New-York tribune., 1921-01-30
Improved Tone
Gives Hope to
Steel Industry
Resistance to Shading Prices
and Cutting<Wa ages Despite
Slack Orders Encourages
Belief Trade Will Grow
Special Dispatch to The Tribune

Special Dispatch to The Tribune
PITTSBURGH, Pa, Jan. 29.-There
is distant feeling Of optimism in the
steel industry this week, like the feel
ing in the air of the coming of an early
spring. Small signs all point to a slow,
painful but resistless turning of the
curve of production.
Other indications show that in spite
of the opportunity and often OF the
sore temptation, there has been little
Shading" of prices, undoubtedly due
to the fact that even the most timorous
manufacturer of steel products knows
that the margin is so close now be-
tween operating costs and selling prices
that any continued shading would in
evitably result in forcing losses which
could not be supported or recuperated.
The big question of who is to reduce
wages first, the Steel Corporation or
the independents, still remains open.
The independents have hung out
two months in the face of idle mills
and blank order books, and now see
business commencing to turn their way
again, slowly but steadily. The Steel
Corporation, with order books full, has
had no difficulty in postponing q wage
cut, but is faced with the certainty of
having to cut prices if it cuts wages.
In money quarters it is pointed out that
had the corporation come out fatty
with small price cut, followed shortly
thereafter by the necessary wage cut,
there would have been little or no de-
preston in the steel industry, as every
consumer of steel products would have
recognized the high sign that the mar
ket was at its lowest level.
Schedules Show Improvement
Operating schedules in the Pitts
burgh and Youngstown districts show
interesting improvements. Several
smaller plants which have been idle
for more than a month have resumed
during the week Departments of some
of the larger plants, which were closed,
have reopened. Blast furnace opera
tion has increased about 10 per cent.
Open hearth operation has advanced
about - per cent and sheet production
shows an increase of around per cent
over last week.
There is a growing feeling among
iron and steel executives that the
period of liquidation in the industry
has reached the bottom and that q
gradual improvement may be expected
from now on.
In a message to sales representa-
tives, the president of leading inter
est points out that conditions leading
to the current depression are world
wide and can be corrected only by i'm
provement abroad as we'll as in this
country.
81 wish to say to our statesmen that,
although we need all the business they
can secure, under present conditions
they must not urge our customers to
buy beyond their immediate needs.
Since there is possibility that prices
may decline still further and business
may not revive as rapidly as some of
us hope, any speculative buying should
be discouraged. We have always re-
garded the interests of our customers
as our interests. Many of them have
been accustomed to seek advice and in
formation from US in times like these
and we must keep absolute faith with
them. Therefore, you should be care
full that, in your eagerness to get busi-
ness from them you do not mislead any
customer. Keep in mind the fact that
the two things we regard as most i'm
portant are the quality of our products
and the service we can render to those
who buy our materials"
Unemployment Continues
Unemployment continues throughout
the industry, but in nowise as ex-
tensive as has been rumored and the
gradual assumptions of operation are
reducing it slowly from week to week,
1t is estimated that there are at pres
ent about 21 900 idle in both the Pitts
burgh and Youngstown districts.
Fourteen of fho fwertv.Gvo liz
furnaces in the Mahoning Valley are
pouring, while thirty of the sixty-six
open hearths are charged. Decline in
operations by the Youngstown Sheet
and Tube Company is more than Offset
by gains by the Republic Iron and
Steel, Brier Hill Steel and Trumhull
Steel. ~''
For the first time during the current
slump the Bessemer department of the
sheet and Tube Company is idle. Trum-
Dull Steel Company has increased the
number OF active open hearths from
three to four. Republic Company is
operating six of its fourteen open
hearths This week, whereas last week
its steel department was wholly sus.
pended.
Leading steel men in the Shenanre
Valley assert that business will soor
dehnltely enter upon the return tc
normal conditions. One manufacturer
to illustrate his views, said that "it is
just around the corner" Bookings al
the Sharon Steel Hoop plant, which
has operated internationally for man,
weeks. were better during the last ter
days than at any time within the last
two and one-half months.
Resumption of several department:
OF the Standard Tank Car plant indi
hot hnr
the petroleum business. The compan,
reports that its leasing business is thu
best in over two months. Admittins
an upturn for the better, manufactur.
ers of this district do not anticipat.
normal conditions before the secont
half of the present year. However
there is more optimism prevailing tha,
for some time.
Holidays This Week
Monday-ln Azores. Madeira Islands