New-York tribune., 1921-12-18
Smaller Steel
Mills to Close
Over Holidays
Dizziness Continues TO Re-
strict A Activities i'm
the Industry; Preparing
for End Year Inventory
Plea for Lower Freight
Attention Being Attracted by
Economy in Water Trans
porsation Developments
Special Dispatch to The Tribune


PITTSBURGH, Dec. 17.-Dullness
characterizes the steel trade as the
year draws to a close and soma of the
smaller mills will close down entirely
over the holidays, not only because Of
lack Of orders, but also to enable in
ventories to be taken more readily and
the years business closed and &C
counted.
Interest continues to be manifested
in the proposed merger Of several in
dependent steel companies in the Phil
adelphia, Youngstown and Chicago dis
tricts and signs point to the fact that
the several concerns interested. are
drawing closely together, so that soma
sort of tentative agreement may be
reached soon after the first of the
year, although it is not thought that
the merger will be completed before
late winter or early spring.
Activity continues upon the part OF
steel manufacturers and manufacturers
of other commodities to secure reduc-
tions in freight rates whcih will release
their products from the narrowly re
stricted markets of the entire country
A notable step IN this direction wa
taken during the week by q number o.
manufacturers in the Pittsburgh dis
trict who wrote to Congressman urg
ing some action looking to relief and
pointing out that the Jones G. Laughln
Steel Company had boldly broken
through the freight rate barrier by re
sorting to use Of the inland waterways
system of the country for delivery of
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western consumers at very arpreci-
able savings in cost Of distribution.
Shipping by Water
This company has already sent three
cargoes of steel south from Pittsburgh
on the Ohio and Mississippi Rivers.
carrying total of nearly 500 freight
carloads of steel products and is plan
ming to continue the service as per
cess of this project has attracted wide
spread attention to the waterways sys-
tenn and has stimulated again a move
ment in Congress looking to COM
pletion of the canalization of the
rivers SO that navigable stage of water
may be available the year around.
1t was pointed out here to-day that
the money saved by the navy restric-
tion program Of the disarmament con
ference would much more than cover
the complete opening of the inland
waterways system of the country 10
navigation of ommercial fleets carry
ing the country's commerce in bulk.
Gone battleship would cost $4,000
000," said a steel manufacturer, "and
that money would just about complete
the Ohio River canalization work.. A
second like sum would open the
Mississippi from New Orleans to ST..
Paul"
With a tapering off in the steel bust
ness, a decrease in the number Of
active mills in the Shenango and Ma
honing valleys is looked for until after
the first of the year. This week only
81 of the 105 mills in the two valleys
operated, which is a slight reduction
over the previous week.
Tinpiate operations in the Shenango
Valley are good. In Farrell the .Ameri
can Sheet and Tinplate Company is op-
Grating twenty-four OF of thirty hot
mills. At the New Castle plants opera
tion is in full, with sixty hot mills on
Only one of the three structural
mills in the Homestead Steel Works is
in operation. The plate mills and open
hearth furnaces are making fair rec
ord, working five and six days week
Tonnage Limited
In Youngstown operations are on a
sliding scale, and Improvement is
looked for until after the first of the
year. With the mills actively bidding
for business in a market where ton
mage is limited prices are bound to
weaken Accordingly, recessions from
the established levels are noted in a
number of important lines. Basic pig
iron, for instance, is down 25 cents
and is quotable at $1S.75. This price
figured in recent transaction involv-
ing several thousand tons, paid by q
broker, who in turn sold the iron for
$40, which has been the market for q
month or more.
George f. Rose announces that the
last rail has been laid for the new
Youngstown & Austintown Railroad,
opening up 1,200 acres of land for man
ufacturing purposes. 1t provides 10000
feet of railroad frontage, with full re
ciprocal switching privileges with five
trunk line roads.
j. H. Connors, manager of mechani-
cal goods sales in the Republic Rubber
Corporation, states that the last month
has shown an appreciable Improvement
in this branch of the company's bus-
ness. Inquiry is coming from divessi-
fed sources, rejecting general better
ment in business conditions.
Pay Roll Figures Gain
Although the current operation is
somewhat less satisfactory than it has
been in the steel plants in the Mahon-
ing Valley, pay roll figures for Novem-
Der registered gain of nearly $780,
00O
The wage disbursement last month
chiefly by iron and steel makers. aggre-
gated $3,645,873. The total pay rol, for
the first eleven months of this year
was S4s,500,oO0, compared with sos
247, 1856 distributed in 1920.
ii. u. Rhodehouse, traffic manager of
the Youngstown Chamber of Com
merce; j. r. Stroh, manager of The
mining and traffic department of the
brier Hill Steel, and William H. Welsh
assistant traffic manager Of the Youngs-
town Sheet and Tube Company, have
returned from st. Louis, where they
attended hearing conducted by the
Southwestern freight bureau. They
protested rate concessions demanded
by st. Louis, Chicago and BIRMINGHAM,
steel manufacturers to Texas common
points, unless there is a corresponding
reduction in the differential between
the Youngstown district and st. Louis
Ihey declare the proposed cut in rates
IS inimical to Youngstown manufac-
turers unless the suggested equaliza-
tion is effected.
The Petroleum Iron Works Company
at Masury, near Youngstown, has been
awarded contract to repair 800
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