Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1922-01-07
STEEL INDUSTRY
SLOW TO RECOVER
Demand Shows No lmprove-
ment Over Closing Weeks Of
Year--Prices Unusually Low

stated repeatedly In the last few weeks,
the best steel authorities are Of the opin-
ion that 1922 should be much better
than its predecessor, as II is the general
opinion that business conditions gener..
ally Will be much better this year. and
this should be reflected in the steel In
dustry.
1t will take several weeks. and prob
ably month or two, before there is any
possibility of this Improvement begin.
ming to make itself shown In the steel
trade, because this industry has always
been the last to feel slump and the
last to show sharp recovery. But that
conditions will be better Is the view
held in all steel quarters.
There is hardly any possibility of the
industry being compelled to 60. through
another year with conditions similar to
what they were in 1921, and few Of the
companies could survive such situa I.
tion. The various makers had hard
shedding last year, and about the only
thing they looked forward to was the
expected improvement in 1922.
The demand for steel has not yet
shown any improvement over the aver
age Of the final weeks of last year, but
in this connection It Is pointed out that
~ 10 loO tdTly LUZ uIy improvement W
be felt. Nevertheless, It Is known that
number Of steel interests will be dis
appointed IL an increase in buying Ia
not encountered before the end Of the
current month.
Keen disappointment is still eK-
pressed over the price situation. Com
petition continues strenuous and the
consumers still have the advantage OF
getting unusually low prices because
they find some makers very anxious to
book business at almost any price: In
all instances the low prices are being
met by other steel companies, and the
business is being done by all the com :
panics at little or no profit.
Railroad Buying Below Expectations
Indications are that the buying by
the railroads early in 1922 will not be
up/to expectations. The Pennsylvania
Railroads rail order was placed during
the last week and called for only 1000
tons, whereas the actual inquiry put out
late in November was for 100000 tons.
However, 1t Is announced that the com
pany has more than 10000 tons com
ing on 1921 orders against which deliv-
cries were delayed, and this cut down
the order.
Probably a similar condition exist,
with regard to other railroads. 1t VII
be recalled that many expected the Ne"
York Central to order as much as I'D,
600 tons Of rails. while the final order
placed In December amounted to only
100, 900 tons. If this becomes genera
among, all the roads the total rail ton
mage will be much smaller than hae
been estimated. v
There is not much to be said of th'
steel markets generally. During tn
current week there has not been suffi
cient business to test the markets, ant
little change has taken place In the I'm
Iished branches. Pig iron Is slightly bet
ter, reports from some producing cen
ters indicating somewhat higher rang
on actual quotations.
Negotiations for the merging Of SOM
of the independent steel companies Il
progressing satisfactorily, according I,
those who should know. 1t is state'
that the larger merger to be made II
the Fast will take considerable time
but those who are working on the mat
ter insist that everything has been go
ing along smoothly, and the indication
are that the consolidation will be con
summated without difficulty.
Some minor mergers are likely to b
completed first. The consolidation o
the Otis Steel Company with othe
small Western concerns is making great
er progress than all others, accordin
to private advices received here frol
Cleveland, and IT IL intimated that con
litious have reached n stage where a
announcrmcnt would be possible in tn
near future.
President CGmpbell. of the Youngs
town Sheet and Tube Company, was
/ Chicago during the past week negotiat
ing the terms of the proposed merge
} of his company with the Inland Ste
! and the Steel and Tube Company {
! America. Announcement of this con
! Solidation IL likely to be male In tn
} city. although the companies are n
; located here. but 1t IS known that,
8 prominent banking house has bee
handling the matter.
; Mergers Will Reduce Costs
Those mergers. when completed, wi