Henderson daily dispatch. (Henderson, N.C.) 1914-1995, 1936-10-02
Steel Activity Now Stands
AT Seventeen High Levels
Continued FROM Page One.)

| Continued FROM Page One.)
week. After a brief flare-up in 1888,
the industry settled back to slow,
gradual Improvement. Operations av-
eraged 37.5 per cent in 1894 and 485
per cent in 1885. A year ago at this
time activity in the industry was on
~ OLD per cent of capacity whereas
today it is above Is per cent.
| Battle of the Steels.
! Ihere are two general types of
steel-light and heavy. Prior to the
depression the output of the Industry
was about equally divided between
these two major classifiactions. Last
year the percentage was Y per cent
light steel and % per cent heavy
steel. Output of the former in 1895
was almost as large as in the years
1927 through 1880, while heavy steel
tonnage was roughly only 40 per cent
! of the boom-day levels. The Ba(bson-
i chart of business is now at normal
but many industries which use
heavier type steels are still running
only 80 to so per cent of capacity
The possibilities of cyclical expansion
of steel output from this point on,
therefore, favor heavy producers.
The fact that heavy steel concerns
did so per cent of the business in
1929 is no guarantee, however, that
they will regain that dominating DO
sition Since the boom, there has been
a decided shift in demand from
heavy to light steels New uses are
constantly appearing, but they are
principally for speciality, stainless,
electric, alloy, and other light stcels
The passing of the basing-point price
system and development of the new
continuous strip rolling process IA
vors light products. New plants for
output of flat-rolled or light steels are
being built by nearly every company
Yet, regardless of this long-term ten
dency toward lighter weight products
output of heavy steel concerns is
! bound to increase cyclically as their
J customers join the recovery parade.
| SteeTs Chief Customers.
! Roughly, the big customers of steel
with the approximate percentage
which they use are as follows: Auto
mobile, 20 per cent; building, Is per
cent; railroads, 10 per cent; tin can
makers, 10 per cent; oil, gas and
mining seven per cent; machinery 10
per cent; miscellaneous, Is per cent
Steel recovery through 1885 was sti-
mulated principally by the automo-
Tile, tinplate, and a few miscellan-
eous customers. Until this year, build
! ers, railroads, machinery, and mining
! were sitting on the sidelines. Now
| these concerns are coming back into
the market. This is where the big cy-
clical expansion in the steel business
in the next two or three years will
take place.
Railroad equipment is a good il
lustration of this. In 1929, when load
ms averaged $4,000 cars per day,
there was a surplus of 1885, 900 cars
In 1882, this figure was 100000 cars
In the first seven months of 1896,
when carloadings were only 10000
daily the extra supply had been re-
duced to 100000 cars. In 1929 railroads
ordered 100000 tons of rails, 1OO,-
900 freight cars, and 1000 locomotives
:. representing 100000 tons of STEEL
Last year rail tonnage was one-third
! of the 1929 figure; the number of
freight cars was less than one-fifth;
and the number of locomotives was
only 80. With traffic 20 per cent
above the 1885 figure and most rail-
roads now making money, the poten-
| tial market for heavy steel from this
one source alone is obvious.
i The one real dark cloud on the steel
horizon is the labor problem. Despite
the great fights of the nineties and
of 1919, union labor has never been
able to organize steel. Today the in
dustry is again becoming battle
ground-this time the one on which
the issue of craft VS.. industrial unions
may be settled. John Lewis-in :. his
fight for the latter-aelieves that if
he can organize steel, the other
ass-production" industries-rubber
automobile, cement, and glass-will
fall into line. His biggest obstacle is
the company union.' Through these
organizations managements have
"played BALI with their employees.
AS a result only 10000 of the 100000
workers in the industry are members
of the tiny steel union.
John Lewis, however, is now MAX
ing a real effort. Labor organizers
have moved into the steel districts
and are actively fomepting the ISSUE
It is no secret that the management
of the industry is worried. Using this
situation as a wedge, the steel work
ers through their company unions"
are demanding pay increase of one
dollar a day or am inimum wage of
SIS per day Their wage scale is al
ready the highest in history. Prices
for finished steel have been marked
UP Is per cent since 1892 and steel
scrap is selling at the highest level
since midsummer 1929.
/ Arrangements Dilemma
The labor situation has placed man
agements squarely on the spot. If they
refuse to grant higher pay to the
members of the company union,' -
they will be aiding Lewis cause. On
the other hand, upping of steel wages
now would add $65,OOO,OOO to the
United States Steel Company's labor
bill and proportionate amounts for
other concerns. Arrangements feel
that stockholders and customers as
we'll as workers deserve considera-
ton. Too sharp an increase in prices
would hurt consumers. Stockholders
i-nSnncial1v Of the heavv steel unite