New-York tribune., 1921-11-27

the workmen are elated over the
schedule of five days week. Officials
of the two big plants of the Carnegie
Steel Company look for little increase
demands for steel until the first of
the year. Some of the steel workers
have fears OF another reduction in
wages.
Orders Decline
away in orders for sheets as reflected
by reduced schedules this week. Prices
remain at 2.75@3c for 0. % gage black
and 3.75M4c for o. % gage galvanized.
An effort has been made to UNFOLD
the maximum prices, but district in
terests have met with difficulty in
this connection because of competition
from other districts.
At Sharon the tin mill of the Ameri
can Sheet e. Tinplate Company started
four more mills during the week, which
leaves only six of the thirty hot mills
idle. Conditions at the Sharon Steel
Hoop plant are better. The company
operated all Of its finishing depart
ments this week. The National Male
able castings works is operating at
capacity for the first time in many
months. Railroad buying is helping
the Malleable plant which makes draw
bars and couplers for cars and locomo-
tives.
The number of unemployed in the
Shenango Valley has been reduced con-
siderably the past few weeks. 1t is
estimated now that not more than $500
men are out of work.
Business Increasing
Henry NJ. Garlick, director Of the
q.
and president of the Standard Textile
Products Company, the iargest pro
ducer of it's kind in the country, says
that volume of business is increasing,
though not without expected fiuctua
tions. Easier money conditions, espe-
cially in the east, he points out, are
exerting a stimulating influence on
trade conditions.
The Kalman Company, of Chicago,
producers of steel reinforcing mate
rials, has started construction on n
new plant in Youngstown to supply its
Eastern trade. The company will be
in this territory when its plant is op-
Grating. The company will be sub
stantial consumer of steel bars in this
territory when it's plant is operating.
The initial unit is 12ox375 feet.
F. c. Biggert jr., president of the
United Engineering and Foundry Com
pany of this city, states that during
a period of nearly six years of the
greatest prosperity any country has
ever known our company was able to
produce only 76 per cent of maximum
| capacity.
"After the armistice our production
gradually dropped off, he points out,
"frst due to the cancellation of orders,
and in the latter part of 1919 it was
held down by the steel strike and the
coal strike, both of which affected US
through inability to obtain materials
and fuel. For that year the average
production was only about $4,000
hours.
1920 Production
"In 1920 the prediction generally
hose, but was held back during the
| early part of the year by car shortage,
railroad strikes and car embargoes.
During. the latter half of the year we
reached an average production of
about $4,000 hours, but this average
for the whole year was not over 10000
hours. During 1921 there has been
a gradual reduction of production, due
to lack of new work and the rapid COM
pletion of that on land.
IN a period covering the last six
years we had ample work to do and we
could have produced 5225,00 hours.
Instead of this we actually produced
4,04O,0O0 hours, or rs per cent of our
possible production.
III industry can only operate at 76
per cent of capacity in period of un-
exampled prosperity, and if in only
three years out of twelve it is possible
to book business equal to capacity, as
mas been our experience, at what per
cent can industry operate on an aver
age? In the light of our experience |
believe that so per cent is the highest
probable average.
Enormous Waste
'If this is tlve, then there is an
enormous waste going on all the time.
for every plart we build must have
twice the capasity required to fill the
needs of the country. We must build
o dwo plants to get the product of one.
This is no new idea, but fact which
M nas been recognized for long time.
standings which have caused dissatis-
faction and loss both to those who in
vest and those who labor in industry.
PERSONS who do not understand the
erect OF underproduction on the cost
or production, criticize the policies of
industry without taking account of
these unavoidable fluctuations and
their attendant losses. There is 4
continual cry that something is wrong
and some very catchy language is used
to show that we should upset our
present system of doing business and
start all over again.
Il am impressed by the rapidity and
magnitude of the fluctuations of work
on hand, as revealed by our own ex-
perience. Early in 1916 we had around
100000 hours to produce and tat that
/ time our production capacity was
about $4,000 hours per month, OF
something over six months work
ahead of the shops. This mounted by
leaps and bounds until about the mid
die of 1917, when we had the great
est number of uncompleted hours at
any time in the history of our com
papy At his time we had some $780,