The Iron Age 1924-09-25: Vol 114 Iss 13

THE IRON AGE New York, ‘Sevt 25, 1924 ESTABLISHED 1855 VOL. 114, No. 13 Corporation Abandons Pittsburgh Plus Assents to Order of Federal Trade Commission and Includes National Tube Co.—Bethlehem Steel Co. Declares Its Policy—New Prices on Wire Products Announced HE decision of the United States Steel Corporation not to oppose the cease and desist order of the Fed- eral Trade Commission in the Pittsburgh plus case and to comply with the order “in so far as it is practi- cable to do so” did not come as a surprise, because it has been evident for some time that the policy of the officers of the corporation would find expression again, as it has frequently in the many years of Judge Gary’s chairmanship, in going beyond the limit of what might be legally demanded by the public. One who has closely followed the fight against Pitts- burgh plus from its inception said to THE IRON AGE: “It is incomprehensible that the decision of the Steel MBNNOMRRAN ANNA SiON, POVONAALENUUTAEOUAN ELIAS OU EAL EE LOUNTN TT N PONLENAOGGDNNAUARANTN NAT Corporation not to carry the case to the courts is based on legal grounds. The Steel Corporation’s state- ment of Sept. 17 plainly says that ‘the respondents do not admit the validity of the order or the jurisdiction of the commission,’ and there is not a particle of doubt in my mind that had the case been appealed to the Supreme Court the Steel Corporation would have won a decisive victory. There has been, however, tre- mendous agitation against Pittsburgh plus and by mis- representation and otherwise thousands of people, in- cluding many customers of the Steel Corporation, espe- cially in the Northwestern part of the country, have been led to believe that a great wrong was being per- SLUDADESTOU MALE EAT DEE AAD TPES SOARS A Acceptance of Order by United States Steel Corporation The Federal Trade Commission on Sept. 17 published the following, which it calls, “report of the United States Steel Corporation, et al., in re- sponse to the commission’s order in the Pitts- burgh Plus case’’: UNITED STATES OF AMERICA BEFORE THE FEDERAL TRADE COMMISSION Federal Trade Commission vs. United States Steel Corporation, American Bridge Co., American Sheet & Tin Plate Co., Carne- gie Steel Co., National Tube Co., American Steel & Wire Co., Illinois Steel Co., Minne- sota Steel Co., Clairton Steel Co., Union Steel Co., The Lorain Steel Co. and Tennessee Coal, Iron & Railroad Co. Pursuant to the order made by the Federal Trade Commission in the above entitled cause, dated July 21, 1924, the respondents, United States Steel Corporation, American Bridge Co., American Sheet & Tin Plate Co., Carnegie Steel Co., National Tube Co., American Steel & Wire Co., Illinois Steel Co., Minnesota Steel Co. and Tennessee Coal, Iron & Railroad Co., report as follows: 1. Respondents, without admitting the validity of said order or the jurisdiction of the commis- sion to make the same, have determined to con- form thereto, and will hereafter conform thereto, in the sale of their various products, in so far as it is practicable to do so. 2. Respondents have abandoned the Pittsburgh plus system, as defined in said order, throughout their various organizations and will not hereafter make use of the same. 3. Respondents will not quote for sale or sell their rolled steel products upon any other basing point than that where the products are manu- factured or from which they are shipped. 4. Sales from manufacturing plants, fabricating plants and warehouses will be made f.o.b. plant or warehouse, or at delivered prices, as occasion may offer. In all cases of sales at delivered prices, the contract of sale or the invoice will clearly and distinctly indicate how much is charged for the steel products sold f.o.b. the producing or shipping point and how much is charged for the actual transportation of such products, if any, from such producing or ship- ping point to destination. 5. All f.o.b. selling prices, whether at the mills, warehouses or fabricating plants, and all delivered prices, will be non-discriminatory within the meaning of the second section of the Clayton act, but will be subject to the variations per- mitted by said act. Dated, Sept. 16, 1924. Signed by United States Steel Corporation by J. A. Farrell, President; American Bridge Co. by Joshua A. Hatfield, Vice-President; American Sheet & Tin Plate Co. by E. W. Pargny, President; Carnegie Steel Co. by H. D. Williams, President; National Tube Co., by William B. Schiller, Presi- dent; American Steel & Wire Co. by William P. Palmer, President; Illinois Steel Co. by E. J. Buffington, President; Minnesota Steel Co. by S. B. Sheldon, Vice-President, and Tennessee Coal, Iron & Railroad Co. by George €. Crawford, President. MRRBvovm ems au careers a sca ig negate aay aastene TANTRA RETREATS NLLEH LATENT GL OSOEENASA AANA ODOT VE TSN ESTO EEOTPPPUNbOP E27 ASAS EOP Hes" RPAH MERE TL NLP GOR NREERE ORES RSE 747 a i i I a Nan EE Te 748 THE IRON AGE petrated by basing prices on Pittsburgh. Hence, rather than take an unpopular course, it has been decided not to appeal to the courts.” New Plan May Be Unpopular The view expressed above is the one entertained by many observers, but there is much doubt as to how the plan of quoting mill prices will be worked out and as to whether it will be as popular as the leading op- ponents of Pittsburgh plus expect it to be. The state- ment, which has been widely published, that Pittsburgh plus has cost the farmers of 11 States about $30,000,000 annually was admitted as evidence in the case, it being described as an estimate of the American Farm Bureau Federation. Men connected with the steel trade know that this estimate is a gross exaggeration and are con- vinced that in the future, as in the past, while con- sumers get cheap steel when consumption falls well be- low capacity, they will pay high prices, perhaps higher than ever under Pittsburgh basing, in times of great activity, when there is a scramble for steel. However, the wide publication of the statement un- doubtedly has aroused hope in the minds of countless farmers that the abandoning of Pittsburgh plus will mean a decided reduction in prices. If the reductions are not forthcoming, there may be keen disappointment. No one in the trade believes that at this time, when gen- eral market conditions are gradually improving, the adoption of the new plan of quoting will cause any important reduction in prices. Hence the effect upon those who have been clamoring for a change is awaited with interest. Some salesmen of long experience pre- dict that the abandoning of the Pittsburgh basing method will cause a great deal of confusion among buyers who have long been in the habit of buying on a Pittsburgh basis and have in mind Pittsburgh freight rates. Such buyers will find it more difficult than heretofore to calculate how much their competitors are paying for their steel. Carrying Out the New Methods As to the methods by which the new plan is to be carried out, it is impossible to speak definitely. In the case of some products and some companies, the change will be rather easy. For example, the Illinois Steel Co. months ago virtually abandoned the Pittsburgh plus method of selling, and little if any change will be neces- sary in its policies. On the other hand, in selling sheets and wire products, it is predicted that many difficult problems will be encountered. This is particu- larly true of the American Steel & Wire Co., which has numerous plants, a vast variety of products and complicated price schedules. The selling of wire has been worked out through many years by the American Steel & Wire Co. and its predecessors and competitors. It is not thought that it will be possible to quote the same delivered price regardless of the mills at which the products are made, and if different prices are quoted, it may be difficult to satisfy customers. Sim- ilar conditions, although not so complicated, apply to the sheet business. Cost of Abandoning Pittsburgh Plus As to what will be the financial cost to the Steel Cor- poration resulting from the abandonment of Pittsburgh plus, it is impossible to make anything approaching an accurate estimate. It is the opinion of some persons connected with the steel trade that in years of great prosperity the Steel Corporation subsidiaries under the Pittsburgh plus plan have been able to obtain higher prices than they could otherwise have secured, but when- ever keen competition has developed the ignoring of Pittsburgh plus has resulted in as low prices being named as in all probability will be made at any time under the new plan. On the other hand, if there has September 25, 1924 been a stabilizing effect of a single basing point at times when the trend of the market has not been readily determinable, such stabilization has operated also to prevent inordinately high prices when supply has proved quite inadequate to meet demand. Doubtless ex- perience over an extended period will be required to show the real working out of mill basing. In the carrying out of the cease and desist order of the Federal Trade Commission much depends upon the interpretation of the word “practicable,” which is defined by the Standard Dictionary as “that which can be put into practice; possible of execution or perform- ance; feasible.” Without intending to violate or evade the order of the commission, the sellers may find that it is necessary for them to exercise considerable dis- cretion. The order itself gives much latitude, for it distinctly permits “discrimination in price between pur- chasers on account of differences in the grade, quality or quantity of the commodities sold” and the order also permits “due allowances for difference in the cost of sell- ing or transportation, or discrimination in price in the same or different commodities made in good faith to meet competition.” Although a large percentage of the output of the National Tube Co. is not manufactured in Pittsburgh, its products are not included in the order, but the an- nouncement of the Steel Corporation is signed by that company, and it is officially stated that the Steel Cor- poration intends to go even further than has been or- dered by the commission. How Far Will Regulation Extend? The question is likely to be asked in connection with the ability of the Federal Trade Commission to bring about the abolition of the Pittsburgh plus custom, “Will this success in regulating business or interfering with its policies result in agitation for further control or regulation of business?” It was shown in the course of the hearing of the case that prices of other products than iron and steel were quoted in ways similar to Pittsburgh plus and it will be interesting to see whether the Federal Trade Commission will try to have the cease and desist order issued against the Steel Corporation subsidiaries applied in other lines of trade. President Buffington of the Illinois Steel Co., in discussing the Pittsburgh basing plan in THE IRON AGE of, Dec. 14, 1922, said: In substance, the prices of steel in the regard we are considering are not different from the prices of grain. There is always a market price for grain in Chicago. Vast quantities of grain come into Chicago from the fields where produced, and are then distributed from Chicago to points of consumption. The great mass of wheat is produced west of Chicago and consumed east of Chicago. The price paid by grain dealers at the various points west of Chicago, where wheat is produced, is day by day the Chicago price less the freight from the point of purchase to Chicago. The price of what east of Chicago is the Chicago price plus the freight from Chicago to the given point. In neither case does the cost of producing the wheat west of Chicago or the cost of producing the wheat east of Chicago fix the price. The market price at Chicago fixes the price in both localities. The price of sugar furnishes another illustration of the subject. The United States does not produce sufficient sugar to supply its needs. In consequence, large quantities of sugar are bought in Cuba. The prices for sugar which rule in dif- ferent parts of the United States bear a direct relation to the prices of sugar at seaboard points, such as New York, Baltimore, Galveston and elsewhere. It may be laid down as a general rule that the district in which the greatest quantity of the products named or other products similarly affected by market conditions are produced or marketed establishes the market prices for such products and become a basing point for the prices of such products in other districts. Will the Federal Trade Commission try to regulate the selling of grain, of sugar and many other products? Will it extend its efforts to the general fixing of prices? If radicals gain in power at Washington, how far will September 25, 1924 aytyt.uvtaidigvag UU e402 LLAMA THE IRON AGE 749 PANTO ad APTN Nad siti {AUPE AMET ABUL Ea ATER The Cease and Desist Onde The text of the order of July 21, 1924, re- quires that the corporation and subsidiaries cease and desist: 1. From quoting for sale or selling in the course of interstate commerce their rolled steel products known as plates, bars, structural shapes, sheets, tin plates, wire and wire products at Pittsburgh plus prices. 2. From quoting for sale or selling in the course of interstate commerce their said rolled steel products upon any other basing point than that where the products are manufactured or from which they are shipped. 3. From selling or contracting for the sale of or invoicing such steel products in the course of inter- state commerce without clearly and distinctly indicat- ing in such sales, or upon such contracts or invoices, how much is charged for such steel products f.o.b. the producing or shipping point, and how much is charged for the actual transportation of said products if any, from such producing or shipping point to destination. 4. From discriminating in the course of interstate commerce, either directly, or indirectly, in price be- tween different purchasers of their rolled steel products known as plates, bars, structural shapes, sheets, tin plate, wire and wire products sold for use, consumption or resale within the United States or any Territory thereof or the District of Columbia or any insular pos- session or other place under the jurisdiction of the United States, where the effect of such discrimination may be to substantially lessen competition in any line of interstate commerce; including competition among the steel producers, or steel users, or both; provided, however, that nothing herein contained shall prevent discrimination in price between purchasers of said products on account of differences in the grade, quality or quantity of the commodity sold, or that makes only due allowance for difference in the cost of selling or transportation, or discrimination in price in the same or different communities made in good faith to meet competition. The use by respondents in the course of such interstate commerce of the system of Pittsburgh plus prices for their said steel products, manufactured at and shipped from points outside of Pittsburgh— which prices are their f.o.b. Pittsburgh prices plus amounts equivalent to what the railroad freight charges on such products would be from Pittsburgh to each different destination if such products were actually shipped from Pittsburgh—shall be deemed to constitute a violation of this order. The use by respondents in the course of such interstate commerce of any system similar to that of the Pittsburgh plus system shall likewise be deemed to constitute a violation of this order. The practice by respondents of selling or contracting for the sale of said products in the course of interstate commerce upon any other basing point than that where the products are manufactured or from which they are shipped, shall be deemed to constitute a violation of this order. TMM OO LAA business regulation be extended? These are some of the questions which are being considered by thoughtful men at the present time. Market Reports of The Iron Age The possible bearing of the abolition of Pittsburgh plus on market reporting has received and will continue to receive most careful consideration by THE IRON AGE. As to our “Comparison of Prices” table, which is used as a basis for contracts amounting to many millions of dollars, THE IRON AGE does not see any reason at the present time for many changes in its method of quoting. In this table a number of products have long been quoted at Philadelphia, Chicago and New York, in addi- tion to the Pittsburgh quotations. This policy will be continued. Experience may show that it will be desir- able to quote some additional products at other centers than Pittsburgh. In this respect, as in all others, the earnest endeavor of THE IRON AGE will be to serve both buyers and sellers alike. G. 8. Important Results Expected by Federal Trade Commission Lower Prices Predicted by Opponents of Pittsburgh Plus—View Not Shared by the Trade— Counsel Lindabury Says All Subsidiaries Will Conform WASHINGTON, Sept. 23.—Manifestly pleased with the answer of the United States Steel Corporation complying with its cease and desist order to abandon the practice of quoting prices of steel at any basing point other than where it is produced or from which it is shipped, the Federal Trade Commission is confident that its victory in the Pittsburgh plus case will have a far-reaching effect. Whatever its justification, the be- lief exists at the commission that the response of the Steel Corporation, received here last Wednesday, means establishment of free competition in the iron and steel industry and that it will now become decentralized and each center be given its natural share of business and consumers benefited by lower prices. To the mind of the commission, the Pittsburgh plus method of selling steel restrained growth of producing sections outside of the Pittsburgh area and that with prices fixed on a f.o.b. mill basis, or on a delivered price basis, with invoices showing the freight rate from the mill of production, these centers will expand and markets of the Pitts- burgh area at the same time will be more restricted. As the commission and those representing it or op- posing the Pittsburgh base see it, the iron and steel industry will find its markets broken up into zones whose extent will be governed by freight rates. There are those presenting this view who are convinced that the Chicago district especially will benefit from the abolishment of the Pittsburgh base and will develop markedly with a wide area of markets throughout the Middle West and Far West. Fabricators in these sec- tions, they contend, have now been put on a basis of fair competition with those in the Pittsburgh and sur- rounding territory. Implement manufacturers will be able to purchase steel more cheaply, as will other con- sumers, in the estimation of those who see benefits aris- ing from the naming of prices on a f.o.b. mill basis or its equivalent. Moreover, they do not hesitate to say that the ultimate consumer, the farmer, the builder, and all others using steel in any form will get his remanu- factured product at a lower price. They insist this will be inevitable by the law of competition. Pittsburgh Plus Ignored at Times The picture is a rosy one which eyidently is not shared by the iron and steel trade, but whatever the merits of the case, it is an interesting one and the out- come will be eagerly watched not only by the trade and steel consumers, as well as the commission, but by the entire industrial and consuming groups in all lines. To many in the steel trade the Steel Corporation order only means that it has officially gone on record to do what the trade always has had to do to a large extent : ; a = T. ee eS i iaieipenive dad 750 by the law of economics, because it has been able to quote Pittsburgh plus only theoretically in times of dull business, such as existed both when the order was issued and the answer received. The difference, it is contended, is principally in form and not in substance. This is a view, however, which is sharply challenged at the commission offices. The commission was gratified by not only the affirm- ative nature of the reply of compliance by the Steel Corporation but also by the evident sincerity of the Steel Corporation in determining to carry out scrupu- lously the terms of the order. The good intention of the Steel Corporation, it is argued, is shown throughout the brief but plain answer and is given further emphasis by reason of the fact that the Steel Corporation as a matter of fact went even further than it was required to do when it included the National Tube Co. as one of the responding subsidiaries. The commission had TTL AUOLUCUUAALSTUAU END EELLENE History of Pittsburgh Plus Controversy in Brief Aug. 1, 1919.—Following agitation for 10 years from various consuming sources, the Western Association of Rolled Steel Consum- ers filed application with the Federal Trade Commission for complaint against the United States Steel Corporation, the Interstate Iron & Steel Co., the Steel & Tube Co. of America, and the Inland Steel Co., the three independ- ent companies being in the Chicago district, because of the practice of quoting prices of steel on a Pittsburgh basis. Subsequently other consuming organizations took similar action. Dec. 2, 1919.—Commission holds prelim- inary hearing in Washington. July 24, 1920.—Application for complaint denied, Messrs. Murdock, Colver and Gaskill voting against its issuance, with Messrs. Thompson and Pollard voting for complaint. Aug. 1, 1920.—Appearing for Western Association, H. G. Pickering asks for rehear- ing. Sept. 20, 1920.—Rehearing granted, those voting favorably being Messrs. Thompson, Colver and Pollard, while those opposed were Messrs. Murdock and Gaskill. Nov. 15-17, 1920.—Rehearing held. Aug. 30, 1921.—Eliminating independents from case, the commission issues complaint against the Steel Corporation, charging that the Pittsburgh base practice constitutes unfair BABU NGS NNN HNPTETNNTATE EEN enN eee mn MATT " ri 1 HINTEMECTINTY dismissed the complaint as it related to this company, the Lorain Steel Co., the Clairton Steel Co., and the Union Steel Co., the latter two being really identities in names only but actually parts of other producing units. Mr. Lindabury’s Statement In sending the answer to the commission under date of Sept. 16, General Counsel Richard V. Lindabury ad- dressed a note to the commission, saying that the Na- tional Tube Co. had been included in connection with compliance with the order because it is proposed that all subsidiaries adhere to the same practice. There are two points in the answer which have aroused considerable speculation as to what, if any, significance they have, but the commission itself says its does not attach any particular meaning of impor- tance to them. One of these points consists of the phrase where the Steel Corporation says it will con- form to the order “in so far as it is practicable to do so,” and the other is the statement in the answer that all prices “will be non-discriminatory within the mean- THE IRON September 25, 1924 AGE ing of the second section of the Clayton act, but will be subject to the variations permitted by said act.” With regard to the first phrase, it is the view at the commission that the Steel Corporation in adjusting. it- self to the new methods of quoting might not at first find it practicable to carry out the order to a nicety. But it is believed that it will be obeyed entirely in spirit. Non-discriminatory prices subject to variations in the Clayton act, the second point raised, it is said, will give the Steel Corporation latitude, if it desires, in quoting differing prices at mills in order to meet competition in good faith, but the commission expresses confidence that in the end there will have to be by reason of competitive conditions, the same price on a given product from an identical mill to all consumers supplied by that mill. The idea of varying f.o.b. mill prices at a given mill on the same product, it is con- tended, is not sound, though the trade does not accept HUNEEUAALUUTERNUGUUAESTSLEULLADAAMOMEATAOU TEU ATTN TET TNA AANA ANA EAE TST TEN methods of competition within the meaning of Sec. 5 of the Federal Trade Commission act and price discrimination within the mean- ing of Sec. 2 of the Clayton anti-trust act. Those voting for the complaint were Messrs. Thompson, Pollard and Nugent, and those op- posed were Messrs. Gaskill and Murdock. Jan. 30, 1922.—Hearings begun at Milwau- Mar. 1-Nov. 1, 1922.—Hearings at various cities during which direct evidence offered by commission is completed. Jan. 19-Dec. 10, 1923.—Direct evidence of the Steel Corporation presented at various points throughout country. Dec. 15, 1923.—Commission completes its rebuttal. Mar. 7, 1924,—Sur-rebuttal of the Steel Corporation and final evidence completed be- fore Examiner J. W. Bennett. Mar. 29, 1924.—Report of Examiner, un- favorable: to the Steel Corporation, is issued. June 24, 1924.—Final arguments completed before commission after filing of briefs in ohich Middle Western States opposed Pitts- burgh base as “amicus curiae’”’ of commission. July 2, 1924.—Cease and desist order issued against Steel Corporation, those voting for the order being Chairman Thompson and Commissioners Van Fleet, Nugent and Hunt. Commissioner Gaskill held that the commis- sion was without authority in the case. Sept. 17, 1924.—Commission _ receives answer of the Steel Corporation announcing its compliance with the order. UMMoNCQUUUUEESPOOOGUONUNNOCAGEEE UAE LOUALALAANAEEURUREREUUUUAOUUU ACERT UAE NHANES NEN AUT NNN this view. The commission is of the opinion that such a practice would be done away with by bringing about protest from the consumer paying the highest f.o.b. mill price. This, however, it has been pointed out, does not mean that there will not be different prices on sim- ilar products at mills of any concern located in different sections. The points nevertheless are looked to by some as giving promise of further differences between the trade and the commission. Present Attitude of Commission But the commission is content to let the matter work out itself for the present. It was stated that only in the event it was found that competition is “substan- tially lessened” by failure to follow the intent of the order will it interfere. It is the purpose of the com- mission not to supervise operation of the order. Con- sumers are expected to see that this is done. AHCOUSEREROALUOSROEDESEOONLENEUDELOURUNOREEEDIRRONEVCY SONNET ELOREREDOOUOTUAORRENNDAEESUE GREE YHANESTHEHOED ONO NEsLaneHsyteAerannnEnE C#EErE (Continued on page 767) Sweden’s Largest Industrial Company World’s Oldest Enterprise Was Organized in Thirteenth Century and Includes a Dozen of the Leading Industries of Sweden Activities and Welfare Work —Extent of Company’s BY A. BOGENHOLM SLOANE TORA KOPPARBERGS BERGSLAGS AKTIEBO- LAG (Big Copper Mountain’s Mining Co.), abbre- viated “Bergslaget,” dating back to the thirteenth century, may claim to be the oldest industrial enter- prise not only in Sweden but even in the whole world. The first object of its activity was the old copper mine at Falun, famous in the history of Sweden. Worked now for 700 years, this mine has for centuries played an exceptionally important part in the economic life of the country. Its most prosperous period was in the seventeenth century, when the company was the great- est copper producer in the world. After that time, however, its yield of copper gradually declined, although later on science and technics made it possible again to utilize the products of the mine, especially the pyrites, upon which an extensive chemical industry is now based, making the Falun Mine & Copper Works [% the Museum at Falun Are Dis- played the Industries of the Stora Koppar- bergs Bergslags Aktie- bolag. The exhibits are visited by people from various annually parts of the world T Right Is a Group of Laborers Homes at the Iron Works of Bergslagsbyn an important part of the concern. Gradually interest was transferred to the iron and timber industries, with which the company has always been in contact, owing to the need of iron and timber at the mine. The company owns a large number of iron mines in Central Sweden. It possesses, for instance, half of the Griangesbergs fields, a considerable part of the Blétberget mines, and about 30 per cent of the famous Dannemora mines. The ore is mainly used for ‘the company’s own works, but is to a certain extent also exported, and this export is to be increased’ consid- erably. Ores of many analyses are delivered. The ore from Dannemora is not exported, but kept for the Séderfors Steel Works, for the manufacture of high- quality steels. The company constructed its first iron works at Svartnis in 1735, and this was followed in due course AT Top Is an Old ¢ Street of Em ployees’ Houses at the Iron Works of Siderfors scheme i Rmser~- aE Ae om Aap Se) ences cons ee ae i es ait 752 THE IRON AGE by many others. In 1873 this industry was concentrated at Domnarvet, near Falun, and the company closed down most of its smaller works. In the succeeding years the company expanded and now it operates the following seven iron and steel works: Séderfors Steel Works, Gysinge Steel Works, Domnarvet Steel Works, Elvkarleé Factories, Korsa Iron Works, Strémsberg Iron Works, Ullfors Iron Works, each of which has its own specialties. The Séderfors Steel Works produces the “Rekord Extra” and the “Rekord Superb” high-grade steels, Dannemora tool steels, hollow and solid drill steel, file steel, spring steel, magnet steel, anvils, vises and steel castings, etc. The Gysinge Steel Works manu- factures electric tool steels. The Domnarvet Steel Works is the largest manufacturer in Scandinavia of open-hearth and Bessemer steel, steel castings, etc. Springs for locomotives and railroad cars, for auto- mobiles and carriages, all kinds of spiral springs, teeth for rakes, harrows and cultivators, plough shares, and complete magnets are among the specialties pro- duced at the Elvkarleé Factories. The Korsa Iron Works makes a specialty of hammered Lancashire iron, blooms and bar ends, while Strémsberg Iron Works confines itself to hammered Lancashire iron exclusively, and the Ullfors Iron Works to the production of ham- mered Walloon iron. Ownership of Ore Mines Iron and steel manufacture, like the whole produc- tion of the company, is based on the solid foundation of its own supply of raw materials, notably ores. The iron ore resources are so extensive that they will not only cover the requirements of the company’s iron works for an indefinite time, but they also leave large surplus quantities for export. The ores vary in analysis from highly phosphoric to those with a mini- mum phosphorus content. The Vintjern mines, the first field of iron ote acquired by the company, contain 50.4 to 65.9 per cent metallic iron, and those of Danne- mora 50 to 58 per cent iron, up to 4 per cent manganese and 0.002 to 0.003 per cent phosphorus. The bulk of the Dannemora ores have an excess of lime. Among the ores with low phosphorus content are also those from the Langgruvan mine in the Anders- benning fields, and the lump ore and concentrates from the Stripa mines. The Stripa ore is the quartz- September 25, 1924 banded hematic type; it is delivered from the mine as lump ore, and as magnetic and hematic concentrates. The bulk of. the output from the Bispberg, Johannis- berg and Gréndal mines, in the Klackberg ore field, contains about 50 per cent iron, 4 per cent manganese, 0.002 to 0.003 per cent phosphorus and is calcareous. The Gringesberg ores are partly high phosphoric, with 60 per cent iron and 1 per cent phosphorus, and partly of a medium quality, with 58 per cent iron and 0.1 to 0.3 per cent phosphorus. All these ores are very low in sulphur content. Timber Industry Dates from Eighteenth Century First taken up at Domnarvet in 1789, the timbe: industry shows the same development as the iron in- dustry. Toward the end of the nineteenth century the company had a considerable number of saw mills in the interior, which naturally proved rather uneconom- ical, especially when exports began to expand. Conse- quently the company in 1885 acquired the saw mills at Skutskar on the Baltic Coast, where the manufacture of wood goods for export is concentrated. This plant is now one of the leading ones of its kind in Sweden. In addition to the Skutskar saw mills, and to re- place the saw mill at Domnarvet, which then was closed down, a new saw mill was erected at Bysjon in 1921- 22. It produces partly for export, and is eombined with charcoal kilns and chemical factories. To utilize the smaller sizes of logs floated down to the saw mill from the company’s own forests, compris- ing tracts aggregating about 850,000 acres, and the refuse and chips obtained, the company in 1894 estab- lished the Skutskar Sulphate Pulp Mill and took up the exportation of pulp. In 1900 a sulphite pulp mill also was erected at the same place. These mills have capacity of 18,000 tons strong and bleachable sulphate pulp, air-dry weight, and 24,000 tons strong, unbleach- able sulphite pulp, air-dry weight. For complete utilization of forest products the com- pany in 1897-1900 built a large paper mill with a me- chanical pulp mill at Kvarnsmeden, near Domnarvet, which is one of the largest of its kind in Europe. The necessary sulphite pulp is supplied by a mill run in connection with the paper mill. There is also a paper mill at Skutskar with knotter pulp paper as its special- ty. The Kvarnsmeden paper mill has an annual pro- duction of 50,000 tons of newsprint on reels and in sheets, and about 3000 tons of sulphite wrapping paper. pRocermAL and Domestic Training in Schools of the Company. These two views were taken in the school of housewifery and the practical technical school for boys September 25, 1924 It has one Yankee paper making machine, 120 in. wide, and six Fourdrinier machines from 112 to 144 in. wide. Chemical: Industry is Widely Diversified Taken up for the utilization of the by-products at the various works, the chemical industry is divided into four groups: (1) Sulphurie: atid, pyrites, sul- phate of copper, sulphate of iron, acetic acid, tal- cum, red ocher and sulphate of alumina; (2) ethyl alcohol, methyl! alcohol, turpentine and liquid rosin; (3) wood tar, wood naphtha, wood pitch, pine tar oil, turpentine and acetate of lime; (4) Thomas phosphate and oxygen gas. The products of the first group are all made at the Falun Mine & Copper Works, based chiefly on the py- rites extracted from the Falun mine. The other groups consist of by-products obtained in the various works, those of the second group at the chemical works at Skutskar and Kvarnsmeden, of the third group at the chemical works at Bysjén Charcoal Kilns, and of the fourth group at Domnarvet Iron & Steel Works. The annual production is: (1) Pyrites: 100,000 to 120,000 tons, free from arsenie and selenium; (2) sul- phuric acid: 14,000 tons, free from arsenic and selenium; (3) sulphate of copper: chiefly exported to the wine- growing districts of Southern and Central Europe for use against the phylloxera; (4) acetic acid: 98 to 100 per cent chemically pure, used extensively for the coagulation of rubber in the rubber producing coun- tries; (5) red ochre: 20,000 to 30,000 barrels, known for its preservative properties and constituting the red paint on country houses in Sweden; (6) ethyl alcohol: 1,300,000 liters (165,000 gallons). Among the other products is an annual output of 200,000 bags, each weighing 100 kilos, of Thomas phosphate fertilizer (20,000 metric tons). Development of Water Power As the largest private owner of water power in Sweden, the Bergslaget has control of about a score of waterfalls in the Dala River and its tributaries, with a potential 200,000 hp., of which 107,000 hp. has al- ready been developed and is supplying the motive power for the company’s own industrial establishments, and also for those of the adjoining rural districts. Some of the small waterfalls have been used as the driving power for the old iron works, mines, saw mills, and flour mills from the beginning of these industries. It was not, however, until] 1870 that the water power began to be utilized on a big scale in connection with the construction of the iron works at Domnarvet. Twenty years later the water power was used exten- THE IRON AGE 753 LOOMING Mill at the Dom. narvet Iron Works. In the circle is shown steel-smith- ing at Séderfors in the production of Domnarvet special steel sively also for the pulp and paper industry at Kvarns- meden. The 30,000-hp. electric power plant at Buller- forsen was completed in 1910, as was also the 20,000- hp. power plant at Mockjard, for use in the mining in- dustry at Graingesberg. There is a power station with 26,000 hp. at the Kvarnsmeden paper mills, and one at Forshuvudforsen, with 24,000 hp., which is used for the iron smelting at Domnarvet. Welfare Institutions and Cultural Activities The Bergslaget Technical School was established in 1908, by Dr. E. J. Ljungberg, with a capital of 100,000 kronor, divided into ten shares. These shares carry no dividends but all receipts of the school company are used for the promotion ef technical instruction for members of the families of Bergslaget employees. The following year Dr. Ljungberg donated the main part of his fortune to this school company. Schools for in- struction in rural household science and in housewifery were opened for the girls. There are now 18 of these schools in operation: Six of these are vocational high schools, while three are schools for training in carpen- try work and other mechanic arts, such as building con- struction and blacksmithing; two are apprentice schools for industrial trades, two are schools for training min- ing foremen, and five schools for domestic science for girls. Extensive measures have been taken .for the social welfare of the company’s employees. The majority of the workmen live in houses built and administered by the company. Furthermore, the company’s stores «t the different works supply provisions and other com- modities at the lowest prices possible to obtain through wholesale purchases in Stockholm. The hotels, clubs and canteens conducted by the company at the various works also deserve mention. Personal Attention to Employees For medical attendance and hygiene, the company has its doctors, nurses and hospitals, country homes for children, recreation homes and baths. Spécial wel- sete Wet eapennane we ~ Py) : 754 THE IRON :AGE RANSPORT- ING Ore Underground at Grangesberg by Means” of:. Elec- tric Trains fare offices ‘have been-established for the care, wholly or in part;.of the economic interests of the employees. All officials“and foremen are granted pensions upon retirement, and lately a pension has been arranged also for the common workmen.... Eyery employee is insured against accidents. The company’s technic-scientific and cultural activ- ity is very wide. In Falun there is a large chemical central laboratory and there are similar institutions connected with all the other works. There is also a large central library at’ Falun, well supplied with liter- September 25, 1924 ature on all subjects included in the company’s fields of activity, with branch libraries at the various works. The company has a museum of industrial history, housed in an old administration building at the Falun mine, which is unique of its kind in Sweden. This museum is visited not only by Swedish students of in- dustrial history but also by those from other European countries and America. At present the company is occupied in producing a history of its earlier activities. This will be of particular interest, ‘because of the cen- tral position of this company in the eeonomy of Sweden. Hyesrwengty a Charcoal Oven with Wood for Burning. The wagon, which. is shoved in loaded with wood, comes out loaded with charcoal Corrosion in Reinforcing Steel and the Remedy That steel used in concrete must be well within the surface and that steel parts exposed must be well ex- posed, so as to be easily inspected and painted, is the contention of T. Arthur Smith, vice-president Turner Construction Co., New York, in a recent issue of that company’s publication. Even in cases where only short lengths of reinforcement are left too near the surface, the damage from corrosion may become serious. This frequently happens, he says, when the steel is less than 1 in. from the surface. Moisture penetrates the thin covering, corrosion begins, a section of concrete is spalled off, and from this stage the corrosive action is rapid, following along the exposed bar for a consid- erable length. This condition may eventually impair the strength and the resistance of the entire structure. The writer recommends that reinforcing steel be placed at a minimum of 2 in. from the outside surface, and to make sure that this distance is held, circular concrete blocks are placed like spools at intervals on column bars. This is done at the time the reinforce- ment is assembled. There is no danger from rust if the protective covering of 2 in. is maintained. It was the common practice several years ago to specify that any steel left exposed in order to bond in a future extension should be given a brush coat of cement grout. It has developed only recently that this is not sufficient to prevent corrosion. All exposed steel parts should be inspected at regular intervals and kept well protected with paint. Here the writer stresses the im- portance of planning construction to leave exposed steel parts easily accessible to inspection and painting. Great Loss from Defective Castings Ohio State Foundrymen’s Association Listens to Addresses _ on Varied Topics—Importance of Good Sand Emphasized ITH a registration of close to 200, the fourth W annual convention of the Ohio State Foundry- men’s Association was held at the Hotel Cleve- land, Cleveland, Sept. 18-19. An interesting program was provided that included addresses on various topics covering industrial relations and other problems of particular interest to foundry executives. The meet- ing opened Thursday afternoon with an address of wel- come by Clayton C. Townes, mayor of Cleveland. William L. Huggins, formerly Chief Justice of the Kansas industrial court and now associated with the League for Industrial Rights, New York, was the first speaker and made a forceful plea for freedom in in- dustry. He declared that the problem of industrial relations is the greatest problem before the American people and assailed Samuel Gompers, Robert La Fol- lette and organized labor for their attacks on the Su- preme Court. The speaker referred to the great changes that have come about in the industrial rela- tions by the organization of large corporations on the one side and labor unions on the other, bringing con- troversies back where they started, or between indi- viduals, but these individuals now represent groups. He spoke of the economic waste caused by industria) controversies which must be paid for by the general public and declared that laws must be provided for settling these controversies with justice to both sides and the public. Principles of law are being built up which must be applied to industry. The Supreme Court decision in the Danbury hat case established a principle of law but organized labor after eight years’ effort brought about the passage of the Clayton act. Organized labor and Mr. La Follette are trying to take the scales and sword of justice from the Supreme Court and turn them over to Congress. The courts should be protected from attacks. The speaker deciared that whether a private organization can dictate to a man as to the right to work for whom and at what wages he sees fit will have to be fought out some time and the man’s rights maintained. He did not deny the right of collective bargaining but wanted it to be a con- tract between two parties and not a treaty brought out by force or by the threat of a strike or boycott. One Thing Unpurchasable Dr. Harry Meyers, Dayton Malleable Iron Co., Day- ton, also spoke on some phases of industrial relations and declared that there is one thing in industry that cannot be bought. That is an organization cr working force. An organization must be created. He referred to the lack of efficiency of workmen because of poor health and declared that plant dispensaries pay too little attention to many little diseases that make men incapable of doing good work. These dispensaries, he held, should give attention to slight ills, as common ordinary ills are costing plants a-great deal in loss of labor. He declared that no plant is too small to have a part time doctor and some kind of a nurse. Aside from health conditions, the speaker said there were two causes for dissatisfied workmen, one internal and the other external: He urged the manufacturers to look after the outside. problems of their men and to help out their loyal employees, with. loans in case of need. Making men satisfied in a shop rests largely with the foreman and he declared that. foremanship training is the most. important. thing today in the rela- tions between management and employees. The speaker advocated: the organization of foremen’s clubs ° composed. of executives ranging from the general man- ager down to everybody that has anything to do with’ the management of men. These meetings shotild be held at least once a month and qualities of leadership 755 should be developed in the foremen. The essential qualities of good foremanship, he contended, are agree- ableness and helpfulness. In some plants. the great amount of scrap produced is due to lack of helpfulness on the part of the foreman. The speaker suggested that at each foremen’s meeting a review of the month be given by the factory manager and he emphasized the importance of having a committee on waste. Mar- velous results, he said, could be accomplished by get- ting foremen interested in reducing the amount of waste. Another subject that should be considered at the foremen’s meeting is how can the production be made better and cheaper. He ¢ontended that much good can be accomplished by having the foreman come in contact with the consumers by having representa- tives of the sales force appear befére these meetings and explain any faults that consumers might find with the product. “Various Foundry Cost Methods—Correct and In- correct” was the subject of a lengthy discussion by E. T. Runge, E. T. Runge Cost Co., Cleveland, who has previously addressed the association on this subject. C. C. Smith, Toledo Steel Casting Co., Toledo, took for his subject “Why the Ohio State Foundrymen’s Association?” He pointed out the work that is being accomplished by state and national associations and thought that it might be a good idea to form another national association to handle the various local prob- lems. High Cost of the Scrap Pile “Reducing Production Costs” was the subject of a talk by E. S. Carman, chief engineer Osborn Mfg. Co., Cleveland. This was illustrated with lantern slides. In Mr. Carman’s opinion the high production costs in foundries are due to the scrap outside of the machine shop composed of castings. This scrap pile, he said, represented a loss of $32,000,000 a year. In the job- bing shop, he declared, 15 to 20 per cent of the cast- ings go to the serap pile and he asked what was the cause of so many defective castings. He said that one shop has demonstrated that 55 per cent of its defective castings are due to the moldirig sand. Silica is- the principal element in the sand and another element is the clay used for the bond comprising’ 20 to 50 per cent. New sand is added after use-in order to strengthen the bonding qualities. Instead of throwing away old sand, which he believed, became purer with use, and putting in new, he said that: clay should be added and molding sand provided | of ‘known analysis. The speaker showed photographs. of molds in which he said pieces of bond evidently had*not been evenly dis- tributed and lumps of ‘the clay had landed on the pat- tern. As a result fusion of bond occurs whén the mold is poured and metal reaches the bond and trouble is caused. Mr. Carman pointed out that any sand that has been used a while has a lot of shot in it and when the molten metal runs over the shot a slight explosion is caused which breaks down part of the mold. Very little slag from the cupola gets into the mold. * A commen pro- ducer of slag is hard spots on the mold caused by lack of uniformity in ramming: The’gasés generated seek the soft spots in escaping from the thold and ‘gas pockets are caused. The speaker expressed -the. opinion that within 10 years foundry sand will) bé: handled me- chanically and treated in all foundries.’ He declared that there is too much guesswork i ¢onnection with foundry sand which should be bought by dnalysié and | known by analysis. He spoke ofthe 4work of the com-’ mittee of the American Foundrymen’s Association that: is striving to standardize lengths, widths.and:thickness 756 THE IRON AGE of sections of flats. This committee, he said, is also working on standardizing mounting plates. “Simplified Practice—A ‘Profit‘Making Policy” was discussed by R. M. Hudson, chief Division Simplified Practice, Department of Commerce, Washington. A summary of his paper appeared in THE IRON AGE issue of Sept. 18. During one of the luncheon meetings several round table discussions were held. -W. B. Wallis, president, Pittsburgh Electric Furnace Corporation, Pittsburgh, discussed the electric furnace from the standpoint of pig iron. The question today, he said, is whether gray iron can be melt