The Iron Age 1920-06-03: Vol 105 Iss 23

ESTABLISHED 1855 HE IRON AGE New York, June 3, 1920 Institute Discusses Post-War Problems VOL. 105: No. 23 Despite Many Troubles Due to Labor Conditions, Iron and Steel Manufacturers Are Optimistic— Judge Gary Mentioned as a Presidential Possibility HE meetings of the American Iron and Steel Institute during the period of the war, when the members were bending every energy to do their full part in bringing a speedy victory, were characterized by the enthusiasm and intensity of feeling which also marked the meeting last Oc- tober on account of the steel strike. At the Octo- ber meeting, the enthusiastic endorsement given to Judge Gary on account of his action in resisting the demands of organized labor, was a prominent feature. At the seventeenth general meeting held last Friday at the Hotel Commodore, New York, there was not the intensity of feeling previously manifested, and this was natural, but there was a genuine realization of the seriousness of present conditions, especially those relating to labor, and the attendance exceeded 1300, there being 1321 at the banquet compared with 1330 last October. The conversation in the lobby indicated that nearly everyone is having a full share of troubles due to the railroad situation, but the prevailing sen- timent was optimistic. That even the troubles were not taken with too much seriousness was shown by the humorous address by W. U. Follansbee, secre- tary and treasurer of Follansbée Bros. Co., Pitts- burgh. The technica] papers were of the usual high order. Mr. Close’s paper on Welfare Work of the Steel Corporation was accorded the unusual honor of a special vote of thanks on motion of W. A. Rog- ers, Rogers, Brown & Co., and seconded by Willis I. King, vice-president Jones & Laughlin Steel Co. Notable absentees were President James A. Farrell of the Steel Corporation who had not yet returned from his trip to California, where he attended the meeting of the Foreign Trade Council, and Hon. J. A. McCleary, secretary of the institute, who was absent on account of illness. In his opening address, Judge Gary paid an earnest tribute to the loyalty of the members of the institute, to the iron and steel business and to the country and spoke of their influence in the affairs of the nation. Referring to the dark days of the panic of 1907, Judge Gary recalled the words of J. Pierpont Morgan, of whom he spoke as “our be- loved associate,” who said, “Stand steady boys, play the game and play it fair.” The iron and steel men did stand steady and played the game and played it fair in that critical period and throughout the war and now in another period they were ready to 1579 again do their full duty. Judge Gary emphasized the importance of the members doing their utmost to protect, not only their own interests, but those of their employees and above all those of the public. At the banquet, Judge Gary presided and an- nounced that the responses to toasts would be en- tirely by members of the institute. He said that the day had been one of inspiration and congratu- lated the institute upon the commanding influence that it has acquired in the affairs of the nation. He spoke in a very gracious manner of the ladies and said, “Who can tell but that we may see some of our splendid women placed in charge of our im- portant industries and admitted to membership in the institute?” Joseph G. Butler, Jr., referring to Judge Gary’s description of the kind of man he thinks the coun- try should have for president, said: “If Judge Gary would add about 50 per cent to that estimte, he would describe himself.” This reference to a pos- sible dark horse in the presidential race was agreed by enthusiastic applause and Mr. Butler added, “I am a delegate to the Chicago convention; that is all I have to say on that subject.” Willis I. King, vice-president of the Jones & Laughlin Steel Co., spoke of the early days of the industry when there were hard times nearly all the time with many failures. He referred to the low tariff which was enacted in 1913 and to the impor- tations of steel from foreign countries in 1914. He said that this would have proved disastrous had war not been declared. He predicted that the low tariff will cause disaster and made an appeal for the revision of the present Underwood law. He advo- cated the closer relations of members of the insti- tute, and suggested that it might be well to estab- lish a steel magazine, but he especially urged united action in regard to a protective tariff. Colonel Robert W. Hunt, president R. W. Hunt & Co., Chicago, spoke of his long experience, in- cluding 30 years as an employer, and expressed the opinion that the American workman, as a rule. is a good man, who goes wrong only when influenced by bad advice. He denounced the attitude of anv organization which attempts to hamper men in doing their utmost with their God-given powers. He took an optimistic view of the future because he said that unsound principles could not last. Referring to the labor question, he spoke of having recom- mended several years ago that Chinese labor be im- ii iE ' *% tf. : ne? met Wet ieat re ice i { a % ait it : hat : res qd: t 1580 THE IRON AGE ported to this country under contract, and he re- newed that suggestion, expressing the belief that the Chinese, if brought to this country for a period of five years, would not only help in solving the labor questions in industries, but would be of great assistance to the ladies in their home work. He also said that the Chinese would learn to use Amer- ican implements and upon returning to China would greatly encourage the use of these implements in that country. . W. U. Follansbee, Follansbee Bros. & Co., spoke in a lighter vein of the industrial troubles of to-day, particularly of the flimsy excuses that are made by workingmen to avoid work. Dr. Henry M. Howe, professor emeritus of Metallurgy, Columbia University, made an earnest address upon conditions growing out of the war. At the conclusion of Professor Howe’s address, Judge Gary announced that he would ask the mem- bers to call for anyone they wished to hear. Of course there was an immediate demand for Charles M. Schwab, chairman of the Bethlehem Steel Cor- poration. Mr. Schwab, after telling a few new stories, referred to the decision of the Supreme Court in June 3, 192 favor of the United States Steel Corporation in +} dissolution suit, and heartily approved it, so the audience, judging from the applause which | lowed, and it became even more demonstrat when Mr. Schwab said that the great need of ¢} country to-day is to have a man in the White Hoy who will choose his subordinates regardless of po! tics and added, ‘‘No one is so well qualified to « that as is the distinguished president of the Ame: can Iron and Steel Institute.” Mr. Schwab poked a little fun at Mr. King on account of his sugge, tion of starting a newspaper. “It may be better.’ said Mr. Schwab, “to establish closer relations | lending each other money. Anybody who would lik: to take up this matter with me can have a confe) ence with me after dinner.” This sally was greeted with much laughter. Mr. Schwab then went on. speaking in a serious vein. He commended the lo: alty of the members and urged them to continue in this spirit, for it surely would bring happiness and success. He said that he had a reputation for be- ing an optimist, and that in spite of the depressing conditions to-day, an American citizen, if he se¢ things in the right way, must be an optimist. Judge Gary on the Ship of State He Discusses the Rights and Duties of Employers, Employees and the Public—His Ideal of the Presidency HE subject of Judge Gary’s opening address was the “Ship of State.” He spoke in part as follows: “There are no classes in the United States such as have existed in other countries. Formerly, in certain parts of the world, classes were actually formed and sustained by the rich or powerful, who were supposed to belong to the ‘upper class.’ They became distinct and commanding. They secured and continued to hold additional privileges and benefits to which they were not justly entitled, and which made them proud and overbearing. They were doomed to eventual failure and final destruction, except so far as they might be deserving on the merits. In America those who now seek to establish classes and to secure discriminating favors for themselves are not prominent because of wealth; they are composed of a comparatively small minority of the population who have adopted the word ‘labor,’ which signifies honorable activity, with the concealed design of forming a ‘class’ which they hope will finally attract a majority of the people, and thus enable them to obtain one legislative act after another until the Constitution shall be undermined and the whole structure destroyed. “In a discussion of this kind there should be a frank admission that no one is without fault; that every vari- ety of human nature may justly be censured. And for purposes of illustration, we may refer to groups of persons and interests. We could not accurately speak of them as classes; but these groups might be, and heretofore have been, mentioned as the capitalistic group (including their representatives), the labor group, and the general public. Slight effort at analysis will demonstrate how far short of accuracy these de- scriptions are. “Who compose the first group? Those who have accumulated property; if so, how much? “Who make up the second? Those who work with their hands; if so, with the shovel, the lever of a ma- chine or the pen? “Who constitute the third? Those who neither pos- sess pecuniary resources nor perform any labor? If so, there is none to be considered in this connection, for the group would be small in numbers and subjects of charity or public control. Obviously, the public is made up of the entire population. “And yet, we can comprehend to some extent what is in the minds of some of the writers and speakers who undertake to make these classifications to which I have alluded. Employers “T will, for present purposes, place the members of this large audience in the first group. Most of you are possessed of accumulated savings and occupy im- portant positions, although you started from the lowest rung of the ladder of success, and because of merit and hard work have reached your present station in life. You have, in management, in greater or less degree, marked responsibilities in regard to each and all of the groups described. You could not shirk or min- imize them if you desired to do so. As a business citi- zen you must account to others for your stewardship. What you say, what you do, will have an important influence in national, even international affairs. It will be good or bad. You must consistently observe the principles of the Constitution, the provisions of the laws of the land, the rights and interests of your neigh- bors, including your employees, customers, competitors and the general public. You must be unselfish, rea- sonable, fair, sincere and honest. You should, without interruption, give evidence of a disposition to conciliate and co-operate. Regardless of the past, even though you may believe you have been unjustly treated or cen- sured, you should and will make and keep resolutions for the future which you know are proper. All this, of course, applies with full force to your president. “If we adhere firmly to these principles, if we are steadfast and true; and then courageously, though mod- estly, proclaim our rights and insist upon proper con- sideration in return, it will be accorded. We have here- tofore been somewhat backward in this respect. Employees “Employees generally are included in the second group. With all others they have full and equal rights and responsibilities. They must and will realize that their advancement and contentment depend upon the progress and prosperity of the employers; that, except for the willing and free investment of capital up to the requirements of business demands, together with full co-operative assistance on the part of the best talent, enterprise and initiative would languish and disappear and that indifference and idleness would be substituted. June 3, 1920 “Agitators who are trying to create trouble be- veen employees and their employers as a rule are nsincere and selfish. Generally, they themselves have yerformed no hard labor, nor had experience which jualifies them to lead or instruct. They strive for per- ;onal popularity and gain. Their business is better, eir compensation increased, when others are in trouble. Assuming to be sympathetic and superior in ntelligence, they mislead and often misrepresent. They romise reforms, but their methods led to trouble and ss to others. , In this list are included a few writers, ecturers, public speakers and self-appointed labor aders, so called. “The great masses of employees, if left to decide x themselves, are loyal to the country, to the public nterest and to their employers; and to the extent of is loyalty they will be rewarded up to the full meas- ire of their deserts. This they will have the right to demand; and it will be readily and cheerfully ac- ded. They also should, and they will, continuously xercise a disposition to conciliate and co-operate. As .pplied to all groups, faithful performance, and this ly, will insure highest pecuniary results and most eral treatment. The Public “In the classification suggested, the public com- hends every citizen except the individual who is dis- issing the subject. Speaking of men we can define terest only as either public or private. Depending pon the question under consideration, we may em- ace in the word ‘public’ a community, a village, y, county, commonwealth or nation; but the question ymes back to either public or private interest. “As each individual in the groups heretofore men- med is obligated to conduct himself or herself in ich manner as to promote and not impair the public velfare, so the public is likewise responsible to the ndividual. In public discussions, and occasionally in ewspaper editorials, it is frequently assumed that there is no corresponding and reciprocal duty on the art of the general public whom, at the particular time, e speaker or writer attempts to represent. Unjust ttacks or criticisms against individual interests, some- mes promiscuous, in other instances by name, are ide from a biased standpoint or upon distortion of the facts. The exact truth is not infrequently ignored overlooked. Many able discourses in the press, in the Congress of the United States, by public officials, ven from the pulpit, are based on a misstatement of he facts. “The speakers or writers who are recklessly unjust ire rare exceptions. But for this reason, if for no ther, they perhaps receive considerably more ex- nded notice. “The volunteer guardians of the public welfare and f private individuals and interests are numerous and i\udacious. They wrap about themselves the cloak of self-righteousness and proclaim from the housetops. The public has a duty to perform in exposing and con- troverting hypocrisy and sham on the part of the reck- less and irresponsible. “Every individual should under all circumstances receive from all others honest and fair consideration. There should not be, there must not be, any discrimina- m against or in favor of any particular group of THE IRON AGE 1581 persons if this country is to retain the position among the nations to which it is justly entitled. “The general public, whether it is represented by governmental heads, by Congress or otherwise, should co-operate with and assist private enterprise. Every department of government has responsibilities and op- portunities of magnitude at this particular period in our history, remembering that general prosperity is the first essential. They can do much toward the pre- servation or destruction of the Ship of State. They can by precept and example contribute in rehabilitating and re-establishing the affairs of this country. For constructive statesmanship, which will add to stability and progress in the moral, economic, social and political life of the nation, they will be entitled to the com- mendation of all mankind; while by a narrow-minded, partisan, fault-finding, destructive policy, they will create discord, distress and demoralization. The ma- jority of the people of this country are tired of petty animosities, of unreasonable rewards or punishments, of undue restrictions or liberality concerning public or private undertakings. They are disgusted with muckraking, which usually is conducted for the glori- fication of the inquisitor and at a large expense to the public. This is especially true of the present, when sentiment is inflamed and when the burdens of taxa- tion are almost intolerable. “A word concerning the next President—the Captain of the Ship of State. There must be selected one who is able, wise and well-informed, of unquestioned hon- esty, morally and intellectually, eminently fair and im- partial, frank and sincere, broad-minded, deeply sym- pathetic, courageous, sturdy and well balanced; and above everything else, loyal to the Constitution and the laws of the land. “Other problems of magnitude, national and inter- national, engage our attention at the present time, but those of highest importance relate to the life and safety of our Ship of State. Conclusion “We have reason to expect, and I firmly believe, that now and henceforth, more than ever before in our his- tory, a spirit of unity will pervade and control the minds of all the citizens from the President down; that each one will recognize a persona! responsibility to his coun- try and to all its inhabitants; that strictest economy in expenditures and management, lowest costs, and proper compensation for faithful performance will be the uni- versal sentiment; and that order, stability, advance- ment and prosperity will surely follow. * * * Sail on, O Ship of State! Sail on, O Union, strong and great! Humanity with all its fears, With all the hopes of future years, Is hanging breathless on thy fate! We know what master laid thy keel, What workmen wrought thy ribs of steel, Who made each mast, and sail, and rope, What anvils rang, what hammers beat, In what a forge and what a heat Were shaped the anchors of thy hope! Fear not each sudden sound and shock, "Tis of the wave and not the rock; ‘Tis but the flapping of the sail, And not a rent made by the gale! In spite of rock and tempest’s roar, In spite of false lights on the shore, Sail on, nor fear to breast the sea! Our hearts, our hopes, are all with thee, Our hearts, our hopes, our prayers, our tears, Our faith triumphant o’er our fears, Are all with thee—are all with thee !’’ Iron Industry in the War Fully 100,000,000 Tons of Steel Used—Over 130,000 Men in ] OSEPH G. BUTLER, Jr., Youngstown, Ohio, speak- “ ing on the iron and steel industries in war work and nancing, said: “The manner in which the whole American people sponded to the call of country during the emergency rising from our entrance, with almost no previous ‘eparation, into the most momentous struggle of all nistory, the world war of 1914-19, forms one of the Service—Immense Bond Subscriptions brightest pages in the record of democratic government. The part played in this inspiring evidence of national strength and solidarity by the iron and steel industries was not less noteworthy than their contributions to the cause of civilization in the form of products necessary to win the war. “The amount of steel contributed to the combined armies and navies of the Allied countries during the nas nda + cane Be Gi Bi ert mas Te > hier ae ee =” ee or ee ee ee > EAS AEN re Ne TOT 1582 THE IRON AGE war cannot be stated with exactness, but a conserva- tive estimate made from the latest information at hand places this at the stupendous figure of not less than 100,000,000 tons. Much of this was used indirectly for war purposes anda considerable portion of it consumed in this country. Nevertheless, it was a part, in one form or another, of the vast machine by which the war was won. “Fortunately it is possible to present the facts con- cerning the contribution made by the iron and steel industries in the form of men and money more exactly than those in regard to the tonnage of steel supplied to our Government and its allies. The American Iron and Steel Institute sent out inquiries to its contribut- ing membership of plants of all kinds. The replies embraced reports made by 568 steel companies in the United States, and include all except a comparatively few smaller concerns, statistics from which would not materially change the total. “These statistics have been arranged in three groups. The first shows the number of officers and employees of the companies reporting who were en- gaged in the service of the United States and enrolled in regular organizations in the Army, Navy and Avia- tion Corps, together with the number who voluntarily engaged in auxiliary war work in various organizations approved by the Government. The second group gives the total subscriptions to Liberty loans made by officers and employees of these companies, arranged so as to indicate the nature of the securities and the amount of each taken by corporations and their employees wherever possible. The third group gives in detail for 56 leading companies the number of men in service, the amount of securities purchased by companies and by employees (or by both where this was not separated on the records), and the grand total of subscriptions and enlistments for these 56 companies and for all of the companies reporting, 568 in number. “T am condensing these statistics. The figures in detail will appear in full in the 1919 Year Book of the American Iron and Steel Institute, reported soon to be published. “Beware of Germany,’ Danger of Another sians—Four Great ROF. HENRY M. HOWE at the banquet spoke as follows: “Because we are the greatest and richest country we have the greatest interest, measured absolutely, in world welfare and world thrift, that our debtors may thrive and pay us and that our customers may thrive and buy. As a lending and selling nation we can pros- per only as the rest of the world prospers and is able to repay and to buy. “With this enormous stake in world thrift, we should be most unwise, now that we have once emerged into the world’s forum, to retreat from it and resume our old Corean role of a hermit nation, not only neglecting to exert our force to direct the world according to our interests, but shirking the duties which every strong nation owes its fellows, as every strong man owes his community an active part in promoting the common welfare. “With these truisms clearly before us, let us con sider briefly a single group of the great world ques- tions the right solution of which is of the first im- portance to us. “Why did we go to war? To defend our own ex- istence as a nation. We saw that Prussia, after ex- panding through centuries till she controlled the whole of the vast Central Empires, had so nearly conquered the Western Powers that, unless we helped them, they too would be absorbed, that our turn would come next, and that we, together with all our available allies, such as Japan and Latin America, would then be impotent to resist Prussia after she should have duly organized her approaching conquests. We saw at last that our Deterrents Described June 3, 1920 “It is worthy of note that in the group of 56 co) panies referred to above sent into the service m than 80 per cent of the total enlisting, and at the sa time subscribed about 82 per cent of the total amou; invested in war securities. This group included companies subscribing for less than a total of $2 000,000. More than 33 companies, in addition to thes, 56, purchased securities in excess of $1,000,000. striking fact in this connection is the report by al] the 56 companies mentioned that their employees we 100 per cent enrolled as purchasers of bonds duri; the war, as well as that the employees of some of th smaller companies whose detailed statement could n be included herewith because of the necessity of brevity were among the largest buyers of both bonds and wa savings stamps. “These statistics given indicate that the iron and steel industries of this country contributed 131,504 men to the service of the country during the war, and sup plied funds to the amount of nearly $700,000,000 fo. the prosecution of the struggle. It is a matter of dee; regret that no adequate records have been kept by the greater number of companies concerning the contribu tion made by them and their employees in funds for war work, such as the Red Cross, the Young Men’s Christian Association, the Knights of Columbus and probably other organizations. Comparison of security purchases and war work contributions by companies and their employees in the relatively few cases where ac curate figures on this point are obtainable, indicate that the amount furnished for these forms of activity by the steel industry was very nearly equally divided between the employees and the stockholders. Many claims are made as to who won the war. It is fair to say that American steel played a very important part. It is my intention to endeavor to obtain statistics show- ing the income tax and all other forms of taxation made upon and paid by the steel-producing interests. These figures will show the large sums exacted and possibly aid in the publicity very much needed to contradict the wild stories prevalent of the enormous profits made by the producers of steel.” ’ Says Professor Howe Attack of the Prus- very existence was seriously threatened by the terrible law of the survival of the fittest—not the fittest indus- trially, intellectually, or ethically, but the fittest to con quer other nations. We may differ in our analysis of this fitness. We may say that it springs from her hereditary and insatiable lust of conquest; from her treachery; from her system of government which con centrates all the best intelligence of the country on war problems; from the natural cohesion of an autocrac) which gives it an incalculable advantage over the indi vidualism of democracies, or from these causes com bined. But whatever the cause, Prussia’s supreme fit ness for conquest threatened us so closely that we poured out our blood and wealth like water, preferring death or poverty to bondage. “For a few heroic months our people saw and fought the peril to our existence inherent in the nature of the Prussian. To-day we seem, ostrich like, to hide it by thrusting our heads in the sand. When Hannibal wa at the gates, Rome threw herself upon Carthage and swept her from the face of the earth, recognizing the peril inherent in the nature of the Carthaginians. In the language of to-day, that means taking effectiv: steps to prevent Hannibal and his successors from re turning to the gates. In like manner it is of the first importance to us, both for our own national existenc: and for the welfare of the rest of the world, our debtors and customers, to prevent Germany’s re-enter- ing the warpath and reattacking our natural allies, lest she bankrupt them, and, absorbing their resources, human and material, in turn reach a strength which we should be impotent to resist. June 3, 1920 THE IRON AGE AUTHORS OF PAPERS READ AT MEETING OF THE AMERICAN IRON AND STEEL INSTITUTE From left to right, upper row: C. L. CLOSE, manager, Bureau of Safety, Sanitation and Wel- fare, United States Steel Corporation, New York; B. p—E MARE, superintendent, open hearth de partment, Midvale Steel and Ordnance Company, Philadelphia; ALBERT SAvUveuR, professor of metallurgy, Harvard University, Cambridge, Mass.: F. C. CoTrret,, Bureau of Mines, Washington. From left to right, lower row: GEORGE OTIS SVIITH, director, United States Geological Sur- vey, Washington; C. A. Witter, Provident Enzineering Co., Philadelphia; H. F. Moore, re- search professor of engineering material, University of Illinois, Urbana, III. “Therefore let us see clearly that, as Rome’s peril in the nature of the Carthaginians, so ours lies in nature of the Prussians, and that we are so pro foundly interested in what is done to prevent their re- ittacking that we owe it to ourselves to exert our influ- ence. Let us not for an instant suppose that the war s a closed episode, nor shut our eyes to the persistence f that Prussian nature which, in the last analysis, 1used the war, and retains to-day the determination to reattempt world conquest when a favorable time comes. Let us remember that it was our intervention alone it thwarted Prussia; that our allies are fearfully akened by bearing the onslaught for years without r aid; that Germany may well succeed in getting h control over Russia that our own administrative nius may direct the immense resources of that un- ippy land against the Western Powers and ourselves; t the situation thus remains and will remain critical; | hence that we should exert our influence to prevent ectively the coming of that time favorable to a Ger- reattack. Among these preventive measures we once recognize four so important that we, as a coun- interested in this prevention, should exert the in- ence which our strength and our fairness justify. ese four deterrents are the punishment of the guilty, reduction of the German armament, the guarding the west bank of the Rhine, and a great ‘indemnity money and goods. Let us review these briefly. ‘Tv “The trial and punishment of the guilty, originally assigned to the Allies, has been transferred to the Ger- mans themselves. The influence of our public opinion should have been brought to bear on this question. To many of us this seems like deputing to Hannibal to explain to Carthage that to assault Rome was naughty, and that instead of a deterrent it was a strong encour- agement, by assuring the Teutons in advance that we will pardon whatever enormities they commit, thus capitalizing for them their own treachery and brutal- ity and freeing them to use every baseness to which we cannot descend. “After the Germans had consented to reducing their army to a maximum of 100,000 men, without heavy artillery, tanks, war planes, poison gases or liquid fire, as things superfluous for maintaining domestic order, our public opinion should have expressed itself clearly as to whether this plan was to be abandoned and Ger- many allowed, as she is to-day, to have more than 1,500,000 men under arms, still equipped with heavy artillery, flame throwers, war planes, and tanks. “The permanent occupation of the west bank of the Rhine, without annexation, would form a most impor- tant deterrent to German attacks, because the damage done by the attack would then occur in German terri- tory, and because the Rhine itself is a great natural obstacle. Should German predatoriness later cease, this occupation might cease with it. The permanence of enna gee pea ; Sea a ae a won Saree RT a io v0 saat areas 2 E (eee Sw aw ne | rs -ener we ae a eed a RCN ae St ata ea RE egret nema a ow owe ae eae See FOO Satelite Sk till eae TESS RR LONG REE PO OTT IE - 4 = a Faw mney seis tarpeaiea alter orange cetera le lle et lg a TB ee aa eS atin one neve ~ a one YOR a ~* ae ; ee eens oetenetenenicdiel . =o 1584 THE IRON AGE this safeguard should not have been abandoned, as it has, without giving our people an opportunity to judge. “The fourth great deterrent, a great indemnity in money and goods, should not be given up without con- sulting our people effectively. “A strong school opposes any penalty commensu- rate with the damage, on the ground that Germany must be strengthened so that she may be able to pay. Our country as a country is interested in the deterrent feature of this indemnity, both in its making Germany impotent for a new attack and in serving as an example of the damage incurred by an unsuccessful attack. Those who are seeking to shield Germany may forget that the nursing which gives her strength to pay gives her also the strength to reattack, and that a great June 3, 1920 indemnity would probably have the beneficial effec: causing many of. the most enterprising German: emigrate, and thus to lessen Germany’s power for ha without lessening the usefulness of any individual . grant. In the decision of this and like matters we . so profoundly interested because they bear’so stron on Germany’s tendency to reattack, that ‘we ought exert great weight. “You may say that such details should be left to representatives. Even-so, our people should be ena to exert their influence on the basic underlying decis between coddling and sternness, between restoring | the thug his strength with which to repay us or attack us as he sees fit, and visiting on him a jy penalty for his crimes.” ; THE TECHNICAL PAPERS PRESENTED BSTRACTS of the papers presented at the sessions follow, excepting the one on “The Future of Oxygen EF; richment of the Air in Metallurgical Operations,” by F. C. Cottrell, Bureau of Mines, Washington. T1) will appear in a later issue together with its discussion and the discussions of the other papers. Industry’s Need of Oil American Resources and the World’s—Our Consumption and Safeguards for the Future—Relation to the Steel Industry BY GEORGE OTIS SMITH - — - ~ oa i the last 10 years the natural inclination of man- kind to trust to the largess of nature has found abundant incentive. In the summer of 1910 the Lake- view Gusher, in California, excited popular interest with its flow of 40,000 bbl. a day, but just before the close of the same year this record was surpassed by that of a well in Mexico, the Potrero del Llano, No. 4, with a maximum flow of about 160,000 bbl. a day, yet even this outburst of oil was exceeded five years later by another Mexican well, the Cerro Azul No. 4, whose measured flow was more than 260,000 bbl. in 24 hr. These individual performances, together with the strikes at Cushing and Healdton, Okla., and the later oil booms in North Texas and Louisiana, all have increased the popular faith in the inexhaustible supplies of petro- leum. Ten years ago the wells of the United States were adding to our reserve stocks 15,000,000 bbl. in the year; now the current is in the other direction, for in the last nine months our stored petroleum has been drawn upon to the extent of 15,000,000 bbl. In 1910 our im- ports of oil were an insignificant item, but in 1919 we were obliged to import nearly 47,000,000 bbl. of crude oil more than we exported. Ten years ago Mexico was our customér for crude oil as well as for refinery prod- ucts, but now we realize too keenly our dependence upon the Mexican wells; without the 6,500,000 bbl. imported from Mexico in March our present situation would be indeed critical. In terms of oil, then, the decade 1910-1919 is best described as a transition from over-supply to over- demand. And figures already available indicate that in both production and consumption the present year promises a record that will further emphasize this dis- cordance between supply and demand. The first three months of 1920 have established a rate of domestic production that if unchecked will mean a total for the year of 415,000,000 bbl., or nearly twice the output of 1910, and a rate of consumption that would make the year’s requirements more than 490,000,000 bbl., or one- seventh more than last year’s consumption. Consumption of Oil Facts of consumption are not easily determined. Where our oil comes from is a matter set forth each month in our Geological Survey reports; where it goes is largely a matter of conjecture. We all know in a *Director, United States Geological Survey. general way the different kinds of demand. Foremost among these is the ever-increasing thirst for gasoline by the automotive engine, whose name is legion; next is the larger use of tuel oil for steam making; then the universal need of all industry for lubricants; and finally, the many other uses for petroleum products, not less important, perhaps, though involving less vol- ume, unless we except the accumulated demand for asphaltic oils for road construction. If every demand for oil cannot be met, which use is to be given priority? The first official note of warning that demand was overtaking supply was sounded a dozen years ago, but only within the last few months has that note swollen into a chorus, and the reason for this chorus of alarm is evident. Rising prices have led to the rediscovery of the law of supply and demand, which was supposed to have been repealed during the war; a consumption curve that rises faster than a production curve is the graphic signal of danger ahead; the heavy draft now being made upon our accumulated stores of oil—more than 10 per cent gone in nine months—tells the story that we are living beyond our means; and it all leads us to ask ourselves, in this day of apparent plenty, where will our children get the oil they need? An in- tensive drilling campaign has been the practical re- sponse to high prices for crude oil, just as the orgy of newspaper advertising of questionable oil stocks is the reflection of popular interest in the petroleum situation, but even the most wisely directed drilling can give only temporary relief. How soon we may expect the peak of domestic production becomes a very practical ques- tion, inasmuch as no one can see any prospect of any let-up in demand. ; The official estimate of less than 7,000,000,000 bbl. of oil as the quantity remaining available in the ground in the United States is believed to be liberal, but even if we inflate such an estimate 25 per cent the indi- cated reserve is seen to be far from ample when we contemplate our probable consumption this year of nearly half a billion barrels of crude oil. The division of ultimate domestic supply by current demand is all too simple a sum in mental arithmetic. World’s Oil Resources An estimate of the petroleum resources of the world has just been published by the Chief Geologist of the U. S. Geological Survey, David White, and his figure of 60,000,000,000 bbl. for the whole world is doubtless exact enough to enable us to see the oil situation of the June 3, 1920 ited States in fairly true perspective. Using within r own borders fully half of the world’s annual pro- ‘tion of petroleum, we seem to possess only about e-seventh of what remains. This lack of national f-sufficiency in oil reserves may be expressed in an- er way; contrast the international position of the nited States in respect to oil with its position in re- ect to coal. In the past 10 years our 6000 to 7000 coal nes have contributed 41 per cent of the world’s out- it of coal. Our present estimates credit the United tates with more than half of the world’s coal reserves, , that if’ we are to think in world terms, the great nnage of coal ‘produced by this country each year presents less than our national share. But now con- ler the petroleum situation: in these same 10 years ir 140,000 to 200,000 oil wells have poured forth re than 61 per cent of the world’s output, although ‘ now believe that the United States possesses only ibout 12 per cent of the oil left to the world for its iture use, so that in oil our nation is doing far more than its share. Coke By-Products Limited When we come to consider substitutes for petro- im products, the capacity of your own steel industry furnishing benzol and alcohol as by-products de- rves first mention. I am informed by Mr. Walker of the United States Steel Corporation that plants now operation and under construction have a capacity of 15,000,000 gal. a year—that is, if the output of light s is converted into motor benzol. Such an annual mtribution of less than 2,000,000 bbl., however, is juivalent to not much more than a week’s output of vasoline as the refineries of the United States are now inning. The recovery of alcohol from your coke ovens as not yet begun, but British experience seems to ow that the maximum alcohol capacity of the coke vens of the United States might be less than their enzol capacity. Apparently, then, the benzol and al- cohol possibilities of the steel industry cannot be re- garded as promising enough motor fuel even to meet the present increase in demand. It must be recognized, however, that this country, as the world’s greatest con- imer of coal, has not fairly begun by-product recov- ry. With the higher cost of coal and this increased lemand for by-products more efficient practice must esult in the natural course of economic events. The oil-shale resources of our country must not be erlooked nor their national value underestimated is a rear line of economic defense. As their oil con- tent is fairly comparable with the petroleum reserves the world, these shales furnish an effective guaranty iwainst the United States going bone-dry as to oil, but e oil won from oil shales will not be labor-cheap like the petroleum now flowing from our wells. As long as ndustry is short-handed it cannot look for relief from | shale nor can it expect any return to low prices y utilizing this resource, however vast its extent; these Western mountains of oil-shale stand as a visible promise that even when our underground reser- voirs of petroleum are drained the United States will not be at the commercial mercy of any foreign power— even if that power has been prompt to take ad- antage of the present opportunity to acquire a ma- jority share in the world’s oil resources. Still, even with the largest measure of optimism, backed up with our oil shales, we must face the contingency that the ext generation of American business men may see their trade rivals across the Atlantic turning the wheels of industry and commerce with cheaper oil than available in the American markets. Regard for the future, then, forces us to plan how to use less oil at me and how to acquire our share of the foreign supply. Essential Uses of Petroleum It is high time for us to begin to weigh the essen- tial uses of petroleum. Oil was first used as an illumi- nant, but to-day, whether in the kerosene lamp on the dern frontier or as gas-oil to enrich the gas of the ty, this use of a petroleum product is not increasing n the same seale as the industrial uses. In power veneration oil takes on niuch larger economic values, whether as gasoline or as fuel oil. The demand for THE IRON AGE 1585 gasoline seems to obey no law of normal increase, and the higher cost of coal in recent years has greatly stimulated the use of fuel oil under steam boilers. Fortunately the rapid increase in the consumption of fuel oil by locomotives seems to have been checked at about the same time that it has found a wider use in stationary steam plants. Last year the public utility power plants of the United States consumed 11,000,000 bbl. of fuel oil in generating electricity, nearly half of it in coalless California. In the East the present oil shortage has doubtless started a reaction in the popu- larity of fuel oil caused by the coal shortage in the war years. The more adequate and reliable supply of coal must in the long run give coal the advantage for use under stationary boilers, for despite the labor econ- omy attained through oil, the assurance of an unfailing supply of fuel is of first importance in industry. Prices also will eventually exert an automatic con- trol on the use of oil products. Not only is the inade- quate supply stimulating high-cost production as well as rewarding low-cost operation with unusual profits, but however much we may desire low-priced gasoline we cannot wave aside the economic facts of supply and demand. High prices are here for crude oil and for every one of its products, and high prices will help to bring about a kind of economic survival. The more essential use of oil—that is, the use of oil where it serves the greatest end—will survive, and business practice, public opinion, and even, if needed, Govern- mental regulation, should work together to enforce obedience to this democratic rule of the greatest good to the greatest number. Plenty and cheapness have led to waste; scarcity and dearness ought to promote thrift. It is a problem for the nation as well as for your individual plant to get larger values out of the higher-cost coal and oil. Electricity as a Substitute for Oil Fuel In any weighing of the uses of petroleum, certain changes in practice appear inevitable. The use of gaso- line to serve our pleasure cannot go on unchecked— the joy ride is not the kind of “pursuit of happiness” regarded as an “unalienable right” by our revolutionary fathers. The use of fuel oil as a substitute for coal must be discouraged, for our Navy and our merchant narine need the fluid fuel for reasons that do not apply to stationary boilers or even steam locomotives. On terra firma a power program can be worked out that will hitch up coal mine and waterfall efficiently, “and both industry and transportation can be fully electri- fied to the end that, except perhaps on the Pacific coast, not a barrel of oil should be used under boilers. The necessity of caution in enlarging the field of fuel oil is the more apparent when we realize that, as sug- gested by the Bureau of mines, every increase in de- mand for other petroleum products for a higher use entails a loss in the percentage of fuel oil produced. The requirements of the American Navy and the new merchant marine present a priority demand of the first order. Admiral Griffin, the chief of the Bu- reau of Steam Engineering of the United States Navy, informs me that the oil-burning vessels ready for serv- ice aggregate more than 6,000,000 hp. and that other vessels under construction will bring this total up to nearly 9,000,000 hp. The Navy now needs 8,000,000 bbl. of fuel oil a year, yet this figure is small compared with the requirements of the Shipping Board, which are stated by Paul Foley, its director of operations, as 40,000,000 bbl. for 1920 and 60,000,000 for 1921. If the American flag is to fly on the seven seas the motive power to carry it must be assured, and here is one de- mand for fuel oil which alone equals the present output of our refineries for about four months. Surely no American with vision wishes to contemplate even the possibility of a shortage of fuel oil that would endanger the immediate availability of these battleships, cruisers and destroyers or interfere with the successful opera- tion of the steamers in the construction of which our natien has invested so many millions. Use of Power and Machinery Increasing In our attention to the generation of power to meet the needs of industry and transportation, we give too ae erate ree pipe watenenniir er pees ge ae a ae ee a ee = =~ aes r PR Ate WO RR SANS PO MIENS 3 6K. Y NST NN ee in ar eee y Seay faa le ee ee ee Ee ee 3 r - Ay ne eee ee ee ae) i | f 1586 THE IRON AGE little thought to one unique function of oil—that of saving power. Machinery without lubrication is un- thinkable; adequate lubrication saves energy and makes it available for use as well as adds to the life of the machine. There is little danger of shortage in lubri- cating oil for our Navy, for the daily refinery output, as reported by the Bureau of Mines, is almost sufficient to supply the Navy for a year with lubricating oil, whereas about three weeks run would be necessary to meet the Navy’s annual needs in fuel oil. Yet, on second thought, we realize how universal is the use of lubricating oil, in the home as well as in the largest steel plant, in the motorcycle and locomotive, in the electric fan and the power station—everywhere oi! is needed in the bearings, a single drop or many gallons. And in looking to industry’s future needs of this petro- leum product large plans should be made, for our use of power and machinery is increasing faster than is generally appreciated. The statistics of electric power generation collected monthly by the Geological Survey June 3, 1924 show that the war-peak was exceeded last yea; already the opening months of 1920 are ahead corresponding months of 1919 by 14 per cent. This need for oil to insure our industria] lif, spires the call for pioneering on other continent. American oil companies. In the world estimates credit South America with a third more oil res, than the United States, so that one guidepost fo, explorer and developer plainly points to the south. the steel industry, this American hunt for oil, not | in the Western Hemisphere but in the Far East. special significance. Wherever an oil field is develo, by American capital not only will its product be ay able either for our home refineries or for the more | tant American bunker stations at the world’s eros roads, but all the supplies needed to develop and op: ate this foreign oil field will come from the Unit: States. An “International Oil” operating in Sout! America means another market for the product of “National Tube” operating in Pennsylvania. The Microscope and the Heat Treatment of Steel The Various Transformations in Structure and Properties Under Thermal Conditions—Indispensability of Metallography BY ALBERT SAUVEUR* N no department of metallurgy has the microscope rendered greater service than in the heat treatment of steel. No satisfactory explanation can be given of the heat treatment of steel without having recourse to the microscope. It is indispensable also to further progress in the art of treating steel. It would be difficult to find a contribution written within the last 10 years in any of our technical trans- actions on the subject of the heat treatment of steel which is not based in part, if not wholly, on the teach- ing of the microscope. The reason for this is obvious. If the heat treatment of steel is of such vastly greater importance and significance than the heat treatment of any other metal or alloy, if it implies a vastly greater number of possible treatments and of possible results, it is because steel, unlike other metals