Evening star., 1936-07-01
Figures
What They Mean
BY A. A. PATTON.

Associated Pres Sts3Vtlc.an
NEW YORK. July 1.-The giant
steel industry wound up the hal! year
in blaze Of glory. with ingot produc-
ton calculated for the current week at
"A per cent Of capacity.
What does "A per cent Of capacity
mean? Unless a man happens 10 be
in the ste2l business. or IS a Statlsticlan,
the phrase has probably always been a
bit of puzzle even though Il got
across the genera! idea Of whether the
industry was progressing or the re-
verse.
The American Iron and Steel In
StitHte. official trGde organization
OF the steel business. makes On an
nEui surrey Of steel plants, finds
out holc mGny tons OF steel inoots
each is capable OF producing erery
day and total up the sum as the
daily capacity Of the industry.
Ingots are steel in the raw" great
chunks some feet long. 2 feet wide
and deep. They weigh from 10000
to $4,000 pounds each. They are ths
material from which the mills produce
the sheets that become automobile
bodies, the structural shapes that be-
come girders and Il" beams. the tin
plate that ends as a bean can.
Receives Data Weekly.
Having figured daily average ca
pacity for ali the steel ingot makers,
the institute is informed weekly of the
prooab'e outtUn of each plant and
simply makes a percentage calculation
of the expected output in relation 10
the potential capacity.
Actually. this weeks figure for pro-
ductIcn. "a per cent OF capacity and
the highest for the year to date. is
something of statistical curiosity.
In figuring the capacity for the
week, the institute takes the theoreti-
cal daily capacity. mUltiplies it by the
number OF working days and arrives
at weekly possible outturn. againct
which it figures the percentage Of
steel actually scheduled to be made.
W.th the Fourth OF July COM
ing Saturday. there are only fire
Stccl-mGk;ng days this ireet.
Therefore, ercn 1rth0ut stepping
Up the number OF ;ugotS made each
day The turnout in relation TO CAL
culated frc-dGy capacity shouS
percentage Jump.
If it were not for this oddity Of the
estimating method, which makes the
rate of production leap ahead in a
week in which the actual number Of
tons produced will probably be SUBJ
Stantially below the previous seven
days, the current percentage Of pro-
duction would not have marked the
top for 1885.
Removing the holiday distortion Of
the figures, the steel industry was
really doing its best back in the final
week of April, when 71.2 per cent was
reached.
Holds New Peak.
However, it has not missed that
top much in recent weeks. During
the past month the rate has varied
between 68.2 and the current per-
centage.
A booster of operations, steel men
say Hoo DCCAI Uiie PlOSptCG VI HlgHer
prices, which were announced for the
quarter that begins today.
More recently some consumers,
after reading the ultimatum of steel
leaders to John Lewis, who is plan
ming to organize steel workers into a
union, have rushed out to cover their
future requirements on the theory
that strikes are probably in the offing.
Many experts, however, say that as
long as the auto industry, and some
of the heavier lines remain on the
upgrade, consumption of steel is likely
to hold up well against the usual
Summer slump.