Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-12-26
Cement INDUSTRY
is OvEREXPANDED
Plants Declared Operating on
80 Per Cent Basis Pending
Sale of Surplus.
BY JOHN F. SINCLAIR.


like many other industries just now, is
overexpanded and "in spots disor-
ranized and filled with sharpShooters. "
"The American cement mills have a
capacity of about 260,000,000 barrels a
year" said MFR. Affleck to the writer.
''While the demand at the present time
is approximately $50, 000,o 900 to 100000
600 In other words, we now have 40
per cent more capacity than demand.
/ should say that there are about go
different companies working 14O plants,
engaged in making cement IN the
United States"
Present Schedules.
'"Then the plants, as whole, are
running at about SO per cent capaclty?"
asked.
"That is substantially correct. In
such a situation, naturally, you'll f1nd
plenty of firms, embarrassed for ready
cash. who will sell below cost OF pro-
duction. 1t can hardly be avoided in
such times as we have been going
through. The next IL months should
see a good deal of this unhealthy STU
alton cleared up"
Checking from the figures, supplied
by the United States Bureau of Mines
and other governmental agencies, md
that the over capacity of American
cement plants during the last five years
has been larger than ever before.
In 1907, the total capacity OF Ameri-
can mills was about 55,000,0 600 barrels,
with 50,000,00O barrels of demand. The
business grew fast. Now plants were
constructed, and the business always
kept far ahead Of the demand. BY
1919, the capacity had reached $780,
100000 barrels but the demand was
only 100000 Still the cement men
continued to build. BY 1929, the IN
dustry had 10000, 900 barrel capacity,
while the demand was 170,000,000
barrels.
However, prices have been well
maintained on the whole. Cement was
el65 a barrel for the first seven months
Of 1929, as against $3.50 for 1880.
Crossing State Lines.
Transmitting power across State and
National border lines is increasing rap
idIv. The Federal Trade Commission
lists 44S corporations engaged either in
sending or receiving electrical energy
across State and international bound
aries during 1880.
The intercountry business was be-
tween Canada and the United States
and Mexico and the United States.
Canada and Mexico together sent to
the United States ], 438, 4e3, 991 kilowatt
hours; whereas the United States COM
NAMES sent them only 37,552, 487 kilo-
watt hours of energy. Canada is, by
far, the largest exporter OF electric
Voower in the Americas and one OF the
largest in the world.
The Middle Atlantic States are still
the big generating States, with over
1000, 600 900 kilowatt hours generated
and 1000, O0O, 900 consumed during the
The South Atlantic States had the
largest amount of interstate movement
of electric current, where nearly 5000.
600 900 hours out of the 1900, DOC, 900
generated were sent across State Dor
ders
the total electrical energy generated IN
the United states in 1929 was 95,500,-
900 900 kilowatt hours, only 81 ,O00,OOU
900 kilowatt hours were consumed. The
difference, very perceptible loss, was
largely the escape" energy lost IN be-
tween the generation and the consump-
Nearly one-fifith of all the power
consumed In the United States Is at
present being sent across State lines.
Naturally the question Of Federal su-
pervision of interstate power Is last
becoming national issue.
IN 10 years we will be transmitting
electric power by wireless. Then tine
power Of Iceland-and what power tney
have-will be used to run suDwayS IN
New York and street cars In Rome,
said an electrical engineer recently In
visioning the future.
Progress In Rail Merger.
The announcement that the railroads
of the East had agreed on four main
trunk lines is premature.
For 10 years now conference after
conference has been held for the pur-
pose of ironing out the differences be-
tween the various roads. A great deal
Of progress has been made.
However, several major points are yet
10 be cleared up, and while this sltua.
ton may be accomplished later 1t Is well
TO recognize that 1t had not been cleared
up yet.
Probably the haste in announcing such
a decision was due largely to the eager
ness with which certain people wish to
have the thing accomplished. There Is
no doubt at all that this unfinished bust
ness has complicated the railroad prob
lem.
But this holds true not only in the
Eastern territory, but also in the Mid
die West, where a new contest has start
ed over the contemplated merger Of the
Great Northern and the Northern Pa
cif1c. and in the Far West, where new
trunk lines are in process OF formation
The Interstate Commerce Commission
has yet to approve Of any substantial
outline of merger development While
the situation is so confused the rall-
roads face uncertainty and, in spots
difficulties.
Reduction in Transatlantic Fares.
The great reductions In the paSSengel
fares between Europe and Canada, an
nounced by all of the major transat
lantic lines, should squirt European
travel business during the present Win
ter months Fare reductions OF from
10 to SO per cent have been made, de
pending upon the accommodations.
Passenger trade between the Unitet
States and Europe has suffered sever
decline this year. The Brussels Atlantis
Conference estimated a decrease o
about 80, 900 passengers during 1880.
Apparently these new fare reduction
are to be made permanent, for the
apply notB only to the present White
rates, but also to Summer rates as well
The Leviathan, the flagship OF tn
United States Lines, has reduced 1t
major suites, consisting of three rooms
three baths, a veranda and trunl
room from $3.50 to 81 $50 for thre
persons. Smaller suites costing $l,00
or more range from $755 to $3.50 unde
the new schedule.
1t has been estimated that the de lux
outside rooms will cost only SIS da
more than the minimum fare.
Week end trips to London are liabl
70 become as popular as airplane partie
30 Palm Beach and Miami now.
(copyriEht, 1890. by the North America
Newspaper Alliance0
GENERAL MOTORS HOLDS