The Iron Age 1918-01-10: Vol 101 Iss 2

New York, EE Our CLEVELAND WAREHOUSES contain a large, well assorted stock of 3 1/2 per cent. NICKEL STEEL. January 10; 1918 Nickel Steel Prompt shipment can be made of any of the following sizes and shapes. 5/16" to 1 9/16" hexagon 1/4" to 5" round cold drawn 1 1/16" to 4 1/16" hot rolled The Bet3z-Pierce Co. “STEELS OF QUALITY”’ 2230-40 East Ninth Street Cleveland SALES OFFICES N. W. Eyer, 801 conoveenliial Dayton, Ohio. H. C. Williamson, 617 Merchants Bank Bldg., Indianapolis, Indiana J. R. Fuller, 7 to 9 West Canal Street, Pittsburgh, Pennsylvania E. G. Motheral, 591 Ellicott Square Bidg.. Buffalo, New York J. E. Duncan, 1001 Ford Bidg., Detroit, Mich. ie TUOUVGEAOOECOROND NGA ONRNANAALEGGANDOUNANANAULNNAAAD LEN AUNUL A ENSEAALL LA 1 = % ot NE TABLE OF CONTENTS — 7 Buyers’ Index Section Wanted Section ADV ERTISING INDEX ALIEN CETUS OTT ld, nh POTENT NTN a spr CS Aa eT ERM 118 a 3 Hi MOLE DUDE EEL PERL EUAN PUUAETENAEUENETOETT COHEN ruysuoasrevnqeqeeeeveesenegev ene e tvs EUery 00H MEN TREO Tk eR TN RMT RV RUA At) MEU MATDLTNBRLVEUEEMNONNAGFOQOON0¢2N¢000000001)0070¢O0U2TONOHHS0 0150 FREON UUROUEDLGTOOOOLGEMUMEYOESOPRC REPRE RED AENLL)O0G TALL i sermon cee NR TM WYOATOD EDO RTOOOAATOAOAGROOUUNOERROAEOHATOGNGEN GUHA OUOTOOUOPRGGENOGGUET PHONON AADOOOOYAAQEROOUOOOOOOOUUOOUOUTDOGGSNOSOPOQS4S0ONGO0QROETOOEROOROOOOELOOE LATO EOOGUMO OOOO OOO HADED UU ENGNETTN QEUAARELACAENSENEDORAD DD LOEUMOMIMAMLEG ASAE ASE SALTER VGN SAH YAK NTEN PTY UNO AQAO OSES 00 PR eM = HASVIDETTOVANNNNUNGALINETOORONOOORY THUSNNAUUEESQONLNOQUNNNLONNNTUUONNIUNNN00E900000EN08) CFTTENNTTNETTOU NETO MESNTODEST OTN ATO NENT EN EETO ENA AAeNEETOTTNT ELECT ANNAN eN ET NAULSUQULEOUOUUEELONOETAAUONNAYENENYUUENEUUUNENLTEMEANEENUUANEOOENENAASENTOONNTAU TENT PANETTA ENEUM NTA NST ee TT ! OULU QU Maes PAM MAR ni THE IRON AGE January 10, 1918 H. KOPPERS COMPANY Builder of Ammonia Recovery Apparatus Benzol Recovery Plants Tar Distilling Plants Consulting Engineers on the Operation of By-Product Coke Plants and Auxiliaries Union Arcade Building PITTSBURGH, PA. HWE HNN \ ALLL ALAA ALLUAAS4400000(Q440MASLASLAALIAALA0UO0 ADNAN ULLMAN LAUD ORUQN0 U0 UAAAA AAA ALAS ASAD AR UNQUEAUOUUOIAULLUALNUSUSAALII OCALA AMSA PPO SUA SANA UNINVETUAT ATA TTD ELUNE ETT DPE MESTONATTORAGUOVEDUERODYEDULGAT EA SUTRA TPH TY UU AIND ODER ADIN NAH NAAN EIYUATS NTT APAMELL LAT LAE HAQETNANOUMODTOUENYOTENOOYERADLSNANTONNOLOSNSQNENNSUEGGEAETGESOONRSNOTOGTYSD ELGDEGUET ETL HELA ANETATY OURNUUARANODUEDU GAL UNALL OT OOOUNULN LLANE AULOUDELOALY EPEAT EEEEVEADDEERDOO LADEN EDEL ETADEN EPONA EEDA QUETOVUEUAUTEDUO VALOR REDA AOE nagnnaan 444 4nUA4QUQUUUUUUNUUUUUDUUUUULOULOUUUUUUNUUUDANENEONGUStON4ys44QQ4AUUNQUUUNOUUQODOUUEONAASUENASOEARSOA000000000000 00000 AANA CSUGUUENGUMAN UCAS uh 1 YT4S0ETUOOARELARAGENER SRN NRRUUENONAEOOARSNNUOUANN ANNAN GNA UUALEGNUOUGONOUOAQEEOUUOUOONOOOEnEOONObNOOOnOOnenOOsMEeyUOvangeeveneeneUaeenee weONaR REET MSU HUE eT NTT , mnt ' vanunnnatnt QNNNUOTENUNTENANNEONOOUOOAUEANAOGAONAA AAA WNUUOUUUUUUUUULUUUUUUUUAUUUUUUUU AULA AMAA AA DALPELEDETTALTAPETETPEDESSRS APT RRRI PRSEST ARORA SEPEESEPEPENTERE PEPE ETT) Peeeertennenrrnirenn nn ———EeEeEeEEEee wit 3 3 THE IRON AGE New York, January 10, 1918 ESTABLISHED 1855 VOL 101: No. 2 Government Will Not Buy for Railroads Director General McAdoo Does Not Intend to Take Over Purchasing Departments— Liberal Policy Will Be Expected in Ordering Equipme:.t WASHINGTON, Jan. 8.—Representatives of rail- road equipment producers from all the leading manufacturing centers have visited Washington during the past week to ascertain the policy that will be pursued by the Government with respect to purchasing on behalf of the railroads, now that they have been taken over for operation as a unified transportation system. On the highest au- thority it can be stated that the Government does not now contemplate buying for the roads and that the purchasing departments of the several systems will be permitted to do their own buying as heretofore. It is altogether probable, however, that the Government will insist upon a very liberal policy on the part of the roads in the purchase of rails, steel freight cars, locomotives and all other equipment that may be necessary to put the car- riers on a footing of the highest possible efficiency for the expeditious handling of freight. The expenditures of the railroads of the coun- try for all forms of material and equipment during the past half dozen years have been much below normal, considering the expansion of the business of the country and especially in view of the de- mands upon the roads since the beginning of the European war in August, 1914. The reason for this economy has not been far to seek. Whether justly or unjustly, the railroads have been the tar- get of adverse legislation, both state and federal, and of demagogical attack, and their pleas for adequate revenues have been almost uniformly re- jected. As a result, and because of the heavy ad- vance in the cost of everything consumed in the construction and maintenance of railroads, termi- nals, etc., money has been spent only where abso- lutely necessary to keep trains moving, and addi- tions and betterments have been postponed to bet- ter times. Freight Rate Questions The Interstate Commerce Commission, which has ample facilities for acquiring exact information concerning the condition of the properties of all the railroad systems of the country, has exhibited a marked unwillingness to incur criticism for granting increased freight rates, no matter what the showing of necessity might be, and demagogues in Congress have been glad to take advantage of this lack of courage to threaten the commission with drastic inquisitorial investigations in the event that advances should be allowed in important pending cases. In fact, the commission has been robbed of its quasi-judicial character and has been 131 bullied by Congress and by a certain section of the public press to such an extent that the railroads have despaired of securing justice at the commis- sion’s hands on the basis of necessity demonstrated by undeniable proof. Under these circumstances it is not surprising that the railroads should have felt it necessary to keep their expenditures down to the lowest possible level, especially in view of the fact that Congress, with characteristic inconsistency, has forced them to spend large additional sums in increased wages under the provisions of the Adamson law. Rail- road executives have felt that it was wise policy to devote their energies to the efficient handling of existing equipment and to purchase little or no new rolling stock. The enormous increase in the traffic of the past calendar year has forced some additional railroad buying, but nothing like what would have taken place had the carriers generally heen in easy circumstances. New Equipment With the taking over by the Government of su- preme control of the railroads and the unification of all systems for convenience of operation, the question of new equipment assumes great impor- tance. While governmental operation will intro- duce a new factor of flexibility in equipment, mak- ing it possible for roads in certain sections where traffic is below capacity to furnish locomotives and cars for use in the congested districts, yet the re- lief thus afforded promises to be inadequate and much additional equipment will be needed. Much attention is therefore being given to the question as to how this is to be provided and especially as to whether purchases are to be authorized and per- haps actually made by the Government. In the course of a conference held at the Treas- ury Department during the past week, Mr. McAdoo, the new director general of transportation, in re- ply to a question, made the interesting statement that the Government did not intend cto take over the purchasing departments of the roads and that each system would do its own buying as heretof: -e. He also intimated that the roads would be expected to use their best efforts to render their equipment adequate to the demands made upon it. Mr. McAdoo’s statements are taken here to mean that where individual railroads actually need rails, cars, locomotives, etc., they will procure them and that the question as to whether current revenues on the basis of recent returns are adequate to provide such equipment will be a secondary consideration. 132 The guarantees of the Administration, which Con- gress is expected to redeem, that the roads shall be permitted to make net earnings based upon the average of the past three years, are counted upon to cover all purchases of new material, provided the absolute necessity of each transaction can be demonstrated. Investors in railroad securities, therefore, have nothing to fear from a reasonable expansion in the purchasing programs of the rail- roads; on the contrary, the business now being of- fered the leading railroad systems is so much in excess of their present capacity that all added facilities, especially in the form of locomotives and cars, will show abnormally high earnings from the moment they are put into service. Proposed Government Corporation Notwithstanding the tendency in Congress to assail the management of the railroads and to de- mand impossible performances, many members of both houses, even among the so-called progressive element, have been impressed with the fact that there is to-day an actual car shortage so great as to constitute an almost insurmountable obstacle to the proper handling of the commerce of the country. To meet this situation, various projects are being considered. One plan that is attracting consider- able attention has been put forward by Representa- tive Lenroot of Wisconsin, the leader of the Pro- gressive party in the House, who has prepared a bill providing for the creation of a Government- owned corporation to acquire railroad equipment for leasing to the several railroad systems. The United States Equipment Corporation, as it is called in Mr. Lenroot’s measure, would be pro- vided through a congressional appropriation with a capital of $100,000,000, which, with the approval of the President of the United States, may be in- creased to $500,000,000. All of the directors of the corporation must be members of the Interstate Commerce Commission except the Secretary of the Treasury, who would be a director ex-officio, but the general manager of the corporation must be a practical railroad man. It would be the function of the corporation to immediately purchase or cause to be constructed locomotives and cars to the full amount of the corporation’s capital and to lease them to the railroads at reasonable rentals. In or- der that there may be no undue concentration of this equipment in certain systems, the bill provides that no lease shall run for more than a year, thus permitting periodical readjustments in accordance with the necessities of the transportation situation as it may develop from time to time. Funds for the Corporation A feature of Mr. Lenroot’s bill, which was worked out before the President decided to take over the roads and which, therefore, may be modi- fied should the bill receive favorable consideration at the hands of the House Committee on Interstate and Foreign Commerce, provides that the equip- ment corporation may be supplied with additional funds for the purchase of cars and locomotives by the imposition of a special tax upon railroads where their net income exceeds 7 per cent of their invested capital after deducting all other taxes paid, including present and prospective income and excess profits taxes. Of such net income in excess of 7 per cent the equipment corporation is author- ized to take a maximum of 70 per cent, the money to be used in exactly the same manner as the original capital provided by Congress. Mr. Lenroot takes the position that such a tax would be ap- proved by the public and would go far toward re- THE IRON AGE January 10, 1918 moving existing opposition to increase of rates. Any road receiving an increase which it did not need in order to secure a fair return to its stock- holders would pay the bulk of it back to the Gov- ernment in this tax and it would be used exclusively in providing transportation facilities for the serv- ice of the public. Whether the Lenroot bill or any similar measure is approved by Congress, there is good reason to believe that the Government will authorize a very substantial increase in railroad equipment as one of the first steps in solving the big transportation problem now confronting it. At this writing, how- ever, it seems likely that this movement will take the form of encouragement to individual railroad systems to increase their respective quota of cars and locomotives and that for the present, at least, the railroad managements will continue to do their own buying. W. L. C. Revision of Excess Profit Tax Law Proposed What is called a new excess profit tax plan has been formulated by Christian Girl, president Standard Parts Co., Cleveland, and director of military truck produc- tion section, Quartermaster’s Department, Washington. As issued in a leaflet form by the Motor and Accessory Manufacturers Association, 33 West Forty-second Street, New York, the proposal provides for a reduc- tion in the percentage of tax as the percentage of profits increases. It is suggested, for example, that the tax might be 35 per cent on the difference between 9 per cent and 15 per cent of excess profits; a less per cent on the range between 15 and 20 per cent; a less per cent for the range of 20 to 25 per cent and succes- sive decreases of the percentage of tax for the suc- cessive increases on total profits. He would suggest that a tax of 80 per cent be placed on profits above 50 per cent of capitalization, unless these profits are in- vested in government securities, in which case no tax should be levied. Allowance for the percentage of profit on turn over of sales in relation to the capital invested should also be considered, he holds. The rate of tax should be the same on all industries engaged in the same kind of busi- ness, but a different rate depending on the profits in terms of the turn over. To secure a rapid exchange of money, it is also suggested that 40 per cent of all profits above government taxes should be distributed to the stockholders of corporations in the shape of cash dividends or government securities, and that a definite percentage of profits above government taxes should be distributed to employees. The Government, it is added, should collect 10 per cent of the amount of money so distributed to stockholders and employees, as taxes on special income from corporations. Mr. Girl believes that this plan will raise more money than the present one, that it will make the country prosperous and will consolidate labor and capital, all to bring about maxi- mum production. Manufaéturers of farm tractors are planning a very extensive selling campaign for the coming year. At a recent meeting of the tractor and thresher depart- ment of the National Implement and Vehicle Associa- tion held in Chicago, it was decided to hold eight tractor demonstrations during 1918. One of these, which is expected to be the largest, will take place in Cleveland Aug. 18-19. The demand for tractors has been heavy the past year and is growing, this probably being to some extent due to the heavy drain of the war on the supply of horses, the scarcity of farm hands and the increase in the cultivated acreage. The Municipal Civil Service Commission, Municipal Building, New York, will receive applications until Jan. 22, for the position of inspector of iron and steel con- struction. January 10, 1918 Spacing Mechanism tor Drilled Holes Accurate spacing of drilled holes in jigs, fixtures, and other work is claimed for a mechanism that has been brought out by Craley Mfg. Co., Lancaster, Pa. It is emphasized that its use does away with the need for laying out holes which are to be drilled and reamed in jigs, dies, master plates, models, etc., and the accuracy of the device enables the services of a mechanic on in- spection work for a considerable period of time to be eliminated. The device which is known as the “master tool- maker” has a compound table measuring 8 x 11 in. with slides at right angles. These slides are operated by two screws which are controlled by conventional ball THE IRON AGE 133 tion and proceed with the other holes. After the work has been completed a plug is placed in the hole which marks the position at which the larger hole is to be drilled. The work is then transferred to a lathe where the hole is bored and reamed. Engineers Needed The Army and Navy Staff Departments continue to demand men of engineering experience, especially in industrial lines. At present the outlook is that this demand will continue throughout the period of the war. In calling attention to this, the United States Public Service Reserve, Washington (where records of men willing to serve when called will be kept on file), points The Accurate Spacing of Holes in Jigs, Fixtures and Similar Work Position crank handles. Approximate settings are secured by manipulating these handles and micrometer heads and a set of standard distance bars are employed to give the accurate spacing required for the holes. In operation the mechanism is clamped in place on the table of a drilling machine so that the drill bushing lines up with the axis of the drilling machine spindle. In this way holes may be drilled the same as with ordi- nary jigs. The work table is then adjusted until both micrometers read zero against stops on the table. These serve as anvils for the micrometer heads and the center of the drill bushing is then located over the intersection of the guide strips of the work table. In starting to locate the first hole that is to be drilled after the work has been clamped against the guide strips an approxi- mate setting is secured through the movement of the two slides of the table. The final location is obtained by the use of distance bars and micrometer heads, it being pointed out that the arm which supports the drill bushing should be set to bring the bushing as close to the work as possible. The table is locked in position by a clamp before the drilling operation is commenced. Any number of holes can be located in the work which bear various relations to each other and it is pos- sible to manipulate the table slides and employ com- binations of micrometer heads and distance bars to locate a hole so that the proper relation is secured be- tween successive holes, The distance bars furnished enable any combination of even inches to be secured up to the capacity of the machine, while the adjustment for fractional parts of an inch is obtained by the microm- eter heads. The equipment regularly furnished includes a set of 11 distance bars, 4 in. in diameter and ranging from 1 to 11 in. in length, the difference between succes- sive bars being 1 in., and two special micrometer heads. Although the machine is designed to handle holes up to 5% in. in diameter, ones of larger size can also be taken care of. The method of procedure in such a case is to drill and ream a smaller hole in the desired loca- on the Table of the Drilling Machine and Adjusted to Give Is Accomplished by Mechanism Which Is Clamped in the Desired Relation fetween Succe e ‘ssive Holes out that a man of engineering experience has a rare combination of opportunities open to him, which are not open to the average patriotic American, as follows: 1. To serve the country in his most effective capacity. 2. To keep in touch with his own profession, with the result that his patriotic service will not have caused him to become rusty by the time peace returns. 3. To become a commissioned officer and receive much better pay than the average man who has wholly sub- ordinated personal interests and now works for the national good. 4. To perform his service usually without leaving the United States. Important Wage Advances , SEATTLE, Jan. 3.—Important wage increases have been made to 2500 steam engineers, winch and crane- men, donkey engine drivers, firemen, and other em- ployees in Seattle shipyards as the result of negotia- tions between representatives of steel and wooden ship- yards and of the International Union of Steam and Operating Engineers, conducted with the sanction of the Wage Adjustment Committee of the United States Shipping Board. The Government bonus of 10 per cent for men working full week of 48 hours has in ship- yards met with general approval and it is believed by shipbuilders will aid in solving the labor problem. The ruling will add 60,000 to Seattle payrolls monthly. Among the calendars for 1918 two already received are conspicuous. That of the Youngstown Sheet & Tube Co., Youngstown, Ohio, is featured by twelve two color illustrations of operations in the manufacture of iron and steel, from photographs taken in the company’s plants. The Cleveland Twist Drill Co., Cleveland, in “The Man Behind the Gun,” the color piece which sur mounts its 1918 calendar, has embodied the thought of the machinist’s vital importance to the great war ma- chine. Appeal to Iron and Steel Industry Manufacturers Asked to Adjust Prices in Harmony with Those Agreed Upon—Atten- tion Called to President Wilson’s Statement UDGE E. H. GARY, chairman of the Committee on J Steel and Steel Products of the American Iron and Steel Institute, has issued the following statement, which will probably be his last announcement for some time. ‘Referring to the statements of the chairman of the Committee on Steel and Steel Products of the American Iron and Steel Institute dated Nov. 13, Nov. 20, and Dec. 22, 1917, recommending prices for certain steel products to be adopted as maximum prices, to take effect immediately, to apply to the requirements of the United States Government, to the war require- ments of the Allies and for domestic consumption within the United States, the committee now makes similar recommendation to the iron and steel industry in respect of the prices and differentials below stated. “The recommendations so far made by the commit- tee as to maximum prices, differentials, etc., cover the principal iron and steel products, and the committee does not at present deem it necessary to make further specific recommendations. “In view of President Wilson’s statement under date of Nov. 5, 1917, that the iron and steel manu- facturers have agreed promptly to adjust the max- imum prices of all iron and steel products other than those on which prices have been agreed upon, the committee now recommends to the iron and steel in- dustry that the prices of all iron and steel products, maximum prices for which have not been agreed to with the War Industries Board or recommended by the committee, be promptly adjusted so as to be in line with the basic intermediate and finished products for which definite maximum prices have been established. The committee relies upon the patriotism and good faith of the iron and steel industry to accomplish this, and expresses the hope that all connected with the industry will co-operate in the proper spirit to this end. On Dec. 28, 1917, President Wilson authorized the following announcement: has recommendation Soard President Industries The approved the of the War that the maximum prices heretofore fixed by the President upon the recommendation of the board upon ore, coke, pig iron, steel and steel products, subject to revision on Jan. 1, 1918, be continued in effect until March 31, 1918 No new contracts calling for delivery of any of said commodities or articles on or after April 1, 1918, are to specify a price unless coupled with a clause making the price subject to revision by any authorized United States Government agency, so that all deliveries after that date shall not exceed the maximum price then in force, although ordered or contracted for in the meantime It is expected that all manufacturers and observe the maximum prices now fixed producers will “The committee calls the especial attention of the industry to the above announcement, which applies to all prices, differentials and extras recommended by the committee.” Pig Iron Differentials Special Car Wheel or Cylinder Iron The price for Virginia or other special car wheel or «ylinder irons containing over 1.00 per cent manganese may be made by adding to the base price of $33 the following differentials for manganese: Manganese 1.00 per cent to 1.50 per cent add $0.50 per ton Manganese 1.50 per cent to 2.00 per cent add 1.50 per ton Manganese 2.00 per cent to 2.50 per cent add 2.50 per ton Manganese 2.50 per cent to 3.00 per cent add 3.50 per ton Manganese .3.00 per cent to 3.50 per cent add 4.50 per ton Manganese .3.50 per cent to 4.00 per cent add 5.50 per ton Manganese .4.00 per cent to 4.50 per cent add 6.50 per ton Manganese .4.50 per cent to 5.00 per cent add 7.50 per ton Manganese .5.00 per cent to 5.50 per cent add 8.50 per ton Manganese 5.50 per cent to 600 per cent add % 50 per ton 1 € e For iron with phosphorus over 0.04, use following scale Add to Base Price, Per Ton A — = ——— For Copper- For Copper- Phosphorus free Iron bearing Iron 0.04 maximum $20.00 $17.00 0.045 maximum 17.50 15.00 0.0 maximum 15.00 13.00 0.055 maximum 12.50 11.00 0.06 maximum 10.00 9.00 0.065 maximum . 6.50 6.50 0.070 maximum. 5.50 5.50 0.075 maximum...... 5.00 5.00 0.075 to 0.09 maximum Use Bessemer Use Bessemer price price Note The above should appear at the end of the list of pig iron differentials dated Nov. 2, 1917, immediately after the paragraph showing scale of advances for phosphorus below 0.04 and silicon in excess of 2 per cent Iron Rolls Prices for condensed grain (sand) and chilled iron rolls recommended by the Committee on Steel and Steel Products of the American Iron and Steel Institute, Jan. 7, 1918 The following prices are subject to the usual customs of the trade. as regards terms, guarantees, adjustments, re- placements, etc The delivery point is f.o.b. makers’ works, but the prices include an allowance for actual freight, in iccordance with published freight rates, to the freight sta- tion of purchaser, provided same does not exceed 20c. per 100 Ib All freight in excess of 20c. per 100 Ib. to be paid by purchaser The freight allowance does not include any additional charges at destination (for switching service, spot- tine of cars, drayage, cartage, transfer, ferry car service) or any other expense over and above that covered by the published freight rate applying to the regular delivery station Plain Chilled Rolls Under & in. diameter.. a Sah 10.00c. per Ib 8 in. diameter and under 10 in. 8.75¢c. per lb 10 in. diameter and under 13 in 7.95c. per Ib 13 in. diameter and under 21 in. 7.15¢. per lb 21 in. diameter and under 24 in............ 6.15¢c. per Ib 24 in. diameter and under 33 in. under 91 in SS eee rea Te te ee ee ee ee ee ee 5.70c. per Ib 24 in. diameter and under 33 in., 91 in. long i ar a cori perk aoa vec 6.15c. per lb 33 in. diameter and under 35 in... 6.15c. per Ib 35 in. diameter and under 39 in............. 7.20c. per lb 39 in. diameter and under 43 in. &.30c. per lb 43 in. diameter and under 45 in.............. 10.25c. per Ib Rail rolls, 20 in. diameter and over, with open chilled finishing pass on one or both ends... 7.15c. per Ib tail rolls, under 20 in. diameter, with open chilled pass on one or both ends............ 7.45c. per Ib Plain rolls, part chilled, same price as chilled rolls of like diameter Plain chilled rolls requiring over 1%-in. chill, 4c. ad- ditional, and at purchaser’s risk of breakage, regardless of excessive’ depth of chill. Sand rolls, with but one or two plain chilled passes, not less than plain chilled rolls of like diameter. All other rolls having inclosed chilled passes or grooves, not less than 1.7c. per pound higher than plain chilled rolls of same diameter; chills for making same to be charged for at not over 10 per cent above cost, and when paid for may be delivered to customers on demand. Gap rolls for shovel mills, %c. per pound additional Sand Rolls Under 10: in, Ginmoeter ic sc ccucass 7.95e. per Ib 10 in. diameter and under 13 in 7.15¢c. per Ib 13 in. diameter and under 21 in 5.90c. per Ib 21 in. diameter and under 34 in............ 5.50c. per Ib 34 in. diameter and oOver.............. 5.90c. per Ib Iron Pinions Under 10: Im. Gimtmeter oo ics s cise 8.35c. per Ib 10 in. diameter and under 13 in.............. 7.55¢. per Ib 13 in. diameter and under 21 in.............. 6.35c. per Ib Bi th. IGMOCEP BIT OVC oo oss dei Hes ews 5.90c. per Ib Boxing or crating: Two per cent (2%) of face of bill additional 34 January 10, 1918 lron Ro The above prices for rolls 4c. per lb. where the purchaser s the broken and out scrap in operation of its mills, not of new rolls received, at not trade account, f.o.b $2.50 per necessary to pinions to works of make rolls pinions worn over mill tran seller’s ton, to scrap and are be THE IRON lls subject to a discount of ells and ships to the maker rolls and pinions produced to exceed 70 per cent in weight $30, per ton of 2240 Ib. in Any freight over sport such rolls paid by of excess and the scrap the seller Tool Steel Base on Steel Institute, All <«ount and Steel prices and Jan. 7, f.o.b extras recon Products of th 1918. prices point of High Speed tase prices: High-speed steel Tungsten finishing steel shipment the Iron imended Committers American by 1e and Steel and net without dis- Steel Shipments from Makers’ Ware- house Stocks $2.01 per Ib 66 per Ib Mill Shipments $2.00 per Ib 65 per lb Subject to established customs of trade, and with follow ing extras, all dimensions inclusive, intermediate sizes take the next higher extra Base Sizes ROUND, SQUARI AND OCTAGON *% in. to 2 in. inclusive FLAT % in. to 2 in. thick by %& in. to 2 in. wide Eatra Sizes ROUND, SQUARE AND OCTAGON Extra Extra Per Lb Per Lb inches Cents Inches Cents 9/16 te 2.0 %. to 4 3 1/26 00 MB ivkias $5 1% to 4%. 1.0 5/16 to 11/32 6.0 i™% to 5.. 15 4% to 9/32 8.5 5% to 5%. 5.0 2% to 2% 2.0 5% to 6.. 5 2% to 3 met 2.5 G61, to 6% 6.0 3% to 3% 2.0 i% to 7 hE Extra Sizes FLAT Iextra Extra Per Lb Per Lb Inches Cents Inches Cents x 3/16 40.0 *% x 1% to 5b 2.5 ee ae a aide ae 30.0 7/16 x % to l 3.0 bie CSPGs eek: 20.0 7/16x 1% to 5% 2.5 ex % to 2 14.0 “% x % tol.. 2.5 3/16 x \% to 3 14.0 “% x 1% to 6 2. 4% x 5/16 to \%. 8.0 9/16 x %& to 1 2.5 Eo WH Bivens 5.0 9/16 to 1% to 6 2.0 % x 1% to 4. 3.0 “ to2 x %& to 2 0.0 /16 x &% to %®% 9.0 “ to2 x 2% to 4 2.0 5/16 x & to 1 3 *% to2 x 4% to 7 4. 5/16 x 1% to 41 3. 2% to3 x 2% to 4 2.0 % x 7/16 to %. 3.0 2% to3 x 4% to7 +.( % x % to 1%... 3.0 Intermediate sizes take the next higher extra Annealing, 2c. per lb. extra Bevels, same classification as flats, plus 10c per Ib for shape. Cutting to Specified Single and Multiple Lengths Per Lb Cents 24 in. and over.. ‘ 1.0 18 in. to 23 15/16 in. 2.0 12 in. to 17 15/16 in.. 3.0 6 in. to 11 15/16 in..... er 44 Less than 6 in., special price FORGED DISKS Extra Per Lb Cents Weighing above 25 Ib 6 Weighing 15 to 25 Ib.. 10 Weighing 10 to 15 lb. 12 Weighing 7% to 10 lb. 14 Weighing 5 to 7% Ib 16 Weighing 3 to 5 lb 18 Weighing 2 to 3 lb 22 Weighing 1 to 2 Ib 24 Annealing... 2c. per lb. extra AGE FORGED DIE BLOCKS Ioxtra Per Lb Cents Weighing above 25 Ib 4 Weighing 15 to 25 lb... ‘ F ‘ 6 Weighing 10 to 15 Ib..... 10 Weighing 7% to 10 Ib... 14 Weighing 5 to 7% Ib.......... “ ‘ l¢ Weighing 3 to 5 lIb..... ; 18 Wrenn 2 86°S Bis c.c ic vecees ich dass Mw oo hk Menara eee - 2s Weighing 1 to 2 lb aan an . of Annealing ‘ 2c. per lb. extra Carbon Steel Shipments from Mill Makers’ Ware Base price Shipments house Stocks Non-shrinkable tool steel $0.35 per lb $0.36 per Ib Special tool steel 0.23 per lb 0.24 per lb Iextra tool steel. . 0.18 per lb 0.19 per lb Regular tool steel. ; 0.15 per Ib 0.16 per Ib Subject to established c ustoms of trade, and with follow- ing extras, all dimensions inclusive. intermediate sizes take the next higher extra Base Sizes ROUND SQUARE AND OCTAGON 54 in. to 2 in., inclusive FLAT “% in. to 2 in. wide by 9/16 in. to 2 in. thick Extra Sizes OUND, SQUARE AND OCTAGON Extra Ext Per Lb Per 1.) Cents Cents 2% to 3 1.0 7/16 to % 1.0 3% to 4. 1.5 16 and 11/32 2.0 4% to 5. 2.0 % and 9/32. of 5% to 6 2 R/16 5 0 6% to 7 3.0 »/32 10.0 7% to 8 3.5 Lg 18 0 1/16 to %& OF Eaetra Sizes FLAT extra extra Per Lb Per Lb Cents Cents j x 3/16 20.0 16 x *®% to % 1.5 = 15.0 16 x 11/16 to 8 1.0 Kx 5/16 8.0 % x 7/16 to 8 1.0 mx & 4.0 7/16 x &% to 8 1.0 \ x 7/16 to ! 3.0 % x 9/16 to 8 1.0 « x 9/16 to 7 2.0 9/16 x 2% to 8 1.0 & x 7% to § 3.0 9/16 to 2 x ® to 2 0.0 /16 x & 5.0 x to 2 x 2% to 7 1.¢ 3/16 x lf 4.0 % to 1% x 7% to 8 1.0 3/16 x ‘ 3.0 1% to 2x 7% to 8 3/16 x 7/16 to ™®& 2.0 2% to 3 x 2% to 1.0 3/16 x 11/16 to 2 1.5 2% to3 x 5% to § 1.5 3/16 x 2% to 7 1.0 3% to 4x 3% to 6 1.£ 16 x 7% to 8 2.0 3% to 4x 6% to &. 2.0 “4 x 5/16 to ®% 2 0 4% toi x 4% to 7 2.0 \% x 7/16 to % 1.5 4% to 5 x 7% to 8. 2.5 % x 11/16 to 2 l 1% to6 x 5% to 8 2.5 4% x 2% to 7 1.0 6% to 7x 6% to7 3.0 %™& x 7% to 8 _ 2.0 6% to8 x 7% to & a intermediate sizes take the next higher extra Annealed steel, le. per Ib. extra Cutting to Specified Single and Multiple Lengths Per Lb Cents 24 in. or longer ly, 18 to 24 in l 12 to 18 in l% 6 to 12 in ; ‘ I.ess than 6 in., special price; over 18 ft.. special price The American Pneumatic Chuck Co., 9 South Clinton Street, Chicago, has been incorporated under the laws of Illinois for the manufacture of air chucks and air- operated devices. John Olson, formerly with the De- troit Pneumatic Chuck Co., will be in charge of design and manufacture. The company will specialize for the present in standard and special air-operated equipment, for the rapid production of shells and other munition parts. Later on it intends placing on the market a com. plete line of air chucks. The Neidow & Payson Co., Chicago, has been appointed selling agent. Rulings as to Excess Profits Tax Law Internal Revenue Bureau Attempts to Straighten Out Many Tangles, Making Numerous Conces- sions to Taxpayers—Questions as to Inventories WASHINGTON, Jan. 7.—In a rather lame attempt to obviate the necessity for legislation to straighten out numerous tangles in the excess profits tax provisions of the war revenue act of Oct. 3, 1917, the Internal Revenue Bureau has promulgated a series of arbitrary rulings, the general tendency of which is to resolve doubts in favor of the taxpayer. Taking the rulings as a whole, however, they appear to be merely a series of minor concessions, doing very little to settle the really serious problems concerning capitalization, tan- gible assets, etc., which have been raised as a result of the ambiguous terms employed in this feature of the revenue act. In response to many complaints received by the Bureau from corporations, partnerships and individuals alleging their inability to furnish the data which the law appears to require concerning invested capital and net income for the so-called pre-war period, including the calendar years 1911-12-13, the commissioner an- nounces that, for the purpose of levying the excess profits tax, “a return of information with respect to the invested capital and net income for the pre-war pe- riod would not be required of a corporation, partnership or individual” in the following cases: (1) If the tax- payer accepts the minimum percentage, viz., 7 per cent, as the percentage to be used in computing the deduction under section 203; or (2) if the trade or business is taxable only at the 8 per cent rate under section 209. The commissioner stipulates, however, that this con- cession “must not be construed as not requiring the return of information as to all facts which may be nec- essary for the ascertainment of the capital and income for the taxable year whenever such a return is required by the Commissioner of Internal Revenue.” Taxpayers will hardly find the above “concession” of much value inasmuch as it can only be availed of by corporations willing to accept a minimum deduction to represent earnings of the pre-war period or by indi- viduals whose earnings are subject by law to an 8 per cent tax only because of the fact that they have no capital invested in their business. What Is Tangible Property? It appears that the Board of Excess Profits Ad- visers, whose function has been to counsel the commis sioner with regard to the intent of Congress, have only scratched the surface of the important question as to what constitutes tangible and intangible property in capital account. In a ruling issued by the commis- sioner it is stated that “to date the following classes of property have been construed to be ‘tangible property’ within the meaning of section 207: Stocks, bonds, bills and accounts receivable, and notes and other evidences of indebtedness.” In the same ruling the commissioner says that the term “other tangible property” as used in section 207 will be construed to mean “property of a character simi- lar to good will, trade marks, and the other specific kinds of property enumerated in the same clause.” Quite in line with the general vagueness which characterizes the statute and some of the rulings made thereunder is an explanatory remark which the commissioner adds to this ruling, as follows: “With respect to property not clearly of such a char- acter, rulings will be issued as occasion may demand, to indicate whether it shall be regarded as tangible or intangible.” Many inquiries have reached the Internal Revenue Bureau respecting the basis upon which inventories of supplies, materials and work in process of production should be made up as factors in excess profits tax cal- culations. On this point the commissioner holds that such inventories “must be taken either (a) at cost or (b) at cost or market price, whichever is lower; pro- vided that the method adopted must be adhered to in subsequent years unless another be authorized by the Commissioner of Internal Revenue.” It is added that “gain or loss resulting from the sale or disposition of assets inventoried as above must be computed as the difference between the inventory value and the price or value at which sold or disposed of.” Partners and Corporations One of the features of the excess profits tax pro- vision of the revenue act which has been most severely criticised is the apparent discrimination against part- ners and individuals, especially the latter, as compared with corporations. It has been pointed out that cor- porations may distribute a large part of their earnings in salaries to officers and thus escape the excess profits tax entirely, or cut such tax down to 8 per cent of the salaries so paid less the $6,000 exemption in the case of each salary. Careful examination of the statute appears to justify these complaints and does not indi- cate any remedy short of further legislation. The com- missioner, however, doubtless at the instance of the board of advisers, has issued a ruling under which salary allowances may be made in the case of partner- ships and of individuals. This ruling provides: 1 In computing net profits tax, expense income for purposes of the excess a partnership will be allowed to deduct as an reasonable compensation paid to ind vidual partners for personal services actually rendered during the taxable year, if the with prior books of the partne salaries o1 made in accordance properly payments are agreements and are recorded on the rship In no case shall the salaries or compensation so deducted be in excess of the salaries or com pensation customaril paid for similar services under like responsibilities by orporations engaged in like or similar trades or busines 2. An individual carrying on a trade or business having an invested capital may designate a reasonable amount as salary or compensation for personal service actually rendered him in the conduct of such trade or business In no case shall the amount so designated be in excess of the salaries compensation « tomarily paid for similar service under like responsibilities by corporations or partnerships engaged like or similar trades or businesses. It will be noted from this ruling that much latitude is allowed taxpayers in computing “reasonable” salaries and it remains to be seen how such a provision will work out in actual practice. Gifts Are Allowed In view of the fact that at this season of the year it is the practice of many corporations to distribute con- siderable sums among their employees as bonuses for efficient services or in celebration of unusual gains, an- other ruling of the commission will be examined with interest. In computing income tax returns under prior laws the bureau has refused to allow credits for con- tributions to charity, and in some cases bonuses to em- ployees have been treated as “gifts” not deductible for the purpose of calculating net earnings. Commissioner Roper, however, now holds that such bonuses, if made in good faith and not for the purpose of evading taxa- tion, may be treated as compensation and therefore not subject to tax. This ruling gives collectors of internal revenue wide discretion in its application, stipulating as it does that bonuses distributed in proportion to stock holdings must be regarded with suspicion, not- withstanding the obvious fact that in many cases the largest stockholders in small corporations commonly render the most valuable services. w. iL. ¢. 136 Crux of the War Situation Is Labor Judge Gary Favors Bringing Men from Distant Islands and the Orient to Help Win—Discusses Post Bellum Conditions States Steel Corporation, delivered an address be- fore the Commercial Club of Chicago, Saturday, Jan. 5, on Business Problems During and After the War. He said that Germany is more virile, more efficient, more determined and more aggressive than she was at the beginning of the war, and that as a nation, if she wins in the near future, she will be stronger financially, in- dustrially, commercially, militarily and with a com- paratively small reduction in the number of men not- withstanding the loss of millions of soldiers. “Our country as a whole, including the several branches of Government,” said Judge Gary “does not yet appear to appreciate that in order to win in this war it is necessary to appropriate’ every ounce of en- ergy, every dollar of wealth and every atom of skill within reach, to be drawn against when needed; and to offer every sacrifice, even of personal opinion or pride or desire for advancement of the interests of individuals or political parties. Of course every one has decided that every other person ought to subject personal ambition to the demands of the public welfare; but large num- bers go no further. This includes you and me, and it does not exclude others occupying more conspicuous places in the nation’s registry. But this is only one side of the canvas. “If we are going to continue in the war against Ger- many, with all her power, we may well ask ourselves what is necessary for a defense against this modern monster of despotism, tyranny, destruction and oppres- sion; and also, whether or not we are able to meet the requirements.” J UDGE ELBERT H. GARY, chairman of the United The Labor Question After speaking of the essentials to victory, such as food, transportation, arms, barracks, aircraft and seacraft and also money to pay the cost of providing all these elements of strength, Judge Gary turned to a discussion of the labor situation, and said: “Labor is scarce and growing more so, although there are employed large numbers of American women who are doing their full share, in both civil and military lines of activity, in accordance with their strength. “Now it is manifest that in order to render the assistance that is asked of us and which seems to be imperative, we must have more and more men, for soldiers and workmen, skilled and unskilled. We cannot produce the quantities or amounts demanded unless the number of men is materially increased, nor unless all who are willing to work are permitted to do so to the extent of their reasonable capability and desire. There is a shortage of labor in this country at the present time on the farms, the railroads, the ships, in the shops, the factories, the mines, the offices. Production even up to the present capacity cannot be secured unless more workmen are employed. And for the building of increased productive capacity and for the operation of the same, additional men must be procured. Slow in Getting Ready “We may be excused for having been slow in getting ready for defense against unjust attack, even since August, 1914, but there can be no justification for failure in the future to push vigorously and without un- necessary interruption, in every department of the Government, preparation for assisting the allied forces to carry on and to win the war by the utilization of everything that is valuable for war purposes. Expen- ditures had better be too large and preparation over- done than to risk the danger of neglecting to provide any single item that might adc to the military strength of the allied forces. “The weakest spot in our situation is lack of suffi- cient production of the things that are vital to the life and strength of the armies, which might be obtained except for the scarcity of labor. It would be unwise, nay unpardonable, if this shortage shall not promptly be overcome. This question at present is of command- ing import. “This country has an advantage over all others in times of war or peace, by reason of her natural re- sources and accumulated wealth but it is not of full practical value unless the agencies for production and use are sufficient. To the extent that workmen are lacking in number, to a corresponding degree are wealth and raw materials without value. It is question- able whether, when an abundance of ships are built, there will be trained men and machinery in ample num- bers and quantities, and, in the case of battleships, ade- quate supplies and munitions. Frank Discussion Needed “The labor question is one which employers are sometimes reluctant to discuss for fear of misinterpre- tation of motives, but in war times every question which bears vitally upon the conduct and termination of the war should be considered frankly and fairly by the employer, the employee and the public generally. Each is equally interested. Each is entitled to protection and the rights of none should be neglected, although the necessities of the general public are always of primary importance. “Lest anyone might conclude that I have in any respect changed my views as heretofore expressed con- cerning labor generally, I may be permitted to say: Workmen should always have fair, just and liberal treatment. They should be paid good wages, taking into account the service rendered and all conditions which reasonably apply. The welfare, safety and health of the men and their families should receive careful attention by employers. Relief funds for the result of accidents or old age should be established. All men, of all grades, ranks and nationalities, should be per- mitted to work when and where they please and on terms that they agree to. The laws should impartially protect both capital and labor and permit imposition or abuse -by neither. Duty to Win War “The precarious conditions, already adverted to, compel the United States to do everything within its power to bring the war to a speedy and victorious close. We insist our soldiers shall not be placed in the trenches or on the firing line unless and until they are completely hardened, trained and equipped, and that they shall always be furnished with sufficient supplies to protect them and preserve their health. The fathers and mothers of this country have given their sons in defense of our beloved land. These men are entitled to every practicable effort on our part to assist them, and and this without one moment of unnecessary delay. Efficiency, abundance and promptness will save mil- lions of men and billions of money. “To the extent needed for the purposes named, the United States should immediately, under proper condi- tions and reasonable restrictions, draw from the islands of the sea and from oriental countries, enough men in- cluding soldiers and sailors to meet every emergency. There would be no difficulty in obtaining within a short period large numbers of strong, healthy, intelligent, loyal men for civil or even military duty, and the num- ber could be increased from time to time as required. All who are acquainted with the facts know that we need more men and that we can get them if we are so disposed. If legislation is requisite, Congress should act without delay. 137 “There may be, there already have been, objections to the admission of certain nationalities, even tempo- rarily and under carefully considered restrictions. These have been persistent, especially by foreigners who heretofore have settled in this country. But the thing to do first is to win the war; to stop the spilling of blood, the destruction of the lives and health of our noble and loyal men and the unjustified depletion of our resources. We can discuss and properly decide other questions later. If we now delay, we may not have the opportunity to consider the other matters. Possible Objections “And still, if objections are raised and discussed, they can be fairly met and with good reasons, in ad- dition to the one war’s necessity, which is undebatable. At any rate they are not fundamental nor of much con- sequence by comparison.” Judge Gary next spoke of the importance of the question of administration in order to obtain conserva- tion and proper application of all our resources with discrimination and wisdom. He added: “We believe the war will end victoriously for the allied forces within two or three years; we hope in a much shorter time. It could not terminate in favor of the other