The Iron Age 1906-04-19: Vol 77 Iss 16

| | The Roteng Steam Motor. A new and interesting line of steam motors and air compressors is being offered by the Roteng Engineering Corporation, Barclay Building, New York City, illustra- tions of which appear herewith. The particular feature Fig. 1—The Roteng Steam Motor. of the line is high speed, combined with economy and perfect balance. The high speed implies directly small size and small weight for a given capacity and permits direct connection to electric generators, centrifugal pumps, fans or blowers, and such apparatus, as elevators, which is preferably driven through worm gears. The perfect THE IRON AGE New York, Thursday, April 19, 1906. The machine consists essentially of multiple cylinders radially disposed around a hollow shaft. It is not to be considered a rotary engine, but is a combination of single acting reciprocating engines all connected to the same shaft, in which the cylinders are not stationary, but revolve with the shaft. The pistons or plungers are suspended by yokes revolving on circular bearings, eccen- tric to the shaft bearings. When steam is admitted under a piston the pressure produces a force acting on the center of the eccentric, which corresponds to the crank pin of an ordinary engine. The difference is that the pin is stationary and the reaction causes the dis- placement of the cylinder upon its piston, and the tan- gential component of the force produces the rotation of the cylinders about the shaft. There is no dead center to the machine as a whole, because at least two pistons are always off center and one of these is on its working stroke. A valve in the hollow shaft, which may be seen in Fig. 2, permits the intake and exhaust of steam as the mechanism revolves. In the motor a part within this valve is arranged to effect the cut-off. It will be seen that each part revolves around its own true center and the whole mechanism is in perfect balance. The air com- pressor is practically the same as the motor except that the cut-off valve is omitted and the operation is the reverse of that of the motor. The motor in all sizes is claimed to have an economy of steam consumption superior to that of the correspond- ing size of any other reciprocating engine. The construc- tion is such that no compression is necessary or desirable, making it possible to operate on steam regardless of the percentage of priming. The clearance in the smaller sizes is less than 2 per cent., which decreases with in- creased size. This improves the economy, which is fur- ther contributed to by the reduction of engine friction, brought about by the decrease in number of working parts, as compared with other engines, and the introduction of ball bearings for the principal bearing surfaces. An im- portant result obtained from the general construction of Fig. 2.—The Casing Opened, Showing the Mechanism. balance makes the operation quiet as that of an electric motor, the general outlines of which the machine closely resembles, as shown in Fig. 1. A sliding or belt tighten- ing base, similar to that commonly used with electric motors and generators, is supplied whenever a belt is employed. the motor is the possibility of reversing instantly without danger of injuring the mechanism. As a compressor the mechanically operated valve makes it possible to run at the same speed as when used as a motor. The mechanical operation of the valve, com- bined with small clearance, makes the compressor also “ESET REIT 2 oe eee ee ee a Calg TGP » ae ateemtnnone ma Mo Tact eae — t i ad & PEE mc ERE eNR aI NTS OL Mer are OE RR rece ane Oot 1320 efficient. The entire lubrication of the compressor is provided for by a small amount of oil in the inclosing The mechanism weighs less than 20 per cent. of the present types of the same capacity now in use, giving it all the advantages due to great portability. The com- pany is receiving orders for machines up to 25 horse- power capacity. case. —_—_o-- oe __——_ The Ryan Tilting Steam Trap. A steam trap that can be changed from a common separating trap to a return trap, by simply changing the valve and one inner tube, is somewhat unique. Such a trap is made by E. J. Ryan, Danville, Ill., and is shown in the accompanying illustrations. The trap may be Fig. 1.—The Ryan Tilting Steam Trap as Used for Separating. used on either high or low pressure and is a tilting trap, in the sense that it is operated by the weight of the accumulated condensation which causes the cylinder to tilt. It is not what is termed an “intermittent” trap, but is so arranged that the inlet is constant and the outlet is intermittent. The valve is a standard Jenkins disk globe valve, in which a new disk can be inserted at any time by removing one bolt and the valve bonnet, and when this is replaced the valve requires no readjusting. The outlet valve when closed is held by a powerful leverage. When the trap is in operation the condensation enters Pesitr: orm F2 CLIN Ge Fig. 2.—The Trap as Arranged for Collecting Returns. the trunnion at the point marked “inlet,” Fig. 1, filling the cylinder until the water overbalances the weighted lever. The suspended end of the cylinder then tilts down and in doing so causes the valve stem to be raised, allowing the water contained in the cylinder and the water reaching the cylinder during the time that it is tilted to be discharged through the outlet valve by the pressure of the steam at the inlet of the trap. In this way the trap provides for a sudden flow of water. Unlike most traps, it does not require an air valve, and it is said to be perfectly noiseless in its operation. The cylinder heads are held together by one bolt and the packing is recessed into the heads. This being of vulcabeston, can be used over and over again. The trunnions are packed with metallic packing and are practically indestructible. When the trap is installed it should be located at some point where it is accessible and preferably visible. While it does not require much attention, it is well to THE IRON AGE April 19, 1906 have it where it plainly shows whether it is working properly or not. This is easily ascertained simply by watching it for a brief time, it being unnecessary to take the trap apart to discover whether it is in action or not. The trap should be set low enough so that all condensa- tion will drain to it if possible. In cases where it is necessary to trap or seal the inlet before it reaches the trap an equalizing pipe should be provided so that steam can reach the inlet to the trap. Fig. 2 shows the construction of the trap and also shows the connections where the trap is used as a return trap. In Fig. 1 the connections are such as are used where the trap is a common separating trap on a high pressure supply. Four sizes of the trap are made at present, these ranging in size of inlet from % to 14 inches and in size of outlet from % to 1% inches. The smallest, under low pressure, has a capacity of 45 pounds of water per minute and under high pressure 225. The largest has a low pressure capacity of 125 pounds of water per minute and a high pressure capacity of 625 pounds. These are equivalent to caring for 1300 square feet of radiation under low pressure and 7000 square feet under high pressure with the smallest size, and 4400 square feet under low pressure and 20,000 square feet under high pressure for the largest size of trap. —————_~4-oe_____—__- The Murray Disk Sharpener. The extremely simple and novel machine shown here- with, designed for sharpening disks, is manufactured by the Murray Iron Works Company, Burlington, Iowa. The A Disk Sharpening Machine Made by the Murray Iron Works, Burlington, Lowa. cutting apparatus consists of a pair of tongs with a roller on one jaw and a knife socket on the other. The jaw with the socket turns down at right angles and forms a support directly under the knife, while the support at the lower end is a perforated plate which permits of immediate adjustment to any size or any bevel of disk, The friction plate holding the disk is of cast iron, with wooden blocks dove-tailed in the face. The steel shaft is 1% inches in diameter, and the disk is locked into place only 4 inches from the gear wheel. The machine can be operated either by hand or belt power. The ma- chine complete weighs 325 pounds and requires a floor space of only 14 x 14 inches. ——__3--e__——__ The Republic Iron & Steel Company and the Tennessee Coal, Iron & Railroad Company, which heretofore have earried a large amount of insurance on their properties, have decided to establish an insurance fund. It will be managed by H. W. Marsh of Burrows, Marsh & Mc- Lennan of Chicago and New York, who is also manager , of the insurance fund of the United States Steel Cor- poration. April 19, 1906 The Buffalo Air Washer and Humidifier. Considerable attention has been given to the need of some compact form of apparatus to prevent solid impuri- ties from finding their way into buildings which are ven- tilated by fan systems. Shafts extending through the roof of required size for the inlet of fresh air are more often than not impracticable, and when air is taken at the street level and, as sometimes happens, through side- walk openings, dust and filth enter the flues and find their way into the rooms, Cheese cloth screens to he effective must be frequently replaced, as they are quickly clogged up. The act of replacing shakes more or less of the dust loose and often the screens are thrown to one side, because the janitor finds it too much trouble to look after them. Obviously any arrangement to be effective must be automatic, and this is true of the Buffalo air washer, which requires less space than screens of cheese cloth or coke filters, is self-cleaning, and, by finely divided sprays, is claimed to remove all of the solid matter in suspension. A typical arrangement of the Buffalo air washer and humidifier is shown in the accompanying engraving. This apparatus was finally perfected and patented a year STRAINER & Li Tag) THE IRON SPRAY CHAMBER enna ek t 1 Cee SILENT CHAIN) i THERMOSTATIC VALVES GLOBE valves TT TT MAIN [STEAM | i| l ) Sain CONDENSATION] | AGE 1321 supplies the necessary pressure. The used for cooling in summer. Medical journals have frequently called attention to the unhygienic dryness of the air in winter. The normal requirement is approximately 50 per cent. humidity, while in schools and office buildings this in cold weather is frequently below 20 per cent. With the form of air washer described the humidity may be readily increased and controlled so as to a this important objection to steam or furnace hes ———_4+-———__—__. The National Metallurgical Company. Gontracts have been awarded to the Riter-Conley Mfg. Company, Pittsburgh, by the National Metallurgical Com- pany, 43 Exchange place, New York, for the construction of a plant for the desulphurizing and nodulizing of iron ore. The plant is intended not only for the purification of iron ores, but for the elimination of water and the for- mation of the ore into irregular shapes to prevent waste from dust. The general adoption of the scheme in Pitts- burgh, it is claimed, would free the city from the annoy- ance at present experienced by residents near blast fur- nace plants using fine Mesaba ores. Seven acres of land een oe BY-PASS DAMPERS z — % 3 CENTRIFUGAL PUMP pa fea sucTION 44 UNDER TEMPERING COILS z FRESH AIA ano MOTOR US" be, 8 — ELIMINATOR GI -- -- Q\ Y; & Vi 2 HET w tenga rt — sees! tiie ieee si tess } te met — ul | FAN ieee —v- - es : ' tis is on ut E tetas iF | sf ge ta «ft teeeeet — go. 3,21) \moton/ 5°38 YX 33} = §0* is ; TEMP'D TRIPLEX r S Wy Yj, YY Uy An Air Washer and Humidifier in Connection with a Fan Ventilating System as Installed by the Buffalo Forge Company. ago by the Buffalo Forge Company, Buffalo, N. Y., as a result of the excellent results obtained from installa- tions in connection with fan heating and ventilating sys- tems which had been in service for some time. It has been installed in schools, offices, hospitals, factories, res- taurants, laundries, lithographing establishments and other buildings where pure air of uniform humidity is particularly desirable. The air washer consists of a system of closely spaced spray nozzles, galvanized iron or copper baffle plates, eliminators for removing the water in suspension and the necessary casing and tank to make the apparatus air and water tight, clean and economical in operation and automatic, so far as any attention is concerned, ex- cept starting up the circulating water for the sprays whenever the heating system is put in operation. Pat- ented spray nozzles are used, which instead of throwing the water in sheets separate it into an impalpable mist and are so designed that they will not clog up. The water-laden air impinges on zigzag continuous plates, which are constantly covered with a film of moisture. By atomizing the water the amount which is required is minimized, and as all the water returns to the settling tank it may be recirculated. The extent and arrange- ment of contact surfaces are such that the resistance to the flow of air is negligible, and it is so compact that the whole apparatus takes up little more space than a bank of fan system heating coils. The baffle plates cleanse themselves, all the dirt passing to the settling chamber. City water pressure may be used for the sprays, or, when the water is recirculated, a small centrifugal pump adjoining the Pittsburgh filter plant at Aspinwall on the Allegheny River have been purchased, and ground will be broken in a few days for a large group of build- ings. The initial plant will have two rotary kilns, giving a capacity for treating 250 tons of iron ore daily, and the main process will be conducted in a steel building, 80 x 140 feet, which will contain the kilns. Side tracks have been laid from the West Penn Railroad, and contractors have begun the erection of trestles to enable the unload- ing of material for the construction of the plant. The National Metallurgical Company now has a one- kiln plant in operation on the Hackensack Meadows, N. J., is just completing two other kilns there, giving a total capacity of 375 tons of nodules a day. The output of this plant for the present year has been sold to B. Nicoll & Co., New York, and a considerable portion of the tonnage so taken will be used at the furnace of the An- dover Iron Company, Phillipsburg, N. J. Already 5000 tons have been smelted at this furnace. a Several arrests have been made in New York City for violation of the law making it a misdemeanor to burn soft coal within the city limits. Two hotel managers are among those arrested. They claim that since the anthra- cite strike it has been impossible to obtain anything but soft coal in the quantities needed for their power and heating plants. The campaign against smoking chimneys was started before the beginning of the strike and several important power plants have been receiving the attention of the Health Commissioner. same apparatus is” — — 8 Settee ie $ ‘ | ‘ ee se ee Mace ene eons <i eanaemE * Pane setnaetianet tanh ‘tonne re es pe Pons areas <= atte: = Sete cea tee ee aoe eee eine a 5% 1322 The Pennsylvania Railroad’s Hudson River Tunnels. All speed records in tunnel building, says the New York Herald, will be smashed by the O’Rourke Construc- tion Company, which is boring the Pennsylvania Railroad tubes under the Hudson River. Begun in February, 1905, the tunnels will be finished inside of three months, which will be more than a year soonér than the time specified in the contract. Floods of inquiries are daily being made concerning THE IRON Indianapolis Track Work for Industrial AGE April 19, 1906 Purposes. For the convenience of works railways in procuring satisfactory track work that will meet their special re- quirements the Indianapolis Switch & Frog Company, Springfield, Ohio, has a consulting engineering depart- ment for furnishing plans and information to this trade. When necessary the company sends its engineers and makes detail surveys, so that manufacturers whose eH — - — - — -PLANING-ON—TOP-649— — - — —- — — -- > a ae o_O o_o o_o 0.0 oO c—— ee oe ee — - - PLANING-ON-BASE—13'6 — > SECTION SHOWING MALLEABLE CAST BRACE 17 % X 4 X26 WROT IRON SLIDE PLATES THE IRON AGE Fig. 1.—Standard 15-Foot Split Switch Made by the Indianapolis Switch & Frog Company, Springfield, Ohio. the methods which make such remarkable speed possible. No details will be made public, however, until the work is completed and the company relieved from all responsi- bility. In the contract there is a provision which states that in no circumstances shall the company furnish any information concerning the work. Asked to comment on their methods, engineers connected with the O’Rourke Company said that when the time comes they will make public much that will interest engineers all over the world. New devices and new methods for boring which will be of inestimable value in all future tunnel work have been discovered, it is said. Only 300 feet, approximately, now intervene between the headings, and within a month it is expected the plants require track work may avoid the annoyance and expense connected with the use of frogs, switches, cross- ings, &c., not properly adapted to the rolling stock. The same care and precision are exercised in making indus- trial equipment as in standard steam railroad construc- tion, taking into consideration the special requirements in each case, the result of which has been that some of the larger interests, especially mining industries, have in use over 1000 frogs and switches of this company’s make, large consignments being furnished to Mexican properties. Fig. 1 shows the standard type of split switch for rail from 40 to 100 pounds per yard, and a similar design, but with lighter fittings and shorter rails, is used for rail from 16 to 35 pounds per yard. Switch points are planed to give the greatest easement at approach and to have perfect side and base bearings, reducing the chance of derailment. These points are fitted complete with lugs, braces, slide plates and tie bars ready to install. Fig. 2 illustrates the usual form of rigid or stiff frog ae ne — eee : ——S>S cae — —__] ROLLED FilieR —$—$—$ sales ae LL — ay wo ete etme = oo w -_ et THE IRON AGE Fig. 2.—Details of a Rigid Frog. tubes will be almost joined. Encouraged by the swift progress of the work, the engineers in charge of it are bending energy to complete it in the shortest possible time, so that a record for tunnel building may be estab- lished. Boring from the New York side of the river started at Eleventh avenue, although the tunnel proper will have its beginning at Tenth avenue. Under the river the en- gineers encountered rock and shale, but chiefly mud. Work on the two tubes progressed with about equal speed. They run 25 feet apart. each. ‘ The plan is to have one track in , of the bolted and filled design. The throat is made of the proper width to accommodate the maximum wheel flanges and tires, the throat being filled throughout with solid rolled steel filler and the frogs assembled with extra heavy bolts provided with special head locks, pre- venting the bolts from turning. The nuts are equipped with positive nut locks, by which the parts are held firmly together, reducing the cost of maintenance and prolonging the life of the frog. This design of frog is usually made from rail weighing from 40 to 100 pounds per yard, and for lighter sections of rail the filling is omitted and all of the rails are securely riveted to heavy plates. April 19, 1906 Fig. 3 illustrates the regular type of two-rail crossing, which is constructed along the same general plans as rigid bolted frogs, and the parts are so assembled that the work is practically self contained, relieving bolts and corner irons of all direct strain. The company’s headquarters is located at Springfield, Ohio, and its main plant consists of a building covering over two acres of space under one roof, fitted with modern equipment for making track work for steam and electric railways and mine and industrial tracks. ae High Carbon Steel Bars for Reinforcing Con- crete. The Inland Steel Company, First National Bank Build- ing, Chicago, is now manufacturing high carbon steel bars, either plain or twisted, for reinforcing concrete, having an elastic limit greater than 50,000 pounds. Tests of the plain bars have shown that they usually run from 55,000 to 70,000 pounds per square inch, and twisted bars from 65,000 to 80,000 pounds. The sizes run from % to 1 inch, in rounds and squares, the bars in the smaller sizes running highest in elastic limit. The twisted bars THE IRON AGE The Burke Oil Forge. A forge for general machine shop use, designed to use coal oil or kerosene, has been developed by The Burke Machinery Company, Cleveland, Ohio. The first of these forges were made with cast iron bases, but since then galvanized steel tank bases have been substituted, which reduce the weight considerably. The forges are claimed to be economical, clean and easily operated, and being self contained they can be moved from one part of the shop to another. They are made in four sizes, with 1, 2, 3 and 4 burners, respectively. The largest has a capacity of 54% x 4% x 18 inches. To furnish the amount of heat necessary for ordinary work each burner con- sumes 2 gallons of oil per day of ten hours. The forge affords a means of hardening high speed steel by the use of special fire brick placed inside the forge and is able to harden high speed cutters at least % of an inch square by 3 inches long. The melting pot, which sets in the top of the forge, will hold sufficient babbit or lead for ordi- nary use, and is easily heated to the necessary degree. The rear and front openings are closed with fire brick pieces. The interior dimensions of the forge illustrated are 5% inches wide, 4% inches high and 9 inches deep. The weight is 170 pounds. An attached pump gives the air pressure necessary for | Lie => ey _ SECTION A-B THE IRON AGE Fig. 3.—The Regular Type of Two-Rail Crossing. reach a higher limit than plain bars of the same size and weight and are therefore of more value to the extent of the difference in that respect, but have a further ad- vantage in the mechanical bond in twisted steel, which by many is considered indispensable. The company has issued a circular regarding these bars, from which the following extract is taken: The measure of value of steel for the reinforcing of concrete is its elastic limit. The results of physical and chemical tests made during the past few years show conclusively, and we be- lieve it is now the universal opinion among engineers in all branches, that steel having a high elastic limit, 50,000 pounds per square inch and over, is the best grade for this work. The elastic limit, or yield point, of steel is its real reinforcing strength. The tensile, or ultimate, strength has very little to do with its availability for this purpose. As compared with mild or medium steel having an elastic limit of 30,000 to 35,000 pounds per square inch, high carbon steel will give greater rein- forcing strength, or a smaller quantity can be used and an equivalent result obtained. While high carbon steel sells at the same price as mild or medium steel, it is really worth more to the extent of the difference in, the elastic limit between the two grades. In this particular use it would therefore be worth 3 cents per pound as compared with 2 cents per pound for mild steel bars. Flat bars and»sections, tees, angles, channels, &c., are also supplied by the company in all sizes. -_ a A Forge Using Coal Oil or Kerosene, Made by the Burke Machinery Company, Cleveland, Ohio. the burner. In starting the forge it is necessary to pump up the pressure to at least 40 pounds. The higher the pressure the more intense the heat. Caution should be exercised that the oil does not contain any gasoline, as the heat of the burner is so great that it will burn the gasoline inside of the coil and stop up the coil so that nothing can get through. This forge is specially useful where coal is scarce, where cleanliness is desired, or where a portable forge is wanted. One filling with oil will suffice for a whole day’s work. The company also manufactures a rivet heater, using a special top mounted on the same base. This has a magazine feed and has been found capable of heating from five to seven 54 x 1% inch rivets per minute. ne The De La Vergne Machine Company, Past 138th street and the East River, New York, states that 157 Koerting two-cycle gas engines, aggregating 131,685 horse- power, are in operation or in course of construction at the present time. Since last October the Koerting Bros. Company, Koertingsdorf, Germany, has closed: contracts for 17 two-cycle gas engines, ranging in size from 300 to 2200 horse-power, to be installed in various parts of Europe. Several of these are repeat orders, showing the success with which the large gas engine is meeting in Europe. Se THE IRON AGE April 19, Domestic and Export Prices of Steel. Testimony of Chairman Gary of the United States Steel Corporation. WASHINGTON, D. C., April 17, 1906.—Chairman BE. H. Gary of the Board of Directors of the United States Steel Corporation appeared before the House Committee on the Merchant Marine and Fisheries on the 11th inst. in response to a request for information as to the rela- tion between domestic and export prices of steel products in the United States and the leading steel producing countries of the world. The committee has under con- sideration the Shipping bill, and the inquiries addressed to Judge Gary bore chiefly upon the alleged advantage enjoyed by foreign shipbuilders in their ability to buy steel plates and other material cheaper than builders in the United States. A feature of the hearing was a dis- cussion of the probable effect upon the steel industry in the United States of the removal of the tariff, especially on steel rails, which was strongly opposed by Judge Gary on the ground that this country would be used to a greater extent as a dumping ground by foreign manu- facturers. He thought the companies outside the United States Steel Corporation would suffer most severely by the removal of the tariff, as they were not in position to manufacture so cheaply or command so steady a market for their output. Chairman Grosvenor stated to Judge Gary at the outset that the committee was interested in ascertaining the truth “regarding the reports constantly published in the newspapers that the United States Steel Corporation sells its products of steel manufacture, notably plates and other parts of ships and railroad iron and steel, to foreign countries cheaper than in the United States.” In reply, Judge Gary said: “T am quite ready to give such information as I have that is pertinent to the inquiry. Perhaps I ought to refer specifically to a statement made by James C. Wallace of Cleveland, Ohio, president of the American Shipbuilding Company, which I find in the report of the Merchant Marine Commission, of the testimony taken at its hear- ings. Mr. Wallace said: ‘Recently one of our largest steel mills sold abroad 100,000 tons of steel plate. They delivered it, I understand, at Belfast at $24 a ton.’ Sub- sequently, in reply to a question by Mr. Grosvenor, Mr. Wallace said that the plate was purchased by Harland & Wolff of Belfast, Ireland, from the United States Steel Corporation. I notice that Mr. Wallace apparently speaks from information. If he had such information it was un- reliable. The statement is not founded in fact. The companies in which we are interested sold no ship plate in 1905 to Europe, only a little over 3000 tons in 1904, not any in 1903, and, I think, not any in 1902. That which we sold in 1904 was in small scattering lots. Expert and Domestic Prices Nearly Equal, “Now as a matter of fact the export prices of ship plate at the present time are nearly equal to the domestic prices, and that is true of most of the commodities pro- duced by our corporation. It is also a fact that the do- mestic prices of the manufacturers of the steel producing countries are generally higher than our domestic prices or the domestic prices of the manufacturers of this coun- try. It is also true that the export prices of the manu- facturers in foreign steel producing countries are about the same as the export prices of the manufacturers in this country. It is a fact, however, that it is the policy of manufacturers generally throughout the world to sell at times a limited portion of their output for export at prices lower than the domestic prices. “The particular reason for that is well understood. It is for the interest, I think, of the domestic consumer at times to have surplus commodities sold for export at prices lower than the domestic price, for the total result is to reduce the price to the domestic consumer. It is well understood in manufacturing circles that the manu- facturing cost of factory products is materially less if the factories are operated to their full capacity. There- fore the manufacturer seeks to keep his mills fully em- ployed—in full operation. He does that for two rea- sons: First, to produce at the lowest cost; and second, to keep all of his empoyees at work all the time. Some- times in order to keep his mills fully employed there is a surplus product; the product is larger than the do- mestic consumers will take. That surplus is sold for export wherever it can be sold. The foreign country in those cases has been termed a dumping ground. Demand for Steel Increasing. “ Of course if you sell abroad you must meet the mar- ket there. At the present time, however, the prices, as I have said, are pretty nearly alike. Conditions have been improving for two or three years. The domestic demand has been increasing and the demand in foreign countries has improved also, so that the prices there are better. At the present time we are shipping abroad about one-twelfth of our entire output to Argentina, Japan, South Africa and various other neutral countries. Very little of our product, comparatively, goes to steel produc- ing countries. In those countries to which we sell we come in competition chiefly with Germany, Belgium, Austria and to some extent Italy. Germany, Austria, France and Italy are very well protected. They have larger and better protection than we as a rule, and Ger- many, as you probably know better than I, pays pretty liberal bounties on the manufactured products that are exported. Of course they produce over there at pretty low cost, for labor is cheap.” In reply to a question by Representative Littlefield as to whether American manufacturers enjoy as good facilities for direct communication with South and Cen- tral America and Oriental ports as the Germans and the Engish Judge Gary said that he could not answer positively offhand, but he thought American exporters labor under a decided disadvantage. As to the shipping facilities to the Argentine Republic, he thought his com- pany sometimes had considerable difficulty, a fact that was also true with regard to South Africa. As to freight rates, there was considerable fluctuation, the cost of shipment depending at times very materially upon whether the vessels going out could secure return cargoes. With regard to the tariffs of South American and South African countries, Judge Gary said that they must be reckoned with in all cases. As to African ports, it was necessary to bear in mind that there was a preferential tariff in favor of Great Britain. Replying to a question, Judge Gary said that the United States Steel Corpora- tion at the present time controlled about 60 per cent. of the output of steel ingots. Representative Littlefield then asked : “Please state whether or not you have the knowl. edge to enable you to say what the fact is with reference to the other 40 per cent., as to the proportion of their output which has been sold abroad during the period covered by your statement regarding the United States Steel Corporation.” “T have not the same knowledge of the proportion of others,” replied Judge Gary, “but I think ours would be a little larger. That is my judgment. But our export business is small compared with that of some other coun- tries. Germany, for instance, exports at the present time about four times as much as we do, and England, I think, ships abroad about twice as much as we ship.” “ Do you think that as much steel comes into this coun- try from the other steel producing countries as your cor- poration and the other steel producers, ship out of this country?” asked Representative Hinshaw. “J would only be able to eStimate that,” replied the witness. “ But I do not think so. Of course, we are pressing this export business as far as we can practically for obvious reasons; among others, because we want a place to put our goods, as it so materially affects the em- ployment of our labor and also because it so materially affects the balance of trade. The broad view of this ques- , April 19, 1906 tion is that when we can justly do it—when we can fairly do it—we want to bring all the foreign money we can into this country. We are all interested alike in that.” “Steel rails enter into the figures that you have al- ready given us, I suppose?” suggested Representative Littlefield. “Yes. I think the average price of export steel rails at the present time is almost equal to the domestic price. The present domestic price is about $28 per ton, and I should, say, slightly under $27 for foreign trade. The prices that I have quoted are f.o.b. the mill in all cases.” “Tf you did not have this avenue of export trade by which you could dispose of the surplus product, which is in excess of the domestic demand,” said Representative Littlefield, “‘ you would either have to stop producing and therefore lose the use of your mills and sustain a loss in that respect, or you would have to carry the surplus prod- uct on hand until the demand was created for it else- where?” “Yes; but I do not think it would be practicable to manufacture and carry the surplus; it runs into money so fast. I think we would have to shut down our mills, and you know what that means in the disorganization of forces. So it really comes to this: That we would be obliged to increase the cost of manufacture if we could not run at full capacity. That would be the inevitable result.” “I would like to ask you this question,” said Repre- sentative Spight: “ Has your company ever delivered your products in foreign yards at a cheaper rate than you sell to the domestic customer at your mills?” “The United States Steel Corporation is not an operat- ing company,” replied Judge Gary, “but I suppose you refer to our subsidiary companies. I have already stated that we have sold some of our products for export at cer- tain prices, but those prices were f.o.b. the mill, and we have never delivered our products abroad for less than the cost to the domestic customer at our mill.” “Do you know of any steel company that has deliv- ered goods in foreign yards cheaper than they sold them at the mill to domestic customers?” “I do not. I know of no such case.” “ About what is the freight on steel from your mills to England?” “At the present time about 10 shillings per ton.” “ So that if the price is $27 per ton, f.o.b. at your mills, with the freight added, it would be $29.50, at English ports?”’ asked Mr. Hinshaw. “ Yes.” “And what is the price of steel there, f.o.b. their mills?” Foreign Prices Compared, “It depends upon the commodity. The Great Britain home price of rails, for instance, is $31.50 per ton, and the export price of Great Britain is $25, f.o.b. their mills. In Canada the home price of rails is $33, and the export price the same; in Germany the home price is $30, the ex- port price $24; in France the home price is $31, and the export price $25.50; in Austria the home price is $31, and the export price $25.50; in Belgium the home price is $30, the export price $24; in United States the home price is $28, and the export price about $26.60. There is less mar- gin in this country than anywhere else, and the home prices abroad, you will observe, are invariably larger than our home prices. “Now, take structural material, including shapes, plates, bars, angles and tees—in Great Britain the home price is $1.60 per 100 pounds, and the export price $1.35. In Germany the home price is $1.50, the export price $1.25. In France the home price is $1.65, and the export price $1.35. In Austria the home price is $1.50, and the export price $1.35. In Belgium the home price is $1.55, the ex- port price $1.35. In the United States the home price is $1.60, the export price $1.40. Our price of plates lately has slightly increased because of the demand. Our cus- tomers generally, however, are covered for the season at about $1.40. These figures are taken from authoritative sources, and I think there is no doubt that they are re- liable. They are the figures upon which we are doing our business right along every day.” “Do you sell to the foreign customer upon orders re- THE IRON AGE 1325 ceived by mail?” asked Chairman Grosvenor, “ or do the agents of the foreign buyer come here? What I am try- ing to get at is this: 'f you have sufficient demand for all of your products do you sell abroad at all, or do you only sell abroad when you can supply both demands? ” Soliciting Foreign Trade, “ Answering the first part of your question,” replied the witness, “ I would say we have some agents abroad to take care of the field for us, and who receive orders. We also receive orders here at home. For instance, the Jap- anese have been pretty good customers and have had rep- resentatives in this country. They pay cash in advance, and come to our office and do their business. Answering the other part of your question, I would say that, of course, it is our policy from a business standpoint to take care of our own customers first. In looking after their interests we think it is wise to keep a foothold in the for- eign countries—not to lose our connection with the for- eign business; and therefore when the demand is very great we sometimes sell abroad to some extent at a lit- tle sacrifice so as to keep our position. But so far as we can maintain our business relations abroad we take care of our domestic producers first.” “Is there any arrangement between your corporation and the others in your industry by which the price of the domestic product or of the foreign product is fixed in the markets of the world?” asked Representative Hin- shaw. “ With reference to certain commodities the repre- sentatives of some of the leading companies have hereto- fore been in the habit of getting together for consultation, with a view to determining what should be the prices. In view of the criticisms which have been made from time to time and of published reports, which were in a large measure inaccurate, that practice has been to a large extent abandoned. It is a fact, however, not disputed, that with reference to a few commodities—perhaps a very few at the present time—the presidents of corporations outside are in the habit of coming to our office for con- sultation with reference to prices; I do not mean as a regular thing, but with a view of keeping so far as it is fair and right in close touch with the situation, and in that way no doubt the prices in some of the commodities at least have been better maintained. We do not always agree. Sometimes we disagree very seriously and em- phatically. The effort of our organization has been to steady prices; to prevent extraordinarily high prices or extraordinarily low prices. There have been times when the outside manufacturing corporations to which you re- fer have insisted that the demand justified very mate- rially higher prices. That has been true particularly during the past year. For instance, it would have been a very easy matter to sell rails at a very much higher price than $28 during the last six or eight months. It would be a very easy matter now. But our corporation with all its influence has steadily protested against that and has taken a very decided stand that we would not consent to it, and that if any other manufacturer sold at a higher price we would still sell at the lower price. I am very glad to say that the other corporations in consider- ing the question have decided that that was the fair thing to do, and so far as I know they have kept these prices down. That is true of other commodities from time to time.” “At the present time are you shipping rails to any foreign country?” asked Representative Wilson. Heavy Demand for Ralls, “To a very limited extent we are exporting rails, but only for the purpose of holding our position abroad. The domestic demand for rails at the present time is far in excess of the capacity to supply them, and of course we prefer not to sell any rails abroad just now. At other times, when the market is dull, the tendency is the other way. Our disposition is to maintain parity of prices se far as we can. The consumers like it better. The average consumer is very much more interested in having prices maintained so that there shall be no extremes—either up or down—than in having very high prices sometimes and very low prices at other times. Then he knows what to do with the goods which he purchases. He knows what ~~ le le ate 1326 prices to make to his customers. I think you will find that to be the testimony of our leading customers, like the Cramps, for instance. I think they would rather have us establish and maintain a fair price than to run the risk of having our prices very high at times, even though very low at other times. “You may remember that in 1903 there was a ten- dency to lower prices, and yet I think our influence was valuable in maintaining prices, or at least in preventing the market from going to pieces. Prices were lower, how- ever. We are in sharp competition all the time and we take care of our customers. We have to meet prices. Our prices at the present time are very materially lower than they were in 1902. We have constantly reduced prices a little, although we have restored our wages and kept them up to about the same figure. If our prices in 1905 had been as high on the average as they were in 1902 I.think it will surprise you to learn that our earn- ings during 1995 would have been at least $50,000,000 more than they were.” Profit on Rails. * Considering the cost of labor and the material which you must buy or produce from your mines, is $28 per ton for steel rails a fair price, or is it exorbitant? Would it render a revenue out of proportion to a proper valua- tion?” asked Representative Hinshaw. “TI think the price is moderate. When you take into account the amount in dollars and cents of our business for a year—last year, 1905, it was a little under $600,- 000,000—you will find that the percentage of earnings was materially less than the percentage of earnings of the principal railroad lines on the same basis. If you take the New York Central, the Pennsylvania, the Illinois Cen- tral, the Chicago and Northwestern and other great roads you will find that our earnings were less than theirs in proportion to the amount of business involved. I think you will also find when you take into account the actual selling value of the properties which we own that our earnings are not a large return on the properties. And while we deal in large figures and show very large earn- ings, it is chiefly, I think, because we have had the cour- age to expend very large sums of money all the time in the betterment of our properties, in the perfection of our machinery and in the completeness of our organization. We are endeavoring to manage our business in such a way as you would manage your individual] business, how- ever small or however large it may be. We are not at war with our competitors. We try to be friendly with all of them. So far as I know, we have never antagonized them except in self-defence. Of course, I do not mean to say that we do not take care of our customers. If our competitors in business undertake to get our trade away _ from us we take care of our customers and we meet | prices, but we do not make war on our competitors. We seek to be friendly with them and we try to take care of our employees. That is our first thought and our con- stant thought.” “Then there is real, genuine, active competition be- tween your corporation and the others that produce the 40 per cent. of the output of your industry?” asked Rep- resentative Hinshaw. “Indeed there is.” “Would you mind telling us,” asked Representative Wilson, “ about the various presidents who meet in your office—the concerns they represent?” “T have no objection,” replied the witness. “They do not come as a body, but individually. They include, for instance, Mr. Stackhouse, president of the Cambria Steel Company ; Mr. Felton, president of the Pennsylvania Steel Company ; Mr. Wood of the Maryland Steel Company, and I could give you the names of a great many. Our office is more or less headquarters and they are always welcome and they frequently come in. Of course, I would do the same thing if I were in Pittsburgh or Philadelphia or Baltimore.” so on, Foreign Competition, “ How does the competition of England and Germany and other steel producing countries paying a tariff duty to get into the market of the United States affect yov in selling to the domestic trade here? Does it give you a THE IRON AGE April 19, 1906 monopoly or a practical monopoly of the American mar- ” asked ket, to the exclusion of these foreign factories? Representative Hinshaw. “Oh, no,” replied Judge Gary. “ At times they com- pete with us in such a way as materially to reduce our prices. Of course, it depends upon the time, and it also depends upon the circumstances which may prevail at the time. Germany, particularly, is very aggressive. So is Belgium. They use this country as a dumping ground probably to a very much larger extent than we would use theirs. They have high protection, and I have been in- formed they pay large bounties on export business. You know it is the policy of the German Emperor to take care of his country regardless of all other countries, and at times German manufacturers come into this country with very cheap goods. I should think that their. tariff and their bounties together would very much more than offset our tariff. We have not sufficient information so as to be able to state accurately how much their bounties are, but I think they are pretty liberal at times. I know they come in here with very low prices.” “Ts it not a fact,” asked Chairman Grosvenor, “ that in Germany and in many of the other foreign countries the tariff and the bounties can be regulated without any act on the part of the legislative body—that is to say, it can be done by order of the crown in a more or less private and confidential way?” “I understand so.” “Ts it not also true that Germany and Belgium and France, as well, own their railroads in large part, so that in fixing their export bounties they are able to manipu- late the freight rates?” “They can do that with goods for export, and there- fore, notwithstanding the tariff duty on steel products, we are brought into active, genuine competition with Germany and Belgium.” American Kalils Superior te Foreign. “How does their product compare with ours in qual- ity?” asked Representative Goulden. “TI do not think the rails are as good on the average as our own by a considerable margin. It is a question of composition and of practice.” “Do you think any portion of the superiority of qual- ity of the goods made in this country is due to the supe- riority of our labor? - You know we are very proud of the skill of our American mechanics; we think they beat the world.” “TI do not think it is so much the quality of our com- mon labor as it is that of our very expert labor. I think our superiority is largely attributable to the fact that we have spent a great deal more money in perfecting our machinery. I presume some of you gentlemen have been in the mills in Germany and Great Britain and Belgium and in our mills, and if so, you probably have been surprised at the amount of money that we have ex- pended as compared with the amount of money they have expended.” “T can understand,” said Representative Goulden, “how your organization can regulate the maximum price of its products, but I am not quite clear as to how you regulate the minimum price.” “We do not,” replied Judge Gary. “ And we cannot. We do not expect to. We do try to influence it, so that the market will not go to pieces and disorganize our forces and shut down our mills and throw our men out of employment. We cannot regulate it, however, and we never expect to.” “T notice that in the matter of exports the foreign export prices and our export prices run about the same,” said Representative Goulden, “ and there almost seems to be a sort of uniformity in the difference between the ex- port and domestic prices of steel products. How do you account for that?” “The laws of supply and demand influence them,” replied the witness, “ but they are not about the same— that is, there is considerable difference. For instance, take billets—the export price in Austria is $22 and in Belgium $19.50. The export and domestic prices of steel rails are within a dollar or two of the other all the way through.” Replying to questions by Representative Littlefield, April 19, 1906 Mr. Gary said that the duty on steel rails imported into Canada was the same as in this country, namely, $7.84 per ton, and that in addition the Canadians paid a bounty and maintained a “ dumping clause” equal to 50 per cent. of the regular tariff. Replying to Chairman Grosvenor, he said he knew nothing about the reports that Ameri- can manufacturers had