT. -
CURRY is not often presented. Consumers
! of iron are holding off from asking for
| quotations, as naturally they are in no
mood TO buy when they have been given
| to understand that price regulations o.
greater or less extent are likely TO De
made soon. Occasionally inquiries provo
! upon investigation to have been made
| from mere curiosity or for adjustment
| of some sort. There has been some ac-
tivity in resale iron. especially IN
| foundry grades A singular feature Of
the activity is that it shows no reEu-
| larity. Those best posted on the situa-
| ton state that 1t is absolutely impos-
| sible to estimate how much resale iron
is to come out. They have made guesses
at various times in tho past only to md
| that reselling is law TO itself Resale
| iron cannot be placed In advance and It
only becomes known when offered for
sale Thus there can be no recognised
market price for resale iron