New-York tribune., 1921-01-23
Steel Industry
Sees Signs of
Future Inquiry
Hope in Recovery of Auto
Trade and Early Resump-
ton of Building; Railroad
Business May Develop
Wages Important Factor
Belief That Selling Prices
Are To Be Reduced With
Pay Cut Is Main Obstacle
Special Dispatch to The T,4ssms

Special Dispatch to The Tribune
PITTSBURGH, Jan. 22.-Faint signs
have been given during the week of
renewed interest in steel buying, but
not much. The automobile show in
New York developed a sentiment of
hopefulness among the steel manufac-
turers that the motor car industry
would commence to return to normal
about the end of February. Signs have
been given from various cities that the
building industry was stirring and
looking around, with a view to COM
mencing operating during the summer.
The railroads, hampered by their in
ability to make settlement of their
claims with the government, which
would give them funds, and further
hampered by loss of revenues due to
the general business depression, are
still giving indications of requiring
material in quantities. Other indus
tries consuming steel are slowly begin
ming to lift themselves out of the
gloom. The net result of all this is
more optimistic feeling in the steel in
dustry, sentiment that assumptions
will commence within a month or so
and the industry will slowly and pain
fully struggle back to the busy stage.
The principal obstacle at present ap
pears to be the feeling among buyers
that the Steel Corporation is going to
have to cut selling prices of its prod
ucts in order to have reason for re-
ducing wages.
In No Hurry to Cut Wages
1t is known that the corporation is
in no hurry to face the issues which a
wage cut may raise, especially in view
of the reformation of the committee of
the American Federation of Labor for
organizing the workers in the indus
trv. But that a wage cut is nevita Bile
is conceded on all sides. In it's effort
to maintain production the corporation
mills are digging up steel tonnage
wherever it may be found, and in spite
OF this are showing signs of pinchng
to a reduction in operating schedules.
Some of it's mills are engaged in
rolling certain products used by others
Of the subsidiaries, others are trans
forming all specified tonnage due
against last years contracts and all
suspended tonnage into first or second
quarter business, a certain indication
that the operating heads see the end
Of the string but wish to put off COM
ing to it as long as possible in the hope
chat general business conditions may
improve in time to enable another
string to be tied on to the end, so
that no serious interruptions in opera
tion need occur.
The tariff hearings being conducted
before the Ways and Means Commit
tee of the House in Washington have
| been attracting attention here, espe-
cially among the Independent operators,
who are almost without exception in
favor of the restoration of a protective
tarf high enough to put the foreign
competitor on q cost basis here equal
to their own, but not so high as to
shut him out from participation in this
market and consequently prevent the
repayment of Europes war debt to the
United States. No one of the leading
steel interests here has so far ap-
pearcd before the committee, but that
is not to be taken as indicating lack
of interest 1t means rather, accord
ing to local manufacturer, that the
most favorable occasion for presenting
their case is merely being awaited.
Independents on Low Scale
Independent steel mills in the
Pittsburgh district are operating
", as closely as it can be estimated
by themselves. The United States
steel mills are running between 70 and
10 per cent on the average.
In the Shenango Valley blast fur
naces are operating at only 30 per
cent of capacity and independent steel
mills are turning out only 80 to 40 per
cent of production. The same condi-
tlon prevails in ,hc Youngstown dis
trict where the steel makers believe
that the bottom has been reached in
SO 1ar as activity in the steel market
affects the Mahoning Valley.
They anticipate fair volume Of
buying by spring. That wage reduc
tlons arc imminent is evident from the
fact that one large interest has taken
the matter up. with various groups of
employees Fabricating concerns con-
tinue to register Improvement in sales.
cne company receiving substantial!
volume of business in the current wesk.
There is. an improved demand for re-
lntorcing metal and structural steel
TOR CONSTRUCTION. Inflow of orders
with one district steel maker will be
reflected next week in enlarged opera
tions. With but minor exceptions.
most producers are adhering to The
Steel Corporation level of prices.
| though some business undoubtedly has
beer, taken at less. involving only
small tonnage.
Pipe Business Slumps
Though the tube mill departments
continue to register the best produc-
ton records, new pipe business IS of a
minor character, IN sharp contrast to
the demand two months ago. The Re-
public Iron and Steel Company is op-
Grating all it's tube mills, while the
Youngstown Sheet and Tube Company
has ten out of eleven active.
Makers of finished steel have re-
duced their stocks Of semi finished to
bedrock. This is strkingly indicated
by the case of plate interest whose
stock Of slabs on hand is insufficient
to work off plate orders now on the
books. Moro material will have to be
melted before the plate mills start.
1t is estimated the number OF men
IN the Mahoning Valley wholly or pur-
TALLY idle has increased to $4,000.