New-York tribune., 1922-01-29
Steel Industry
Fails to Show
Quick Upturn
Rapid Recovery Early in
Year Predicted by Some
Not in Sight; Caution and
Delay Still Paramount
Tonnage Coming Slowly
Times Are Serious. but Con-
iidence in Future Will
Sec Progress, Says Leader
SDc1loI DlspoloD 10 rlc 1rlbua

SDce,ol D,spotch 10 yhc 1r,bua~
PITTSBURGH. Ian. 2S The note Of
caution sounded in these coiumns last
week against becoming overoptimistic
about the condition Of the steel bus
ness. was justified. developments nov
indicate. The bright return OF boom
days, so freely predicted by certain
careless observers, has not happened
J ne picking which was to follow
the first Of the year with great rapiditv
mas not occurred Business IN the gtee'
industry stll laes. sta exhibits eau
uon and delay and shows signs O.
iufther rctrenchmcnt. Nobody believes
other than that there will bcgood busl-
ness III steel products ultimately. but
douot OK sts as TO when the period Of
heightened activity viii come.
tonnage comes IN slowly and orders
arc eagerly sought By keen sales forces
competition for business which was
looked upon with contempt fcv
months ago is now keen. Economies
are being more rgidly practiccd
throughout all we'll conducted organ
iIauons. Costs are scrutinized w tn n Q
severest eye. Additional employees
have been laid of, wherever man
can be spared, and work is being divid
ed around among others, 50 that a.
ment. Companies owning houses in
which employees live have suspended
collection Of rents and have extended
credit IN company stores g that their
workers may be tidcd ove~ the winter.
Confidence in Future
The times arc serious said a lead
ing independent steel man, "but good
management and careful procedure.
with confidence in the future. will sec
us through.
Freight rate rcadjustments. 50 vig-
orously sought by leading steel inter
.ests, cannot possibly take place for five
or SIX months. The coal mining indus
try is facing a cr!ss, with strike
looming big. Building trades rcadjust-
ments have only been partially accom-
plishcd. There is yet lot TO do to IN
sure a stable base on which to recon
struct the business Of the steel indus
try
While independent steel conpan cs
report that buying is ON 4 broader
scale, operations are still being re-ard
ed and employment IS far below nor
NAL. At many mill gates each morn ing
men are turned away. though the mills
are cndcayoring TO divide what wcra
there is as oquitably as possible. Buy
ing is scarcely up to expectations Of
producing interests. Al example Of
the lossce sustained by some Of the
major makers in 1927 IS indicated in
the annual report Of the Brier HiN
Steel Company, whose aggregat. deficit
was s3.S74.a75. II is generally regard
ed that this is conservative estimate
of the interests loss last year
Better Demand Predicted
+ z Xonncd,. chairman OF the Board
of Directors and chief executive officer.
saws. however. that indications point 70
betterment in demand and he predicts
o much better year for the com 7any in
1922 1t is the influence Of adverse
conditions the past year which IS acting
as a stilnulant for independents to con-
slider a merger proposal.
Judge Kennedy says the Brier HjN
company has been a party TO consoiida-
ton negotiations with six other inter
ests Midvale Steel e. Ordnance Com
pany, Lackawanna Steel Republic llon
d Steel. Inland Steel. Young Sheet
E. Tube and the Steel & Tube Com
pnany of America.
The policy of overhauling its plants
made it possible for the company to
supply its customers and thus maintain
trade relations. says Judge Kennedy.
Julius Kahn, president Of the Tru7
con Steel Company, says the plant IS
operating at 43 per cent OF capacity ,
and that tho outlook for the imme ate
future is much better than II has been
Already the demand for reinforcing
materials has made It's appearance in
larger volume
S. S. French. president and gem
cral manager of the General Fireproof-
ing Company, also looks for better con-
ditions by spring.
Export Orders Disappear
Shcnango Valley tinplate manufac-
turers are looking forward to CON
tiNued period OF operation through the
first half of the year. Mills are work
ing fairly we'll. but export orders OF
which the mills have been running are
nearing the end. However. domestic
orders FOR tinpiate are expected 70 keep
the mills running near full capacity
These orders probably VIII come in
within the next two or three weeks J.
is said that it would not be surprising
II slight advance in the price of tin
plate viii be made the coming spring.
The Farrell shce. mill of the Amcri-
can Sheet and Tin Plate Company
starting Sunday night. Will run at full
capacity again for the first time since
last December, when four of the eight
hot mills were closed. On January Is
two additional mills were started. ana
the remaining two go on January 90.
The Homestead Steel Works are op-
Grating this week at an Improvement
over last week, and most of the mills
are working from three to five days a
week
AS result of the Conference for the
Limitation of Armaments TIE arnor
plate department has reached its zero
mark. Most of the costly machines are
ldle. and scores of men employed in
lhat department were paid off this
week, with poor prospects of ever re-
turning to work.
At Donora. the largest plant OF the
American Steel and Wire Company in
this d lSt rirt nnn hlas. fl,rrn ~. /.