Evening star., 1924-01-28
EXPANSION IS SEEN
IN STEEL INDUSTRY
Material for Millions of New
Autos Expected to Be
Biggest 1924 Factor.
BY j. G. ROYLE.

Special Dispatch TO The Star.
NEW YORK, January oS.-Strong
hopes exist among steel producers
that mill operations will increase
materially in the next two or three
months. The year, they say. is too
young to warrant definite predictions
and January is poor month on
which to base trend predictions in
comparison with March and October,
the pivotal periods. Still they re-
gard the outlook for increased pro-
duction as favorable.
The fact that moderniZation OF the
HomeStea ad works of the Carne gle
Steel Company will be begun shortly
supports this viewpoint. Homer D..
Williams. president of the company,
today confirmed reports that large
sums would be spent in rehabilitdt-
ing the plant.
Millions in Plant Expansion.
Reports that S2O,000,00O would be
,pent on the work are somewhat
exaggerated" he added. 1T is hardly
hnown yet what amount will be re-
Quired. The object OF the work ia
along the lines of making possible a
greater output with less men. but it
Is by no means certain that there will
be An appreciable cut in the number
OF unskilled workers employed at
Homestead" Mr. Williams said
The new equipment, OF course, will
lie labor-Saving equipment, he cX-
planned. But there is Il likelihood
that the capacity of the plant will be
greatly increased and it may be
that more men will have to be en-
pioyed than are now on the pay ro!!
TO care for the new rate of output
The work at Homestead is along the
lines of reducing fixed charges and
cutting costs, which is making SO
noticeable an appearance in many
lines of manufacture.
Lower Production Costs Sought.
Bars, plates and shapes. the heavy
rolled products which were under
particular scrutiny late last year as
TO price maintenance. now are in fair
shape. according to the orders on the
mill books. There is a fair movement
of bars to cold finished manufacture
ers on contracts and jobbers are buy
ing bars rather freely. This latter
tendency has been strengthened by
the possibility of a suspension in the
bitumnous coal fields next spring,
and jobbers are stocking early for the
spring trade. Some of the plate mills
are running at high schedules, while
others are closed entirely. but the eX-
duced by the war is not proving SO
burdenSome as was feared.
The automobile industry is conSum-
ing large quantities of material, and
indications are that 1t Will continue
to do so. The Ford production
schedule has been advanced to $500
cars and trucks a dav, and IS ex-
pected to reach the 10000 mark April
/. The company is we'll supplied
with materials. and reports from
do irI 70 ba Il pr,l
will be fully up to expectations.
Auto Firms Heavy Buyers.
The Ford Company, however, is not
the only maker sharing increased
business. one of the largest parts
makers. who does business with near
ly every Detroit automobile manu-
facturer. declared today his schedules
for January were double those of
last year. Every one of his old
customers has increased orders. and
many new customers have been added.
General Motors probably will turn
out at least 100000 cars and the Over
land Company 100000. Added to this
comes the report from Dodge Broth
ers that unified orders for Janu-
airy are greater than those of last
January by % per cent. Dodge
Brothers last year produced 10000
vehicles, but their schedule for this
year is 225.O00. This Is significant.
for in previous years the Dodge
bTOtneTS business mas DteH an dccu-
rate barometer of business for the
industry as whole
4,OOO,OOO Cars Predicted.
The concensus of opinion among
manufacturers is there will be more
than 100000 cars sold in 1924 If
business in the last half of the year
is not affected by the presidential
election bogey. A slight recession Is
expected to begin in July and last
through October. but this has been
taken account of in the 1000. .000-car
sales estimate.