The Iron Age 1922-06-08: Vol 109 Iss 23

Ve Gan tim GD & 7 < <2 “aw New York, June 8, 1922 VCL. 109, No, 23 Making Hot-Pressed or lorged Brass Advantages of the Percussion Power Press (pplication to Bronze. Nickel. Tin and Aluminum Details of Process BY L. S. LOVI ly, UPPLEMENTARY information to that contained In each case with the various machines employed, _ in an article in THE IRON AGE March 30 on difficulties were encountered for different reasons. In “Brass Forgings’ may be of value to those in- the case of crank presses, one of the main objections ested in the economical production of parts made found was the fact that blanks would vary in size from brass, bronze, copper, nickel, tin, aluminum, etc., and thickness, resulting in pressed parts of varying made possible in re- density and_ conse- cent years in the de- elopment of the per- juently, so far as uni formity was con- ission power press. ‘erned, little better Pressing parts from these various metals in a_ heated condition has been practiced extensively abroad for many for the purposes re- juired than the cast- a ahieeiatinen ings used as blanks. Another objection to > ar the crank press was found to be the fact that the oversize blanks would throw a tremendous strain on years, particularly in Germany, in machines f various kinds. In that country machines somewhat similar to the percussion press in principle, although different in design, are being used. Of these presses when passing the dead cen- ter, resulting in many 5 instances in broken press frames and broken cranks. An- dl = recent years, and es- other objection to the pecially during the war, this method of roducting parts ready for machining yperations, or even for use as finished products, has devel- oped rapidly in this ountry. crank press is the fact that it exerts compar- atively little pressure until it reaches dead center, when the pressure is all exerted instantly; the result is often pressed parts which may be scant at The earliest experi- some point, the metal not having had time to fill all recesses in ments were made with idea of securing brass blanks, such as Brass Forgings Are Made on a Percu n Power Press of This Type the die, or which had Luse bodies, ready for become cold and been hining, which would be of uniform density, free cracked in the sudden impact as the press passed dead m blow-holes, pin-holes, and other defects, due to center. The same objections applying to crank presses thods of casting in sand or metal molds, and have apply also to knuckle presses. higher tensile strength than ordinary brass cast- The chief objection to the use of drop hammers ngs which had not been subjected to this treatment. was found in the fact that the blow was too sudden se experiments were conducted first with ordinary and severe. The metal would not have time to fill all lings, heated and placed in dies in power presses the recesses in the die; it would crack, due to the force the single action, crank type, double action type of the blow, or it would be found that the sudden 1 also knuckle joint embossing type. In some plants blow had condensed the outside of the piece, but the p hammers were used; in others hydraulic presses. pressure had not reached the inside, making forg- ings which were not homogeneous. This last condition arbour, Love & Woodward, In New York Phe would appear particularly where variations were pres- r acknowledges assistance of engineers of the Zeh & 1 . emann Co., Newark, N. J., in compiling information ent in the size of blanks. 1581 eg emmy Pew en MR ene setae mt a ee eee ee Che ¥ sp een eet 2 ecient an Ae — is gaa Se tnaeeweelc lay diinthagth-oouttingaia lan tally inal cn Te Nees A Pe 5 er Enea te — ee ee a He. ‘ape es eneene ee ee a ee 1 eo Som a ieee pin tw ot a og sal Cl RO ee ae eS ee Se 1582 Hydraulic presses were found to be too slow, al- lowing the metal to cool before full pressure was applied, thereby producing forgings too scant, due to low temperature when pressure was applied or cracked, due to pressure when cold. While these were going on in the plants of many manufacturers, with greater or less degree of success in different instances, the Zeh & Hahnemann Co., Newark, N. J., was ex- perimenting along the same lines with its percussion power press, using blanks cut from ordinary brass rod and experiments brass goods extruded brass. This press was first developed by the company several years prior to this time for the purpose of embossing, cold-forming numerous arti- cles, and other manner of press work; in fact, for many of the for which drop presses, knuckle presses, etc., had been used. It was found that the percussion power press was ideal for forging brass, due to the peculiar action of the press and the effect of that action on the work. As will be noted from one of the illustrations, the machine is a screw press operated by power. The power is applied to the screw through a heavy fly- wheel attached to its upper end. This wheel is driven by means of a friction disk which can be brought in contact with its periphery at the will of the operator, through a lever conveniently mounted on the smaller presses, or by means of the lever or of compressed air on the larger sizes. This lever or air cylinder moves the shaft carrying the driving disk endwise, thereby bringing the disk itself to the flywheel periphery. This shaft, incidentally, is carried in ball bearings, thereby consuming a minimum of power in friction loss. uses The disk coming in contact with the periphery of the flywheel first near its own center, starts the wheel rotating accelerating it as it travels down with the screw it is turning and to which it is at- tached, which brings it spirally to the outer edge or full diameter of the disk, where maximum speed jis at- tained. The action of this drive is such that the ram is producing pressure through much of its travel; the effect being to fill all recesses through flowing in of the metal until the full cumulative force of the blow is reached at the end of the stroke, delivering the entire inertia of the rapidly revolving flywheel, brought -] rixy slowly, THE IRON AGE June 8, 1929 to a dead stop, into the final blow. The action j fast to permit the blank to cool, but is suffi slow to permit of completely filling all recesses j die. The versing ram is returned to the high position b the operation. A trip actuated automati throws off the driving disk, and advances the disk. This latter is mounted on the same shaft carries the driving disk, but on the opposite s the flywheel. The action on the flywheel is dece] ing as it moves up toward the centre of the disk, it is stopped by a brake automatically applied and return disk is thrown to normal position out gagement. Machines can be set for continuous operat Varieties of Products Made of Hot Pressed or Forged and Other Non-Ferrous and Metals. They include acety- lene welding tips, gas connec- phonograph parts, etc. Brass Alloys tions, limited principally by the activity of the operator loading blanks or the capacity of the furnace. The machine is not affected by variations in size of blanks, but will produce uniform work with regularity, as it has no dead center to pass with c sequent tendency to stall. Should the operator be care- less in placing work in the machine or leave any t or other obstruction on the die, conditions which would probably break the ordinary power press and would interfere with the proper operation of the percus press, the latter will reverse automatically with damage to itself or the die. The percussion press is capable of wide variations of blow through variations in speed to suit different requirements of the work in hand. In building these machines for single purpose operation, special sideration can be given the relation between the lea of the driving screw and the amount of speed or dris ing force desired in the final blow. A steep lead will accelerate faster but reduce the effective energy for the final or driving blow. On the subject of proper analysis of brass suitable for handling by this method, it has been found th: 55 to 62 per cent of copper and 38 to 45 per cent zine or an average of 60 to 40 per cent will produ very satisfactory work; the lower percentage of « per producing work of higher tensile strength lower elongation, and vice versa. In some cases very small percentage of lead up to 5 per cent ha been found desirable. It has been found, however, that other mixtures are not sufficiently ductile, or will «is- integrate in heating. Blanks should be heated in oil or gas furnaces to temperatures ranging from 1400 t 1600 deg. Fahr. There are two types of dies commonly used; those f entirely inclose the blank, and those of the as used in drop forging. Dies of the inclcsed are subjected to tremendous hydrostatic pressures should consequently be designed with sufficient strength to withstand this pressure. This type will produce a clean, uniform forging, free from The drop forge type of die will show a fin or n the product, which will have to be passed to nming operation. s for work having a hole, closed recess or pocket have the punch or pilot for producing this hole, with a draft to permit of withdrawal from the regardless of the binding effect due to cooling. Further, in making dies due consideration must be ide for shrinkage of the work; in other words, dies be made oversize. Dies must be made of mater- hich will not be destroyed by the constant insert- hot blanks. Some have found the best material e purpose to be tungsten alloy. has been found that heavy oil and flake mica make rable lubricant and cooling medium, Mineral lard also used for this purpose. A jet of air, oper- conjunction with the automatic knockout on ichine, has been found desirable as a coolant, to STANDARDIZED REFRACTORIES* Bureau of Standards Doing Pioneer Work—Points Way to Better Trade Conditions and Elimination of Waste co-operation with the Department of Commerce, vhich Mr. Hoover is secretary, the bureau of the get has created by executive order a federal spec- tion board, with Dr. W. S. Stratton, director of Bureau of Standards, as chairman. This board done some work on drafting specifications for sus types of refractories. While it has made ess, it is greatly handicapped by the reluc- of various manufacturers of refractories to ize information concerning their processes of ifacture. The bureau believes that if these men | be shown where it was to their advantage to put ‘cards on the table, they would assume a totally ferent attitude toward the activities of the bureau. Many tests have been made and the results of of this work would be available except for the that, beyond general conclusions, they are held as tly confidential. The Refractories Manufacturers’ ciation has made tests and records of performance. results are held confidential. The Bureau of ndards has made a valuable investigation in which properties of something like 70 brands of fire brick determined, but these results also, so far as ‘'s of the brands are concerned, are held as lential. \ Where the Buyer’s Ignorance Hurts the Seller or a long time the thought has been that the user t pay the price for the quality, workmanship , iniformity that he is demanding in refractories. ‘he Tault is laid against the door of the big users, ) are charged with so lacking in co-ordination be- the purchase office and the production and vunting departments that they pay no attention to fect of the quality of refractories on the cost of of steel or whatever their product may be. It rged that it is next to impossible to make accurate irisons of the service of similar kinds of fire Thus the purchasing agent cannot be blamed article, abridged from a paper by W. A. Hull, of the refractories section, Bureau of Standards, Refractories Manufacturers’ Association in Chicago, w the Department of Commerce, through the Bureau ndards, is endeavoring to be of specific service to the ; The example may suggest a use of its facilities nutacturers not yet acquainted with the co-operation The article is published by permission of the of the Bureau of Standards. THE IRON AGE 1583 keep dies clean and clear of scale, and also to blow the work off the top of the die after the knockout has thrown it from the impression. Different methods of delivering blanks or slugs to the operator and work from the machine may be devised to suit conditions in different shops. Other illustrations show some of the different vari- eties of work on which this method is used to prepare material for machine operations of finished product. These include acetylene welding tips and gas con- nections, phonograph parts, electrical connections, hand wheels, grease cups, tubes, etc. The percussion press is being used also for handling many parts of nickel, copper, tin, etc. cold, the press being made in a wide variety of sizes, suitable for varying requirements. The Zeh & Hahnemann Co., in its experiments along this line, made some tests with crank presses. While these presses were elim- inated for this class of work, due to their effect on the quality of the product, nevertheless the trouble from broken frames and crankshafts was overcome. The company developed an overload absorber attached te the side of the press. The percussion press, of course, does not require any such overload protective devise. if he solves his problem by driving as hard a bargain as he can. Another Case Where Education Pays Users refuse to pay a premium for superior quality, because they have no way of knowing they are going to get it. They may not even know when they do get it. With some co-operation from the manufacturers of refractories the Bureau of Standards, it is empha- sized, can be of great service in providing the yard- sticks with which to measure the properties and in- directly the values, at least relatively, of the different grades of refractories. The bureau has been paying a great deal of attention to the higher grades and possibly losing sight of the valuable properties of the less refractory grades. Here again is believed to be an opportunity for the elimination of waste by pro- moting, by educational methods, an appreciation of the superior qualities of what we are making and selling as second quality brick. It is wasteful to use brick made from our highly refractory clays where less refractory bricks would give better service, and it is only by educational methods that the advantages of the special qualities of the grades that are not highly refractory can be capitalized. Building Warehouse in Long Island City Egleston Bros. & Co., 166 South Street, New York, iron and steel jobber, is building a new ware- house at Borden Avenue, Mount and School Streets, Long Island City. The contract, which is being handled by the Austin Co., Cleveland, will probably be con- cluded by October. The warehouse, which will front on three streets, will be about 200 x 225 ft. and will be thoroughly equipped with modern machinery. A siding for seven freight cars connects with the Long Island Railroad. Three electric overhead traveling cranes, two 5-ton and one 10-ton capacity, have been purchased and two more of 3-ton to 5-ton capacity will be pur- chased later. The company is also negotiating for the purchase of shears, saws and other machinery. The new warehouse, besides permitting the maintenance of a larger stock of bars, plates, structural material, black, galvanized and blue annealed sheets, cold rolled shaft- ing and screw stock, will enable the company to carry in stock and cut structural pieces up to 60-ft. long and other large pieces of material. Witherbee, Sherman & Co., have appointed Freyn, Brassert & Co., Chicago, consulting engineers for the construction of their new blast furnace at Port Henry, Pe: es Oe ee aetansliamiiceareaaie | ae . a ae ee ne ”~ te oh gee eM etn atin te cata onan an eer “4 pn es a ee ieee - ee eee ee Co ee er a seememeeleliomaieal es oe lla oltiaptnings i Pe re eee: n * le > ne he erg renew + a nn ne SS - — (Pate eee Seek Ai i diac hk Pm ae em. wae 4 } I peed et a ee i litte util ts a ae a en cr er ae SO em a eae e nna a ar monde? < iet a lec ee Pe neaaaariny ae Sean ame ear 5) - ue DN ee a a es * aie - vf “ . 6 se Bl: st V ster in Foun ry P ‘ac se Ot a ASU [VICLEeF | ractice > Measurement of Air Blast Volume Important in Cupola Control—Methods of Measurement BY LOUIS L. VAYDA* HILE air, cygen, is absolutely Thus there is a happy medium of air ‘ essential in th irning of any kind of fuel, will give the best results, save fuel, and a frerent an lI of alr with the same amount in¢ rease the life of furnaces. This part of of fuel will bring different results. Dr. Richard Mol- remains the same, whether it be a boiler, o denke said to the Southern Metal Trades Association: or cupola furnace. In the one case, the aj ACTIN a 4 A , ee “That blast volume is most important will be under- induced by the draft in the stack; in the stood from the following: the oxygen of the air blown supplied mechanically by means of a blow into the cupola combines with the coke and evolves the Where large volumes of a gas are to heat necessary to melt the iron. It is essential that the old type of station meter is being used af this combustion of the fuel be as complete as possible, gas companies, as the size of a house met . > ; >. Connections to the Bl ‘ of the Instrument (Show Detail Below) Are Sin This is the inclined forn when accurate reading required a e . , ’ so as to convert the carbon into carbon dioxide gas. volumes flowing through the blast pipe would be | A pound of carbon in the fuel will yield 14,500 heat hibitive. This type, however, is also now bein . units when burned to carbon dioxide. However, this carded in favor of a method which is the only suit gas is able to unite with incandescent carbon and form _ solution for measuring gas or air under varying another gas called carbon monoxide and, if allowed _ sure. - to do so, the heat units produced by the pound of car- The first attempt to get an idea of the volu bon in question will diminish to 4400. The other 10,100 blast to the cupola was to measure the pressurt l heat units are lost by being locked up in the new gas, liquid in both legs of an open U-tube is subject ‘ which later burns as it is met by the air drawn in at barometric pressure. But when one leg is closed ; the charging door. Thus about two-thirds of the avail- top and subjected to additional pressure, th able heat of the fuel will be wasted and dissipated in drops in the closed leg and rises in the other, t ' the atmosphere if complete combustion does not take sure being indicated by the difference (h) place in the cupola.” heights of the liquid. This abstract explains well the condition due to A form of the U-tube which is rapidly gaining lack of air. The other condition, excess air, is just as favor is the single leg gage, Fig. 1. The prin bad, for the ultimate result of combustion is carbon yolved is the same as in the ordinary U-tube, t dioxide (GO,). To get this, eacn part of carbon in the ference being that one leg is enlarged to such a coke must combine with two parts of oxygen. as to act as a reservoir, and the visible change , If there are more than two parts, those in excess le vel takes place in the other leg only. The must also be taken through the furnace and heated of this type over the U-tube is that only on from room to furnace temperature, without doing any peed be read and the reading is direct, eliminating of the heating. In addition, since air is four-fifths necessity of taking the difference in the colum nitrogen, which does not enter into combustion, that First attempts to learn the volume of blast also will be taken along and heated from room to fur- eupola by the use of the pressure were by ma nace temperature. The reduction of effectiveness of flush connection into the wind box or blast pipe, fuel from this cause is evident. in turn was connected to the U-tube or single leg £44 It was thought that this pressure was an indicat . the volume. It is true that the volume increases W’ the pressure, providing the resistance offered 1584 *Bacharach Industrial Instrument Co., Pittsburgh. Mr Vavyda’s contribut in ibstract of a paper pre sented | T before the Pittsburgh Foundrymen’s Associa THE IRON AGE ee m | | —+lql- Lccimpuisillteenae " 4 Sw ta +] ‘ at ’ ee ' jpoaeeees Fig. 1 KF (I ) i Z is | es to the wind flow were always to be the same matically by making a flush connection in the blast pipe 7 s, however, is not the case—the resistance va at a point close to the bent tube, and connecting this ies many ways. The nature of the coke is one fac- to the other side of the single leg gage. ft 1e nature of the charge another. Even during To figure velocity from such a gage reading the a ne heat the resistance varies considerably at dif following is necessary: As an example let us assume o} ‘ periods. The result is, therefore, that when the that water was used in the gage, and the reading was ert ire is most the resistance against the flow is tin. Take the square root of 4, which is 2, and mul- «tal est and the air delivered to the cupola the least tiply by a factor, 66. The result will be 132 ft. per if ise of a fan type of blower and a pressure gage second. This applies under standard conditions. Know iit last line between the blast gate and the fan it ing the velocity, it is necessary only to multiply it by 4 i juickly be seen that the pressure will be the the area of the blast pipe in sq. ft. to get the volume 4 when the blast gate is closed entirely, allowing in cu. ft. is w of air. As the maximum pressure created by the impact of ; i simplest way to determine the volume of air the air against the mouth of the bent tube is usually jae g is by the use of the Pitot tube. Here the im- below 1 ounce, an accurate indication cannot be had on f the air against the mouth of the tube is the in- the single leg gage unless it is magnified. This is done i mn of the velocity of the air. But in addition to by inclining the glass tube of the single leg pressure ‘ pact pressure the pressure existing in the blast gage, so that the difference h, although small, is ex- i. also enters the tube. This is neutralized auto- panded over a scale of 10 to 15 in. Such an arrange- } : ‘4 ft 2 i ng . A ta ee ee amen wernt a . a Fs ae ee een eae ee ee a ese lor ti i sinless ee a ons ies kag Oh pea This Case a Recording Instrument, Set Out of the Way Against the Wall, Is Used. The small tube connections to the blast main are carried along the ceiling 1586 ment, enabling one to read the pressure within 1/350 ounce or 1/5600 pound, is shown in one half-tone. In cases where the Pitot tube is not practical, orifices as shown by Fig. 2 may be used. The differ- ence in pressure on the two sides of the orifice is pro- portional to the rate of flow through them, and is meas- ured in the same way as in the Pitot tube. Each type of orifice has distinct advantages that enable one to select the most suitable for any installation. The thin plate type is easy to install and cheap, while the rounded or standard orifice is a bit more accurate under vary- ing conditions. The orifice installed at the intake to the blower may be recommended when the other two methods are not practicable, and it requires but one connection, the reason being that one end is open to barometric pressure. The one connection at the gage would also be left open to barometric pressure. Before these devices are practical and usable to good advantage in a foundry, a number of refinements are necessary. The gage should be inclosed in a dust proof, solid metal case. The two connections should be brought together in a combination valve that will open both simultaneously to the lines going to the Pitot tube or orifice. This is necessary to prevent blowing out the operating liquid from the gage, for the maxi- mum reading of such a gage is below 1 ounce and the pressure in the blast pipe is usually over 10 ounces. A Useful I-Beam Chart* I-beams are much used these days, more and more, as the While certainly be used they will I-beam is me — | | le-- + { t T + me xe 2 ; — i, 2 ¢ v i a | S v 0 | oO o gi, 9 | os 2 5° | R o $} e. | 0 c y Fo f z oF 0 6 * - S 2 @ + -:t 6« 5 a > + sah UV) a ~ + S48 % 5 9 < we 3 ar” m= @ v | oO " | O +-!0000 ya (0 } \ CV 80 | t 0° 1 30 | 200 | 10 | ‘L B c E Diagram Showing Use of Chart the lightest and most economical steel beam for most purposes. Inasmuch as a _ concentrated load, as shown in the sketch, represents the very worst con- dition, requiring the largest beam for a given load, this chart is based upon concentrated loads, sake of safety. for the *Copyright, 1922, by W. F. Schaphorst, M.E., : 45 Academy Street, Newark, N. J THE IRON AGE June 8, 1929 The scale should be graduated to read direct}, ft. per min. Provision should also be made ; venient filling and draining of the gage with connecting the pressure pipes. Means should provided for an easy check and adjustment Pitot tubes should be compact and of suc} that they may be easily installed. They shou large openings that will not clog. A stuffing box also be provided, to facilitate accurate adjustn the blast pipe. Orifice sizes and shapes must curately figured for each case. Rounded or s: orifices must be very carefully made, as the sha function of its accuracy. Some cupola operators desire recording instru In these, the movement of the bell indicates ference between the pressure under it and th: metric pressure. This movement is transferred chart by means of a rod, one end of which car pen which makes the graphical record, as sh Fig. 3. The chart is rotated by a clock mov By the use of various liquids and by altering sign somewhat, such instruments can be made t accurately pressures from lb. up to 25 10,000 no periodic calibration is needed of such instru the readings will be at all times reliable. The wavy arrow lines running from the to the vertical chart lines show at a glance just what each chart column means. Thus Column A and includes all Column B gives the weight the I-beam in 1b. per ft. and includes all weights uy to 200 lb. Column D, giving the safe load of the I- beam in pounds, varies from 400 to 30,000 Ib. Column E gives the depths of beams in inches from one to 10 in. To show how the chart is used, suppose that ; weight of 4000 lb. must be supported. A 7-in. | weighing 240 lb. is available. It is 12 ft. long and therefore weighs 20 lb. per ft. The minimum dis- tance between supports that can be obtained for the lifting operation is 10 ft. Is the I-beam strong enough to lift the 4000 lb. load? The dotted lines drawn across the chart show how the problem is solved graphically. Run a straight line through the 10 ft. (column A) and the 20 (Column B) points and locate the intersectior column C. Then from the intersection in column | run over to the 7-in. (column E). The inters through column D shows that the I-beam will sup} 7000 lb. Since the load to be lifted is only 4000 | beam is amply strong. In fact, the reader can « Y find, by applying the chart, that a 4-in. I-beam, | other conditions being the same, would safely support the load of 4000 Ib. Similarly, it is easy to ascertain the maxin allowable span when the factors in columns B, D) E are known. Or, the necessary weight per ft I-beam may be determined when the factors in columns A, D and E are known. Lastly the depth of bean determinable when the factors in column A, B and are known. For loads that are “uniformly distributed” concentrated—the safe loads in column D may multiplied by two. Thus, the above described bean will support a uniformly distributed load of 14,000 lb., or 1400 lb. per running foot. Note: While this chart should give correct resu!! for standard I-beams, within a moderate rang: depths and weights, caution should be exercised extending it to beams of exceptionally high or +0 weight per foot of length.—Editor. gives the length of the span in feet lengths up to 40 ft. The Charcoal Iron Co. of America on June 9 sumed the operation of its plant at Ashland, ao which had been shut down fourteen months. The As)- land plant employs 600 men, including 150 blast fu nace operatives and 450 in the charcoal kilns and al- cohol distillery, besides many employed in the forest near Ashland to supply wood for the kilns. lnquiry Into Merger Proposed Organization of North American Steel Co. Made of Steel Companies Excuse for Prolonged Examination of Witnesses by Lockwood Committee HE Lockwood Committee of the New York State Legislature devoted the last three days of last week to an inquiry into the North American Stee] Co. merger and other steel company mergers re- e] talked of. Samuel Untermyer, counsel for the ttee, examined at length Judge Gary, chairman d States Steel Corporation; John A. Topping, man Republic Iron and Steel Co.; A. C. Dinkey, lent Midvale Steel & Ordnance Co.; Mortimer L. Schiff, of Kuhn, Loeb & Co., bankers; Thomas L. Chad- the lawyer who promoted the three company er, and others. hroughout the examination of witnesses, Mr. Untermyer, with his great skill, attempted to make ses give testimony tending to show that the nization of the North American Steel Co. will have lency to create a monopoly in structural steel and rimental to the business interests of the country. ‘ntermyer tried to get witnesses to say what he | them to say. For example, in examining Judge Gary, the attorney referred to the Steel Corporation as enevolent despotism,” and when Judge Gary ob- to the word “benevolent,” saying that he would refer “reasonable,” Mr. Untermyer endeavored to link two words, describing the Steel Corporation as a nable despotism,” but Judge Gary did not use xpression. \Ir. Untermyer was extremely severe in his second nation of Mr. Topping and Mr. Dinkey, although, ey explained, the arrangements in regard to the tion of the North American Steel Co. had not mpleted when they first appeared on the stand Judge Gary on Steel lve Gary, chairman United States Steel Cor- took the stand Friday morning. Mr. Unter- n the beginning of his examination, delved into regarding the capitalization of the company, and division of the various classes of stocks nds, profits, ete. In answering most of these ns, Judge Gary read from the last annual re- the company. He dwelt at some length on the of methods of accounting, as shown in the Corporation reports. He asked Judge Gary this tion: “You don’t consider sinking funds a proper against net earnings, do you; that is a pay- account of the capital, isn’t it?” The answer ‘Well, you see how the books are kept.” The continued: but Judge Gary, won't you answer me? You a sinking fund payment on the retirement of charge against net earnings, do you? A. From ipoint of the accountant I should say yes ild you say that the money that is paid out of ngs, towards reducing the debt of the company on is a charge against its net earnings; or is it a out of net earnings, towards the reduction of in- ss’ <A. That is probably what it is ige Gary, it has been stated here that the United eel Corporation, by reason of certain factors grow- of this consolidation, and its great strength, and nn of its plants, its transportation facilities, and tters, has a differential in its favor estimated at $5 per ton over its competitors. A. You mean its material as compared with others—I mean material, ‘vhat, in your judgment, is the advantage—I am 1587 and for that reason they were unable to give the de- tails, which were afterward announced. The taking of testimony, Saturday, developed into a fiery controversy between Mr. Schiff and Mr. Unter- myer. Mr. Schiff accused the committee’s counsel of trying to put words into his mouth and insinuating that Kuhn, Loeb & Co. were interested in manipulating the stock of the new merger. Here is a sample of the “war of words,” following the statement by Mr. Unter- myer that Mr. Schiff would have to take the chance of going to jail. THE WITNESS All right, I will take that chance, and you will appear in my company Mr. UNTERMYER: Just a moment, I think not, this time THE CHAIRMAN: If you cannot answer, Mr. Schiff, you will state so THE WITNESS Mr. Untermyer won't permit me to an swer questions He twists words in my mouth Mr. UNTERMYER No, I cannot get in your mouth if I could, I would close it There was also a spirited controversy between Mr. Untermyer and Mr. Chadbourne because the latter re- fused to produce certain documents which he regarded as confidential. Mr. Chadbourne testified that if a merger went through, and the stock sells at $43 a share, he would receive approximately $1,000,000 as his com- pensation, but that there would be no compensation if the merger failed. It was also developed that Kuhn, Loeb & Co.’s share of compensation would be about $2,000,000, and that the firm is to be paid 15 per cent commission in addition on the profit of the sale of stock. The investigation will be continued to-day. Corporation Policies taking all advantages now—including cost of delivery? A In my opinion $3 would be the maximum Mr. Untermyer then asked many questions regard- ing the railroad lines owned by the Steel Corporation. Leading up to the question whether such ownership does not give a large advantage over its competitors, Mr. Untermyer asked this question: “Do you think that with an industrial corporation there is any more justice in its owning transportation lines in interstate commerce than a transportation company owning min- ing properties? The answer was, “I dislike to make comparisons, Mr. Untermyer.” Q That is the crux of the thing, the comparison? A I think they are justified in owning them Q. Is not there a manifest advantage over your com petitors in your ownership of interstate transportation? <A If you refer to the mining properties, I would say, no, Mr Untermyer, and I will tell you why, if you care to have it Q. Then if there is no advantage whatever in the owner- ship of the transportation companies, there would be no objection, would there, to divorcing them? A I think there would be Q. There would be objection? A. I think there would be Q. Do you think your company would object? A. I think Q. In times of great pressure, you quite realize, do you not, that the control of these transportation companies gives the Steel Corporation the opportunity of giving more prompt deliveries and preference in all the facilities? A. I don’t think it does. Q. If there is no advantage in the ownership of these transportation companies why are not you willing that they should be divorced, and give your competitors whatever ‘ — ee ee Cee ee ee sr ne ey ote i ame Heme Nanna ati a tires AS aA vee ae ae eR Ane ee : ne cas ne Seen Woe eee ee Oe ee on 1588 THE IRON AGE Jun advantage there is in the equal access to these properties” A. If you will allow me, I will try to tell you bfiefly why. In the conduct of such a large mining and transportation business as we do in the Northwest, it is essential that the very best service be rendered by the railroads, and if it had to depend upon the will and disposition of an independent railroad whose services were largely devoted to the general public it is probable that the service would not be so rood Now if that apptied with equal force to the independent n | ifacturing companies, in practice, of course Il might have a different opinior It does not, and I do not t < it would b llowed if it was attempted By that I ‘ to Say | thir the independent mining companies ifacturing companies in the Northwest have just good service fro uur railroads as we get for our manu ire l not think ther has ever been any dis- Q he vou re the opinio that your ownership ] t Ss ot t! ! portation is i substantial advantage S ( ! \ Ye nk it 1 Q. Of whiecl ou do not care to deprive yourself—and because the re better managed and _ bette é é \ Ye t robable “Ruinous Competition” Judge Gary stated that the Steel Corporation oper- ated during 1921 at an average of about 45 per cent. His opinion was that the independents did not average more than a 30 per cent operation. Mr. Untermyer asked: “When you were down to 45 per cent of your ¢a- pacity, is it or not a fact that if you cared to indulge in a campaign of ruinous competition you could take the business away from the other people? A. Oh, no. Q. Not even with your differential of $3 a ton? A. No, we cannot. The Morgan Influence Mr. Untermyer then attempted to show that there is a close connection between the Steel Corporation and J.P. Morgan & Co. He began by asking Judge Gary as to the amount of money which the Steel Corporation carries on deposit at the Morgan bank. Judge Gary stated he believed about $8,000,000 was on deposit there most of the time, Morgan & Co. paying 2.6 per cent interest. Asked whether the Steel Corporation had been carrying as much as $25,000,000 to $30,000,000 at the Morgan Bank, Judge Gary replied that he did not think so. Asked whether the Steel Corporation lends money in Wall Street, Judge Gary replied “no.” Mr. Untermyer then said: Morgans le the ‘ em ir money and get vhere fror j ‘ ! per cent the market permit , \ oM 1 ' I dor oO Eady \ ) 1) t t I ciou I “ ‘ re rpor é t me wit! pr t “ ! t MA ! . f t} r < ' . ! ‘ the ] 1 I T \ \ ! | } our ) | the t | ‘ t } j 0 ( ( O Q. J fere pos \ Q \ l < VAs riticizes t trus t \ I i vestigatior (). Yes the Pu est \. | remember that « é tlio et eT Q. B } ( lk r the Ss D t o¢ t no Q Now et bo L« < r ember M Morgan was te I befor he M ‘ rust vestig: if } te fic } t Q. W ! \ he a t the or that 1} t tl rinnin Q No, he did t ther W he names the directors \ Who rt es I Q. Yes, it ict, not in theory and not in faney, but who names nen \ The stockholders Q. You snow the stockholders do not name them”? 4. You mean what individual or individuals? Q. Yes \. I think I will have to admit and perhaps claim that I do more of that than anybody else and always have Q. Do you do it in consultation with whom? A. All the directors Q. How many of the Morgan directors are on your board? A. One. Q. One now—there were more? <A. Ther: start. ’ @. And for many years? <A. Well, yes Q. Which is the one now? A. J. P. Morg Q. And as vacancies occur in the board the directors, in consultation with Mr. Morga) A. Not any more than the other members committee Q. How many members are there of the mittee? A. Seven Q. Now, don’t you know, Judge Gary, that these directors are really named \ @Q. That these directors are named by Morgan or by Mr. Morgan after consulting not That is not a fact @. Have you ever named a director with of J P. Morgan & Co., and if so, give us |} do not think I have—or without the assent member of the finance committee Mr. Morgan then went into the questior tural steel. This question was asked by Mr. | “Having as you say, a differential in your ton, these independents are at your mer A. L don’t think so Not Living by Grace @. Now isn’t it a faet suppose inste i. kind and eleemosynary despotism, if you pl trol, it were a ruthless one, and suppose you terminate your competitors by foregoing tl ton differential, it would not take long to do \. I do not think that is a practical questior @. But that is a logical question; if you Or >» cl ton in costs over Vou! competitors the capacity to supply the market, why the by your grace and favor, isn't he? A. No, | Q. You don't think so? <A. No, I do not Q. The ou do not believe in arithmeti I do @. Take for instance the time when you |} per cent of your capacity employed in which you the figures show, more money than when you |} the capacity if you had chosen then to fill to yo vith your differential in your favor, by undert bidding for the business, your competitors could existed, could they? A. Why do you think we did @. Because I think you thought it was bad lo it A. Do you thinl ®. [| am not assuming that you should h \. But f we ruthlessly drove the others out we would have been in precisely the same ome of these other companies were in that by Government law suits ®. I see; you had your eye to that law su did you vou were in the courts and you kne to behave yourself in order to get the favor of nd you would have done so anyway? A. For reasons first, because it was right to do it because we had to do it q. They are good reasons You had to do your pending litigation A. That was disposs @. Suppose the United States Steel Corpor evolution of time with its great and increasing nto the hands of men who do not practice depotisn but a ruthless despotisn then it ibsolutely at its mercy? A. That word “be there | don't know that I Q. 1 mean by bene volent despotism I me ible and sensible one \. J see they would |! vantage and perhaps might carry it further tl I would think they ought to carry it I wou to go further than that, because I remember in ment ease under a very severe cross-examinatt the independents testified that whatever hap] could survive and thrive in spite of the United 8S Corporation Q. You did not expect them to admit they did vou? <A. No, I expected them to tell honest! could do Mr. Grace on Foreign Trade Eugene G. Grace, president Bethlehem 5 was on the stand Thursday afternoon. In ans questions by Mr. Untermyer, Mr. Grace sald not know what the total advantage of th States Steel Corporation is over the independents had not made any estimates. He said that the « of the Bethlehem Steel Co. is about 3,200,000 ingots per year. Returning to consideration of the foreign Mr. Untermyer inquired as to the relative | Y 17 ce pa re June 8, 1922 nited States and abroad. This colloquy followed: Do you sell these products cheaper abroad than at A. In some instances I should expect— Well, ordinarily? A. It depends entirely on the con- of the foreign market. that is so, what do you need with a _ protective \. I am not qualified to pass on the tariff question You know there are heavy protective tariffs on steel S A. I don’t Know the tariff schedules at all But you say you sell in foreign markets cheaper than A. At times we have But ordinarily do you have the same price? A. AS know the foreign prices are not based on domestic did not ask you what they are based on A. Not to my knowledge vou sell at the same prices ordinarily abroad, as it home? A. Not to my knowledge, we do not Well, do you sell higher, or lower, abroad? <A. Higher, or the same; whatever you can get Mr. Untermver Praises a statement following the examination of Judge G Samuel Untermyer, counsel for the committee, Mr. Chairman, I want to make another statement nnection with these pending mergers. It would inifestly unfortunate if the impression should go that this committee has formed any opinions ever, or has any plan of action, with respect to proposed mergers. “While these mergers will unquestionably have the of limiting to some extent the sphere of com- tion in structural steel, whether or not they will trict competition to the extent that is practically eriously injurious to the business, is a subject on we, I think, have not been able to form any n. The question of the legality of these mergers, are inter-state affairs, is one which I think will to be left to the Federal prosecuting officers to mine, and will not be one of which the committee kely to take any greater notice than that which s from the publicity given to the evidence here osed. “Of course, there is this situation: As long as the United States Steel Corporation maintains this dom- ting situation in the trade through its differential from $3 to $5 a ton, so long as these other com- THE IRON AGE 1589 Mr. Grace said he did not know whether the United States Steel Corporation and the Consolidated Steel Corporation are selling at the same price abroad. Asked as to how competitors are able to live except when the demand is greater than the United States steel can supply, Mr. Grace replied, “I have seen some pretty lean years in the steel business.” Asked whether he meant to say that the steel busi- ness is not a good business, Mr. Grace replied, “I think it is an excellent business; I am proud of it.” Mr. Grace said that since the decision in the Hard- wood lumber case, the Bethlehem Steel Corporation had withdrawn from. all except the National Steel Erectors, by advice of counsel. Asked as to when the Bethlehem-Lackawanna steel merger is to be completed, Mr. Grace replied, “Just as soon as we can go through the formalities and have the approval of our stockholders.” associations, the Steel Corporation panies are living by the grace of the United States Steel Corporation, it does not seem to make very much difference whether these few small concerns merge or do not merge, from the point of view of competition. After all, such a differential puts the entire steel busi- ness of the country right in the hands of the United States Steel Corporation to do with as they choose. Heretofore they have pursued an enlightened policy, showing a great deal of vision, and at a great deal of profit, and the Supreme Court of the United States has said, much to the surprise of a good many of our profession, that that was not a combination in restraint of trade under the anti-trust laws, and that is the law of the land today. “The evidence here discloses a phase of the steel business as applied to structural steel, and to other lines of steel, that is quite startling and puts the Steel Corporation in the light of really permitting the exist- ence of these other companies. “What I want particularly to correct is the impres- sion that seems to have gone forth that this committee is on a hunt looking to the enjoining of these mergers. This committee has reached no conclusion on the subject. It is simply gathering the facts. What it will or will not do, is a matter for further consid- eration.” Mr. Topping Tells of Merger Formation \ Mr. Topping said that the Republic Iron & Steel Co. party to the proposed merger. Negotiations were ted in October last. He called the first meeting by juest of Thomas M. Chadbourne, who represented the lidvale Steel & Ordnance Co. as general counsel. When 1 as to who are the parties to the proposed merger Mr. Topping said “The parties are Midvale Steel & ‘rdnance, Republic Iron & Steel, the Inland Steel Co., nd there are two others that are still in the picture Brier Hill Steel Co. and the Steel & Tube Co. of rica.” He said that the Lackawanna Steel Co. ped out before the negotiations were started in a IS sense. \sked in regard to the withdrawal of the Youngs- Sheet & Tube Co., Mr. Untermyer inquired er it was because of the influence or the objection P. Morgan & Co. Mr. Topping replied that he ‘t know that it was. in reply to a question as to whether the United Steel Corporation was told about the proposed ger and asked whether it would be agreeable to it Topping said, “They were not consulted.” He ‘ward modified this statement to say that so far as new the corporation was not consulted. As to details of the proposed merger, Mr. Topping that it would be necessary to consult Mr. Chad- ‘ne, who knew all about them. s \ As to the concerns now in the merger, Mr. Topping said that the ingot capacity is about 5,250,000 tons. The other two have about 1,200,000 between them. Mr. Topping was examined at length in regard to the advantages of the Steel Corporation in manufacturing steel. Steel Corporation Advantages Q. What is the approximate differential or advantage of the I ted States Steel Corporation over the other com panies 4. It will vary quite a little with variations in condi- tions It fluctuates with freight costs and other things that affect the general cost of operation it will run anywhere from $3 to $5 Q. Wouldn't you fix it between $4 and $5 a ton, the advantage it has over its competitors? A. I think the wider spread a ton spread would be more nearly accurate covering the in the change of condition Q. Covering the spread in the change of conditions you would spread the advantage of the Steel Corporation over its competitors at between $3 and $5 a ton? A. That is my estimate Q. The general impression is that it is from $4 to $5 a ton, isn’t it? A. I couldn't say as to what the general im- pression is Q. Haven't you discussed it with your associates and men in your line of business? A. I never discussed it in a detailed way In a general way it has been frequently discussed Q. What are the principal items that go to make up this great advantage in producing and delivery costs of United gre per rey onspaatingge’ = ~ ee t he me es Rina i oe en brea -snasedieacey Aone aga to Bi hn sail. peed ee np tee veenee re imei obi map wae ae wna A ne i Eg 9 al Sok anes ones eee pi on ‘ een panes Nene nee ee nnn nn ee 2 2 es oh 1590 THE IRON AGE June 5, 1929 $ 4 *-f States Steel over all of its competitors? A. I couldn’t attempt Q. Besides paying dividends on it? A. Yes to detail them. In a general, broad way I eould state what Q. It has been a pretty good paying business I think Q. Will you tell me—— A. May I suggest Q. I mean the leading ones. A. The transportation ad- thought in that connection, Mr. Untermyer? . ; vantages - Q. Yes A. Taking the average earnings of Q. Suppose you item them first One, transportation ad- companies, even the steel corporation, their « vantages”? A. Economy in operations through the larger compare very favorably with those of the tru tonnage, reduced overhead, efficiency in operation through and the banks of the United States. ‘he stimulation that comes from the competitive operation, Q. That is a statement which I challenge. A advantage ff massing producti at strategetic points for will find I am correct. distribution, geographic advantages both in distribution and Q. Have you any figures to support it? A assembling raw material Those would be the principal but I have made that statement. iten Q. Do not let us go into that A. I thoug! Q. Now, under the head of transportation, what about be interested in that statement this \ ership of ist coal and iron deposits? i We are ential :