Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-08-20
SLOW RECOVERY
IN STEEL TRADE
Industry Gradually Extricating
Itself From Depression.
Prices Uncertain

Itself From Depression.
Prices Uncertain
New York. Aug. 20.-That the stee'
and iron industry Is slowly extricatine
itself from the depths of depression
which for some months past has virtu
ally paralyzed all Of its branches Is
becoming more and more evident from
reports received during the last week
from the various important centers of
the industry. Nothing was heard dur
ing the week regarding closing down
OF furnaces and mills. On the other
hand, mills are gradually reopening
and increasing operations. Evidences
OF Improvement are unmistakable.
New business coming in, while by no
means impressive rs regards volume, is
nevertheless welcomed by the industry
because 1t means a slight expansion Of
operations by the mills and serves to
confirm the belief that the industry is
on an upward turn. No big improve =
ment is looked for, however, until the
opening Of the fall trade when period
of comparative activity is generally ex-
pected. August usually is one of the
worst months OF the year, even in nor
NAL times.
These reports from the big steel and
iron centers, while telling the story Of
increased activity all along the line,
also make known the important fact
that prices show a stiffening tendency.
Prices generally are still low and some
what uncertain when applied to round
lot tonnage, but for the small scattered
business they are holding up better.
Producers generally show willingness
to meet competition. Prices on some
products show more resistance to decline
than others. Some concessions were
reported by some newcomers in the auto
sheet business for the purpose of get =
ting trial orders. From the viewpoint
of firmness of prices, wire products
seem to lead In the finished line. Some
large producers are receiving orders that
are bringing their operations up to 30
per cent capacity. Stocks of wire
products are said to be very small.
Trade More Optimistic
For the first time since the depression
began some extremely conservative men
of the trade now express optimism.
These men now assert that the corner
has been turned, but refuse to become
moderate improvement in the demand
for steel products is, Of course, the real
cause of the more cheerful feeling now
prevailing In the industry. There has
been no pronounced increase in buying.
Steel products during the last week
rs n general thing maintained their
somewhat firm undcrtOne, with buying
holding steady and mills gradually re =
opening and increasing operations.
The output of the industry during
the last quarter Of the year will be
well above so per cent Of capacity, ac-
cording to the head Of large inde-
pendent steel corporation. Wage re =
ductions have already contributed TO
lower production costs. In the event of
genuine revival of business the steel
md equipment companies will be in
position to buy raw material at pre-
vailing low prices and operating costs
will also have been materially reduced.
The action of the Senate Interstate
Committee III reporting favorably or
the Administration railroad funding
bill helped considerably to improve sen
timent in the trade. There is no doubt
that when the railroads actually re.
ceive financial relief they will not de
lay long in entering the equipment
market. Railroad equipment must be
repaired because 1t is now in a wretchcd
condition The recent report of the
Association OF Railway Executives
shows that ON the first of July there
were S6S,OOO cars in bad order and
out OF service, aside from several hun
dred thousand cars laid up for want
OF business.
In brief, the report indicates that or
July l about 30 per cent of the cars
OF the American railroads were earn
ing nothing and about IS per cent o
the cars were in bad order against G
normal Of per cent This shocking
condition regarding bad order cars il
said to be due to the abnormal war.
time cost Of operation, chiefly wages
and working rules imposed on the road.
by the so-called national agreement
that are still in effect. Never befor,
in the history of the American rail.
roads has such a condition existed re
garding bad equipment.
Sno.. >,u ,oo,.,.
""''' H''i "oohihss improve
Sheet-mill operators in the Ohio val
ley are continuing operation on 8.
per cent basis. with total of fifty
ner % cont basis a." Tbe soFEims Garpon; on q. o. o'
plants are being operated on n 40 no,