Evening star., 1941-05-05
j. ). Steel DiscIoses
Production Ahead
Of Reich Total
Exceeds 1899 Volume
Of Britain, fronee
And Belgium
Ds the Associated Press.

Dy the Associated Press.
HOBOKEN, N. j., May 5.-One
American company, United States
Steel Corp, is turning out steel
faster than the latest available fig
ures show for all the mills of Ger
many, the companys board chair
man. Irving s. Olds. disclosed to
stockholders today.
This rate of steel making. he said
equaled the combined production OF
Great Britain, France and Belgium
IN 1899.
In the first three months of this
year, said Olds, rolled and finished
steel products were turned out by
United States Steel at 1909 per cent
of the total capacity" previously
believed possible.
Olds showed the small group OF
assembled stockholders 81 stereopti-
can slides of the company's defense
work They had been authorized ty
the Army and Navy for the occasion
In explanation, he told his audience
United States Steel Corp. Is
building cruisers, destroyers. mer-
chantmen and tankers. 1t is pro-
ducing armor and protective deck
plate to meet the requirements of
the military and naval expansion
program; it is manufacturing shell
forgings, unloaded shells and bombs
of various sizes; it is sending large
quantities Of steel to Great Britain
and Canada; it is supplying a steady
flow of steel to manufacturers in
different parts of the country who
have taken contracts of the Army
and Navy under the defense pro-
gram, and its ocean, going steamers
are bringing strategic materials from
distant foreign parts to meet de-
fense needs"
Ore Needs Increase.
Concerning details of the corpora
tion's national defense work, Olds
said:
81. To meet heavy demands for
national defense, it is estimated that
1941 ore requirements from the Lake
Superior district will exceed 75000,-
600 tons, The previous peak was in
1929, when 65.000.000 tons were
shipped from the district. Equip
ment necessary to ore mining is
being utilized to capacity.
~. AS a result of national defense
demands for electric furnace steel
(high grade alloy We are speeding
expansion of output by new installa-
tions having an annual capacity of
100000 tons.
IS. Our Isthmian Steamship Co.
now operates the largest fleet of
ocean-going cargo vessels under the
American flag.
-. Our Federal Shipbuilding &,
Drydock Co. at Kearney, N. j., is
working at full capacity-three
turns a day-to complete its part in
the naval and maritime program.
Federal has II shipways. Over so
vessels now are building or sched-
uled at this yard. These include
destroyers and cruisers as well as
cargo ships and tankers."
He asserted defense demands
frank foremost in the minds of every
one" but asserted the steel makers
should have the right to earn "a
fair return on their investments.
Olds described the corporations
recent wage increases, estimated as
likely to total $4,000 900 during the
next II months. and asserted the
IA %1
costs
Production Curb Feared.
1.-The effect of these higher costs
upon the future earnings of the cor
poration and the adequacy of exist
ing steel prices to enable the steel
industry fully to perform its duties
in the great emergency confronting
this Nation are subjects now being
carefully studied.
1T seems clear that govern
mental pricing policy would not be
In the best interests of the country,
If the consequence thereof should be
to restrict production by such an
essential industry as steel, every ton
of whose capacity must continue to
be available for utilization in these
perilouS times.
Furthermore, there can be no
doubt about the propriety of the
steel industry earning fair return
on it's investment when operating
at full capacity, especially when con-
sideration is given to the f1uctuat-
ing character of the demand for
steel and to the fact that over the
past decade the return on invest
ment in the steel industry has been
q most meager one.
Concerning the speed at which
steel products are being turned out,
the board chairman stated: "Produc-
ton of rolled and finished steel prod
ucts during the first quarter of 1941
was at 1909 per cent of the rated
capacity of the corporation and
shipments of these products were at
an approximately equal capacity
rate
"Tonnages of ingots produced and
Of rolled and finished steel products
produced and shipped in that quar-
ter were the highest for any quarter
In the history of the corporation.
Continuation over a II months
perioo of the corporations present
rate of operations would result in a
production of steel tonnage in excess
of the annual stee. producing Ca
pacity OF Germany. on the basis OF
the latest available figures, and
tonnage approximately equal to the
combined steel-producing capacity
of Great Britain, France and Bel
gium at the beginning of the pres
ent war"
Concluding his statement, Olds
said: To-day the advancement of the
national defense program should
rank foremost in the minds of every
one.
THE corporation has not deviated
from its policy Of cooperating tc
the fullest extent with the Federal
Government and in making avail
able to the Government its plants
and resources for the early attain.
ment of the all-important goal of an
adequate national preparedness.
I'VE do not know to what extent
- .~,- odd;{;opo1 stool ~, ki,,o ND