The Iron Age 1910-11-17: Vol 86 Iss 20

—_ New York, » November 17, 1910 Published Every Thursday by the DAVID WILLIAMS COMPANY 14-16 Park Place, New York ntered at the New York Post Office as Second Class Mail Matter, Subscription Price, Lond Siehio ond Mexico, $5.00 per Annum; to Canada, $7.50 per Annum; to Other Foreign Countries, $10.00 per * Annum. Single Copies, 20 Cents, T. RoorT, - - - - ” PRESIDENT W. H. TAYLOR, = - - ‘TREASURER AND GENERAL Manacer Haro.d S, BUTTENHEIM, - - - o - SECRETARY Geo. W. Cope, - - - . - A. 1. Findley, - - - - H. R. COBLEIGH, - - - - - } EoiTors MECHANICAL EDITOR Branch Offices Philadelphia, Real Estate Trust Building Chicago, Fisher Building Pittsburgh, Park Building Cleveland, American Trust Building Boston, Compton Building Cincinnati, 807 Andrews Building Milwaukee, 1417 Scorers Building. ‘ CONTENTS. Editorials Paap. Pert tO. bo oe ooes. nincibo-s tA cas-ctcmeeee ee 1107 Railroad Wamuiges. wicisicn &. . es ki caviesh We capes 14108 The Economy of Specifying Deliveries.............. 1109 A Record of Replacement Parts... . 6. cseeeeeeccccns 1109 Hxamining Ratings in Buying. ..i.. 00002. beewawens 1110 COFTODPOTMERINES cc ccc hc cewbecccee ce cca VENUES ct OUNe 1110 The Steel Corporation Acquires Heroult Patents.......... 1110 Hickman, Williams & Co.’s Pig Iron Handbook. .v.:..... 1110 The Ilgner System in Rolling Mills...:......6..eeeeeee 1110 The American Steel Foundries. ..........cccecscesecers 1111 ‘The Iron and Metal Market Reports............% 1112 to 1122 Iron amd. Fe OPE hs cc hace tcscenesossendes 1122 Pennsylvania Industries and New Taxation Laws....... 1123 Canadian Bounties on Iron and Steel...........eeeseee 1123 The Machinery Market Reports. ..........s.00065 1124 to 1132 Passenger Rates in Burope and America...........+.+++. 1133 The National Monetary Commission.............0eee06. 11383 Savings Bank Life Insurance in. Massachusetts........... 1138 Sixty Years’ Service with One Company. .......«se+e8+++ 1133 Personal: < 355d Abbess Geb dle <4 bce e"s Maasd yeh re ca ceenkeeere 1134 Qditualy: ip eR hal celeron wads af eric So nen +0. d Saeko oe 1134 Pittsburgh Steel Company Preferred Stock............+.+ 1134 Opening of the American Museum of Safety............. 1134 Refunds; 17); BMMPOLB «oo. onc ws pace ceccccgegecrestenese 1135 Riverside Gas Engine Installations. ............000e0e0% 1136 The Pittsburgh Foundrymen'’s Association............... 1136 National ‘Founders Association... i....56 5+. e ew enewweees 1126 Trade Publications.’. 2G cciniie cies ands dar abeeds oes 1137 The Pressed Radiator Company of America Continues to GOW. . « see eaiicesbine otek © > munch + op eebee 088 1138 Cast Iron Pipe Foundry at Port Arthur, Canada.......... 1138 iron Hoops for Wooden Water Tanks... oes ieee ee eee rere 11389 The Harbison-Walker Refractories Company,..««-.+++.-- 1139 New PubliGitieees <..cadicccc coebe atest eee see eeateeeue 1140 The Great Lakes’ Ergineering Works and Its Products... .. 1140 fhe Tariff Commission Campaign.........-+eeeseeeeees 1141 The Brittst Tron’ Market ev oi eed & ew awncc eeceesemeeense 1141 The Inspection of Castings... .)..2...--seeeeeeeecereenes 1142 The Steel Corporation’s Unfilled Orders. ink hie + Cae eevee 1144 Rest Mfg..Company..Contraghgye.?....... i .. bade. me 1164 The Néw Blast Purtiace ofthe Detroit. Iron & Steel Com of any. [Plustrated...cciccecccccvsvcsaseesesecesevess 1145 rhe Marshall . Foundry Company Secures a Government _ ORCERCE./ dian dath ches COGS « UNG ole bccn. de Ub oko Spe Sle ooo Eliwe rod City gril dee Wdekeies, (one. cays eee hee. 1148 The Belgian Machine Tool Market. Jllustrated.......... 1149 \merican Rolling Mill Company’s Research Laboratory 1152 \ Massachusetts Power Hack Saw. ennes. eeepeoese 1152 Lodge & Shipley Shop Systemsje-4ilustrated... . . nome + tL O3 lhe Sloss-Sheftield Compan —s Dividend. .,«:.+,.. 2155 Producer Design and on. TYilustrated....-.. 1154 \ New Method of Plating or aaranisine Hilustteted.. 1156 Philadelphia Foundry Foremeti.......++-+e+csre+ses 1156 Smoke Prevention.. Tilustrated..4...-+-)e--+-sesdh see 1157 Strength and Size Tests of Manila "Rope. “Trinstrated. <5... 1158 New Peters Double Acting Power Pump. Illustrated. , 1159 r ¢ Stover Pipe Wrench. Es Pek e mcs ute wb ec ot - 1189 ‘ Ww “ere ‘Killing Tite Ghent Melting Machine, Lllustrat ea: 2! 1960 \ Large Allis-Chalmers. Pumping: Engine. Hipgtyeten « 1161 Cisco Lathe, Tests, ......0s00te Fenty $0 4 oh ob heats i : ‘ — vs. Wood Flooring. .....6-+-+ceneweseeeernens i344 ‘ools-and Appliances. .....<s+++eeereceneey 1166 rent Metal Prices. ... 2.5. -3 + ees ae ee ene tees _ THE TRON Ac “ owthie! Rail Onan No Uniform Policy in Railroad a Wines Pig Iron Markets Firmer, While Finished Mate- rials Are Generally Quiet The conflicting reports concerning the policy of the railroads in the purchase of rails and equipment are evidently due to the fact that each road will be gov- erned by its own condition and needs. What has'come out in the past week indicates that while some roads will buy little, others are now considering purchases of considerable amount. In some cases orders are: being placed, or will be placed, without waiting for the de- cisions on rate advances; other requisitions will be de- termined by the outcome of the presefit héarings. The Louisville & Nashville Railroad has just placed 29,000 tons with the Tennessee Company. The Carne- gie Steel Company, in addition to 15,000 tons of the 30,000 tons bought by the Norfolk & Western, will roll 5700 tons for A. De Mayo & Co., and the leading in- terest has sold 8000 tons to the Kansas City, Mexico & Orient. The Pennsylvania Railroad and the New York Central are making progress on their rail esti- mates, and the Lehigh Valley, Lackawanna, New Haven and Boston & Maine are expected to place or- ders soon, while several Western lines are negotiating. The Boston & Maine’s requirements may be as high as 50,000 tons, representing an unusual programme of re- newals. Considerable steel car business is likely to be given out before the end of the year, 10,000 to 12,000 cars being included in late estimates. An early order is ex- pected from the Pittsburgh & Shawmut for. 2800 cars and a number of locomotives. Finished material markets- have~ been-.generally quiet,.and. buying on a large scale, apart from rail or- ders, is not looked for in the remainder of the year. The condition Wéfétofore noted in the merchant pipe market—a growing demand from jobbers whose stocks have been depleted—is more marked, and pipe mills are increasing their output. The tin plate situation has improved, ‘two or three “important: consumers having placed their orders for the first. half of 191%, though shipments in some cases will not ‘begin before spring. Sheet mills are fairly well sold into'1911, and ptices are maintained as a tule, though shading. has been re- ported in territory tributary to certain mills. In structural steel the chief railroad inquiry is from the Boston Elevated, which will require so00 tons for SREP Teas eRe Be + > Seas + t 1108 THE IRON AGE its Cambridge extension. The Virginia Railway is expected to contract for 2000 tons for bridges, While the 1.40c., Pittsburgh, basis is still shaded, 1.35c. is reported less common on plain material. Plate mills are running at about 50 per cent. of capacity, and the prospect for betterment is not im- mediate, unless car orders improve. About 10,000 tons will be needed for the two new battleships. The market for billets and sheet bars has not been seriously tested, so that the effect here of the firmer tendency in steel making pig iron has not yet been measured, All pig iron markets report a slight improvement, and in some sections prices show firmness, quite in con- trast with the willingness of furnaces a fortnight ago to accept low offers. In the Buffalo district sales of 35,000 to 40,000 tons, chiefly foundry grades, have raised asking prices 25c. to 50c. Southern irons con- tinue to lag behind Northern grades in activity, as $11.50, Birmingham, for No. 2, for which most Ala- bama sellers are holding where .1911 deliveries are involved, is above the Northern parity in a good many districts. In the Pittsburgh district considerable inquiry has developed for steel making iron, and both basic and Bessemer are firmer. One buyer has asked for 30,000 tons of Bessemer for the first half of 1911, and a steel foundry has asked for 10,000 tons of basic, while other inquiries amount to 10,000 tons. Bessemer iron is held more firmly at $15, at Valley furnace, and $13.50 is more generally the minimum quotation for basic, while some producers of the latter are keeping aloof from the market at this level. Railroad Earnings Inasmuch as there has been an average increase in railroad mileage in the past 10 years of 2.1 per cent. each year, comparisons of total earnings in differemt years are misleading, for the new mileage is neces- sarily capitalized and represents fresh investment. Even the statement of earnings per mile does not elim- inate all possible error, since by reason of double tracking, increase in the number of cars and locomo- tives per mile of line, and increase in their capacity per unit, the capital investment per mile of line is, over long periods of time, increasing, and a portion at least of this increase is capitalized. The statement per mile of line, however, is the most indicative of actual con- ditions of any that can be compiled. The following table shows the total operating revenues and net op- erating revenue, from rail operations, per mile of road reporting, as given by the reports of the Interstate Commerce Commission since the establishment of the uniform system of accounting on July 1, 1907: All Roads Reporting, Per Mile of Line, Rail Operations Only. 7-—1907-8.——7 7—1908-9.— -—1909-10.—. Gross. Net. Gross. Net. Gross. Net. ee S25 62 wit eee o $1,012 $335 $845 $291 $934 “$332 August ......... 1,065 873 896 326 1,002 383 September ...... 1,033 342 946 854 1,040 403 J ee 1,103 868 1,003 383 1,100 439 November ....... 968 291 916. 323 1,047 899 December ....... 852 227 887 296 936 288 January ....,... 759 180 789 218 888 242 February ........ 703 163 752 212 854 240 SE BON wise 4a 801 241 888 301 1,007 331 BOM 538 i Poa se 763 2°1 846 268 948 281 Se 760. 220 865 282 986 301 ME Sherr gee te 800 260 902 319 996 323 Average...... $8841 $268 $878 $298 $978 $330 November 17. i919 The returns for July last, just published by « ¢ Ip. terstate Commerce Commission, are in full as flows. Rail operations : Total. Per mile, FTONB ond ccc cece sewecessciguvses $230,615,776 $989 MeR i iS3 Fes. SiR INS FES TS 73,157,547 307 Ratio, per Cet s 2 6 vs.6 se aec ko8s nh abe 68.28 Outside operations : Net POVORUs 2 twice sc ealei ent hs $320,042 $1 Operating income, .......ce-eeereeees 64,746,769 979 Mileage operated... ....5..ccccccceces 238,168.64 The net revenue from outside operations is always light, the items almost balancing. The “ operatiig in- come” is obtained by taking the net revenué fron) raj operations, adding the net revenue from outside oper- ations, and deducting one-twelfth the annual taxes, The operating income thus varies from month to month in practically the same manner as the net revenue from rail operations, and these, as given in full for three years in the preceding table, can be studied as indicat- ing net results to the railroads. The fiscal year 1907-8 opened when traffic was at high tide, the total operating revenue of $1103 per mile of line in October, 1907, being probably the highest in the history of American railroading, although this can- not be stated with certainty, as there are not compara- ble statistics for previous years. The decrease there- after was sharp and conclusive, for only four months later, in February, the lowest revenue, $703, for any month in the period was shown. Before scrutinizing the figures of gross and net rev- enue in detail, however, it is well to observe their re- lations with each other. The net is the gross, less operating expenses, and the ratio of operating expenses to gross is called the operating ratio. As it increases the net operating revenue decreases. The lowest operating ratio in the fiscal year 1907-8 was 64.99 per cent. In the next fiscal year a much lower minimum was reached, 61.80 per cent., in Octo- ber. Operating ratios have been as follows: R565 oid alse éeRe 66.08 1907-8 69.67 SO Ges o's ScD w RS eos 66.24 FAP, 1940.4 sscengie... 68.28 It will be observed that there has been no wide variation, such as might be surmised from the amount of discussion which has recently been indulged in. The gross and net revenues from rail operations have hung pretty closely together month by month. Examining the gross revenues in more detail, it will be observed that the average for the fiscal year just ended, $978, well exceeds the average for the preceding fiscal year, and still more the average for the fiscal year 1907-8, which contained four very good months, an average month, and seven poor ones. A thousand dollars a month may well be considered a very good average, for the best month shown was only 10 per cent. in excess of this. The past fiscal year has come very close to showing this average, and so recent a month as March exceeded it, while July just past ‘showed $969. On the whole, then, it must be inferred that railroad gross earnings this yeat have been running pretty heavy, while there has been a steady and very great increase from the lean months closely following the panic of October, 1907. The month of heaviest gross operating revenue was October, 1907. In that month the net operating reve- nue from rail operations was, aS seen in the table, $368. That stim, however, was exceeded once in the following fiscal year, and it has been éxceeded no less than four times in the fiscal year just ended. Even the cursory examination of the figures which Novel! r 17, 1910 been given indicates pretty clearly that rail- ings, whether gross or net, have become quite 1e past year, and the trend since last spring, ‘htly downward, is by no means alarmingly most unfavorable feature of the trend at the the latest statistics is that — for July last revenue was quite large, $969, while the _ was relatively small. In a measure this represents advanced wages, but there has nuch said, whether rightly or wrongly, about sition of railroads to pad their expenses in six months that it would be unreasonable to for granted that all the figures for the past irs are absolutely comparable. stake of the steel industry in railroads has nably changed greatly in the past few years. ck to the eighties, the prime interest of the le was in railroad building. In 1887 there ncrease of no less than 12,876 miles in the railroad in the United States, the average nerease for the three years 1886-7-8 being In 1891-2-3 there was another maximum, ‘age for these three years being 9387 miles. ibsequent time has the inerease in a single | equal even to two-thirds of either of these The average annual increase in the past has been 4470 miles. In the eighties railroad ption of iron and steel was chiefly in the build- railroad, and that in the strict sense, for there nuch less business that equipment amounted less per mile of line than it does now, r the industrial depression of 1893-8 the railroad began a fresh course of expenditure. In this expenditure was not nearly so much for new t was for the improvement of existing railroad. ocomotives were bought in large numbers. s were replaced with heavy cars and soon eavy cars became almost exclusively all-steel | underframed cars. Light rails were taken out and heavy sections substituted. Existing ees were replaced by heavier structures. In the hich actuated the railroad industry, and in the i the funds by which the expenditures were paid re was little, if any, difference between the ent in the eighties and the recent movement. earlier time it was necessary to build track to vet to the business, which was increasing, but of late not been so necessary to do this as to find equip- to handle the business standing beside the track, the country as a whole there is one mile of rail- \r every 13 square miles of surface. ese two great movements are past, and it may be nothing resembling them will occur for years to but meanwhile there has come what amounts to ally a new source of demand for railroad mate- that arising from its wearing out. At first iron ‘tcel products were required for building; now ire required for upkeep. Comparisons over.a period of years. will show that with remarkable teainess, amd subject to really only minor fluctua- the total ton-mileage of the railroads of the ry doubles every 10 years. Thus while in 1887 roduction of rails was 2,100,000 tons, more than two thirds as much as last year’s production, the work the rails in track had to perform, irrespective, ob- v, of how many miles of them there were, was THE IRON AGE 1109 less than one-fourth of what it is to-day. As with rails, so with locomotives and cars. A feature of this change in the character of rail- road demand which calls for particular attention at this time, in view of the discussion of rates, borrow- ing power, &c., is that the expenditures for this upkeep are a part of operating expenses, and must be met be- fore net income is ascertained. This the Interstate Commerce Commission requires, the new accounting system setting up depreciation funds for the purpose. The Economy of Specifying Deliveries Manufacturers who specify the date of deliveries on all purchases find that a very material saving ensues, amounting at times to the equivalent of an increased working capital. When production exceeds orders the seller is apt to hurry shipments, billing goods as soon as possible, in order that he may receive the money at the earliest moment. Also, he is prone to ship first that which is most convenient for him to produce at the time, regardless of its place in the routine of manufac- ture of his customer. To take a concrete case: A ma- chinery builder who had placed a general order for the castings of a large lot of heavy machines, received first the counterweights, the very last part required by the assembling room. The bill came with the goods. The outcome was the establishment of the rule of specifica- tion of date of shipment. If a lot of castings is needed September 1, that date is specified and a bill dated earlier will be paid only upon the agreed basis. In one instance delivered goods, involving the tidy sum of $5000, specified for October delivery, were billed in August. Were the bill accepted the account would have been settled in September. Under the contract it was paid 60 days later, giving the buyer the use of the money for that considerable length of time. In the long run a working capital has a larger byying power. The rule may even obviate at times the necessity of ac- commodation from the banks. Its adoption would be worthless, however, excepting when coupled with a complete shop system of keeping track of production, because in order to specify deliveries the date must be foretold with some degree of accuracy. A Record of Replacement Parts A record of the replacement of parts is valuable to the machinery builder, both for maintaining a supply of repair parts for customers and as a guide to future design. The weaknesses of a machine are thus tabu- lated. The experience of the Bullard Machine Tool Company, Bridgeport, Conn., culminated in this system several years ago. Successive replacement orders for a certain pinion were received. They led to the exam- ination of the order files, revealing a hitherto unrealized weakness, for breakages of the part had been more nu- merous than was necessary. The pinion was replaced by one of a high quality steel, and the orders dwindled. From this as a beginning a careful record of all replace- ments was maintained by the designing department and has proved of inestimable importance. As models are imptoved from time to time, such data furnish proof of satisfactory strength or of the need of improvement. Replacements will always be necessary, no matter how perfect the design of a machine, The fault may : ' ' 1110 THE IRON AGE be with the workmen of the customer; and again most machines have their weak points, no matter how great the skill and care of the designer; ultimately, wear is responsible for replacements. The manufacturer is wise if he is always ready to make immediate ship- ment. It should be an invariable rule to ship on the date of receipt of the order, and relieve the customer of the handicap of an idle machine, since on it may depend the procession of shop operations. Careless- ness in such details may be costly when the user is again in the market for machinery. Parts should always be in stock. To manufacture them without an accurate system is expensive. The record of replacement orders furnishes a basis of cal- culation for extra parts in sending lots of machines through the works. Examining Ratings in Buying The custom is growing of examining credits in buy- ing as well.as in selling. The theory is that to establish business relations of any sort with a house which is not founded upon a substantial basis is unwise. The new- eomer in a field of industry may be poor in cash but rich in ability and energy and product. An older con- cernemay be rich in tradition and. reputation but weak in existing management. Actual rating does not al- ways indicate the desirability or undesirability of be- ginning relations, either it’ buying or in selling. As the good sales department watches. customers’ credits so should the good buyer. The quality of product is often affected by the same conditions which produce financial stress. For staple products many buyers like to tie up with one good house, which learns to understand their wants, and thus avoid much of the trouble and cost of experimenting. In purchasing equipment the certainty that the maker will remain in business is insurance against difficulty in obtaining repair parts. Correspondence Single Spaced Correspondence To the Editor: We are pleased to see your protest against single spaced correspondence, though we are not pleased with the effect of double spacing nor the necessity of too careful calculation in selection of size of sheet for each communication, bulky accumulation of copy, &c. What we would like to see is a space and a half. Can you influence typewriter manufacturers to arrange for this spacing on part if not all of their machines ? Tue W. J. CrarK ComMPany. SaLEM, Onto, November 11, 1910. ——_-—+#e — -—_- A member of ‘the Copper Producers’ Association says that the charge made last week that the monthly figures of the association are manipulated is false and adds: “The production*for October, which was very much. larger than was generally expected, is accounted for in part, at least, by.a very,large contribution to the output by a single refinery.. There are refiners here in the East which im the course of business always have between. 60,000,000 and 70,000,000 pounds of copper ‘ in process.’ It so happened that the refinery in question carried over from previous months a _ considerable quantity, which it was able in October to put through the refining process, and it was this abnormal situation which resulted in the extraordinary output as presented in the October statement.” November 7; 1910 The Steel Corporation Acquires. Heroult )atents The United States Steel Corporation tec: ly . ercised options it has had for many months, an which were about to expire, and has acquired the rights {or the United States in the Heroult process for lectric steel making and refining. As is well known two 15-ton Heroult furnaces, the largest in use, hay; 1 : been operated for more than a year, one at the South Chj- cago works of the Illinois Steel Company and the other at the South works, Worcester, Mass., of the American Steel & Wire Company. At South « hicago several thousand tons of rails and a considerable top- nage of axles have been made of electric steel, the Heroult furnace being operated as an adjunct of the Bessemer converter, At Worcester the Heroult fyr- nace has been employed to refine open hearth stee! which has entered into wire rope and other high grade wire products. The: practice at Worcester has reached a forward stage of development, exceptionally high quality steel being made from ordinary. materials, Operations involving the products to which electric steel has been applied at South Chicago are still re- garded as in part experimental. —_—_-e Hickman, Williams & Co.’s Pig Iron Handbook Hickman, Williams & Co., whose main office is in Louisville, Ky., with branch offices in eight. leading cities, have issued the third edition of their pig iron handbook. It is a volume of 159, pages of pocket size, bound in flexible leather. It contains articles on “ Ef- fects of Variation in Constituents of Cast. Iron,” by W. G. Scott; “ Metallurgy of the Cupola,” by H. E. Field; “Constitution of Pig Iron,” by Robert For- sythe; a chapter on constituents of pig iron by H. L. Williams; tables giving approximate analyses for various kinds of castings; tables showing the composi- tion of alloys used in castings; numerous statistical tables are presented on the production and consump- tion of pig iron; average monthly prices of various kinds of pig iron for a series of years; Lake Superior ore prices and shipments; coke statistics; tariff duties on pig iron and related materials, &c. Numerous analyses are given of special brands of pig iron and coke for which the firm is selling agent. A number of pages are ruled with blanks for the insertion of data on analyses of pig iron and coke. ————+e_____ The Ilgner System in Rolling Mills.—In The Jron Age of March 3, 1910, reference was made to the patent litigation then pending in'London affecting the Ilgner patent for the electrical driving of reversing rolling mills. The decision of the case, which was brought by the German company controlling the Ilgner patents, against the Electric Construction Company, Ltd. of England, was against the Ilgner patents on the ground of lack of subject matter.. An appeal was taken and on October 20 the Court of Appeals at London affirmed the adverse decision. The court held that the only in- novation in the Ilgner system for reversible. rolling mills was the employment of a ‘heavier flywheel than had been employed in the well-known Ward-Leonard control. The exhibit of foundry facings, supplies and equip- ment, the latter including tumbling barrels, molding ma- chines, core ovens and an overhead: track system, brass melting furnaces and separators at the Chicago plant of the S, Obermayer Company October 26, was visited by over 400 persons. The educational feature appealed to the instructors of the various'technical schools in Chi- cago who attended with about 100 of their senior stu dents. er 17,- 1910 Nov The American Steel Foundries eighth annual report of the American Steel es, covering the year ending July 31, I9I0, the following profit and joss account: from operation of plants and net income ibsidiary companies (after deducting man- uring, selling, administrative and head listrict office expenses, and before deduct- depreciathon) .4 oes ie ee cwietceeseGeoes $1,839,984.48 ‘ icome : discount and exchange... ..$27,556.29 from investments and loans.. 17,698.67 . g furid promt is tS AA 2,053.81 lANGOWUS xc ice tase b eves. cous 18,778.83 - - - 56,087.60 11 ICAO Ac Au sh ke hee dale ak eee eae $1,896,072.08 erest on borrowed money........ $33,332.54 erest on debentures. .........06. 137,472.00 est on bonds: itstanding ..........$176,783.75 55,516.25 sinking fund........ 232,300.00 i sinking fund installment and profits ices shes. dh okate cueeew oo 107,053.81 Depreciation of buildings, plant and juipment (all properties)........ 355,693.05 —_——- 865,851.40 Balance—®@et MGOME. . 0. ccs pcehenes Sesuen $1,030,220.68 he balance sheet as of July 31, 1910, is as follows: Assets. Real estate, buildings, plant, machinery, tools, equipment, patents and goodwill: \s per balance sheet of July 31, 1909 wcccccssaweaesegeevesys $19,961,095.36 \dditions during the year....... 598,854.87 $20,559,950.23 Real estate not used for business PUPPOSO@BS weer eee tanec eeresses 298,630.15 ——————-$20,858,580.38 Sinking fund assets (exclusive of bonds purchased and held by trustees) : Cash and. accrued. interest... .....cercceseases 64,628.26 Securities : Notes secured by first mortgage. . $40,000.00 Miscellaneous securities. ........ 139,264.08 $179,264.08 Inventories: todas (seaside + sh $2,206,120.75 Accounts and bills receivable (less CHETVER) ah cab ouak hk eee as 3,642,878.33 Cash ....i2 tidus ca wiw te Vase eens 645,463.67 —_—————_ 6,673,726.83 ance premiums, &c., prepald.......... ea 5% 36,285.33 Total. .o3.0 23 aph skp cesadrneeae tomate cena $27,633,220.80 Liabilities, Capital stock (authorized and issued), 171,840 shares Of @10G0' GROW. ois ee eee es eke $17,184,000.00 Bonds and debentures : First mortgage 6 per.cent 10-30 year sinking-fund gold bonds.. $3,500,000.00 ess redeemed and held by trus- tees of sinking fund.......... 976,000.00 $2,523,500.00 First mortgage 5 per cent. gold bonds of American Steel Cast- ing Company (due November 1, 1912). cs cond cess ne een eked 446,000.00 our per cent. depentureS....... '. '* ’ per cent. debentures 8,436,800.00 6,406,300.00 Accounts payable, os'iis \osat~w sete a $1,154,407.56 Payroll acerus@s é..cwialis ikea Wssle 236,442.91 \ccrued interest on bonds and de- dentures .. . sissies weed evew Wa 144,311.00 idend No, 2 (payable August 15, 1910): cd. ts ORR eee ee ae 214,800.00 ———————_ 1,7 49,961.47 Depreciation and renewal reserves............++ 1,120,105.18 Bond sinking fund (acecued since August 1, 1907) 493,941.94 Profit and loss account : \s per balance sheet of July 31, 190 wc usavercsbcuesaeeraned $78,291.53 Net income for the year ending July 31, 1910, as per annexed statemaeit: ..5 coc beek wesc bea 1,030,220.68 , $1,108,512.21 educt dividends No, 1 and No. 2 ‘ for the quarter-years ending Apr - ease ’ . pril 30 and July 31, 1910 429,600.00 678,912.21 Total... v0.04 ¢osn estes kee aues sae eee $27,633,220.80 President Kelley’s Comments he statement of President Wm. V. Kelley says in rt: THE IRON AGE The gross sales for the year were $17,173,740.98 and the gross earnings from operations of plants and other income after deducting manufacturing, selling, administration, head and district office expenses and management commissions, were $1,896,072.08. The net income of $1,030,220.68 ap- plicable to surplus shown in the balance sheet, is the re- mainder after deducting all interest and other charges, in- cluding $1,199,983 for repairs and maintenance and $355,- 693.05 for depreciation of fixed properties and also after appropriating $162,570.06 for the sinking fund for the company’s first mortgage bonds. The sinking fund appro- priation, while properly charged against income, is in reality a setting aside of profits for liquidating the bonded debt, and the retirement of bonds from the fund benefits stockholders by increasing the value of the company’s property. From the bond sinking fund $138,500 par value of first mortgage bonds were bought and retired during the year and the balance of the accretions to the fund, together with the annual installment paid to the trustee October 1, will purchase at least $178,500 more, making the total retired or provided for to date $1,155,000, out of the original issue of $3,500,000. Charges aggregating $595,854.87 were made to the cap- ital account during the year, for real estate, new construc- tion, additions, machinery and equipment, care being taken that only such charges were made as materially increased the value of the company’s property and were not properly chargeable elsewhere. In addition, the further sum of $300,- 582.10 was spent for replacements and for minor additions and improvements and charged to the depreciation reserve. An oppertunity occurred to secure additional land ad- joining the Alliance plant, and as the trend of business in- dicates the necessity of much greater productive capacity in that locality and as the opportunity was not likely to be repeated, advantage was taken of it and the land acquired at a reasonable price. It is not intended at present to improve the property, but use it as a convenience in the operations of the present plant. At Indiana Harbor a new plant for the production of light weight castings has been completed and put into successful operation with the result of lowering costs and increasing the output of the entire plant. A tract of land adjoining the company’s property at the same plant came into the market at a very attractive price, and as its use is very desirable to facilitate the plant’s operations it was purchased, Since the close of the fiscal year shipments and earnings have been satisfactory, but orders on hand have shown a steady decrease from month to month for several months, and there is as yet no definite betterment in sight, although there is a decided change in sentiment, and the opinion seems to be that better business conditions will prevail within a short time. Since the five-year contract with the president and the three vice-presidents of the company, under which they share in the profits in excess of.a fixed sum, ex- pired July 31, 1910, the annual report gives a review of the five-years’ record. Prior to August 1, 1905, the company’s largest 12-months’ shipments did not ex- ceed 120,000 tons. For the 12 months ending Septem- ber 30, 1910, shipments were over 205,000 tons, the largest month’s shipments being somewhat less than 20,000 tons, so that present capacity may be taken at not less than 220,000 tons, or an increase of about 70 per cent. The financial operations of the five years are also reviewed. The capital expenditures in the five years were $1,710,135 and the depreciation re- serves $1,432,307. The capital charges cover a new plant at Pittsburgh, new plant and equipment at In- diana Harbor, additional land at Alliance, Indiana Harbor and Hammond, and new buildings, additions and equipment at various plants. The gross sales for the five years were $68,036,955 and the net earnings $4,497,131. The net earnings, together with the prof- its paid into the sinking fund —$727,899— make @ total for the five years of $5,225,030. The largest shipment of tin plate ever received in Texas arrived at Port Arthur, Texas, recently, con- signed to the Texas Company. It will be used for casing oil at the refinery of the company at Port Arthur. The tin plate came from Swansea, and the duty on the shipment amounted to $25,000. The Cincinnati [ron & Steel Company denies the press dispatches saying that it has leased the mill of the Hazleton Sheet Steel Company at Hazleton, Pa. The Iron and 4 ' A Comparison of Prices Advances Over the Previous Month in Heavy Type, i Declines in Italies. At date, one week, one month and one year previous, Novy. 16, Nov. 9, Oct. 19, Nov. 17, PIG IRON, Per Gross Ton: 1910. 1910. 1910. 1909. Foundry No. 2, standard, Phila- Gene. BSS See ves oes $15.75. $15.75 $15.75 $19.00 Foundry No. 2, Southern, Cincin- tal fis V5 b bie te 2 abide b 4's 14.25 14.25 14.25 17.75 Foundry No, 2, local, Chicago... 16.0C 16.00 16.00 19.00 Basic, delivered, eastern Pa.... 14.75 14.75 15.00 18.50 Basic, Valley furnace......... 13.25 13.25 13.00 17.25 Bessemer, Pittsburgh.......... 15.90 15.50 15.90 19.90 Gray forge, Pittsburgh........ 14.15 14.15 14.15 17.40 Lake Superior charcoal, Chicago 18.00 18.00 18.00 19.50 : BILLETS, &c., Per Gross Ton : ' Bessemer billets, Pittsburgh... 23.50 23.50 23.50 27.00 Forging bil.ets, Pittsburgh..... 98.50 28.50 29.00 31.00 : Open hearth billets, Philadelphia 25.50 26.00 26.00 30.60 ' Wire rods, Pittsburgh......... 28.00 28.00 28.50 33.00 OLD MATERIAL, Per Gross Ton: i® Steel rails, melting, Chicago.... 13.50 13.50 13.50 17.25 ' Steel rails, melting, Philadelphia 13.50 13.50 13.75 18.00 Iron raiis, Chicago........-... 16.00 16.00. 16.00 20.50 ' Iron rails, Philadelphia........ 18.00 18.00 18.00 21.00 Car wheels, Chicago........... 13.50 13.50 14.00 18.50 Car wheels, Phitadelphia....... 13.75 13.75 13.75 17.50 Heavy steel scrap, Pittsburgh... 14.25 14.25 14.25 17.50 Heavy steel scrap, Chicago..... 12.25 2.25 12.25 16.00 Heavy steel scrap, Philadelphia. 13.50 3.50 13.75 18.00 FINISHED }RON AND STEEL, ie Per Pound: Cents. Cents. Cents. Cents. Bessemer steel rails, heavy, at A a cin o's o'a eS Sake hc dé be 1.25 1.25 1.25 1.25 a Refined iron bars, Philadelphia, 187 1.37 140 1.65 rs | Common iron bars, Chicago.... 1.35 1.25- 185 ‘'1.55 : Common iron bars, Pittsburgh.. 1.45 1.45 1.45 1.70 Steel bars, tidewater, New York 1.56 1.56 1.56 1.66 Steel bars, Pittsburgh......... 1.40 1.40 1.40 1.50 he it Tank plates, tidewater, New York 1.56 1.56 1.56 1.71 ' Tank plates, Pittsburgh........ 1.40 1.40 1.40 1.55 iy Beams. tidewater, New York... 1.56 1.56 1.56 1.71 Beams, Pittsburgh............. 140 140 140 1.55 Angles, tidewater, New York... 1.56 1.56 1.56 1.71 : 4 Angles, Pittsburgh............ 140 140 1.40 1.55 ‘4 Skelp, grooved steel, Pittsburgh. 1.25 1.25 1.30 1.55 Skelp, sheared stecl, Pittsburgh. 1.35 1.35 1.40 1.60 ; SHEETS, NAILS AND WIRE, Per Pound : Cents. Cents. Cents. Cents. Sheets, black, No. 28, Pittsburgh 2.20 2.20 2.20 2.30 Wire nails, Pittsburgh*........ 1.70 1.70 1.70 1.80 . Cut nails, Pittsburgh.......... 1.60 1.60 1.65 1.80 Barb wire, galy., Pittsburgh*... 2,00 2.00 2.00 2.10 . METALS, Per Pound: Cents. Cents. Cents. Cents. Lake copper, New York........ 13.00 13.00 12.871413.25 Electrolytic copper, New York.. 12.8744 12.8714412.80 13.00 Spelter, New York..........+.. 5.95 5.95 5.60 6.30 : Spelter, St. Louis.........+e0- 5.80 5.80 5.45 6.15 Bee | [a Mey BUEK.. ts so s0tes sve 440 440 4.40 4.40 ee | the wt: Laon eee ot 4.30 4.30 4.27% 4.25 ea 14 Tin, New York................ $6.50 36.25 37.62% 30.75 | Antimony, Hallett, New York... 7.75 7.75 7.75 8.25 ; st) Sie. See WO. ccs ssees 45.00 45.00 45.00 45.00 a Tin plate, 100 Ib., New York... $3.84 $3.84 $3.84 $3.84 i : * These prices are for largest lots to jobbers. a 4 > . e . i Prices of Finished Iron and Steel f.o.b. m Pittsburgh Freight rates from -Pittsburgh in carloads, per 190 Ib.: New York, 16c.; Philadelphia, 15c.; Boston, 18c.; Buffalo, lic.; Cleveland, 10c.; Cincinnati, 15c.; Indianapolis, 17c.; tt Chicago, -18c.; St. Paul, 32¢c.; St. Louis, 224%4c.; New Or- 3 leans, 30c.; Birmingham, Ala., 45c. Rates to the Pacific : Coast are 80c. on plates, structural shapes and sheets, No. :s 11 and heavier; 85c. on sheets, Nos. 12 to 16; 95c. on sheets, No. 16 and lighter; 65e. on wrought: boiler tubes. Structural Material.—I-beams and channels, 3 to 15 in., inclusive, 1.40c. to 1.45c., net; I-beams over 15 in., 1.50c. to 1.55c., net; H-beams over 8 in., 1.55c. to 1.60c.; angles, 3 to 6 in., inclusive, %4 in. and up, 1.40c, to 1.45c., net; angles over 6 in., 1.50c. to 1.55c., net; angles, 3 in., on one or both legs, less than 4 in. thick, 1.45c¢., plus full extras as per steel bar card, effective September 1, 1909; tees, 3 in. and up, 1.40c. to 1.45c., net; zees, 3 in. and up, 1.40c. to THE IRON AGE November Metal Markets 1.45¢c., net; angles, channels and tees, under 3 1. Ake base, plus full extras as per steel bar card of Sey) .ber 1 1909; deck beams and bulb angles, 1.70c. to 1.75c., net: hand rail tees, 2.50c.; checkered and corruga' ston, 2.50c., net, Plates.—Tank plates, 4 in. thick, 6% in. up i. 100 jy wide, 1.40c. to 1.45c., base. Following are stipul: s ms. scribed by manufacturers, with extras to be add ved price (per pound) of plates: Rectangular plates, tank steel or conforming to ma ers’ standard specifications for structural steel dated 6, 1908, or equivalent, 44-in. thick and over on thinnest re 10) in. wide and under, ion to but not including 6 in. wide’ are base. Plates up to 72 in, wide, inclusive, ordered 10.2 1b. per square foot are considered 4-in, plates. Plates over 72 in. \ must be ordered \-in, thick on edge, or not less than 11 lb. per square foot, to take base price. Plates over 72 in. wide ord ed less than 11 lb. per square foot down to the weight of 3-16-in, take the price of 3-16-in. Allowable ov erweight, whether plates are ordered to gauge or weight, to be governed by the standard specification s of the Association of American Steel Manufacturers. Gauges under \%-in. to and including 3-16-in. on CREAR AR a bite 5 66d bin wath a epee es bee » $0.10 Gauges under 3-16-in. to and including No. 8..... 15 Gauges under No. 8 to and including No. 9....... 25 Gauges under No, 9 to and including No. 10...... 10 Gauges under No. 10 to and including No. 12..... 10 Sketches (including all straight taper plates), 3 ft. GUNG GVOC OE TORR ec GUS chet Wace. 10 Complete circles, 3 tt. in diameter and over...... 20 SPOReGe Me We WE 0 kn 6 ak daa a he eee eee e's 10 “A, B. M. A.” and oremnens firebox steel........ .20 Still bottom steel.. ont shen d Was 000m > ar 30 Marine steel....... bE Mathes oh etb Esbe ree 40 Locomotive firebox steel. ib oo Obs e eC EE ales < teeek, 00 Widths over 100 in. up to 110 in., inclusive...... .05 Widths over 110 in, up to 115 in., inclusive...... .10 Widths over 115 in. up to 120 in., inclusive. 15 Widths over 120 in. up to 125 in., inclusive...... .2! Widths over 125 in. up to 130 in., inclusive...... 50 WEMEEAA OCC LON id's & 0 0-1 ono bre.ceeee 0 seni 1.00 — to lengths or diameters under 8 ft. to 2 inclusive. Ret wedeveadas etal sana 25 Cue to lengths or * diameters under 2 tt. to. i ft., inclusive..... ane nA 2 ore dp ¢ ekiiemets cc's 00 Cutting to lengths or diameters under - etaanhns 1.00 No charge for cutting rectangular plates to lengths 3 ft. and over. TERMS.—Net cash 30 days. Sheets.—Makers’ prices for mill shipments on sheets in carload and larger lots, on which jobbers charge the usual discounts for small lots from store, are as follows: Blue annealed sheets, Nos. 3 to 8, 1.60c.; Nos. 9 and 10, 1.65c; Nos. 11 and 12, 1.70¢.; Nos. 13 and 14, 1.75¢.; Nos. 15 and 16, 1.85¢c. One pass, cold rolled, box annealed sheets: Nos. 10 and 11, 1.85c.; Nos. 12 to 14, 1.90¢c.; Nos. 15, 16 and 17, 1.95c.; Nos. 18 to 21, 2c.; Nos. 22, 23 and 24, 2.05c.; Nos. 25 and 26, 2:15c.; Nos. 27 and 28, 2.20¢c.; No. 29, 2.25c; No. 30, 2.25c. Three pass, cold rolled sheets, box annealed, are as follows: Nos. 15 and 16, 2.05c.; Nos. 17 to 21, 2.10c.; Nos. 22 to 24, 2.15¢.; Nos. 25 and 26, 2.20c.; No, 27, 2.25c; No. 28, 2.50c. Galvanized sheets, Nos. 10 and 11, 2.20c.; Nos. 12, 18 and 14, 2.30c.; Nos. 15, 16 and 17, 2.45c.; Nos. 18, 19, 20 and 21, 2.60¢.; No. 22, 2.60c.; Nos. 23 and 24, 2.70c.; Nos. 25 and 26, 2.90c.; No. 27, 3.05c.; No. 28, 3.20c.; No. 29, _330c. ; No. 30, 3.50c. Painted roofing sheets, No. 28, $1.55 per square. Galvanized sheets, No. 28, $2.75 per square for 2\6-in. corrugations. All above prices are f.o.b. Pittsburgh, terms 30 days net, or 2 per cent. cash discount 10 days from date of invoice. Wrought Pipe.—The following are the jobbers’ carload discounts on the Pittsburgh basing ecard on wrought pipe, in effect from October 1: Butt Weld. 7——Steel—, -——Iron.—~ Black. “- wack. melt. » Mh 36 Al AM, ésivdn needeoton 72 Sy Uh. a be Be ain waa eet oe . I 63 71 59 Ge 26 On oxy ce eek t oo fa FO 69 75 65 2 06 -SYRM Piss ewes. 80 70 76 66 Lap Weld BARGE cetaceans cp ee naleien 76 66 72 62 gap tO BSR Ss. Sek wcbads : 78 68 74 64 41, to 6 in..... bose hie eOUee 67 73 63 TPR RS 65.4) eae wie ot ae 59 71 55 i ee Se: 51%. - Butt Weld, — strong, plain ends, card weights. o ‘a She BB Bhai ota! 6 ua wethle dee 69 59 ov hea 6.00 Heeewan oan ae 68 70 64 #7 to 1% in..... wes Cain ete TO 72 74 68 2 te Bs 53555... 79 69 . tap Weld, extra strong, plain ter card weet. 65 $i, WE. oe hee 71 73 67 4% 20°C. I. oc e'devee eave ae 70 72 66 OO Bias» oingis «2 oe ones SY 59 65 55 Rte. 39 Mee 54 60 50 Butt Weld, double extra. strong, plain en ends, card weight. Mists .ws beveveouesrewes 60 54 © to: 1M MM oo visd aaa pea ot 63S? - £ & See 63 65 iS oh an Weld, double extra strong, “pain en ends, card yoett 24 to 4 IMiss ci'scis cecevetel ae 81 63 57 Ot 00. G Bide cas evnsdicciacee 60 62 56 T OO Be basen tka ae 49 55 45 N r 17: 1910 Plugged and Reamed. 2to3in. Butt Weld{ Will be sold at two (2) points lower basing (high- er price) than merchant or card weight pipe, Butt to 4 in....Lap Weld |or Lap Weld as specified. e discounts are for “card weight,” subject to the tion of 5 per cent. Prices for less than carloads are ints lower basing (higher price) than the above dis- r Tubes.—Discounts on lap welded steel and char- jiler tubes to jobbers in carloads are as follows: Steel. Iron. in)... .c.08 4/6 4630 thet OC Od eee hele a ele ee 49 43 OV, MisavcagesescVredeawesesaduew's 61 43 « 0 oa oe eel a: Meteo te idie-o/ele' Sl 6 SOS les bee oe 63 48 ATi . a:0.0 ebigel 6 wae 6 eb ceed keen ba 0h 69 55 Di «sc mmayvemig tie «da 66 Vaan k Gace one’s 61 43 ind smaller, over 18 ft., 10 per cent. net extra. nd larger, over 22 ft., 10 per cent. net extra. an carloads to destinations east of the Mississippi e sold at delivered discounts for carloads lowered by for lengths 22 ft. and under; longer lengths, f.o.b. \ ire Rods.—Bessemer rods, $28; open hearth and chain . yi) Rivets.—Structural rivets, % in. and larger, se; cone head boiler rivets, % in. and larger, 2c., i. and 11-16 in. take an advance of 15c., and % in. n, take an adyance of 50c.; in lengths shorter iso take an advance of 50c. Terms are 30 days, ».b. mill, Steel Pittsburgh LsUILDING, November 16, 1910.—(By Telegraph.) Pig {ron.—Inquiries are reported in the market for 45,- (KM) 50,000 tons of Bessemer and basic iron, mostly for n the first half of next year. One consumer is re- ( e inquiring for upward of 30,000 tons of standard Bessemer iron for first half. The American Steel Foundries market for 10,000 tons of basic for its Alliance, another Western consumer for several thou- nd s of basic, and there are other inquiries. For stand- rd B mer iron for first half, the lowest price being quoted illey furnace, and 1500 tons is reported to have at this price for first half delivery, the iron to be aking ingot molds. A sale is also reported of 500 -tandard Bessemer for December and January at $15 Valley furnace. A Valley furnace interest has sold KW) ; of basie for first half at about $13.25, at furnace, of 500 tons of basic has been made at $13.75, irnace, the sulphur and phosphorus running slightly an in ordinary basic. We quote for delivery in the rter and first half of next year as follows: Stand- Bessemer iron, $15; malleable Bessemer, $13.75; basic, 813.25 to $13.50; gray forge, $13.25, and No. 2 foundry, 813.72 S14, all at Valley furnace, the freight rate to Pitts- ig WUC. a ton. Oni nt; \1 \ There is a fair amount of new inquiries for t and tin bars, but mostly for shipment in this month. Several large makers of sheets and tin buy bars under sliding scale contracts are re- gotiating for their supply for first quarter of next (n account of the firmer feeling in Bessemer and ron the opinion prevails that prices on steel are ibly as low as they will go. We quote Bessemer hearth billets at $23.50 to $24; Bessemer and h sheet and tin plate bars, $24.50 to $25, and lets, $28.50 to $29, all f.o.b. Pittsburgh, Youngs- Wheeling district, (By Mail.) port of sales of standard Bessemer iron at $14.60 “1! 75, at Valley furnace, for delivery in first half of printed last week, has caused comment in the attempts have been made. to discredit the cor- | these sales and the prices. One statement widely was that the only sale, located was one of 1600 if-Bessemer iron, running up to 0.12 per cent. s and as high as 0.08 per cent. sulphur. This s reported to have been sold at $14.60, Valley fur- \ Valley furnace in the early part of this month did consumer in this city 600 tons of off-Bessemer orward delivery at $14, Valley furnace. The iron ‘andard Bessemer grade, except that sulphur was ip to 0.08 per cent.; many furnaces would sell this ible Bessemer. However, our report last week of (000 tons or more of standard Bessemer iron for in first half of 1911 as low as $14.60, Valley fur- aS absolutely correct in every way. The iron was | Bessemer, phosphorus not to exceed 0.10 per cent. ‘hur not to exceed 0.05 per cent. Further, more than ago sales of standard Bessemer iron were made be- », Valley furnace; in fact, $14.75, at furnace, was Considerable new inquiry for pig iron has developed Steel. THE IRON THE IRON AND METAL MARKETS AGE 1113 in the past week, and prices on standard Bessemer iron are firmer and higher than last week. One consumer is reported to be inquiring for 30,000 tons of standard Bessemer trop for first half; a steel casting interest is in the market for 10,000 tons of basic for delivery at Alliance, Ohio, and in all there are inquiries out for more than 50,000 tons of Bessemer and basic, all for delivery in first quarter and first half of next year. A local furnace interest sold last week 1500 tons of standard Bessemer iron to an Eastern con- sumer at $15, Valley furnace, deliveries being 250 tons a month for first half of next year. A sale of 500 tons of basic iron running lewer in sulphur and phosphorus than regular basic analysis has been made at $13.75, at Valley furnace, but this price is above the actual market on basic. A sale was also made of 3000 tons of basic for first half by a Valley furnace for forward delivery, at about $13.25, at furnace. The market on Bessemer and basic iron is firmer, and on several large inquiries now pending $15, at Valley furnace, for Bessemer and $13.25 to $13.50 for basic are the lowest quotations that have been made. Several Valley furnaces are quoting $15.50 for second quarter on Bessemer iron, and as high as $16, at furnace, for Bessemer for second half of next year delivery. h