New-York tribune., 1922-03-12
Steel Industry
Is Holding Up
At a Fair Rate
Manufacturers Believe Per.
manent Prosperity Is De-
pendent Upon Complete
Business Readjustment
spec.oi Dispatch to Tie Tribune

Spectoi Dispatch TO The Tribune
PITTSBURGH, March 1.-THE in
dustrial condition in the Pittsburgh
and Youngstown district has held UP
during the last week. and gives pros
pcct of keeping on at fair rate. but
there are no Illusions in tie minds Of
the leading steel manufacturers. They
are a unit in declaring that complete
readjustment has not vet occurred and
that a permanent establishment Of pro-
gressive prosperity cannot come until
this takes place. Remaining to be ad-
justed. according to steel men, are
trades wages and the coal mining in
dustry. The latter. however, seems in
fair way to reach its proper level
through the medium of strike.
The stiffening of the price situation
which followed the announcement of
an advance in bars, plates and shapes
by the Jones & Laughlin Steel Com
pany is bringing in some new business
And may result in considerable tonnage
being placed before the month is out.
Signs are not wanting that the Steel
Corporation is preparing to follow the
Jones Laughlin lead in the matter
Of advancing prices.
Industrial conditions in the Mahon-
ing and Shenango valleys are definitely
improving. say bankers and manufac-
turcrs, and the expanding rate of steel
works operations bears out their belief.
Employment conditions in the district
are apprecably better; there is less
intermittency in employment than ex-
listed a month ago and fewer men are
wholly idle. Rate of open-hearth opera
hrY,
since the early part Of 1921. Finish
ing mill schedules have not as yet,
however, broadened in proportion to
steel output.
Spring Demand Appearing
George F. Alderdice. vice president
o. the Brier Hill Steel Company, states
that spring demand for steel is mani
Testing itself and tonnages are being
placed in larger way. He predicts
advances in prices with enlarged re-
Guirements, due to anxiety of steel
makers to overcome operating losses
One Of The most encouraging factors
In the situation is the buying by rail-
roads and equipment interests, which
heavier plates While this movement
IS still moderate, it indicates favor
able tendency.
Close observers of the steel market
are watching prices carefully believing
that they are subject to change on
short notice. This situation is respon-
sible TO large extent for recent pick
up in buying, say some interests,
though others declare it represents
seasonal requirements.
Urgent requirements of railroads for
cars, locom otives. rails and other equip
ment is expected soon to start the
mills running at near normal capacity.
Some of the leading steel manufacture
ers of the Sharon district are antici-
patlng that by April the railroads of
the country will begin to place orders
for immediate deliveries that will af-
feet the mills and afford employment to
thousands OF men who are now idle
Predict Car Shortage
Hundreds of locomotives which are
not in service have been stripped of
parts which were used on those loco
motives in service. Many engines are
practically junk and as a result the
railroads will have to order new ones
to take their place when business re-
turns to normal.
In many of the big yards of the rail
roads cars are marked not fit for serv-
Ice while there are long rows of en-
gInes that have been out of service for
more than year. That a car shortage
is imminent is admitted by some of
the railroad officials Even now the
Pennsylvania Railroad is trying to rent
cars from industrial companies to be
used for hauling coal.
The United States Steel CORPORATION
is keeping its Farrell works running on
about the same schedule as during the
past several weeks. The sheet mill is
operating at 100 per cent. while twenty
of the thirty hot mills at the tin mill
arc running, The American Steel and
Nlre Company is operating its Farrell
plant at 75~ per cent of capacity. 1t
Will be one year March l since the Far
rell works of the Carnegie Steel Com
pany closed.
The open-hearth departments of the
Homestead and Duquesne plants of the
Carnegie Steel Company are operating,
and the tonnage production is excep.
tionally large. 1t is estimated that
these two big plants are operating at
about SO per cent of capacity The
Carnegie company will blow in a blast
furnace at the Isabella works in Etna
the first of the week.
he threatened strike of the coal
miners on April is exerting compare
lively little influence on business, say
manufacturers. General opinion is that
tne strike. If 1T materalzes at all, will
be short-lived. There has been, how
ever, some stocking of coal, and the
fuel markets have been immediately
affected IN that prices are frmer on
both coal and coke
Little sympathy is expressed for the
miners demands in a statement bv the
United Engineering and Foundry Com
pany, saying: 1--WE hear the coal miners
have set up claim for 20 per cent
increase in wages, effective April l.,
on the ground that the wear 1921
worked serious hardship on them, due
to increased idleness by reason of the
low consumption of coal. Granting the
miner higher wages will, instead of
providing remedy. mean dearer coal
and result in d continuation of curtailed
consumption
ION the other hand, lower wages will
mean greater consumption and steadier
employment. We cannot expect anv
cons derabe improvement in industry
until fuel, as we'll as transportation. is
cheaper Many railroads are now farm
ing out repair work which should and
n would be done by railroad labor. if
nelr rates were not so far above those
utslde Of the railroad service"
Commends Labor Generally
The company. however. commends
labor generally for its attitude during
readJustment saying that sit is deserv-
e