Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-02-10
YOUNGSTOWN AREA
CONDITION IS GOOD
Mahoning Valley Reflects
Tone of Industry All Over
the United States.
BY J. c. ROYLE.
Special Dispatch to The star.

special Dispatch To The star.
YOUNGSTOWN Ohio, February 10
A glance at the skyline OF the Ma
honing Valley with its belching, busy
stacks is sufficient to tell the tale of
improved conditions in this great steel
producing district. Average steel out
put of the valley is now around SO
per cent of capacity, with some CON
Germs such as Trumbull Steel, Sharon
Steel Hoop, Newton Steel and the
A. NJ. Byers Co. much higher. The
Improvement certainly appears to
have been at least per cent over
recent production schedules.
The slump which hit some of the
plants during January is attributed
not to business depression throughout
the country but to the fact that buy
ers did not know exactly what they
wanted but did know they could get
what they wanted any time at ex-
tremely short notice. Speed of de-
1iveries is a factor which has almost
revolutionized steel buying, for it no
longer is necessary for purchasers to
tie up large sums in stocks for future
use.
Schedules Are Improving.
Now that the period of uncertainty
is passing, the operating schedules of
the steel mills are improving. Sheet
mills show the greatest gains. All
of the sheet mills in the valley are
operating at a higher or lower rate.
This is indicative of the Improvement
in the automobile manufacturing in
dustry. Notwithstanding this fact the
independent sheet producers, who are
exceedingly numerous, are not by any
means satisfied. Recent statements
OF some corporations have shown
earnings which compared most favor
ably with q year ago. But competi-
ton in sheets is of the most vigor-
GUS character and prices are low.
Profits in 1925 came to the independ-
ents more because of economies and
improved efficiency of men and ma
chinery In the plants than from the
margin of profit from sales. This
was specially noticeable in the affairs
of the United States Steel Corpora
ton. The independents have follow.
ed out the same policy of making
earnings within rather than outside
the plants. but much still remains to
be done along that line.
Trumbull Steel in the next 10
months will spend approximately
kl,226.00O for Improvements. Youngs-
town Sheet and Tube is spending
large sums in electrifying units where
possible. Like other manufacturers.
the steel men are turning their atten.
ton more strenuously toward cutting
distribution costs. That is one reason
why. the best informed men in this.
sectlon expect the proposed consoli-
dation OF a half dozen or more of the
valley independents to go thrn,1eh
without any serious hitch
Situation Now Is Acute.
Similar mergers have been attempt
ed before and have come to grief be-
cause the parties to the merger could
not agree as to the relative merits
OF the plants involved The situation
is now acute enough to make this a
minor danger, while some of the men
active In the proposed plan have in
terests so scattered among the various
companies as to make the settlement
of such a dispute easy.
AS result of a conference inst
concluded it Is understood six of the
firms involved have come to a. tenta.
tive agreement. The capitalization of
the company is expected to be about
S3,T5O,O00 in bonds and preferred and
common stock
The tin plate mills are operating at
or near capacity, while the strip mill
output is around 80 per cent. The
bar mills of the United States Steel
Corporation are working at a rate
about 20 per cent higher than the in
dependents. Pipe mills are lowering
around the so per cent mark Ton
mage available for immediate ship
ment in the district is dropping
steadily since the increased orders
have been generally distributed. With
the fall of stocks, prices are expected
IN hQ rHnn nnd Mornh - To-
VIII be an excellent month, rejecting
the improvement anticipated for the
entire country.
No little anxiety smanifested as to
April in view of the fact that most of
the steel men seem to feel that a
strike in the bituminous coal fields at
that time is inevitable.