The Iron Age 1922-06-29: Vol 109 Iss 26

TABLISHED 1855 ay THE IRON AGE New York, June 29, 1922 VOL. 109, No. 26 Business Outlook Still Favorable How Present Industrial Activity Confirms the Financial Indications of Six Months \go- Advancing Prices Now an Unfavorable Sign BY NATHANIEL S we near the end of the first half year, evidence AN is multiplying that the depression of 1920-1921 “ has been definitely left behind, and that business n may look forward confidently to continued better- nt. Much of the improvement has been almost im- ceptible while it was occurring, but a glance back- ird to the beginning of the year shows clearly the tent of the progress. At the opening of the year the outlook was still mewhat clouded, although signs of clearer weather ere apparent. It was generally understood that many olvencies hung over the market, and it was feared it some very large failures among industrial corpo- itions and banks might seriously impede recovery. fowever, the number of insolvent businesses has re- ntly diminished and current failures are declining magnitude. The danger of widespread bank failures has been definitely eliminated. Some of the lustrial concerns engaged in automobile and tire production, which at the beginning of the year seemed face inevitable bankruptcy, have been placed in a ich more secure position by arrangements with their editors and by improvement in their business. Thousands of farmers who were in difficulties, and indreds of bankers who were entangled with them, re able to breathe more easily now because of the iproved demand for farm products and the lowered st of producing these commodities. A construction program of tremendous magnitude has been begun. Large new issues of bonds at lower rates of interest ind the trend of bond prices show an increasing sup- of capital for long term uses, and the increased Federal reserve ratio which has been accompanied by leclining re-discount rate shows a considerable eas- g in the cost of short term borrowing. Unemployment which was of staggering proportions s shrunk to a marked extent, and in certain dis- ricts complaint is already being heard of scarcity of or. Production in several lines, such as iron and teel, oil, lumber and railroad equipment, has made int strides. In recent weeks the indicated yield of principal agricultural products has shown notable provement. largest 4 Betterment of the European Situation The European situation, which looked almost hope- Ss six months ago, now shows unmistakable signs betterment. With the granting of a reparations ‘ratorium to Germany and the possibility of a large *Professor of finance, college of engineering and com- *e, University of Cincinnati 1799 R. WHITNEY foreign loan, the outlook is even brighter. The value of foreign monies as indicated by rates of exchange is increasing except for a few countries. Inspired by he example of Great Britain, definite steps are being taken by various European countries to restore the gold standard as quickly as possible. The disarma- ment eonference in this country at the close of the pre- ceding year, and the guarantees exchanged among the European nations at Genoa recently, will have the ef- fect of reducing military and naval expenditures, so that a long step may be taken by some of these nations eliminating the chief item of their national expenditures. At any rate, there is greater hope that they may ultimately balance expenditures by receipts. All in all, noticeable progress has been made both in toward this country and abroad toward increased productivity ses PEPPES ERS REEPS a ~ 1921 a eee . ( ur i—Monthly Average Rate on 60-90 Day Prime Two-Name Commercial Paper, Together with Average Interest Yield on Twenty High Grade Bonds and the Monthly Average Price of Such Bonds Since Jan. 1 and a restoration of prosperity. An attempt is made to summarize this progress graphically by means of the following charts. Chart No. 1 shows the trend of the interest rate on prime commercial paper from Jan. 1, 1921, down to June 1 of this year. It illustrates also the course of the yield on high grade bonds as well as the price trend of these bonds. Twenty bonds, including government, municipal, public utility, railroad and industrial securi- ties, were selected, and the prices were averaged for each month since the first of this year. It will be noted that the price of these bonds has been very no- ticeably rising and the interest yield both on these long term obligations and on the 60-90 day commercial paper has been declining since the first of the year. This shows something of the progress that has been 1800 THE IRON AGE made in providing capital, which is one of the pre- requisites to industrial expansion. Unfortunately figures for savings throughout the country are not available up to date, but the scattered returns from the various reserve districts as published in an article by the author in THE IRON AGE for May 25 indicates that the trend of savings is definitely upward. On May 31, 799 member banks reported to the Federal Reserve Board time deposits of $3,231,920,000. On the corresponding date a year ago 818 banks reported time deposits of only $2,935,578,000. Of course, the deposits to savings accounts by no means represent all the funds which are accumulated for investment. Increas- ingly large sums are being placed directly in securities rather than in banks. According to Bradstreet’s, the sales of bonds for May and for the first five months | | icU e + eg | | | | | vm | 4 iA, “A 10 k—-a as Leap = it ee 2 y ae c yy ka .c NORMAL 00 Wwe ma ve" 7 ~n / A 997 lye \ Ke y A 77 P%,,.' V/ \. Jt , rar Z\\| cy 8h — te + Se Nov Dec Jan Feb. Mar Apr May ig2! i922 Chart 2—Monthly Production of Selected Commodities Expressed as Percentages of Estimated Normal Production of each year for the past three years compare as fol- lows. The figures relate to the par value of the bonds handled: Comparative Sales of Bonds 1922 1921 1920 DY see news kei $382,248,025 $230,953,700 $367,045,250 Five months 1,994,340,825 1,210,122,980 1,682,292,950 Not only have bonds been heavily purchased but large sales of stock have been made at rising prices. The figures recorded by Bradstreet’s for shares sold are as follows: Volume of Shares of Stock Sales 1922 1921 1920 Se sen wslewlinlese 28,911,251 17,032,150 16,370,813 Five months ..... 113,693,045 74,335,836 113,723,983 Although bond prices have been rising, and com- plaint has been made for a time that the chief difficulty confronting bond salesmen was to get sufficient bonds June 29, 1: of an attractive nature to meet the demands of tomers, the present situation of the market is one + might be characterized as quiet. Such huge issues | been floated that time is required for the investy market to digest them. Liquidation of old loans has gone on in conside volume; on May 31 of this year, 799 member ba: reported total loans and discounts of $10,906,217, as compared with a total of $11,996,403,000 repo: by 818 member banks on about the same date of | year. The Comptroller of the Currency recently nounced that practically all of the banks through the country have now thawed out their frozen cred and that funds are available in ample amount for a projects that can justify their existence. Further light is thrown on the subject of liquidation of loans by the fact that on June 7, 192 the total bill holdings of the Federal reserve ba: amounted to $556,437,000 as compared with $1,96: 860,000 on June 8, 1921. Federal reserve notes ou standing declined from $2,710,723,000 on June 8, 192 to $2,141,531,000 on June 7, 1922. As loans and Fy eral reserve notes outstanding have declined, the rat of gold and lawful money to Federal reserve notes a deposits of member banks combined has increased. | January, 1921, this averaged 48.1 per cent; in Januay 1922, 76 per cent; on May 31, 78.0 per cent; and « June 7, 77.6 per cent. Proved Forecasts of Six Months Ago It has been reiterated by the writer that the fina cial indicators must register improvement before ther can be any increase in industrial or commercial actiy ity. At the beginning of the year financial data a analyzed in this journal forecast improving conditions, but there was comparatively little evidence of such im provement in industry at that time. Since then, how- ever, considerable progress has been made. Some in- dustries have developed more rapidly than others, but in most lines activity is very much more pronounced now than it was at the opening of the year. Graph No. 2 illustrates this progress. The chart is based upon index numbers for the production of ce. tain commodities as published in the New York Re serve Bank Monthly Review It will be noted that these figures are brought dow) in only two cases beyond the first of May. It is pos sible, however, to supplement them by evidence show ing that the tendency to increased production continues in a number of these industries. According to a writer in a recent issue of THE IRON AGE: “The production of steel ingots for the entire country for the 27 steel making days of May appears to be 114,784 gross tons per day. This is at the rate of nearly 35,700,000 tons per annum, or nearly 82 per cent of the actual produc tion of the year 1917. May output, day for day, is nearly 64 per cent better than that of January.” The indications are that this increased productivity in the steel industry will be maintained unless prevented | the coal strike. It is said that in spite of the growing steel output the pressure on mills is increasing. De mands for immediate delivery are piling up, and in some lines producers seem to be falling behind de- mands. In the face of the coal strike the Steel Corpo ration is said to be operating between 75 and 80 per cent of capacity. The hopeful outlook for the iron and steel industry is illustrated in Graph No. 3, showing the unfilled orders of the United States Steel Corporation at vari- ous periods. In connection with this graph it is inter esting to know that the largest total of unfilled orders on the books of the Steel Corporation was 12,183,083 tons on April 30, 1917. The smallest total was 2,605,747 tons on Dec. 31, 1910. The following figures taken from a previous num- June 29, 1922 THE IRON AGE 1801 ccoupsuvnennenenneuegueneevecnenstUeunDannens itt. t4usbenensersevevertvenrscenuerscestneuneutoveary nents anuarceveennsusisanrecesvenera ey Chart 3—Tonnage of Unfilled Orders of United States Steel Corporation er of THE IRON AGE show the progress in the produc- on of pig iron: Monthly Production of Pig Iron Gross Tons 1922 Gross Tons y ean 864,555 January 1,644,951 igust ... ‘ 954,193 February 1,629,991 ptember 7 : 985,529 March 2,035,920 tober ..... . 1,246,676 April 2,072,114 vovember ...... 1,415,481 May 2,036,679 COMNREP 26 Hire wed 1,649,086 Of course the coal strike has had a very serious ‘ffect on the total output of coal. The production of inthracite since the beginning of the strike has been practically nil. Surprising progress, on the other hand, seems to be made in getting out bituminous coal. During the tenth week of the strike soft coal produc- nv o Oo Oo _ 47> > 190.000 000 VV; , —hk—}—_ 85,000,000 2600 t+—}—_+—_+—_ 80,000,000 \ » 2500 _— + 75,000,000 5 2400 +70,000,000 = ‘ &. 2300 65,000,000 “Ss o ond & 2200 60,000,000 ‘6 E ¢ 3 2100 155,000,000 3 E 2000 150,000,000 <t 1900 45,000,000 1800 40,000,000 - @ € 2 2 6 @ Z2& RS ZTZ?S Chart 4—Number of Commercial Failures and Amount of Liabilities, by Months Mu ne tion was 5,078,000 tons as compared with 4,616,000 tons in the previous week, and 8,010,000 tons in the week ending June 10, 1921. For the calendar year to date the output of soft coal is 172,192,000 tons as com- pared with 173,551,000 tons for the similar period last year. Lumber producers also have been making great progress in increasing production. According to Brad- street’s, 347 reporting lumber mills produced in the week ended May 27, 207,830,204 board feet. Com- pared with the corresponding week in 1921, with 46 fewer mills reporting, there was a gain of 38,555,474 ft. The four chief softwood lumber groups reported pro- duction for the week ending May 27 on a basis of 99 per cent of normal. A comparison of production up to May 27 for the past two years is as follows: 922 4,035,157,478 bd. ft. 1921 2,989,304,619 bd. ft The same causes which have stimulated the produc- tion of lumber have also furthered the production of Portland cement. For the first five months of the two years the number of barrels produced compares as follows: Production of Portland Cement, in Barrels 1921 1922 January 4,098,000 4.291.000 February 4.379.000 4.278.000 March 6,763,000 6,685,000 April 8,651,000 9,243,000 May ; 9,281,000 11,176,000 The building construction industry shows phenom- enal gains. According to the reports of the F. W. Dodge Co., all previous records were broken in April and the May contracts exceeded the April total by about 3 per cent. For twenty-seven Northeastern States the value of the building contracts for May was 50 per cent greater than the figures for the corre- sponding month of last year. From Jan. 1 to June 1 the value of construction started was $1,352,965,000. This is the highest recorded figure for the first five months of any year. Up to June 1, the value of con- struction started was 61 per cent ahead of last year. A very large part of this is residence construction, and the reports show that the activity in the building line is distributed throughout practically all parts of the country. The Obstacles of Strikes Increase in the volume of production is dependent to a very considerable extent upon the supply of labor and upon the relations of employers with labor. The trend in the number of employed has been very notice- ably upward, but strikes and threatened strikes still prevent that full co-operation which is essential for progress in production. The coal strike shows no signs of settlement, although there are rumors of possible conferences between the miners and operators. The public has been very apathetic in the matter because the warm weather and the industrial sluggishness, coupled with large reserves of coal, have prevented it from feeling the pinch thus far, but if the weather gets cooler and industria] demands quicken, these reserves will vanish and demand will then be tardily made that a settlement be effected. Although the anthracite working year is already well advanced, production is 15 million net tons short of the corresponding period of last year. It is simply added evidence of our indi- vidual and governmental short-sightedness in economic affairs that we permit one of our basic industries to continue so long in idleness when, if the public voice were raised with sufficient force, an equitable settle- ment could be brought about. There is added now the menace of a strike among railroad workers in protest against wage reductions ordered by the Railroad Labor Board. It is asserted that an alliance is to be effected by the striking mine workers and ten organizations among the railroad workers who declare their intention of striking on July 1. In spite of these discouragements, however, industrial activity has been increasing and gives every indication of continuing to increase. Graph No. 4, based upon Dun’s figures, indicates that the trend of commercial failures is now downward. The total liabilities of failed concerns show a particu- larly sharp decrease during May. The May indebted- ant e- hie * * a ‘ : . te 5 i : > dl _ thi at j me a. 4 ana % Ri cH Wii j 1802 THE IRON AGE ness is the smallest since last September, and is about 23 per cent below May, 1921. These failures during May were distributed as follows: Failures in May Number Liabilities Manufacturing concerns . , 508 $13,958,773 TraGging CONCCPMB ....cesens oven 1,377 25,446,464 Agents, brokers and miscellaneous 75 4,997,649 As a consequence of the improvement which has been registered in industry, we may look for increased activity in trading. The sales of mail order houses, which were at low ebb at the beginning of the year, have in the past two months shown signs of improve- ment. The five and ten cent stores and other chain stores have become very active, while in general retail establishments complaint is still made of dullness, though the sentiment among retailers is now more optimistic. The increase in general commercial activity is indi- cated in the following table, which shows the average daily bank clearings for twenty cities, compiled by Dun: Daily Bank Clearings (000 Omitted) in 20 Cities 1922 1921 1920 Janual! $1,087,235 $1,190,774 $1,374,249 Februa! 1,052,112 1,060,726 1,322,870 Marc! 1,042,360 975,088 1,321,007 April 1,115,478 957,996 1,321,113 May 1,143,911 982,676 1,331,217 June (to sth) 1,165,620 1,015,000 1,270,858 Chart No. 5, showing the course of wholesale prices from January, 1921, to date, is based upon Dun’s index number. eereenneene teeny Conpeneueerene ti eteeenneraneenny Chart 5 Wholesale Commodity Prices, Based on Dun’s Index Number Specervesennynevernreenec meee It will be noted that the course of wholesale prices has been upward, with slight variations, almost continu- ously since July, 1921, when the index reached its low point. The total increase is slight, however, and is due chiefly to advances in metals, textiles and miscellaneous commodities. Prosperity Not in Advancing Prices It cannot be emphasized too strongly that the way to increased prosperity does not lie in the direction of advancing prices for commodities. Obviously if the prices for all commodities, including labor, starting from a normal base, should be advanced 100 per cent, no person would be any better off, since what he gained from selling his own commodities or services would be taken away through his purchases of the commodities and services furnished by others. This truth is so self-evident that it would seem un- deserving of comment if it were not for the constant evidence that many persons who think correctly in other respects cherish the vain hope that a return to business activity will be based upon and marked by a rise in the price level. Recently a moderate rise in stee! prices was widely heralded as a sign-post indicating progress toward general prosperity. The announcement that the price of woolens had been advanced was greeted by a finan- June 29, 19» cial writer in the following words: “Evidence of proved business conditions is to be found in the f that the American Woolen Co. has advanced prices { its products.” The truth of the matter is that exc in the case of a few agricultural products any sy tendency now represents a movement in the wrong rection. Costs and prices must be lowered to furnis} solid foundation for prosperity. An advance in pri: unless it is accompanied by a corresponding increase general incomes—and there is no present evidence any great increase in incomes—must ultimately cause diminution in the buying of commodities. Buyin; might continue for a time in certain lines but it wou! be at the expense of other lines. No real or endurin; prosperity can be obtained by promoting activity some lines at the cost of prostration in others. This popular delusion —that prosperity waits f rising prices—is traceable to selfishness and narrow ness of vision in economic affairs. Each producer of con modities or services believes that his well-being is fu thered by high prices for the things he sells. This ma be true, provided other prices remain low. The labor: desires to see his wages high but wants the farmer prices for foodstuffs low; the furniture manufacture: keeps his prices up but complains bitterly because la borers object to reduced wages. There is lacking th: general acceptance of the fact that in the long run w: all rise or fall together. An advancing price level a this time is an unfavorable rather than a favorabl sign. Cement Output a New Record Production of Portland cement during May, 1922, reported by the United States Geological Survey, was 11,176,000 bbl., which is the largest amount ever pro- duced in any single month. However, the outstanding feature of the situation is disclosed by the indicated movement of cement, May shipments being in excess of any preceding month. For the five months ending May 31 they were greater than during any similar period in past years, being more than 5,000,000 bbl ahead of last year and nearly 4,000,000 bbl. in excess of 1920, which was the largest year for the industry. Production in Barrels: 1922 1921 Month of May......+. ; 11,176,000 9,287,0( Five months to May 31 35,763,000 33,172,00 Shipments in Barrels: i a a .-- 12,749,000 9,488,0( Five Montes tO RAT Bhs ccs we science 34,559,000 29,498,00 Stocks on Hand (Barrels) BE Sb a oals Men Wee REO ea ee a 12,897,000 12,450,0 The great demand for Portland cement is attrib- uted to the record breaking proportions of the building boom, which is under way, and to increased munic- ipal improvements. The construction of concrete pave- ments is also an important factor, as the yardage un der contract this year is greater than ever. Drill Steel Survey Report The first progress report to members of the ad visory board to the Bureau of Mines and the Bureau of Standards on the breakage and heat treatment of rock drill steels and other steels and alloys subjected to similar impact stresses has been made by Dr. H. Foster Bain, director Bureau of Mines, and Dr. S. W. Stratton, director Bureau of Standards, covering th: work done in the month of April. The survey was begun on April 1 with the object of determining the present status of the types and sizes of drills as related to the heat treatment and breakage of rock drill steels. During that month a large number of mines, largely copper, were visited by F. B. Foley and H. S. Burnholz, metallurgists Bureau of Standards. The report, which is a lengthy one, gives the practice of each mine as to the kind of bit, the size of steel and in some cases the heat treat ment used. No conclusions are drawn or comments made. Properties of Are Deposited Stee Cast and Hammer Forged Metal Under Static and Dynamic Stress as Produced by Direct Current and Steel Electrodes Bry OG EH. KNOWLEDGE of the properties of are fused metal is of fundamental importance when con- ~ sidering the application of the metallic electrode elding process to the fabrication of strength mem ers. In the following discussion some of the more im- yrtant characteristics of this metal are considered hen formed under the conditions of employing direct I \ \ S | Mild S I W H ngas I Ar ‘I ¥ ir s¢ ire of ¢ I i ‘ irrent, bare open-hearth steel electrodes having an pproximate carbon content of 0.15 per cent and man inese of 0.5 per cent, and a skilled welder operating part of an adequate welding organization. It should recognized that somewhat different properties may e secured with the use of alternating currents, or bare coated electrodes of other materials. Cast Are Metal Metal deposition is accomplished chiefly by trans- rring numerous small liquid globules* rapidly from ‘usible electrode to the liquified surface of the base anode metal. The resulting deposit is but a special >" iw _ i 2 Single Layer of . bat) \ vi Neo) Deposited (Cast) cc / , st Vitag \ ; Metal rm of casting, with the properties characteristic of metal modified by the inclusions of such impuri es or faults as the process may admit. During the operation of fusing, transferring and ling, the electrode material is exposed to atmospheric ses so that a portion of the constituent elements are dized as indicated in the following table: Table I inalyses of Electrodes and Cast Met Carbon, Manganese, Sul) ir Pp Per Cent P Cent Per ( Per ¢ e¢ rode 0.16 a) 6 0.094 t ' } ; i { The proportion of constituent elements removed by dation decreases as their content increases, owing the formation of an are envelope of oxidized material hich serves to restrict the defusion rate of atmospheric vgen to the incandescent metal. It has been noted H. S. Rawdon,t that arc fused metal may have a ‘ogen content of 0.14 per cent. While this may be ° ‘ ind process engines Wwe nghouse E tr & Pittsburgh ; member f Ame n Bureau of Welding Metal Deposition in Metallic Electrode Are Welding H. Eschholz, Electrical World, June 26, July 17, 1920 Properties of Ar ed Stee by H. S. Rawdo cist t’ ~ fureau of Standards vo Itt Proceedings nerican Welding Society, 1921 ESCH HOLZ regarded in general as undesirable, the effect of the presence of nitrogen on the mechanical properties of the cast metal has not been positively demonstrated. Properties of Cast Metal in Static Stress The average tensile properties of a number of standard 2-in. test pieces taken from large blocks of arc deposited metal, weighing from 7 to 14 lb., are given in Table II for various deposition procedures and directions of stress application. I] ‘ t Ca i Vv Lb. Sq. | Per Cer Y Id ela I r Red N f ui be Lit I Area I S \ | ;4 ; rr 7) 4 4 ‘ : ; } ~4,000 14 LSA ( 1 bpkao tt 11.4 % OO0 750 j 16.6 4.450 i,2v00 ; ; 4 I 1 j ) 7.810 l l ’ ' t é ) 000 i « \ S pa I i n of positi — verse tft lir tior of cle eit ' ( s pendicul t direction of depe« L)> S i parallel to ba ye! lt alterna t le- [x ted tra ver 5 A, bu ‘ small cour Bu i Standards I \ of A, B, D and 1 te bu vithout following lays i ’ The importance of depositing metal in layer and not ‘ in bulk form is obvious from an inspection of this data. Some difference in the tensile properties of the cast Fig Fu n Pa I t-Uy Ss Tyr nsverse I> t r rf Dep ( ('T uC I graphing I i ZO! t e f ele ployed I ireas represent sits from e¢ re ir is d f nn l carbon rods) metal may be observed with change in the relation of stress and layer deposition direction. In most welds, however, the direction of applied stress is either parallel or transverse to that of the layers so that, for purposes of general discussion of approximate physical] properties of cast metal, the values given for A, B, D and E, may be averaged as in F in Table II: Resistance of Cast Metal to Compression, Shear, Ete. The following data record the average result se- cured on metal deposited substantially as in procedures B, C and D, of Table II: B ‘ H . 114 Forged Are Metal The following is a summary of the conclusions formed from the results of a preliminary examination 1803 a an csi ane e 1804 Re Fe CH ly of the changes produced in cast arc metal by hammer forging: Are fused steel is forgeable from approximately 750 deg. C Fahr.) to (1316 deg. C) (2400 deg. Fahr.). The Hits upon forging an inferior grade of cast metal, high ha ct Fy te —_ ass Sg apy ae (1380 de £. Peers most pronounced improvement is secured in slag inclusions, gas pockets and unfused zones. i Through a 14-Lb. Block of Cast Arc Each Bach Applying the Fic. 4.—Section Built Up by Depositing the Layers in Right Thoroughly Cleaned Before rposed Tier at Angles, the Surface of Tier Being Next Tie! The ' . metal reduced about one-half are , supe tests on this given in D, Table II, Tabl IV average results of tensile ind its fatigue performance in ad The average tensile properties secured on standard yee i 2-in. test pieces taken from such inferior metal be- fore and after forging at 1200 deg. C are given in Table 3, while in Fig. 6 the corresponding characteristic square and cut fractures are shown. about Table Ill Tensile Properties of Lou Grade 19 and After Hammer Forging Lb. per Sq. In Wetal Before Per Cent Elastic Elon.in Red. in. Limit 2 In Area 22,125 1.6 11.4 28 000 297.6 59.5 Tensile Yield ’ Strength re A Before $2,187 29,125 B After 6.900 The forged material is stronger and more ductile oA than the cast metal. Rot The properties of the forging will obviously vary with the character of the mechanical work done and the finishing temperature. The average Appearance of imen Taken from a 7-Lb. Block of Cast Ar ties Are Gl) Bending Test Spex Metal Whose Table I] Tensile Proper en in A results of a series of tests on forged material com- ‘” pared with the average properties of cast metal from F, Table II, are recorded in Table IV. Table IV—Tensile Properties of Forged Are Compa ed Per Cent . ’ Finishing Ter ‘ Yield Elastic Elon.in Red Temperature Strength Poir Limit ’ 1150 deg cn 900 ; ; deg 750 dee f 17 5000 14.500 31.3 50.0 that in all cases a decided im- provement in ductility and ultimate tensile strength The greater or less than It will be noted has been secured upon forging the cast metal. ' elastic limit, however, may be that of the cast metal depending somewhat upon the THE IRON AGE June 29, 1° temperature at which the forging operation completed. Izod impact tests on forged metal gave about same results, namely 1.5 foot pounds, as had secured for the cast metal. Dynamic Stress Resistance From the known behavior of metals subject to ing stress the greater resistance of forged are n to fatigue stresses may be safely assumed. recognized that inclusions and irregularities of st ture may serve as the beginning for the progress spread of fractures, the fatigue performance of arc metal has been in considerable doubt. Since To secure some conception of the comparative sistance to alternating stress of cast and forged metal as well as the usual boiler plate steel a s} series of tests was made at a “nominal” fibre stres 31,000 lb. per sq. in. in an Upton-Lewis fatigue test Table V—Accelerated Upton-Lewis Fatigue Tests on Cas Forged Are Metal Aver. N Material Stress C Base metal, mild carbon, open-hearth plate...... 26,17 Cast arc metal (F, Table II)....... i cane ee korged arc metal (finishing temp., 1150 deg. C.). 36,: Forged are metal (finishing temp., 900 deg. C.)... 44,78 machine. As the discrepancy between calculated a1 actual stress may be considerable in this type of every precaution was taken to subject each specim: to the same conditions. The average number of cyc! of reversals before fracture for each of three t pieces are given in Table V. This comparison greatly favors the forged a1 metal. It will be noted that the forged are metal is superior in fatigue resisting ability to the plate, while the cast are metal is greatly inferior to the plate as Fig. 6.—Characteristic Fractures of Arc Metal in Tension A. (Left)—Good grade of unannealed cast arc metal stressed parallel to direction of Table IT. Square fracture secured in an laver deposition—aA, B. (Center) inferior grade of cast are Table II, and A, Table III. Cc. (Right)—Excellent cup fracture secured upon forging the cast metal of the type shown metal as in C Tensile properties of the Tables II! in B of this figure. forged metal are recorded in and 1V judged by this type of test. While accelerated test are of some value conclusions from them must be draw! with care, particularly with respect to the performan of the weaker metal. In view of the large amount of information secur during the investigation of the fatigue of metals at t University of Illinois by Prof. H. F. Moore and J. B Kommers, published in Bulletin No. 124, when empl ing the Farmer type of rotating-beam machine, a ¢ parison of the performance of cast arc metal unde Becau of limitations of testing facilities it has been possib to subject but one specimen of cast arc metal to test the Farmer type machine. This was from the body of the 14-lb. casting shown in Fig. and finished in the manner as similar testing conditions was felt desirable. specimen machined same June 29, 1922 standard rotating beam specimens employed by Prof. Moore. The diameter at the center of the span was ).3005 in. The metal, while representative of a good grade of cast are fused steel, was not entirely free from the usual small imperfections due to inclusions ind overlaps. The tensile properties are given in D lable II. In order that as much data as possible could be se- Fig. 7 Appearance of Cast Arc Metal Fractured i he Farmer Type of Rotating Beam Fatigue Testing Machine The performance under er? ing stre given in Table VI, “endurance” limit of 26,000 plus Il per sq. in., and tensile properties are given in D, Tal 11. Note surface faults characteristic of ured under the test limitations the somewhat irregular rocedure was followed of increasing the stress after ipproximately each 2,000,000 cycles, with the exception if the run at 28,000 lb. per sq. in. which was shortened wing to the necessity of increasing the stress to secure early failure. Table VI Rotating Bea Vac é Tests ov a Sinaole Specimen of Cast A Veta Fiber Stress No. of Stress C1 Lb. per Sq. In. Load, Lt ’ out Fracture 20,000 13.31 167.000 22,500 14.979 2? 174.000 24,000 15.978 2,165,600 26,000 17.309 2.170.000 28,000 18.641 443.000 30,000 19.972 *160,200 BOGE. cewens . 9,079,800 *Fractured. The appearance and performance of the stressed irface was normal after the run at 28,000 lb. fibre tress so that the “endurance limit” for this sample is estimated to be not less than 26,000 lb. per sq. in. While this result is better than had been expected, and is of the order of the “endurance limits” given by Professor Moore for Armco Iron (Moore test piece No. 9), cold drawn and hot roll steels (Moore test pieces Nos. 51 and 50), its chief value is a justification for a more optimistic attitude toward the performance and ise of cast arc metal in structures subjected to stress variations of a low order of magnitude or of a slow period, as in tank cars and fired and non-fired pressure boilers. The desirability of securing additional data on the performance of cast and forged arc metal under static ind dynamic stress, particularly alternating impact, is evident. While this article assumes to give the average properties of metal deposited from only one type of electrode it is hoped the character of the result will erve to stimulate the investigation of numerous excel- ent and available electrode materials for which prac- cally no equivalent performance data exists at the present time. The author wishes to acknowledge his ndebtedness to Paul Orr and F. P. Lauffer for assist- ince in the preparation and test of the cast and forge netal. W. A. Layman, president Wagner Electric Mfg. Co., St. Louis, has made the following statement to the Eighth Federal Reserve Bank in response to a ques- mnaire: “Rating our production of Jan. 1 as 100 er cent, our shipments for the year, including May, re as follows: February, 120 per cent; March, 156 er cent; April, 167 per cent; May, 217 per cent. Tak- ng our employment figures as of Jan. 1 as 100 per ent, our present payroll is 190 per cent.” THE IRON AGE 1805 LABOR SHORTAGE GROWS Higher Wage Scales Bring Out Some Men Immigration Ban a Large Factor In a statement by the National Industrial Confer- ence Board, New York, attention is called to the in creasing demand for labor at various points and the fact that this demand has overtaken the supply Ex- tracts follow: “By the middle of April reports of labor shortage began to come from the Calumet region in Indiana. Here the lack of steel, metal and factory operatives were ascribed especially to the return of foreigners to their homelands, to the removal of others during the depression, and to the minimum wage scale of 28c. per hr., which was regarded as too low to draw out the desired labor. At about the same time an acute short- age of semi-skilled rolling-mill workers was reported in the Youngstown, Ohio, steel district. By the begin ning of May, Milwaukee, Cleveland, Akron, Ohio, and Flint, Mich., began to report difficulties in securing an adequate labor supply. These difficulties were at first confined to factories, but later began to extend to build ing construction and other outdoor occupations. “Generally, very little is being done in a constructive way to meet this labor shortage. In the building trades active steps are being taken and apprenticeship plans are being worked out. In a few factories emergency training courses are being installed but, on the whole, plants are using the expedient of increasing wages to draw out necessary labor. It is a striking fact that reports from a large number of heads of state labor departments state that if manufacturers would pay higher wages than now prevail, no difficulties in secur- ing necessary help would be encountered. One State commissioner of labor cites a shortage of labor when wages were at 18 to 20c. per hr., and a general easing when wages for common labor went to 30 to 35c. per hr. He states that present wages, whieh are close to 45c. per hr., are bringing out all necessary labor. It must be seen, however, that such a solution is only temporary and leaves the situation but little improved. The immediate result is rather a forcing up of the wage scale in other factories, with a necessity for further boosting of wages if the labor is to be re- tained. In some instances employers are trying to meet the situation by concerted advertising, and in a few cases by a frank recognition that efficiency must be increased. “Practically no relief in the situation can be ex- pected from an increased supply of labor through im- migration. Whereas the annual increment through immigration in the five years preceding the war aver- aged 925,000, and fell to 668,712 during 1920-21, the total number admissible under the per centum limit act of May 19, 1921, was fixed at 355,825. Only about 232,000, however, actually entered during the year; as against this, 174,000 aliens left the country up to April 30. The Bureau of Immigration, in a revised state- ment of the number admissible, gives the total as 357,- 803 for the year 1922-23. It is quite likely that the number that will actually arrive will be somewhat larger than last year; it is likely also, however, that the full number admissible will not enter.” Cleveland Molders Strike Union molders employed in most of the foundries making heavy castings in Cleveland have struck for an increase in wages from 62%c. to 75c. an hour. The reduction from the higher rate to the present rate was made Jan. 1 last. The foundries have offered a com- promise scale of 70c. per hour, which the molders re- fuse to accept. Later two foundries granted the in- + crease to 75c. and two others decided to close down temporarily. Four foundries, the City Foundry Co., the Kilby Mfg. Co., the Cleveland Steel Casting Co.., and the Johnston & Jennings Co., have announced that they will not comply with the demand of the strikers and plan to resume operations on an open shop basis. The ight gray iron foundries are not affected by the strike. + tis 1806 MACHINE-TOOL SITUATION Ernest F. Du Brul Explains It to Railroad Men Predicts Rising Costs Ernest F. Du Brul, general manager of the National Machine Tool Builders’ Association, in an address at the recent railroad convention at Atlantic City, N. J., told master mechanics that the purchasing authorities of the railroads are deceiving themselves as to the present machine-tool situation. He said: “Many railroad master mechanics are telling the machine tool builders that they want a lot of tools for the railroad shops but that they are told by the pur- chasing authorities that the purchases will be held up until machine tool prices come lower than they are. I believe the purchasing authorities are deceiving them. selves as to the present situation. The machine builder likewise be deceiving himself, if he does not keep his eye on the labor situation, particularly as tool may affecting the larger types of machines that are not now in stock and never are built for stock. Labor Market as Affecting Output and Price “The labor situation is such that if the market had a lot of orders right now, the machine tool builder could not find a sufficient supply of skilled labor of the necessary to build these During the war, and for the year after the war, the machine tool builder did not train any skilled all-around me- chanics—so that as compared to the supply of this sort of labor in 1914 we have a deficiency. “The reason is very obvious. During the war chine tool came in in much larger quantities This prompted the sort tools. general workmen ma- orders than ever before. machine tool builder to take men in and train them in special opera- tions. He had neither the time nor the disposition to train a more class of workmen, as he had done before the Demand from now on, dropping back t quantities that are more business, require the general war. normal to the o the smalle1 | i machine too will general work- . = man ratner than the specialist New Sullivan \ir Compressor in the new angle com- pound steam driven air compressor now under test in the plant of the Sullivan Machinery Co. steam flow from inlet to exhaust four-valved cylinder, reduce to a condensation. Cam-operated steam valves give direct and by the use of a and valves, very low ment of The the application to the angle exhaust the ele compressor design of low and two steam two serves to factor initial repre- sents In this steam actuated angk Sullivan compound air com mA pressor stean economy ¥ claimed throug! St irin i high compression and _ pre i viding for a movement of tea n on 1 n f nle le THE IRON AGE June 29, | “During the war the general machinist mov the scale. He became a tool maker or he beca foreman, either in the machine tool shop or in war industry shop, his place in production being by the specialist. Then, after the slump, these sp ists went back to the farms or they are now en; in the building industries, or elsewhere, and ma tool builders who are putting on more men, or to, find difficulty in getting these men back int machine tool industry, which has been so deeply pressed for so long a period. “To coax them back much higher wages will to be paid to make up for the irregularity of em; ment, and to overcome their preference for the they may now be filling. Not only that, but the h tools of course require much more general men, be they cannot be produced in quantities, as in the of the lighter tools. “The railroads need the tools right now, and short-sighted policy to defer the purchasing any lor because as business picks up the available mecha) labor will be absorbed by the other industries and bid the machine tool builder will have to make wil! to be much higher. Such a policy of delay will m concentrate the demand for machine shop labor later date, with the usual consequences, instead spreading it out and making it easier all around is the early bird that will get the worm, as usual. 1 wise buyer, who now gets in his orders will not either from delays in delivery or higher prices that sure to follow, according to the present outlook o1 labor market. “Another point that must not be forgotten is the restriction of immigration since the beginning the war, and the consequent shortage in common lab that is evident in all sections of the country, even w the present amount of activity, is sure to create a d mand for labor saving machinery of all kinds; ar this of course means a demand for more At a period of intense activity—if the machine t buyer waits too long—he will have the privilege of pay ing extremely high prices to induce production of ma chine tools, rather than cycle.” in the present stage of th high pressure air cylinders of a steam end of high du The new type of compressor, which will be kr as the class WD steam driven angle compound di flow type, is to be manufactured in units of large pacity, the first unit to have a cylinder displacement 1138 cu. ft. per min. Other sizes will run from 17 up to 3500 cu. ft. per min. The 1138 ft. machine a steam cylinder of 20-in. diameter and 14-in. str with air cylinders of 20-in. and 12-in. diameters resp¢ tively. It operates at 225 r.p.m. and requires 190 against 100 lb. air pressure. Overall length is 17 9 in., width 8 ft. 3 in. and height 10 ft. 8 in. Stea pressures range from 100 lb. to 200 lb.per sq. in. a! as high as 200 deg. superheat can be used if desir The single steam cylinder, placed in tandem w the low pressure cylinder, is known as the Sulliv direct-flow, four-valve pattern. The cylinder cast contains the exhaust port placed near the bottom the bore, and at some dista! from the cylinder ends. T! cylinder heads contain the stea ports, into which the steam va cages are pressed. The ent head is utilized as a for the steam, so that the he temperature may be the sa as that of the t the cylinder. The admission placed at the bottom o heads and extend below the of the cylinder sufficient!) permit any condensation, w may be entrapped after the haust valves have escape into the head. reser\ steam en ports ‘ ’ closed machinists auses of Failures in Case-Hardening Steel Non-Metallic Impurities. Chiefly Dissolved Oxides. Responsi- ble in Many Cases in Which Hardening Process Has Been Thought at Fault W. EHN, | O itn i paper read at tn M gy ol el ind ° Stes Inst ite I Lor el t i Infl 1) lved Oxide Carbu o° al Hardening es of Steel.” r} 1utn ry} \ ‘ rtal? steels l o i ~ nalys and |} ) 9 © ¢ iitable for re-carbu I ) et f the f wing Failures Not Due to Hardening Practice The plant with which the author is nnected ted to the manufacture of tapered roller iring the hardening department of this plat ild mally happen, in spite of extreme care, that a large int of carburized work failed to harden props had to be rejected, wing to tne o lrrenct rf tt These fai ire ~~ vere al I rst ittrl ité spots. f hardening practice, but afte aulty carburizing o1 derable research work it was definitely proved that inherent property in the steel itself ( ause was some he failures in the hardening were always traced to } 1 . ‘ Lad & Te ‘ ‘ y ] al lots, while other lots that had simultaneously dergone the same processes gave no trouble what . The author goes on to say The results obtained in commercia arburizing are much dependent on the quality of the steel, and as ese qualities cannot be determined by the il or physical test burizing test is obvious. usual chem methods, the practical value of a A better product with uni m hardness, less operating trouble, and fewer reje ns due to improper hardening, would be the ultimate lt It S necessary for tests of this ind nat n ro ypical examinations of carburized sections be mad if properly conducted, inv and after a littl matter to determine from the carbu these do not, of work, es a very easy unt experience it Dé ed structure whether the steel is suitable for carbu Carburizing on a laboratory scale can be no Yr ne ing or not. rried out in a few hours, especially if some kind of eht-fitting containers are employed in accordance th the recommendations made in the paper. It must that a test of } + ‘ ] L arth stee understood, however, mm a large heat of open-he ifeguard against improper steel, as different parts of heat often show different carburizing qualities. Eve however, likely to cate one specini¢ is not a perfe sample from each heat is, worst cases, and if several samples from each heat tested, a reasonable security against improper ste¢ uld be obtained. Tests of this kind constitute, more r, a distinct warning to the steel mills not send r off heats to consumers who are known to + 3 . es L- eel to tests of his kind. Chromium Content Helps l'or most carburizing purposes, a clean, well made ight low-carbon steel (S.A.E. 1020) would be satis tory, especially if hardened spray quench to coun- small variations in the stee Owing to the dif- ilty of obtaining a steel of this kind of uniform and per quality in the ned, however, to recommend for a steel with 0.30 to 0.50 per cent chromium. parts subjected to a very severe service, steels higher content of alloys such as chromium, nickel, be recommended, although for or- yn owing to the higher open market, the author Is in- general carburizing poses nd vanadium can inary purposes out of the questi: 1807 ae \ I ge of ¢c! ! : $ ( i g i stes f good carburizing prope ery unusu nnd a cn n in tee wit! ! ties Wl i raise é I very itl ely na mpa ne i ning rT { S.A.I LU < i l I f being ft rea net ‘ i? j ewhat ( ( i Tor rit nh aenineg il i pu ad? f ite i fully deox ed hea é icl hromium would n the l i i é nre Im content ‘ ! ec wer than spe ( nd é i nna i i I i f t e influence of oxides in steel is 1 estricted irburized low-carbon steel. They will, if preset ria nfluence the results obtained in heat trea ng and hardening of any steel. In the paper, the pr i fluence on grain size and structure of worl I tough nneaiing opt tions ind oO re g of the cementite in annealing high-carbo1 ste mentioned. It is an interesting fact that by il i r nhign irbon steels »> as to ovptall 1 arbor onte f 1.10 per cent or over, a very sensitive test I e degree of deoxidation is obtained, and that in everal instance t has been possible to prove by this 4 method that failures in hardening were due to the " presence of oxides in the steel. A well-deoxidized, high irbor teel should give the structure described as normal in this paper, while abnormal properties ari revealed mainly by irregular grain size. Figures in the paper show the edge of two carburized pieces of pring teel, the first of which was reported to have given excellent results in heat treating, while the re su with the latter were erratic and irregulat The vo steels were of approximately the same analysis, vit he same physical properties, and with no differ ence n the microstructure before carburizing Sev ra ! a nstances could be given, W th the results igreeing closely with the record of service for the dif r¢ nt e€ ‘ Many failures, especially in hardening, are likely to find their explanation on tests of this kind, and per ‘ haps even the mysterious property of steel known as ody” might ultimately be explained by the presence non-presence in the steel of non-metallic impuritie sumapd oxides in solid colloidal solution The author summarizes his work as follow 1. Failure in case-hardening, especially as regard ft spots, is often due to improper steel. Variation of tructure of a carburized piece gives a direct indication er the ee] uitable for carburizing or not. ev ih ‘2. Coarse-grained structure in