New-York tribune., 1921-11-13
Activity Less
Pronounced i'm
Steel Industry
Reaction From Influence
Which Stimulated Buying
in Last Two Months; Buy.
ers Awaiting 1922 Prices
Increase in Employment
Trade Still Kept in Uncer-
tainty by High Freight
Rates, Says ]. A. Campbell
Special Dispatch to The Tribune

Special Dispatch to The Tribune
PITTSBURGH, Nov. 1c.--As reac-
tion from the influences which stimu-
lated iron and steel buying the last
two months, activity is somewhat less
pronounced, though it is we'll sustained
in sheets and tinplatc. Buyers are
negotiating for 1929 tonnage, and in
terest naturally centers on the prices
that will prevail.
level for production plate per base box,
q decline of SIS per ton from recent
sales and Of $40 from nominal quota
tions. 1t develops that independents
had been cutting the American Sheet
and Tinplate price of SIS for some time,
this competition forcing the leading in
tercst to revise its prices downward.
Incoming tinplate business the last
month has been one of the bright fea-
lures of the market, and has caused
acceleration of schedules to the largest
rate achieved this year. Much of the
tonnage is moving to makers of cans
and the canned food industry.
Several indications bear out the en-
larged steel plant activity in the dis
trict during the last month. One is
the increase in employment, which is
estimated at 239 per cent higher in
no signs as yet of falling off, Another
is in the increased movement of freight
from this territory, ranging from 10 to
Is per cent with the principal trunk
line carriers. The Ohio region of the
Erie Railroad, for instance, moved an
average of 5,50S loaded cars in Octo-
ber per day. as compared with daily
average of 4,S16 in September, 4,401 in
August and 1913 in July.
Increase in Loadings
William A. Baldwin, manager of the
Ohio region, says that the daily aver
age of loaded cars in October was
higher than for any other month this
year. The highest number Of loads
moved on the region for the month
was 6,SS5 on October 20, the greatest
number of loaded cars moved on any
single day since January 1.
President James A. Campbell of the
Youngstown Sheet and Tube Company
anticipates substantial Improvement IN
the industry after the first of the year,
as he declares it is impossible for the
country to subsist on the small ton
mage of steel it has been taking. 1--WE
have too many laws attempting to reg
ulate busines and labor, and some OF
these should be wiped off the statute
books" he says. "Furthermore, an en-
phatic protest should so up from the
country whenever our government at
tennis to pass laws calculated to in
terfere with natural relations, between
capital and labor, or to obstruct the
natural course of business" -
Mr.. Campbell still contends that ex-
ccssivc freight rates are strangilng
business and industry, and points out
that the following rate advances have
been made in Eastern territory since
the beginning of 1915:
February. 1915, per cent; Septem-
Ler, 1917, Is per cent; April, 1913, 10
per cent; June, 1918, 26 per cent, and
August, 1920, 40 per cent.
Effect of Freight
with these cumulative advances,
freight rates have increased 143 per
cent since 1915 in the territory east of
the Mississippi and north of the Ohio.
Since freight rates are multiplied many
times in the cost of producing and dis
tributing all manufactured articles, it
will be seen that these advances have
tremendous influence on the cost OF
production and greatly increased the
cost of living"
Joseph G. Butler jr., veteran of the
industry, e-president of the Brier
Hill Steel Company and director Of
the Sheet and Tube Company, likewise
looks for betterment in buying after
January L. Mr.. Butler points out that
the industry has already largely dis
counted the effect of general freight
rate reduction, and that it can there
for be scarcely expected to exert any
great influence on steel prices.
Dismantling of the steel-making and
rolling-mill units Of the north works
~ To,uor,o C+oo1 Coponopv of Eov-
rell, Pa, is expected to mean the con-
centration of greater production at
the Youngstown. Pittsburgh and New
Castle plants.
The Republic Iron and Steel Com
pany, at Youngstown, has started an
extensive engineering study Of its Bes-
semer plant, with view to possible
important changes in equipment. Among
the changes under consideration are
substitution of electric for steam power
and simplifcation of rolling mill equip
ment 1t is likewise possible that the
program may be broadened to include
the Brown B Bonnell works, as the situa-
tion there requires. improvements un-
der consideration will involve expendi-
ture which may run into million dol
lars.
While demand for sheets is fairly
we'll sustained, there are indications
that it, is weakening and that lower
operating schedules will rule during
the next few weeks. Production this
week is not over 10 per cent. Much of
the tonnage moving is for sheets of
roofing quality. Jobbers are inactive
in the market at the present time,
which accounts for some of its dull
ness. There is noticeable slackening
in the requirements for common sheets.
All Mahoning Valley makers are now
quoting cents for black and 4 cents
for galvanized sheets, the higher
prices of 3.25 and 4.25 cents respective
1y, originally announced by the Brier
Hill Steel Company, having almost COM
pletely disappeared.
Finished Sheets Lower
Full finished sheets are feeling the
effect of dullness and have settled to
4.35c base, after being quoted up to
sheets in volume. but more sparingly
than heretofore.
Strip demand is tapering OF and pro-
duction is being cut as a consequence
About the only business moving is
against contracts.
In the raw materials market the
most important recent transaction In
yolvcd purchase of 10000 tons of by-
product coke by Youngstown furnace
interest from steel works at price
which figured back to SIS, producers
ovens. The contract called for 10000
tons to be delivered this month and
10000 next month.
Hides and Skins Imports