Evening star., 1925-03-04
STEEL OPERATIONS
At HIGHEST LEVEL
Leading interests Operating
at 94 Per Cent of Capacity.
Some at Maximum.
BY j. @. ROYLE.

Special Dispatch to The Star.
NEW YORK, March 4-Operations
at some OF the steel mills have
reached the highest point since the
peak period of 1918. Some mills are
on 100 per cent of capacity produc-
tion. The leading interests have
been turning ingots at about "a per
cent of capacity. Youngstown mills
are running at 81 per cent and II is
estimated the Independent producers
as a whole are operating at 80 per
cent or better
1t Is doubtless true that production
for the country has been ahead Of
consumption, but tremendous num-
Der OF orders were book ed In Feo-
ruary Officials OF the Carnegie Steel
Co. declare the corporation is booked
from six TO eight months in advance.
Heavy Structural Buying.
There has been heavy buying of
structural steel and car equipment
plants agricultural implement manu-
facturers and railroads have ordered
good tonnages. Demand for oil well
supplies also Is improving. The bolt
and nut business, which has been
notoriously bad, is looking up
These facts are OF tremendous sig
nificance, not only to the steel CEN
ters but throughout the whole
country, since the steel industry is
regarded as reliable barometer of
business prosperity In general. They
mean that the surplus labor in steel
centers has been absorbed and will
probably stay employed. According
to the Department of Labor, employ
ment in iron and steel in Pennsyl-
vania has reached the highest point
In two years.
Steel Prices Untested.
Recent advanced steel prices so
far have had no serious test Many
buyers do not seem to regard them
seriously, since they think that the
advances In November and Decem-
Der should have been sufficient until
the secondary markets worked upward
In sheets, advanced prices for the
second quarter do not count for much
as yet. Former prices rule on orders
for delivery at mill convenience and
IL the mills are as well sold up as
they appear to be delivery would
be late enough to suit a buyer for
second quarter.
Better Sentiment In Autos.
With regard TO automobile sheets.
the Ford Company's return to a six
day-a-week schedule, after working on
a nve-day basis since last June
marks an important change. General
Motors made its position plain early
this month in raising its dividend
rate to So, and with the Ford Com
panyi in line an abrupt change in
sentiment is apparent in automobile
circles. Operations at Cleveland
plants are larger than at any time this
year.
The demand for closed cars has in
volved larger uEe OF steel for closed
bodies. Orders are going out to part
makers to increase deliveries. There
are not lacking indications that April
will see activity in automobile manu-
facture comparable with that of the
Spring of 1923.
The foundation of this confidence is
based largely on the outlook in the
farming communities. Conditions are
by no means equally favorable in
every section, but there have been so
many requests from dealers for in
creased March shipments that execu-
tives of leading motor companies be-
lieve a turn for the better finally has
come.
Few Changes Probable.
Business will be practically unaf-
fected by the change from the first
to the second Coolidge administration.
Congress accomplished nothing which
would materially affect commerce and
industry, and legislation affecting
business probably will not be a fac
tor, at least until December The
changes in the Coolidge cabinet are
not expected to result in any changes
of policy.
President Coolidge has several busi-
ness matters before him for Execu-
tive action, including proposals to
change duties on Cuban sugar and on
linseed oil. But 1t is uncertain when
he will announce his decisions.
Copyright, 1e25)