Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-05-10
OUTLOOK IN STEEL
|SDECLARED GOOD
Heads of Large Companies
See End of Depression in
U. S. Industries.
BY CHARLES +. SPEARE.

special Dispatch TO The Star.
NEW YORK, May 10-The annual
''get together" of representatives of the
iron and steel industry in New York
yesterday, under the auspices OF the
American Iron &S Steel Institute, de-
veloped number of confident express
sions regarding the outlook for business
and sterilization of prices.
James A. Farrell, president of the
United States Steel Corporation, ap-
parently is not SO keen on consolida-
tions as some of his brothers in the
industry. He paraphrased Shakespeare
in his statement yesterday, TO merge
or not to merge, that is the question"
His answer was that the best thing
we can do is to emerge" He was not
OF the same mind as those who think
that unless We merge, we will be sub
merged"
The industry is at present operating
at about rs per cent of capacity. With
some corporations the ratio is higher
and lower with others, depending upon
the character of their output. The re-
adjustments that have recently taken
place in prices and led last week to
sharp cut in those of wire products are
believed to have cleared the air, and as
with the cut in copper metal this week
from IS cents to 1919 cents, to have
started buying by consumers who have
lower price schedule.
Industry Meets Test. ).
Charles M. Schwab, a perennial OPP
timist ON the iron and steel industry
who is president of the American Iron
g. Steel Institute, said that the steel
industry had met the test OF the buSl-
ness recession and that the recovery
in it since the first of the year had
been a surprise to many of those In the
trade. He thought that the second quar-
ter of the year would be better than
the first and that the ease in money
would put new life into business gen.
orally. Eugene G. Grace, president of
the Bethlehem Steel Corporation, was
somewhat more conservative than MIR.
Schwab He was quite positive, how
ever, that the low point in iron and
steel prices had been reached Since
the middle of 1929 the market has been
tending downward gradually. This week
the composite figure for finished steel
indicated quotations of 1888 a net ton
lower than year ago.
The president of the New Republic
Steel Corporation, Thomas l.. Girdler.
was of the opinion that conditions were
a lot better than they have been and,
specifically that automobile demand is
opening up. Mr.. Girdler stated that
prices have flrmed great deal in the
past few days. His views on the situa-
ton were supported by President Horace
S. wilkinson of the Crrlcible Steel Co.,
which is now operating at 30 per cent
of capacity. Mr. Wilkinson's feeling
was that conditions would improve later
on when the trade will get some good
business.
A great deal of consideration was
given to the statement of MIR. Farrell,
both in the trade and in Wall Street,
AY-sz 80 n0l~ NIT 0d
States Steel common, which drove 1t
down to the lowest price of the year,
was supposed to reflect conditions in the
steel industry. Mr.. Farrell said there
was nothing wrong with this industry.
A significant remark of his was to the
effect that he did not believe the finan-
cial situation and call money and their
relations had much to do with the bust
ness of his corporation. 1.-The steel in
dustry has a good background" he said.
"a little check here and there always
Is helpful" In Mr. Farre1lS opinion
business today is very good.
Lending Call Money.
OF as much interest as his comments
on conditions in the iron and steel in
dustry were Mr.. Farrelps rather un-
usual remarks about corporations that
a year ago were lending their surplus
funds in the Wall Street call money
market.
when we were here many people
were telling each other how much
money they had on call. Where is it
today? It's not out on call now. The
Steel Corporation does not lend money
on call, because it, probably fears 1t will
not get it back. The small manufac-
turer could not get funds to finance him
because lenders of money were giving
their attention to those who wanted
hundreds of millions"
Another large corporation that did
not lend on call when rates were high
was the American Telephone &c Tele-
graph Co.
Since the last annual meeting of the
institute there have been number of
important consultations in the iron
and steel industry, including the pur-
chases of the United States Steel Cor
poration on the Pacific Coast, the COM
bination effected in the Republic Steel
Corporation and the Bethlehem Steel
Consolidation with the Youngstown
group. 1t was the belief of those at
today's conference that these mergers
had considerable to do with keeping
prices more stable than would have been
the case had there been a greater num-
Der of units in competition with each
other.
(Copyright, 1900