New-York tribune., 1920-12-12
Rays of Hope
In Curtailn1ent
OF Steel Trade
Increased Rail Orders and
Hardware Jobbers' Buy
ing for Spring Encourage
Belief in Early Recovery
Pipe Prices to Decline
Predictions of Ruinous Low
Levels for Lists and Wages
Considered Impossible

ACVC1S AOI AIStS dHAtA w drCS
Considered Impossible
Special Dispatch TO The Tribune
PITTSBURGH, Dec. 11-Decrease in
production continued to be the rule, In
the steel mills during the week, but
shining through the gloom are one
or two rays Of hope
The chief CLEAN in the shadows has
been the placing of steel rail tonnage,
. forecast in these columns, as selling
prices settled throughout the industry
to the Industrial Board levels, and
another is the fact that several Of the
largest hardware jobbers have placed
orders for the bulk of their require
ments for next year. This latter is
particularly significant factor of the
situation. as the hardware jobber is
probably in closer touch with the
actual conditions of trade than any
other class, owing to his relations with
the hardware retail trade throughout
the country.
This action upon the part of the
hardware houses is a further sign that
forehanded buyers realize that prices
Will not go below the Steel Corpora
ton level. 1t has been contended in
these columns for several weeks that
the lowering Of prices to the corpora
ton schedule was going to be the bot
tom and that following a period Of
slow business, while costs were being
adjusted throughout all business.
new era of activity would commence.
No one Is SO foolhardy as to predict
when the upward turn will come in
noticeable degree, but the feeling that
1t will be some time in the early
spring is gaining strength hero.
Pipe Prices to Drop
Prices on steel pipe continue to re-
main at the old high level, but there
are signs that this market will fill up
within few weeks, when pipe prices
Will settle down safely to the level Of
other steel commodities
| sThe prevalence of oearish views and
prognosticators who predict ruinous
low levels in prices and wages is an
amusing feature of the situation. 1t
appears to be overlooked that this
readJustment process is not panicky in
nature. as the requirements for steel
products were never greater in the his
-ory of America than they are to-day
That wages will be reduced is inevi-
table. but that these reductions will be
heavy and ruinous to the workers is
an absurdity in the opinion of the
eadlng steel manufacturers here, who
point out that since 1918 wages in the
steel industry have been raised Just
exactly l4O per cent, and can therefore
stand some cutting without impoverish-
ment of the wage Garner or his fam
lily.
ldleness is less prevalent in the
pittsburgh strict than in any other
large industrial district in the country.
according to leading manufacturers,
and is confined almost entirely to
smaller plants, which procured their
materials from the steel plants for re-
working into fin shed products In the
steel making industry proper the per-
centage of unemployment is not high
of superf1uous workers, which is made
possible by the increased efficiency
being displayed by the others. Reduc-
ton in working time has occurred
pretty generally throughout the in
dustry, but the United States Steel
Corporation mills are virtually on full
time. These mills are operating at
about So per cent of capacity. None of
the larger independents is operating
below 60 per cent capacity.
Working Hard for Christmas
Virtually all the mills in the Home
stead Steel Works and the Duquesne
Steel Works Corporation plants are
operating full time, with big tonnage
outputs. The first fifteen days Of this
month comprise the Christmas pay and
workers have been bending every effort
to make their holiday pays large. The
plate mills are exceptionally busy in
fill ng orders for plates and finished
steel. which will give the mills a spen-
did record for the week. At the Du-
the record for the month are bright
The Sharon Pressed Steel Foundry
Works, at Wheatland, is virtually
closed, while the Sharon foundry, in
the same town. is running at so per
cent of capacity. The mills in Farrell
owned by the corporation are operating
about S5 per cent. In Sharon the Car
nege plant, the Amer can Steel
foundries, Hall furnace, Carnegie Steel
furnace and Savage Arms plants are
down The Sharon Steel Hoop Com
pany is operating only two finishing
mills, with the open hearth. ten-nch
The Petroleum Iron Works, ut Petro-
leum, is working at capacity, and the
Standard Tank Car plant at about 60
per cent Only one blast furnace Of
six is running. Heads of the lnde-
pendent plants assert there Is no bust
ness on hand and that the outlook is
not promising, although many believe
that after the first of the year there
may be an Improvement.
The Carnegie Company started fts
coking plant at Farrell in full opera
ton this week For several months
only ITO of the 2l2 ovens had been pro-
ducing coke
Gap in Prices Disappears
The gap between prices qroted by
independents and the corporation has
almost wholly disappeared in the
Youngstown district. except on pipe,
which is still maintaining higher lev
els. Independents are quoting under
the major interest on cold finished
steel bars, the prevailing quotation
being 3.60c, a decline of SIS ton, ana
So ton under the corporation price Of
4c In spite Of the lower prices, how
ever, comparatively lttle new bust
ness is developing.
New plate business is confined
chie/y to material for tanks and tank
cars for the oil country. Pig iron
sales are still negligible and basic
iron may be readily obtained at s33
In the fuel markets spot furnace
coke is procurable at 81, and the best
grade of gas coal at $4.50. Still fur.
| ther 'recessions in fuel prices are