Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-07-28
M|LLERS EXPECTED
BIG STEEL PROFIT
Men in Touch With Activities
at Plants Foresaw
Larger Earnings.
BY j. c. BOYLE.
Special Dispatch TO The Star.

NEW YORK, July 2s.-While tho
report of the United States Steel Cor.
poration for the second quarter show.
ing higher earnings than in any sim.
liar period in two years seemed to
have surprised Wall Street, 1t was
fully expected by those in actual
touch with activities at the mills.
These men, watching actual output.
say that the leading interest was not
alone in the registering Improvement
but that the steel industry I'm gen
eral marked up splendid profits.
The profits of the United States
Steel Co. for the half year were
equivalent to $500 per share of com.
mon stock. The writer predicted on
July is that they would equal or ex.
coed IS share. Bethlehem Steel re.
ported an increase of 49.9 per cent
for the half year. as compared with
the corresponding period of 1925. The
earnings for Republic Iron and Steel
for the same period gained 47.9 per
cent. Eaton Axle and Spring gained
GAS per cent, Crucible Steel gained
II per cent and Otis Steel 1873 It
Is reported that the profits of Jones
& IAughlin and other independents
have been excellent.
Surprise Was Expressed.
Wide surprise was expressed In Wall
Street that such earnings should have
been piled up ar time when untitled
tonnage on the books was dropping
RAPIDLY II appears that only the men
actually engaged in making or using
steel realize that back log" no longer
Is a significant barometer OF activity.
The earnings have been made on rela-
lively small orders for quick delivery
placed frequently and the whole In.
dustry is adjusting itself on that basis.
With the first month OF the third
quarter almost gone, activities are
gaining rather than lesseninE at
manv mills. Production in the Pitts
burgh district has recorded an i'm
provement in orders and a slight in
crease In average operations, which
now are better than rs per cent of
capacity. The Carnegie Steel Co. has
taken off one furnace, leaving 30 in
blast out Of SO. but this was done
without affecting iron piles. In the
Youngstown district at least a dozen
omen hearth furnaces idle 10 days ago
now are in operation. Merchant steel
bar orders continue - come in at a
heavy rate. Several 5o0-ton lots have
been noted. with plenty OF smaller
orders and few larger ones. Specifi-
cations against contracts are uninter-
rupted in any way.
Bar.making Active
Cold bar fnishers and users are
active on specifications from automo-
bile customers. Bar.makinR is on
a basis Of SIS per cent OF capacity or
better. Strip steel production 1s run.
ming along ct IS to so per cent or
,x.in r1nnA I'm hOIlf
week on from 1000 to 5000 tons Of
steel for barees for Government use
on the upner Mississippi River.
There Is still some irregularity in
sheets In the Pittsburgh district. but
the volume OF business Is improving
F,xnort business added to domestic de-
mand is permitting an so per cent
operation in tin plate mills
Pipe mills are up to 30 per cent
of canacity in some districts. renect-
ing the activity in the petroleum m
1ustrv. New pipe lines are being
planned One Of these is said 10 IN
volve 47a miles Of pipe from the PAN
handle field in Texas 10 Kansas CITY
THIS activity of the steel business
This wear Is shown by the amount
az ore consumed AS of July ]. ISL
furnaces out OF o99 that use Lake
Sunerior ore were in blast. The
furnaces consumed 4.S3412S tons OF
ore in June as compared with 3,SS2.-
ss3 tons In June, 1925. AS result
there were. on dock and at the fur
naces only 2l.511,9SS tons, compared
with IS, 403, 931 a year ago.
Iron ore shipments from upper
lake ports in June totaled S.S77,49S
tons. compared with 6.112.9S1 in May
and 7,s5s.5s6 in June. 1925. A still
larger tonnage will be piled up in
July.