Evening star., 1926-04-28
STEEL INDUSTRY
MORE CONFIDENT
Plants Not Likely to Curtail
Work. Until Warehouses
Are Full.
BY j. C. ROYLE.
Special Dispatch to The Star.

| Special Dispatch to The Star.
NEW YORK, April 28.-The plac-
ing OF United States Steel common
| stock on a per cent basis, announced
late Tuesday, had a purely psyche
| logical effect. The stock has been
| paying per cent, with a regular 2
| per cent extra disbursement annually.
| Under the new arrangement the
same amount of cash comes to stock
holders. But the action strengthened
| the confidence of industry as a whole,
since it reflected the judgment OF
| manufacturers and bankers in closest
touch with business all over the
world
Steel mills of the. Pittsburgh dis
trict have practically. caught up with
orders on hand. AS Short time as
year ago, this would probably have
meant an immediate curtailment or
production. But mill men have found
that they do not have to-fear hand
to-mouth buying" that the volume or
business is what counts, not Wnetner
the orders are placed in small lots
and frequently or in heavy tonnage
twice a year.
Will Fill Warehouses.
Now there is little chance Of cur
tailment until warehouses are prac-
tically full. Rush orders now have
become the rule, not the exception.
AS q result, there undoubtedly has
been a decrease in the practice or
shading prices for large customers.
One fact, however, is absolutely plain
at present. The possible capacity or
the steel mills of the country, eX-
panded to care for wartime needs,
still is above the tonnage required
for normal times. 1t will be two TO
three years at least. according TO
steel authorities, before demand over
takes capacity.
In Pittsburgh mills in general are
ranging well above so per cent of ca
pacity at present. Youngstown is op-
Grating at a rate well above what
schedules called for a month ago. chi
cago, Pueblo. Birmingham and CleVe
land mills all are active.
The action of the United states
Steel Corporation directors 1ndGates
that they have little anxiety over the
poSsibility of acute foreign compeu-
ton resulting from any rumored com
bination of British, German, French
and Belgian makers. 1t also 1ndlcateS
confidence in the near future OF the
automobile business, the position OF
heavy building construction, since
those businesses are the heaviest steel
consumers.
Coal men felt especially relieved
over the action of the leading steel
interest. Iron and steel making con-
sumo huge quantities OF coal ana
coke, and the bituminous trade at
pre- sent is dependent on industrial de-
mand to keep it from falling deeper
into the rut.
Some Mines to Shut.
Indications are becoming more ap-
parent that many bituminous opera
tors are either going to shut their
mines and keep them shut or break
away from the so-called Jacksonville
wage scale. Each day notice is re
ceived that miners are being asked
to accent a wage less than the union
scale on assurance of better weekly
employment. Some mines in PENN
! sylvania, Ohio and West Virginia are
reopening under such conditions, but
! the move has not become general by
any means.
Bituminous producers who have
been feeling the effects of over-pro-
duction are looking for some relief
when navigation opens fully ON the
lakes permitting coal shipments to
the Northwest. Prices have been
! moving slowly downward owing to
| comparatively light buying and heavy
selling pressure. The anthracite deal
ers have not experienced any Spring
rush on the part of househOlders tc
fill their bins. Hard coal prices are
being fairly well maintained, but the
steadiness of the bituminouS market
seems wholly dependent on the in
duStrial demand.