Evening star., 1930-12-11
INCREASE IN STEEL
BUSINESS IS SEEN
Industry in Better Position
Since Recent Advance
in Prices.
BY CHARLES F. SPEARE.

special DlSpatcn 10 Inc obaT
NEW YORK, December 11.-More
encouragement for the iron and steel
industry was held out in the weekly
reviews of trade journals. This was
supplemented by the increase in untitled
tonnage reported yesterday by the
United States Steel Corporation.
The advance of 81 ton, initiated a
week ago by the Carnegie Steel Co.
and adopted by practically all the large
independent manufacturers, has had
the effect of stabilizing quotations. 1t
has also greatly improved the, morale
of the industry. 1t was expected that
production would show another de-
crease this week, which it did, with the
average declining to 38 per cent of ca
pacity, though mills in Chicago were
operating at As per cent, in Cleveland
at 48 per cent, in Youngstown at 43
per cent, in Pittsburgh and Eastern
Pennsylvania at 38 per cent, with Buff
falo showing the low ratio of "a per
cent.
Gain in Confidence.
The Iron Age believes that this weeks
developments in the iron and steel
trade have been decidedly favorable and
that marked gain in confidence has
been developed. 1t finds that there has
been a gradual gain in demand for
forward delivery, strengthening eX-
pectation of an upturn in production
early next year" One important in
dependent maker of sheets has had
better volume of orders since the mid
die of November than for any similar
period in several months.
Steel, another organ of the iron and
steel trade, in discussing the effect of
the price advance, says that producers
and consumers are unanimous in their
opinion that constructive step has
been taken. 1t finds important con-
place steel on a more remunerative
basis, believing it precedent to a recov-
cry in general business"
The fact that buyers of iron and steel
products are in accord with producers
on the price increase minimizes the ar
guments which have been made in Con-
greSS against 1t. This trade review feels
that Senators have been playing poll
tics in criticizing the iron and steel
manufacturers for their action and try
ing to invoke the Sherman antitrust
law to prevent it. In the last IL
months, according to Steel, heavy steel
has declined to Sc ton and even more
on some light products. AS there has
been no reduction in wages the 81 ad-
vance does not compensate for the wage
losses that have been absorbed.
Dividend Activities.
1t might also be pointed out to men,
bers of Congress who have been attack
ing the price advance that in recent
weeks half a dozen iron and steel COM
panies have been compelled to reduce
or pass their dividends on their stock
owing to the conditions in the industry
The railroads are expected soon to
complete their contracts for rails and
other materials. These orders will give
considerable work for the mills after
the first of the year. This buying has
been postponed for more than two
months and will have the effect of con-
centrating demands in the early part of
1881 which normally would have been
spread over longer period.
Steel consumption in December by the
automobile trade will probably not ex-
ceed the November total. There are
rumorS that the Ford Co. will increase
its line and possibly bring out light
eight-cylinder car, which would expand
the requirements of this concern in the
steel market.
tCopyright, 1s30)