Evening star., 1933-01-31
|0UTL0OK IN STEEL
DECLARED BETTER
Trade Expects Rate of 0per-
ations to Be 35 Per
Cent in Spring.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, January 31.-Directors
Of the United States Steel Corporation.
the worlds largest industrial company,
meeting today to review 1892 earnings
and consider payment Of dividends on
the preferred stock, turn the eyes Of
the public to the steel and iron in
dustry.
Most phases Of steel and iron in 1892
went through their most discouraging
experience thus far this century. Re-
views of last year are cherries when
contrasted with the peak records estab-
lished in 1929. Therefore those inter-
eSted In iron and steel are studying
the future rather than dwelling on past
performances.
Increased Output Expected.
Now operating around 10 per cent of
capacity, the steel trade Is expected to
be running at the rate of IS per cent
by early Spring, according to BENJAMIN
Schwartz, director general Of the Insti-
tute Scrap Iron & Steel, Inc. He has
just returned from a tour of the Middle
West, including Chicago, Cleveland and
Cincinnati, and reports the steel scrap
centers look for q total increase IN the
steel business Of at least Is per cent.
Scrap iron and steel are good
barometer of the trade generally. VIZ
tually all steel articles today come from
so per cent scrap and so per cent pig
iron and steel mills, the consumers OF
scrap are not buyers OF scrap until they
receive orders for steel This does not
70 ric
quotations, now the lowest in history,
because certain types of scrap are rather
plentiful, due to their accumulation bJ
dealers. Any quick improvement IN tn
steel industry, however, Is bound
create brisk bidding for some kinds OF
scrap or high prices in certain sections
of the country.
The automotive, railroad and build
ing industries are the chief steel con-
sumers normally. In 1929 they took
nearly half of all the steel produced.
Last year, however, railroads were noSeo
out Of third place by the packing and
container industry. The carriers con-
sumed less steel in 1892 than in any
year since 1900.
Automobile makers led steel users last
per cent Of total steel consumption,
against is to 16 per cent in 1881. Today
it is the Cleveland area that shows the
greatest steel activity, The automoblle
trade expects to make and sell more
cars this year than in 1882, after leav-
ing out Of the demand picture that
doubtful factor Of requirements, for
many of the 4ia-year-old wrecks now
on the road will not be replaced with
new cars. Motor makers realize that
excellent values and intensive mer-
chandising will be required to attain
this goal
Railroads, despite the price reduc-
tions in rails, are not expected to be
heavy steel buyers this year Their
finances permitting the carriers Will
have to do q certain amount OF re-
placement work. Most Of the rails they
bought in 1881 have been laid. Rail
roads last year bought between and
9 per cent of total steel, against Is to
II per cent in 1881.
Building Construction.
Building construction. which last year
accounted for 10 to II per cent OF steel
use, against 16 to II per cent in 1881,
is expected to receive stimulus from
public as well as private contracts. Ihe
building year, which starts September
/. may witness total construction OF
s1.753, SOC, 900, according to a survey OF
1900 individual architects by the Ameri-
can Architect. This total was arrived
at by adding s478, 100000 new building
under planning: s1.047 200 900 contem-
plated new building; $93 1898, 600 mod
ernizing under planning; $l33.868,0OO
contemplated modernizing.
Copyright. 1887
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