The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-09-27

Obsolete and high-cost plants are
being dismantled. Operating econ
omies are being effected. New, young
executives are being injected into
the higher posts of responsibility.
Industrially the war which United
States Steel. long the sleeping
giant" has declared on its business
enemies, will be the most important
this nation has seen since railroad
chieftains and oil kings made COM
mercial history in their struggle for
their empires.
Tactics Will be more civilized than
those of the railroad and oil mast
erS, but no quarter will be given.
There is danger that one side or
the other will revert to price-cut-
ting, secret rebates or the many
other practices ruled out under
MIRA. These prohibitions have been
voluntarily maintained since, due to
their Stabilizing effects in such a
keenly competitive industry.
If destructive tactics develop, the
inevitable result will be felt in
hours Of labor and pay rates, these
men say. But whatever methods of
warfare develop, the corporation
proposes to be ready. 1t is miles
ahead of any competitor in capacity
to produce, but not in efficiency.
The gigantic household is being
modernized with efficiency as the
keynote.
The announcement of az million
dollar appropriation Ito establish
the plants in a position where they
can supply requirements on a COM
petitive basis with other interests
of the industry" was followed by a
second announcement bringing the
outlay to a total of $140,OOOOOO.
This modernization program, like
the recent linking of Carnegie Steel
Co., Illinois Steel Co. and several
smaller subsidiaries into a single au-
tonomouS province, is one result of
intensive study of the corporations
affairs by Myron G. Taylor, chair
man of the board. Some detectives
have been attained, others are in
process of formulation.
The first step was to retire most
of the corporations funded debt
($370 100000 of bonds in 1929. This
saved about $30,O00,000 annually in
fixed charges and helped the corpo-
ration ride out the depression with
a poor operating record, but a reas-
onably sound treasury.
The program of plant improve
ment brought abandonment at
Pittsburgh of two departments of an
obsolete tube works and two sheet
mill plants at New Philadelphia and
Wellsville, O.; diSmantling of seven
open hearth and two BeSsemer con-
verters at the Newburg works of the
American Steel and Wire Co. at
Cleveland. Anticipated beehive-coke
ovens in the Connellsville field and
costly lake equipment were also
ditched
AS these and other old plants
tumbled into the dust. new equip
ment, alterations and Improvements
were started. In the Chicago dis
trict went $15,OOO,000 to expand the
American Sheet and Tin Plate Co.
works at Gary, Ind.
In the Pittsburgh district Car
negie Steel got $15,O00O00 for a no.
inch continuous plate mill at Home
stead to replace three existing plate
mills-the same Homestead works
which Andrew Carnegie bought in
1883 for $350O00. At the Mcdonald
Work youngstown, o., Of Carnegie
Steel a new $6,00O,O 900 continuous
strip mill is under way.
These preparations compare with
capital improvements by the cor
poration of only $7650,00 in 1888
and 100000 in 1882. This is the
corporation which paid out $210, 000,-
900 in pay envelopes to 10000
employees last year. 1t is the cor
poration which had net operating
loss of IS million dollars in 1892;
of 81 million dollars in 1888 and
more than 16 million dollars last
year.
NE X THE Carnegie Illinois