Evening star., 1924-11-11
DAYS SEEN
|NSTEEL INDUSTRY
Revival of Interest in Rail-
roads Held as Extra
Good Omen.
BY j. c. ROYLE.
Special Dispatch to The Star.

SPec!ai Dlspatch TO The star.
NEW YORK. November 1.-THE
tremendous revival of interest in
railroads as investments which has
takon place in the last few days has
brought cheer also to the steel in
dustry. For the railroads are the
largest users of steel in this country.
According to officials of the Bethle-
hem Steel Corporation, the carriers
absorb 81 per cent Of all the steel
produced If they are prosperous and
actively engaged the steel mills can
figure on certain volume of orders
and they are counting on them at
present.
The activity in the STEEL mills
throughout the country is due to in
crease. according to steel men. But
that Increase will be compara. lively
gradual. The steel plants did not
hre additional furnaces and hang out
men wanted" signs after election.
or when they became convinced the
railroads.. owing to conditions now
existing, would continue to be profit
aiie customers. Increase in produc-
ton has to work its way back to the
producer from the consumer.
Steady Increase Seen.
officers or the Carnegie Steel Com
pany and of the Jones Laugirlin Cor
poration said today that they ex-
pected a normal increase in opera
tons, although no immediate expan-
sion of employment was contemplated.
The railroads have had the fear of
legislative Intervention in their af-
ralrs removed. They are loading rec
ora numbers of cars each week with
revenue freight. Passenger traffic is
heaVy and growing heavier. Never
theless 1t Will take time for the g =
rect or these conditions to work back
TO the steel mills In the form of or
ders.
other industries are in a similar
position, which indicates plainly how
the prosperity OF one Is interlocked
with, that OF others. Building and
construction absorbs ISL. per cent Of
.he steer output. Figures compiled so
Tar thLs year indicate that January
l will have seen about $500 600 900
worth or construction begun in this
country. But the Winter season un-
douotedly Will curtail building to
some extent, and each building now
being erected in the larger cities is
reducing the shortage which existed
at the end of the war.
Auto Buying Slower.
bhe automotive industry takes
care or II per cent of American
steel. Ihis Industry is now working
AT slower rate than at this time
last year, and. while prospects are
bright the steel mills must wait un-
III the automobile manufacturer de-
cides on his program before they can
count on increased orders and in
turn speed up production.
rms apI'iies also to the miscella-
neous steel consumers who take 22la
per cent of the Nations steel output
lhese buyers. however, undoubtedly
are IN an excellent condition finan-
ciaIly. with excellent chances of
heavy sales ahead and IL is probable
that they Will proceed with their
steel purchases with little delay.
A fairly regular demand on the
steel industry from the oil. gas and
mining interests, who buy 10l. per
cent of the steel. can be counted on.
but the oil industry is not in a con-
ditton now for expansion, owing to
heavy stocks in storage and com
paratively low prices.
The coal mining industry has been
checked by unduly warm weather, and
most OF the big copper properties have
been holding down production. To what
extent the latter will increase opera =
tions In response to the recent advance
in the price of the metal depends on
the amount of cheap Chilean copper
which is shipped.
Normal Demand From Packers.
The Gamers and packers ordinarily
buy B u per cent of the steel products
and there undoubtedly will be a nor
NAL demand from this source This
is not the time of year, however
when heaviest commitments are made
Agriculture and agricultural ma
chinery take 4 per cent of the steel
production and this is counted on to
expand decidedly during the Winter.
In fact, it is already opening out as
the farmers are being paid for their
crops.