The Iron Age 1911-12-21: Vol 88 Iss 25

1¢ ¢ +e 1¢ ¢ 'y se if Established 1855 THE IRON AGE New York, December 21, 1911 Published Every Thursday by the DAVID WILLIAMS COMPANY 239 West 39th Street, New York Entered at the New York Post Office as Second-Class Mail Matter. Subscription Price, United States and Rawle. $5.00 per Annum ; to Canada, $7.50 per Annum; to Other Foreign Countries, $10.00 per Annum. Unless recei a is requested, none will be sent. Credit for payment will be shown by extending the date on the wrapper of your paper. W. H. Taylor, ° ° ‘ z a President and Treasurer |. A. Mekeel, - - eae - . - First Vice-President Fritz J. Frank, - - - - - - - - Secretary Geo. W. Cope, 2 . 2 n A. I. Findley, ° ° ‘ e Editors W. W. Macon, ° ‘i 5 _ M. C. Robbins, . - - Manager Charles S. Baur, ° . . hina Manager Branch Offices Philadelphia, Real Estate Trust Building Chicago, Fisher Building Pittsburgh, Park Building Cleveland, American Trust Building Boston, Compton Building Cincinnati, 807 Andrews Building CONTENTS Large Rail Orders Pending...... PEE ose ec ececccesesoenerens 1329 American Steel Prices Below Foreign.............6-seeeeees 1330 [he Improvement in the Steel Trade............cceeececese 1330 The Demand for Second-Hand Machinery..............0-.05- 1332 The Wrought Pind: TmGeetr is piss oi io Ve isc cws cicnecadaves 1332 Eastern Steel Company to Lease Warwick...../.........0055 1333 rhe Proposed Michigan Corporate Excess Tax...........0+. 1333 Pittsburgh and Valley Freight Rates on Raw Materials........ 1333 Allis-Chalmers Protective Committees... ...........000seeeeees 1333 Electric hed Gaga Uae canmin es bus <0cd cu becnee neent 1333 The Fret Ghd TCG Bees bk 0a Kc cbc ckesdene sapentasan on 1334 Peraenel: oy cid PELE Pee RIMES beee de Ubakis cede hoes 1346 Obituary. ~ve.snndhd kk Fa oe aN Ds @ 5 Gibo «geben tees 1346 Customs DIGI 3 bois ne Baheden ¥ git ne bere he onde eee 1346 Pittsburgh and Vicinity Industrial Notes...............+.++- 1347 lhe Panama Canal Hydraulic Equipment Contract........... 1347 Che Baldwin Works to Have a Western Plant............... 1347 New Publinatiows® ics <adaua cick coed Ue Sanna aes wodpeasivun 1348 rhe House Passes an Eight-hour Bill.................0.0000 1348 Judicial Decisions of Interest to Manufacturers... .”.......... 1348 Pittsburgh Steel Company Furnaces..............0+eeeeeeeee 1348 The Prod yetign Ge: Ole Wk Seis fed kk ob coevandvecveusunneed 1349 The Dwight & Lloyd Ore Sintering Process..............++++ 1349 (he Newark Foundrymen’s Association...........+-++e0e08s 1349 What the Foundry Thinks of the Machine Shop.............. 1350 Engineeting. Theta -< orc. cckccdu dade eins Féswhkdeesiaerie el 1353 \n Effective Advertising Device..........seesessssceasceens 1353 \ 15,000-hp. Coke Oven Gas Engine Plant.............+605- 1354 New Double-Acting Cam Press.........:sseseeecseceeeeses 1356 Plant of Gardner Machine Company.........-..-+-seeeeeees 1357 Coal-Handling Crame ..ccccsccccccccccscecccsseseservevnns 1359 \merican Association for Labor Legislation.............+.+. 1359 Follansbee Electrical Steel Sheets........--seeeeeeceeeeenans 1359 \ Factory Fire Fighting System.........---.+seeeseeeeerees 1360 he Blake Specialty Company. .........--seeeceesecensceees 1361 Wire Flatteming Mill, foc ciccle scabies ctsswidsesee vtasebes 1362 Herringhome Gears: ..vccccccavessccewarcerepenvedsctecsves ® 1364 e M. Rumely Company’s Expansion.........+-++++e+eeees 1366 Shop Erection and Testing of All Important Work.......... 1367 Portable Molder’s Bench....... ee TE a ks a pbmats Sheps 0% 1367 \merican Rolling Mill @ompany Entertains Culvert Manufac- turers 44078 Ta ccc ccc ccecoseeewest DeeMe SS ece ces 1367 ffusing Noxious Chimney Gases..... pA) obec cedswases > 1367 lhe Turret Equatorial Telescope......+++seeeeeceerreeterers 1368 he Winona Technical Institute. .........6-0e+reseteeeeenne 1369 ew Tools and Appliances. ......+-secseereeceetereeneeerees 1370 trade PublicationS .......0.cceeceecseeseereeeesteenwaewaee 1371 e Machinery Markets,......-seseeeeceseseseressesenerere 1372 VoL. 88: No. 25 Large Rail Orders Pending Increased Mill Operations in January—Pig Iron Buying Lessening The steel companies have made some further prog- ress in establishing higher prices for their products in the past week and now look for railroad buying to rein- force the position in which the recent heavy volume of low-priced business has put them. Unlike the movements which in other periods have proved to be definite turnings of the tide, the present one comes at a time in the year when demand lags; thus it lacks the usual accompaniment of mill resump- tions and of increased working forces. What is count- ed on by those who predict large things for 1912 is that orders now on hand will carry them well into March at a high rate of output and that spring business will then be sufficient to fill up their books beyond the middle of the year. It is contended that speculative buying has entered little into the movement thus far, though it is known that in bars the rebuilding of mer- chant stocks has figured somewhat. The accumulation of large forward orders at low prices has operated in contrary ways—it has enabled producers to take a stand for higher prices and at the same time has led doubters to question why more space was not reserved for the higher priced business pre- dicted for 1912. The crux of the situation is, as always, the country’s consumptive requirements. Some of the current reasoning based on dammed-up needs may re- quire revision. In rails, for example, 3,600,000 tons was produced last year, and probably 2,700,000 tons this year. The country’s use of steel has not been small, as was the case before the movement of Igo9. Actual market developments have plainly modified selling policies, as indicated by the establishment of 1.15¢., Pittsburgh, for steel bars in the past week, and by the disappearance of recent low prices for structural shapes and plates. It had been expected that a number of blast fur- naces of the Steel Corporation would be banked over the holidays, but the order has been given to operate them as usual. Several additions to the list of the Cor- poration’s active furnaces are scheduled for January. Heavy buying by the wae is impending. In rails announcements of contracts for 500,000 to 600,000 tons are expected within the next fortnight, the buyers including the New York Central, Pennsylvania, Balti- more & Ohio, Atchison, Southern Railway and several Western lines. In the Chicago district about 100,000 tons is pending and likely to be closed within the week. The Nickel Plate has bought 4000 tons of Bessemer rails. A Brazilian road has ordered 22,000 tons from the Steel Corporation. Spike orders have increased under low prices, three lines having contracted for 75,000 kegs in the past week. The Pennsylvania car order, it is now definitely i ae eee THE IRON stated, will be for 24,000 cars, which will require fully 300,000 tons of steel. Wire and sheet and tin plate mills will operate on increased schedules after January 1. At present tin plate plants are running at about 70 per cent. of ca- pacity against 50 per cent. a few weeks ago. The wire and.tin plate operations of the Steel Corporation and the steel production of the Carnegie Steel .Company will be on a go per cent. basis in January. Pig iron markets are quieting down after a month of heavy buying, the marked feature of which was that it left prices practically unchanged. However, South- ern iron, in which the Weakness was pronounced, is firm on the $10 basis, while $10.25, Birmingham, is asked for the entire first half of the year. Bessemer iron is stronger, and $14.25 at Valley fur- nace is now maintained. A sale of 25,000 tons for Jan- uary and February is reported at that price, but there is an accompanying ore transaction. Foreign producers of ferromanganese, who have had that market well in hand for some time, announce an advance from $38.50 to $41, Baltimore. Conditions in German, British and Belgian markets show steady improvement. Pig iron warrants touched 49s. 10%4d. this week, an advance of more than 2 shill- ings in two weeks. German advices from high sources are that the renewal of the Steel Works Union next year is now practically assured. Lake Superior ore interests have given no warrant for the reports concerning a definite reduction in prices for 1912. There has been no action, and the real meas- ure of the present improvement in the steel trade can- not be taken thus early. Stocks of Lake ore in furnace yards and on docks December I were 33,821,000 tons, or about 550,000 tons less than one year previous. Om” The Improvement in the Steel Trade The personal equation, individual experience and local conditions have entered largely into the reception given the very cheerful views of the iron trade out- look which have had so much publicity in the past week. With surprising readiness the opinion of a leader in the steel trade that 1912 would be a year of unusually large demand for iron and steel was caught up and made the basis of highly favorable forecasts. The peculiar temperament which flourishes in the southern precincts of Manhattan Island and which de- mands that conditions be either very good or very bad is naturally allied at present with the prosperity prop- aganda, and judging from some of the product of the week the whole face of the situation has changed. On the other hand, as showing the effect of local condi- tions, we have the skepticism of Philadelphia, for ex- ample, whence comes the intelligence that the pig iron trade has changed but {ttle in the past few weeks; that mills in Eastern Pennsylvania are still running at much less than full capacity, and that judging from the slight decrease in the rate of pig iron production in the coun- try in November, there is no electrifying revival in progress in any other district. The extent to which the psychological element en- ters into the “business situation” is well known. The contagion of fear has many times brought financial disaster and then has operated to prevent recovery. In what has happened in the past week we have the op- posite influence and the opposite effect. Concurrently with an advance of $1 a ton in bars, wire and sheets, AGE December 2). IQI! and with the publication of facts which had no: generally known, of the extent to which large companies have taken contracts for forward de) came the statement concerning Mr. Frick’s very ful views of business in iron and steel for 1912. [his expression by an individual was taken to represen: | a degree the attitude of large financial and industria] interests, and straightway there was a multitude of {, lowers. It was natural that such a sharp transition fr condition in which no one was willing to make a jay- orable forecast of I912 should encounter skepticism. But some current comments on the simple facts as they have developed in iron and steel markets have failed to recognize the possibility that the foundation was being laid in the very low prices of recent weeks for at least a moderate forward movement. So much has been made of the political features of the situa- tion that some instructive iron trade history has been neglected. There is no discrepancy between the book- ing of large orders for forward delivery and a prac- tically unchanged schedule of mill operations for No- vember and December. The instinct of the merchant has again asserted itself and we have had, thus far on a much smaller scale than in 1909, a repetition of the buying for the rebuilding of stocks that made memor- able the upward movement of that year. The restock- ing of 1909 culminated in the early months of Igio. Many thought then that the country was asserting the establishment of a new high rate of iron and steel con- sumption which might be maintained for many months. But when stocks of finished steel had been repaired at the low prices the real rate of consumption showed it- self. There should be no haste to conclude now that the business of the country has started on an unbroken upgrade. Prices have improved on some forms of fin- ished material; on pig iron the improvement in that The mills with some exceptions, as in plates and rails, have a good winter's work ahead and some of them are well sold into the late spring. If the necessities of the rail- roads are what they have long been represented to be, that business, added to what is now on the books, will mean that the first half of 1912 has been fairly pro- vided for. Whether next year’s profits will be even on the scale of 1910 is still much of a question. And as for a boom in the steel trade, whether measured by profits or volume, signs of anything which may truth- fully warrant that name have not yet put in an ap- pearance. respect is scarcely measurable as yet. —_——_4-e—____— American Steel Prices Below Foreign Statements that steel prices in the United States have fallen below those obtaining abroad are sometimes received with incredulity, perhaps because it is not realized how great a decline there has been in the American market in the past four years, while the for- eign markets have declined but little. Inasmuch as our prices have shown a rather sharp advancing tendency in the past two or three weeks it is well to make compari- sons, not with the shifting level of the present, but with the recent low prices, which it is possible may pass into history as constituting an important turning point; and prices prevailing on large and desirable orders should be used for comparative purposes, rather than prices on relatively small lots. We shall, then, use as @ basis billets at $18.50 per gross ton, sheet and tin plate kecember 21, I9II rs at $19. per gross ton, merchant bars, plates and lapes at 1.05 cents per Ib., tin plates at $3.30 per base x, lhe decline in American prices since the sudden let- p in activity after the panic of October, 1907, may be hown briefly by the statement that a careful averaging i prices of all finished steel products outside of rails, ving regard to the relative importance of the differ- classes of material, indicates that from October, go7, to the recent low point there was a decline of be- tween $12.50 and $13 per net ton, or between $14 and S15 per gross ton. Comparing prices in England at the niddle of October, 1907, jand at present, we find that there has been an advance of about 50 cents per ton in on ore, while pig iron has declined from $1.50 to s2.50 and finished steel prices as a rule are from $2.50 } $5 lower. Tin plates, however, have declined only od. per box, say $2.50 or $2.75 per ton. For our prices at present to be above those ruling abroad would require a very great disparity to have existed in 1907, which was ot the case. The low point in American prices of re, pig iron, unfinished steel and finished steel was in e years 1897 and 1898, when labor and all commodities were at their lowest. The advances in the decade fol- lowing were due in part to prosperity in the American iron trade, but were also due in part to heavy advances labor and commodities. Whether the prosperity caused the advances in wages or the advances in wages caused higher prices is not a matter of consequence in this connection. It is sufficient to observe that the aver- age value of all commodities did advance strikingly; and however wage advances were brought about, higher wages were a necessity because the cost of living had greatly increased. Bradstreet’s index number, for in- stance, advanced about 50 per cent. from its low point in the nineties to 1907. The advance in wages and com- modity prices was not confined to the United States, but was world wide. As a necessary consequence, prices of iron and steel abroad also advanced, and if they did not advance altogether as much as prices in the United States, they advanced very greatly, while on the other hand it is emphatically the case that since the close of 1907 they have not declined nearly as much as prices in the United States. British prices of finished steel, as just indicated, have declined only from one-fifth to one-third as much as American prices since 1907. It is in the finished products, rather than in the min- eral products and pig iron, that our prices are now be- low those obtaining abroad. Since the great increase in the efficiency of American labor through the intro- luction of improved machinery and processes, our handicap is in the assembling of raw materials, a fact which is recognized in the present agitation for lower freight rates on the raw materials of the blast furnace. Thus we find that pig iron is higher in the United States than in England, and as England exports, about 1,200,000 tons of pig iron annually, 12 to 13 per cent. of her make, British pig iron quotations may be taken as fairly representative of the best that is done abroad. Middlesbrough No. 3 foundry iron, comparable with our ordinary No. 2 foundry iron, is now quoted at 48s. 3d., or $11.75, comparing with prices ranging from $13 to $14 f,0.b. our Northern furnaces, but with $10 at sirmingham, Ala., where our general handicap of high cost of assemblage does not obtain. To consider another case which possibly may also be considered an exception, rails should be mentioned. The price of rails in the United States has not declined, THE IRON AGE 1331 when other finished steel products have declined $14 to $15 a gross ton, but the quality of rails has been im- proved. The regular English quotation on rails. for the domestic market, at Middlesbrough, is £5 12s. 6d., or $27.37. In all other finished steel products, prices abroad are uniformly above those which have lately obtained in the, United States. Merchant bars at 1.05 cents in the United States compare with German prices for the domestic market of 1.16 cents for basic Bessemer and 1.20 cents for open-hearth, while in England merchant qualities bring 1.46 cents, delivered at Birmingham. Plates at 1.05 cents in the United States compare with 1.40 cents in Germany for ordinary grades, and with 1.50 cents in Great Britain for ship plates at Glasgow. The nominal export price on the continent is about 1.30 cents. In tin plate, which has a much higher labor cost than any of the other ordinary finished steel products of the steel industry, the high standard of wages in the United States has prevented the price from falling as low as the foreign basis, but the approach is aston- ishingly close when we consider the wide spreads which used to exist, ranging around $1 a box, and even more. The regular tin plate quotation per box f.o.b. Seuth Wales is now 13s. 6d., or $3.24, subject to a discount of 4 per cent., making $3.11 net. In large lots tin plate has lately sold in the United States at $3.30, or $3.45 for I. C., which is quoted in South Wales. With the customary 2 per cent. discount the latter makes $3.38 net, putting the American price only 27 cents a box above the British price, this being probably the closest approach to.a parity that has ever obtained. While pig iron prices are higher in the United States than abroad, prices of unfinished steel abroad approximate more nearly to finished prices, so that they exceed American prices just as do the finished steel prices abroad. In South Wales tin plate bars, recently advanced, command £5 or $24.33, compared with a price of $19 or less recently obtaining in the United States. The Belgian export price for sheet and tin plate bars is gos., or $21.90, while the corresponding price for billets, 4 in. and up, is-$84s., or $20.44, billets below 4 in. commanding a considerably higher price. The German price for wire rods in the domestic market is about $30, against $24 lately obtaining in our own market. There was a time in the nineties when the United States found itself with some commodities selling at lower prices than those ruling abroad, and an export business of large proportions suddenly started. The ability to export, however, was confined almost entirely to the cruder materials, upon which the cost. of assem- bling the raw. materials bore much less: heavily than at present. In 1898, for example, we exported 28,600 tons of billets, sheet bars, etc., andj291,038 tons of;rails. Ex- ports of the more finished products were relatively very light. In that year 249,357 tons of pig iron was ex- ported, but this came almost wholly from Alabama, which still has a low cost of assemblage, but does not export because a domestic demand for its pig iron has developed of sufficient proportions. In. the past deeade an export movement has been built up in the more fin- ished, forms, there being, a heavy movement in such items as merchant bars, sheets and plates, structural material, pipes and fittings, and even tin»plates. Con- sidering the lowness of American prices as.compared with those ruling abroad, it is by no means surprising Fee ae a en ee ek ty roe Teen a de etal i ~ o_ih Sree ee eee nia ee a 1332 THE IRON AGE to observe from the statistics of exports during the first 10 months of this year that the total tonnage of iron and steel exported in the calendar year bids fair to exceed the best previous record, made in 1910, by 42 per cent., and to exceed the best record before IgI0, whieh was made in 1906, by 63 per cent. ++ - The Demand for Second-Hand Machinery In connection with the coming increased demand for machinery, referred to last week, dealers call at- tention to the change which has come over the market for second-hand equipment. It will be recalled that in 1906-7 this class of machinery was in tremendous de- mand. The depleted stocks of the builders compelled users to resort to every possible means of meeting their requirements. It made no difference if machines were very old indeed. The prices which they commanded compared very favorably with their original cost. Newer types occasionally sold at a premium over the new prices of the very latest models and in excess of the original cost to the user.. Some of the tools which were absorbed by the trade were curiosities of anti- quity. The dealers point out that this condition has been greatly changed in the five years which have intervened since the high tide of prosperity. The average price of a machine tool which dates back of the introduc- tion of high speed steels has decreased materially, ac- cording to the experience of some of the largest houses which specialize in second-hand tools. In 1906, when the hight of the boom was first felt, the average user of machine tools was not thoroughly familiar with the great economic advantages of powerful machinery driv- ing the new steel cutting tools. It was not fully recog- nized that to employ older methods meant a vastly greater cost of production. Of course there must al- ways be makeshifts when the market is confined to machinery for delivery many months in the future. But, as one dealer puts it, a modern machine shop with a good cost system would as soon put in a wood-turning lathe to accomplish a given piece of work as to install an obsolete metal-working machine. This means that the progressive manufacturer has learned that inade- quate machinery is worse than none. Therefore, the average second-hand tool which will be purchased will be years younger than the average of 1906 and 1907. The supply of such equipment is exceedingly small and there seems to be no promise that it will increase in any material way. If these are the facts, the user will be more depend- ent upon new machinery than ever before. This in it- self will constitute a material increase in demand for the products of the American machine shops. To go back again five years, if at that time users had had the present day attitude teward second-hand machinery the market for new machines would have been corre- spondingly greater, and deliveries would have been, if possible, worse than they were. The reasons why the buyer of machine tools shouid avail himself of the present market are accumulating. If he waits for the rush which is inevitable, he will have to take his chance of getting equipment, with a strong probability that he will meet with’ serious and expensive delays. -Few. people realize the tremendous total of machine tools which has been specified in the United States. Considerations of expediency have up to the present withheld the necessary funds for the December 21, purpose. The moment the change comes and busi revives in a large way, a condition which may be n or less sudden, funds will be released and the manu‘ turers and dealers will be deluged with hurry-up ders. A few weeks will probably eliminate the lar: stocks now on hand and then deliveries will fade in: the future. It is a significant fact that most orde: for machinery now being placed are on condition 0} immediate shipment. These are among the first spec fications to be released after long months of holding back. ——__++o—_____ The Wrought Pipe Industry In response to requests for specified information re garding the wrought pipe industry, the following is pre- sented. No exact figures are available for the production of wrought pipe except those of the United States Steel Corporation. Its annual reports regularly present the quantity of wrought pipe its mills have turned out during the year. The other manufacturers of this class of product do not make public their production of pipe, but they furnish to the American Iron and Steel Association, Philadelphia, their production of skelp for conversion into pipe and the figures of skelp production published by that association are the nearest approximation to the pro- duction of pipe which can be obtained. They show the fol- lowing output of all skelp mills, including those of the corporation, for the past two years: Production of Skelp in the United States—Gross Tons. Years. Iron. Steel. Total. DNs 5h. cet eal eae een ner 370,151 1,663,230 2,033,381 eho sok es bale Obs a eee 350,578 1,477,616 1,828,194 The reports of the United States Steel Corporation show that in 1909 its mills produced 1,013,071 tons and in 1910 they produced 868,550 tons of wrought pipe. Com- paring these figures with the totals given in the above table, after making allowance for loss in converting skelp into finished pipe, it will be found that the corporation made about 55 per cent. of the total wrought pipe output of the country: in 1909 and about 53 per cent. in I9gI0. The leading manufacturers Of steel pipe are the fol- lowing: National Tube Company, Pittsburgh, Pa. ; Youngstown Sheet & Tube Company, Youngstown, Ohio. La Belle Iron Works, Steubenville, Ohio. Wheeling Steel & tron Company, Wheeling, W. Va. Spang, Chalfant & Co., Inc., Pittsburgh, Pa. Mark Mfg. Company, Chicago, Ill. Republic Iron & Steel Company, Youngstown, Ohio. Monongahela Tube Works, Pittsburgh, Pa. Harrisburg Pipe & Pipe Bending Company, Harrisburg, Pa. South Chester Tube Company, South Chester, Pa. Crane Company, Chicago, IIl. Although by far the greater part of the wrought pipe now manufactured and sold in this country is steel pipe, the manufacturers of wrought iron pipe maintain a firm footing in the trade as shown by the figures of skelp pro- duction given above. The leading makers of wrought iron pipe, such as the Reading Iron Company, Reading, Pa., and the A, M. Byers Company, Pittsburgh, Pa. have not only refrained from adding steel pipe to their product but have also steadily extended their manufacturing opera- tions in recent years. Other manufacturers of wrought iron pipe are as follows: Spang, Chalfant & Co., Inc., Pittsburgh, Pa. . Harrisburg Pipe & Pipe Bending’ Company, Harrisbug, Pa. Longmead Iron Company, Conshohocken, Pa. Monongahela Tube Company, Pittsburgh, Pa. South Chester Tube Company, South Chester, Pa. Susquehanna Iron Company, Columbia, Pa. Wheeling Steel & Iron Company, Wheeling, W. Va. La Belle Iron Works, Steubenville, Ohio. Youngstown Sheet & Tube Company, Youngstown, Ohio. Cohoes Rolling Mill Company, Cohoes, N. Y 2+ The St. Louis Foundrymen’s Association, St...Louis, Mo., has elected J..P. Pero, president; B, Roy Mook, sec- retary, and W. S. Gemmer, treasurer. The vice-presidents are R. A. Bull, J. W. Kelly, William Schaelich, J. E. Gil- bert, T. H. Smith, J. E. Cartwright, E. E. Squier, Jr., A. W. Phelps, Sanford Mitchell, P. Henningsen, J. W. Schroen and Paul Lindecker. cember 21, I9I! astern Steel Company to Lease Warwick Negotiations are pending for the lease of the Warwick n & Steel Company, Pottstown, Pa., to the Eastern eel Company, Pottsville, Pa., for a term of 99 years, the ntal to be sufficient to pay 8 per cent on the Warwick mpany’s stock, which is the same dividend that has been id on this stock recently. The Warwick Company is manufacturer of pig iron, with two furnaces owned and e leased, and another stack under construction, It has rated productive capacity of 275,000 tons of pig iron per ir. The Eastern Steel Company has an open-hearth teel plant and manufactures billets and finished steel roducts, and the consummation of such a lease would put t in a position to control its supply of raw material. he Warwick Iron & Steel Company has an authorized ipital stock of $1,500,000, of which $1,486,714 is out- tanding, par being $10. Last June the company issued hree-year 6 per cent. notes to the amount of $300,000 to ike up an $180,000 first mortgage, the 5 per cent bonds of vhich were called in June 1, and to retire the floating debt. Last year the Warwick Company earned upward of 18 per ent. on the stock, but its earnings have since fallen off in ommon with the experience of other iron manufacturers, Ithough the report for the current year will probably show approximately 8 per cent. earned, or enough for ividend requirements. The Eastern Steel Company manufactures shapes for tructural buildings and bridge work and has an annual ipacity of about 190,000 tons of finished rolled material. he company has acquired large iron ore interests in the loa district of Cuba, amounting to 11,000 acres, and in addition has a lease on 1200 acres, in which there is esti- mated to be over 43,000,000 tons of iron ore. It has an authorized stock issue of $4,700,000 common, of which $3,- 650,000 is outstanding, and $4,700,000 7 per cent cumu- lative preferred stock, of which $2,000,000 is outstanding. The company on March 1 last had an outstanding funded debt of $2,429,000 first mortgage 5’s due August I, 1931. The annual meeting of the Eastern Steel Company will i held January 24, while that of the Warwick Iron & Steel Company will be held February 12. It is expected that the lease will come before the respective stockholdrs for ratification at these meetings. —_——_o+e——_—__ The Proposed Michigan Corporate Excess Tax W. A. Dwyer, vice-president and general manager of the Art Stove Company, Detroit, Mich., is quoted as fol- lows by the Detroit Free Press in regard to the proposed change in the Michigan tax system: “The blow that a cerporate excess tax would deal the stove industry of Michigan would be severe. There are about 125 stove factories in the country. The factories of Detroit compete with those of the Middle West. We contest the Middle West and the South with large fac- tories in Aurera, Ill.; Piqua, Ohio, a number in Penn- sylvania and some in Missouri. There are other factories, but these are the most important. “The Eastern factories take care of the Eastern trade. Though there are factories in Massachusetts that are sub- ject to the corporate excess tax of that State, those fac- tories do not compete with the Michigan concerns to any extent. Their territory is practically limited to New Eng- land. But when we come into our own territory we find that our competitors are situated in States which are as favorable, so far as taxes.are concerned, as Michigan now is, and in respect to labor they are even better situated. “No one can say that Detroit is a.cheap labor market. Most of our competitors, however, have the advantage of being able to draw a less costly labor supply. As to taxes an examination of the tax laws of the States in which our competitors are located will show how they are favored in that respect.” é Ped Mr. Dwyer referred to the Pennsylvania law which exempts domestic corporations engaged. in manufacturing from taxation on that part of their capital stock employed in business within the State. This means that the stove factories pay little or no taxes to the State. Illinois has a general property tax which demands that property be placed on the rolls at one-third of its actual THE IRON AGE 1333 value. There is a so-called corporate excess tax, but in practice it amounts to nothing, In Ohio, which now has the most strict laws in the Union, with the possible excep- tion of Massachusetts, corporations pay, in addition to the general property tax, a tax of $1.50 a thousand on the par value of their outstanding capital stock. Missouri has a general property tax which does not fall heavily on manu- facturers. A corporation in Ohio which pays taxes amounting to $11,500 a year—$10,000 in general taxes which are limited by the statute to 1 per cent. of the valuation, and $1,500 capital stock tax—would in Michigan, under the proposed corporate excess tax law, pay about $20,000, figuring the average State rate for all purposes at $20. NO Pittsburgh and Valley Freight Rates on Raw Materials It is now expected that the case of the Mahoning and Shenango Valley iron and steel manufacturers who have asked for lower freight rates on ore, coal and coke will eventually be brought before the Interstate Commerce Commission. It was the intention of the manufacturers to deal directly with the railroad companies, and their argument as presented at a recent conference with the rail- road officials in New York City was given in The Iron Age of November 23. Within the past week the railroads have replied that the reductions asked for cannot be granted. In this connection interest attaches to the testimony given before the Stanley Committee at Washington, De- cember 15, by United States Senator George T. Oliver of Pittsburgh. Senator Oliver contended that the rate on iron ore from Lake Erie to Pittsburgh district furnaces, which is now 96 cents, should be 50 cents a ton. In con- nection with his testimony reference was made by memr bers of the committee to the division of the ore freight rate from Lake Erie to the blast furnaces of the Carnegie Steel Company and the Jones & Lattghlin Steel Company, with the connecting railroads of these two companies. The amount they received of the 96-cent rate was said to be 26 cents a ton. His attention being called to the tes- timony of Charles M. Schwab that the net rates on ore to certain Pittsburgh consumers were relatively lower than on Lake ores to South Bethlehem, Senator Oliver said that a Bethlehem plant would naturally obtain its ores from abroad or in the East and that no one would think of building a steel plant at Bethlehem based on a Lake Su- perior ore supply. eG Allis-Chalmers Protective Committees Protective committees have been formed for both the preferred and common stockholders of the Allis-Chalmers Company. The preferred stock will be represented by Charles Allis, chairman; G.W.McGarrah, president of the Mechanics and Metals National Bank; W. E. Roosevelt of Roosevelt & Son; M. N. Buckner, vice-president of the New York Trust Company, and H. W. Falk, president of the Falk Company, Milwaukee. The New York Trust Company will act as depositary for the stock, for which receipts will be issued. Alexander J. Hemphill is chairman of committee to look after the common stockholders and the Guaranty Trust Company the depositary. Associated with Mr. Hemphill are Frederick Strauss, J. Horace Harding and Albert H. Wiggin. —_—— ~~ Electric Steel Castings—The Treadwell Engineer- ing Company, Easton, Pa., has installed an electric furnace of its own design for the manufacture of steel castings. It is believed that this company is now the only manufac- turer of this type of steel castings in the United States. Vice-president W. E. Farrell, of this company, has made a special study of the electric furnace not only in the United States but abroad, and the manufacture of the new product is therefore entered upon with confidence. Special attention will be given to the requirements of those users of steel castings who are desirous of procuring such prod- ucts in which the physical character and chemical analysis can be absolutely guaranteed. December 21, 1); i THE IRON AGE and Metal Markets or equivalent, 4 in. thick and over on thinnest edge, 100 in. wi and under, down to but not including 6 in, wide, are base. Plates up to 72 in. wide, inclusive, ordered 10.2 Ib. per squar foot, are considered %-in. ‘plates. Plates over 72 in. wide mus be ordered 4% in. thick on edge, or not less than 11 Ib. per square foot, to take base price. Plates over 72 in. wide ordered less tha: 11 Ib. per square foot down to the weight of 3-16-in. take the pric of 3-16-in. Allowable overweight, whether plates are ordered to gauge o weight, to be governed by the standard specifications of the Associa The Iron A Comparison of Prices Advances Over the Previous Week in Heavy Type, Declines in Italies. pene ee a oS At date, one week, one month and one year previous. Dec. 20, Dec. 13, Nov. 22, Dec. 21, 1911. 1911. 1911. 1910. * PIG IRON, Per Gross Ton: - 2 eS Foundry No. 2 standard, Phila- delphia $14.85 Foundry No. 13.00 Foundry No. cinnati 13.25 Foundry 10.00 Foundry Chicago* Basic, delivered, eastern Pa.... Basic, Valley Bessemer, Pittsburgh Gray forge, Pittsburgh Lake Superior charcoal, $14.85 $14.90 $15.50 13.00 13.25 13.75 13.25 13.25 14.25 10.00 10.00 11.00 » VaHey furnace. 2 Southern, Cin- No. 2, Birmingham, Ala. No. 2, at furnace, 14.00 14.25 furnace 12.25 15.15 13.40 16.50 16.00 14.75 13.25 15.90 13.90 18.00 14.00 14.25 12.25 14.90 13.40 16.50 14.00 14.50 12.35 14.90 13.40 Chicago 16.50 COKE, CONNELLSVILLE, Per Net Ton, at Oven: Furnace coke, prompt shipment. 1.60 Furnace coke; future delivery... 1.65 Foundry coke, prompt shipment 1.90 Foundry coke, future delivery. . 2.15 BILLETS, &c., Per Gross Ton: Bessemer billets, Pittsburgh.... Open hearth billets, Pittsburgh. . Forging billets, Pittsburgh Open hearth billets, Philadelphia. Wire rods, Pittsburgh 19.00 19.00 25.00 21.40 19.00 19.00 24.00 24.00 21.40 21.40 24.50 25.00 19.00 18.50 OLD MATERIAL, Per Gross Ton: Iron rails, Chicago 14.75 Iron rails, Philadelphia Car wheels, Chicago Car wheels, Philadelphia. Heavy steel scrap, Pittsburgh... . Heavy steel scrap, Chicago Heavy steel scrap, Philadelphia. FINISHED IRON AND STEEL, Per Pound to Largest Buyers: Ce Bessemer rails, heavy, at mill.. Iron bars, Philadelphia Iron bars, Pittsburgh Iron bars, Chicago Steel bars, Pittsburgh Steel bars, tidewater, New York. Tank plates, Pittsburgh Tank plates, tidewater, Beams, Pittsburgh Beams, tidewater, Angles, Pittsburgh Angles, tidewater, Skelp, grooved steel, Skeip, sheared steel, oS Oo 14.50 15.50 12.00 11.25 12.00 9.50 11.50 oo wWNwuUs wouwodum noe S tpt ee el fk et NDI wwewnur wmounounoun ooo 12.25 Cents. 1.25 .20 .20 L15 05 Cents. 3 oe w Cents. 1.25 1.35 1.40 1.35 1.40 21 1.56 1. 1. a 1, 1. ] ] oe te he mt DODD DO Aunuuwwn lho ODD DD DAovunun a * 1.10 40 56 40 1.56 40 56 New York .10 .26 .10 -26 12 .20 New eC... eos e to WO ee Od et We We we Neue Ue Ul ee Pittsburgh Pittsburgh w 1 ] 1 J l 1.26 1 l 1 ] 1 1 bd > i = . ow SHEETS, NAILS AND WIRE: Per Pound to Largest Buyers: Cents. Cents. Sheets, black, No. 28, Pittsburgh 1.90 1.90 Wire nails, Pittsburgh 1.55 1.55 Cut nails, Pittsburgh 1.50 1.50 Barb wire, galv., Pittsburgh... 1.90 , Cents. METALS, Per Pound: Lake copper, New York 14.00 Electrolytic copper, New York. 13.8714 OGRE, (tks PAIR 60s sc osiwess 6.15 Spelter, New York 6.30 Le) i RN, . 6 ses shaeeees 4.35 Lead, New York Tin, New Y Antimony, Tin plate, Cents. Cen 13.00 12.87% 6.60 6.75 4.27 4.35 43.35 7.65 $3.64 Cents. Cen on Ovum wn — w MUINOMN ws MmBrnan te AEE eS \o we WwnNnN S&S UU w Hallett, New York.. 7. 100-Ib. box, New York $3.64 $3.64 ‘fp om on - switching charge for delivery to foundries in the per ton. *The average Chicago district is 50c. Prices of Finished Iron and Steel f.o.b. Pittsburgh Freight rates from Pittsburgh in carloads, lb. New York, 16c.; Philadelphia, 15c.; Boston, Buffalo, 11c.; Cleveland, toc.; Cincinnati, 15c.; apolis, 17c.; Chicago, 18c.; St. Paul, 32c.; St. Louis, 22Y%ec.; New Orleans, 30c.; Birmingham, Ala., 45c.; Pa- cific coast, 80c. on plates, structural shapes and sheets No. 11 and heavier, 85c. on sheets Nos. 12 to 16; 95c. on sheets No. 16 and lighter; 65c. on wrought pipe and boiler tubes. per 100 18¢.; Indian- Plates.—Tank plates, %4 in. thick, 6% in. up to 100 in. wide, I.15c., base, net cash, 30 days. Following are stip- ulations prescribed by manufacturers, with extras: Rectangular plates, standard specifications for structural steel dated February 6, tank steel or conforming to manufacturers’ 1903, tion of American Steel Manufacturers. Extras. Cents per 1b. Gauges under % in. to and including 3-16 in. en thin- SN OE Sao 5 od on chic ck chs ehh eae a pee cs 10 Gauges under 3-16 in. to and including No, 8.......... . 15 Gauges under No. 8 to and including No. 9............. 25 Gouge under No. 9 to and including No. 10.......... .30 Gauges under No. 10 to and including No. 12.......... 40 Sketches (including all straight taper plates) 3 ft. and cer: tae ROS 0. o'5 id. 00 cata b'se othe thaws ees 5 Complete circles, 3 it. in diameter and cver.......... ; oe eg! 8 Peer pre ree ‘ “A. B. M. A’ and ordinary firebox steels............ SORE RON NE «ois dk os o's. 500cne vaentseci etn ime 30 Marine steel Locomotive firebox steel 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........... .25 Widths over 125 in. SSh:, SHOU 6 0.0 ck ces 50 Wiis oGert 136 18s. 6 ohne age cnecdl . Cb ccaeiabes ook 1.00 Cutting to lengths or diameters under 3 ft. to 2 ft., in- clusive ‘ Cutting to lengths or diameters under 2 ft. to 1 ft., in- clusive J Cutting to lengths or diameters under 1 ft............ 1.55 No charge fcr cutting rectangular plates to lengths 3 ft. and over. Structural Material—I-beams, 3 to 15 in.; channels, 3 to 15 in., and angles, 3 to 6 in. on one or both legs, % . “ + in. and over, 1.15c. Other shapes and sizes are quoted as follows: Cents per Ib. Sasnmeins -pwee- 38 ttt .<.cs 006s 0c codes ice abe 1.20 to 1.25 me-peanen Over. EB i. ....scs caee'ncssunt scr celeenet 1.30 to 1.35 PIG WOE 1: 050 vb ev éba cd bans osaedeneun 1.20 to 1.25 Angles, 3 in. on one or both legs, less than ¥% in. thick, plus full extras, as per steel bar cand ‘eek 1; TSOP... cca cedancusckedewenane 1.20 to 1.25 Teen: 3 BE Ae 66 08 kiss ig bok ee tee 1.20 to 1.25 Gtr 3 1s BI BRS ok ois 650.0% 6 04nd dae 1.15 to 1.20 Angles, channels and tees, under 3 in., plus full extras as per steel bar card Sept. 1, 1909.1.20 to 1.25 Deck beams and bulb angles 1.45 to 1.50 i Bes 8 Sree rey eee Checkered and corrugated plates...........+4+. 2.00 to 2.15 Sheets.—Makers’ prices for mill shipments on sheets of U. S. Standard gauge, in carload and larger lots, on which jobbers charge the usual advances for small lots from store, are as follows: Biue Annealed Sheets. Cents per Ib. De GO a aia a ne $4 a a UNE ED 05S ea ke gee eee 1.30 to 1.35 oe eee renee ree 1.40 to 1.45 on. Si ene “18. Sisson 1.45 to 1.50 POG. Sa Oe OG ae wien + ch xen eae eee 1.50 to 1.55 Nos. 15 and 16 1.60 to 1.65 Box Annealed Sheets, Cold Rolled. One Pass. 1.55 to 1.60 1.60 to 1.65 1.65 to 1.70 EK ibs a4 <0 > ee 1.70 to 1.75 . 22, 23 and 24 1.75 to 1.80 BE A BOs os skxspeuys bes 1.80 to 1.85 27 1.85 to 1.90 a er eee ae pee 1.90 to 1.95 BP. wiGese’ +c otuke eS <ee ne 1.95 to 2.00 OO Swccevseséecb suds ved eee Three Pass. HOoOoSomMON MWuUSuUonouw rw fr A eo of eocoooooo°o ad at: eR oe ooo Cemw csouwouwouwes NDR ee ee Galvanized Sheets of Black Sheet Gauge. i 28s 5 nt cehad shes anie 1.90 to 1.95 EOS eee 14. ba kc de red heen 2.00 to 2.05 BBs BOT AF 0 vcinv coe ee eeeasees Clee 2.15 to 2.20 i IE ncn 2 Ste 4:5 bb bpih Sky eae ae oe 2.30 to 2.35 Se ME Ss ok dé pat ib aelod anh acim dias 2.40 to 2.45 PR SU BOR sc deck Wes wha aNen tee 2.60 to = 65 a diain ace «Sieh Gane & ein wala Wee 3:20 to 3.28 All above rates on sheets are f.o.b. Pittsburgh, terms 30 days net, or 2 per cent. cash discount in 10 days from date of invoice, as also are the following base prices per square for painted and galvanized roofing sheets, with 2%4-in. corrugations: Corrugated Roofing Sheets, Per Square. Painted. eS Painted. Galvanized. ; 3 December 21, IQII Wire Rods and Wire.—Bessemer, open-hearth and rods, $24.50. Fence wire, Nos.0 to 9, per 100 Ib., < 60 days, or 2 per cent. discount in 10 days, car- its, to jobbers, annealed, $1.35; galvanized, $1.65. ad lots, to retailers, annealed, $1.45; galvanized, ¢ Galvanized barb wire to jobbers, $1.85; painted, ¢ Wire nails, to jobbers, $1.55. following table gives the prices to retail mer- nts on wire in less than carloads, including the ex- n Nos. 10 to 16, which are added to the base price: Fence Wire, Per 100 Lb. 0to9 10 11 12&12% 13 14 15 16 é ...$1.50 $1.55 $1.60 $1.65 $1.75 $1.85 $1.95 $2.05 ed .. 18. 185 390 4895 235 2% 233 ies Wrought Pipe.—The following are the jobbers’ car- discounts on the Pittsburgh basing card on wrought in effect from December 1, 1911: Butt Weld. —Steel——, ——Iron— Black Galv. Black. Galv. and $4) 0 vas siwiwda vee 74 54 68 48 it, vans so vkeee ie acon 75 65 69 59 ifh . op J d4 a RNR) ake eae 78 68 72 62 to 396 Wiis cadet ee See 81 73 75 67 3 ints vewdienrstsesewe 82 75 76 69 Lap Weld. Y, em 196 Wiese csascsvkeca ang ad 68 61 itl. cscbcsee UR eleeeneure 79 72 72 65 t0 FER wcankopuadsanese 81 74 74 67 to 6 Mirigaseeten ees sud 80 72 73 65 > 12 Wis te ddesareee ae 78 68 71 61 6 13 “Web ieishadswceawecs 55 47 or Butt Weld, extra strong, plain ends, card weight. Uh, 3 Mi caveustesiadds 70 60 65 55 a IMs 0 2ie4 ed ReeRN ee earmes 75 69 70 64 4 to 154 )ieseas cones cases 79 73 74 68 to 3 186.04 oeunbaeeasees 80 74 75 69 Lap Weld, extra strong, plain ends, card weight. f.. cavevawthcakepreccnee i Ls 66 60 iM.» s 0 sigh ete eg eee eb ake 76 70 71 65 to © Miisasshavaansssees 78 72 73 67 to 6 Gi tiwcdevaweiewnn 77 71 72 66 8 Whias .b thawde tao knee" 70 60 65 55 12. Me's cadiieseweeuwens 65 55 60 50 Weld, double extra strong, plain ends, card weight. itl. vas eOkG beeen spaces 65 59 60 54 to 194 °RSs ne ebve veces ee 68 62 63 57 3° ics eee wees 70 64 65 59 ae Lap Weld, double extra strong, plain ends, card weight. Thi os oe: 0 El Ube ed oes eeewens 66 60 61 55 , te OS Mo awi wecssancsne an 68 62 63 57 to 6 GR ii ev ieiecen venas 67 61 62 56 8 Wi vcwisd Seite we eane 60 50 55 45 Plugged and Reamed. { Will be sold at two (2) points lower basing (higher price) than merchants’ or card weight pipe. Butt or lap weld as specified. e above discounts are for “‘card weight,” subject to the usual of 5 per cent. Prices for less than carloads are three (3) lower basing (higher price) than the above discounts. Boiler Tubes.—Discounts on lap welded steel and rcoal iron boiler tubes to jobbers in carloads are as 4, 2 to 3 in. Butt Weld | to 4° Misi es Lap Weld } ws: Steel. Charcoal Iron. 2 iscsi ckacdeeaks 65 a SPP RE ee ee 48 Wee ee ey Fe 67% Ree | a ae ere to 3 As int vebaeawd 72% BG RS Verebsvseeedsoes tha 55 » 4M i ecie se cceeees 75 B96 tO 3: Mis eee ieenaas een 60 6 1Rvcccusataaneuaess 67% 13 itv... 6s sheen en 65 5, in. and smaller, over 18 ft., 10 per cent. net extra. ; in. and larger, over 22 ft., 10 per cent. net extra. l.ess than carloads will be sold at the delivered discounts for car- lowered by two points for lengths 22 ft. and under to desti- s east of the Mississippi River; lengths over 22 ft. and all ents going west of the Mississippi River must be sold f.o.b. t Pittsburgh basing discounts, lowered by two points. ———__-—_~<o@. Pittsburgh rSBURGH, Pa., December 20, 1911.—(By Telegraph.) Pig Iron.—The purchase of 25,000 tons of standard essemer iron by the Youngstown Sheet & Tube Com- ny from the Ohio Iron & Steel Company, Lowell- lle, Ohio, for January to March delivery, at $14.25, illey, which includes a sale of a large tonnage of basic re by the former to the latter, has had the effect of trengthening the market on Bessemer iron, and all the lley furnaces are now quoting $14.25 at furnace. This insaction should not be considered strictly as a con- rsion deal, as such was not the case. There is a heavy uiry for basic, foundry and malleable Bessemer iron, nd large tonnages have been sold for first quarter de- very. The Pittsburgh Steel Company is in the market r 600 to 800 tons of basic iron per day, running over the first half of next year. Since July 1 it has been aking its entire requirements of basic pig iron from one roducing. interest, but the contract expires December i. so that the company will probably be a large buyer ‘ basic pig iron in the open market. The Westinghouse Machine Company is in the market for 1000 tons or more f foundry iron for first quarter, but will probably buy THE IRON AGE 1335 a much larger tonnage. A sale of about 7000 tons of Bessemer iron was made last week to a local consumer for first half at $14, Valley furnace. A dealer reports a sale of 2000 tons of Bessemer.for delivery in the Cleveland district at $14.25, Valley furnace. We quote: Bessemer iron, $14.25; basic, $12.25 to $12.50; malleable Bessemer, $12.75; No. 2 foundry, $13 to $13.25; gtay forge, $12.50 to $12.75, all at Valley furnace, the freight rate to Pittsburgh being 9oc. a ton. Billets and Sheet Bars.—Prices on both open-hearth and Bessemer are firmer, and mills report inquiries heavier. A leading maker of billets and sheet bars is practically out of the market o