The Iron Age 1925-12-24: Vol 116 Iss 26

ESTABLISHED 1855 Christmas Tree BY PRENTICE WINCHELL try. There will be no references to Kris Kringle craftsmen engaged in a labor of love in dimly lighted shops—no details of designs suggested by crippled shut-ins. As a matter of fact, it is really not a Christmas story at all. For the making of toys is becoming less and less a holiday business and more and more an all-year-’round affair. True, more toys are sold in the month of De- cember than at any other time; nevertheless a great change has taken place since the days when a dollar fire-engine or a fifty-cent drum sent youngsters into the seventh heaven of delight on Christmas morning. Stockings aplenty are still hung by the chimney with care—but fewer of the toys get into them every year. Many of them have to be brought in by the expressman and his helper. Toys are bigger, better, more entertaining and more expensive—as any visit to a toy department will prove. A generation ago, the toy jobber practically did not exist who would carry a toy retailing at more than one dollar; today most of them will handle playthings up to fifty times that value. There are three reasons for the changes which have taken place in the toy industry—changes which have transformed tiny toy-shops into modern mass-produc- tion factories, increased the consumption of metals and the need for metal working many times over and, inci- dentally, altered the habits of a fair proportion of our population. The first of these reasons may be found in our great prosperity. Without the ability to purchase expensive toys, there would not be the incentive to make and sell them. Few foreign countries are in a position to spend as much money for playthings as these United States— at least, in numbers large enough to make the produc- tion of fifty-dollar toy automobiles as practical a ven- ture as it is in this country. High wages, steady em- ployment and the saving grace of thrift has enabled this country to pay more money for its children’s play- things. ‘es. is no romantic story of a Santa Claus indus- Age Limit Has Widened HE third reason for the marked expansion in toy girl enjoy playthings until they are fifteen years old, or after, whereas a generation ago, few children over ten were content with toys. Note the use of that word “playthings”—in it lies the secret of this second rea- son. Not so long ago “toys” meant cheap, flimsy gim- cracks that were used but a few days (and were in- capable of use much longer) and were generally rele- gated to the ash-barrel by New Year’s. Today even THE IRON AGE New York, December 24, 1925 More Metal in Toys How the Metal Trades Help to Fill the Christmas Stocking and Trim the VOL. 116, No. 26 the cheaper playthings are capable of making a lasting impression because they are themselves lasting. And for this transformation, metal is largely re- sponsible. Metal wheels instead of wooden spokes, metal automobile bodies instead of wooden coaster wagons and metal erection and construction toys in- stead of wooden blocks—these are but indications of the effect which the demand for more and better toys is having on the manufacturing end of the business. And just as the market has grown on account of the broadening of the age limit, so the universal trend toward feminism has reached the toy industry and helped to run its annual sales up to the $200,000,000 mark which it is expected to reach this year. The vigorous out-of-doors girl—the Camp Fire or Girl Scout member—is no longer content with dolls and tea sets. She must have a scooter and a coaster-wagon in order to compete with her brothers on an equal foot- ing. She plays ball, skates and uses as many outdoor playthings as any boys of her age. Better Toys Mean Larger Sales HE third reason for the market expansion in toy demand during the last twenty years lies in the im- provement in toy quality for which the metal trades are so largely responsible. In the days when most toys were made of wood and by hand, output was limited and price reductions by means of mass production were unknown. Today the modern toy factory has modern machinery and is likely to stamp or punch thousands of parts a day where a few dozen would have been slowly cut by hand dies not many years ago. “The toy industry moves as do other industries by filling a new need as it arises or by creating a new demand by designing new toys that leap ahead into an untried field,” said H. D. Clark of the Toy Manu- facturers of the U. S. A., the industry’s trade associa- tion. “We used to have only the iron trains that were moved when pulled by a string—made of cast iron. This changed into the mechanical train that ran by clockwork and in turn was followed by the reproduc- tion of our latest electrical railroad equipment. But you must not believe the little iron train has been for- gotten. Younger children are today as thrilled by it as were their fathers twenty-five years ago, only they outgrow it sooner and demand a more modern outfit. “Children seem to outgrow all playthings sooner than they did a few years ago. Just as subjects which were once taught in colleges are now given in high schools and as high school courses are getting into lower grades, so the age limit on various toys seems to be getting lower and lower each year. This means that 1727 Pr TT ee 3 oe ; ar A SS eee ee ; “ ‘ ty. ja a Ee Sanaa ah — “s os ¥ FS ne ena a Ne Ses en rea — es AOL AO LLL LE AL TE A eal Pang nora tage np ee anlar tet THE many new toys must be designed to take the place of these outgrown toys, especially from the age of ten up.” More Metal Toys Each Year ND because large numbers of toys can, in many o cases, be made more economically by stamping or punching from metal blanks, the proportion of metal toys to the total quantity of toys sold seems to be in- creasing year. The more durable of course, one factor which leads to the increasing use of sheets, tin plate, brass and aluminum. But the ease with which metal can be worked and the methods which have been designed for quantity produc- tion by automatic machines metal toys in recent years. \ good example of this is the wheel used on coaster- wagons, scooters and all the large line of as wheel each demand for playthings is, ““ has given the “edge” to known wooden toys goods. Up to a few years ago the wheel and the wire wheel were the only contenders in this field. Then the introduction of the disk wheel ir nto the automotive industry and its application came The Toy Train of Cast Iro Electric Motors Mean Greater Sales to IRON AGE December 24, 1925 plants and ever-growing requirements for metal plainly show. Two-Purpose Playthings T is this ability to produce playthings of improved quality at a commercial price by means of mass production which has been largely responsible for the development of what may be called utility-playthings. This is a strictly American development and has taken the playthings business quite out of the Santa Claus class, permitted the all-year-round manufacture and sale of toys and resulted in a more liberal expenditure of money by American parents. Some of these playthings are very easily recognized as having an educational value. Among the first of this type of toy were the various styles of construction materials, usually made of stamped metal. There are now several makes of these construction toys on the market, and they have, in effect, continued the sale of wooden blocks up into the $50 class and through the ages of fifteen or sixteen. The model machine shop which is illustrated at the Is Still Made, Mechanical Trains of Lithographed Tin Plate Are Still Wound with a Key, But the All-Steel Locomotive and Cars Run by Merchant More Production for the a nd Manufacturer to playthings. favor. The pressed steel wheel found instant Now the equipment necessary for making of wire wheels, which were most popular just prior to the intro duction of the disk wheel, cost quite a good deal] and this had the effect of preventing over-expansion of the industry through mushroom producers who had insuffi cient capital and were therefore most likely to upset commercial conditions With the introduction of the disk wheel, large num- bers of metal-working plants were in a position to sup- I | ply, and did supply, steel wheels to all comers. The advantage enjoyed by the owners of wire wheel equip- nent vanished overnight and, as a consequence, there are several new makers of wheel goods already in the field. Prior to the war, when America bought most of he1 yyvs with a foreign label, the industry was not well established and was, so far as many metal toys wer: concerned, a by-product Plants engaged in the conversion of sheet metal or tin plate would ofte produce a line of toys to take care of their waste and scrap. In many cases they sold the scrap to t facturers. But when the toy makers of Belgium, Holland, Ger- many and Austria took up rifles instead of im- ports dropped and the American industry seized the opportunity to get on a sound footing. Today most of our made in America—and the industry can no longer be called a by-product industry, industry manu- tools, toys are as large beginning of this article is typical of this class of edu- cational toys. It is a practical and useful outfit, in- structive as well as entertaining. It is intended for “mechanics, tool lovers and their sons” and for “every boy under 90 who likes to make things.” There are several other miniature machine outfits on the market, representing bench drills, punch presses, lathes, jig saws, etc., and all practical as well as amusing. The metal products embraced in this educational is very wide: tool chests, construction sets, minia- railroads, etc. It is in this group that the largest immediate growth may be expected and consequently the largest increase in metal consumption. With the educational group may be classified the various “model” toys. Some of these are literal off- springs of parent products, for a large electrical goods manufacturer makes toy motors—a phonograph plant produces miniature phonographs, ete. Many of them are made by toy manufacturers and bear the name of product. Sewing machines, automobiles, carpet sweepers, typewriter and kitchen uten- sil manufacturers have permitted this exploitation of their name for the advertising value it brings them in return. Another class of playthings which has expanded very rapidly during the last ten years has been the so-called pull-toys. These are the trucks, fire engines, tractors, dump-wagons, etc., which are pulled along by a cord. Where these were formerly made of litho- graphed tin plate, many of them are now made out of range of ture the larger } trucks, December 24, 1925 regular automobile black sheets, thus giving strength and durability which permits the toy to be used out- doors. They can be made larger and are steadily being produced in larger sizes. Derricks, hoists, bucket car- riers and other mechanical devices too numerous to mention have already been produced out of this heavier metal for sand-pile or outdoor use. Heavier Metal Used HIS trend toward heavier metal may be seen in many lines of the toy business. In the manufacture of electric trains, for instance, the better grade sets are made of much better and heavier material than was the case a few years ago. Cars and locomotives are made of sheets, the frames are punchings, wheels are die cast with nickeled steel rims, bearings are phosphor bronze, gears sometimes are cut from regular gear blanks by automatic gear cutters and all of the parts are made larger, stronger and heavier than was the “ase when the first electric trains rumbled around the dining-room floor on Christmas morning. There are just as many sets of lithographed tin plate as there were ten years ago, but most of the new busi- ness has gone to the makers of heavier and more last ing playthings. Many toys and playthings of the Santa Claus type are now made of tin plate which formerly were made of wood. The wooden soldier has largely given way to the tin soldier, and the cast iron soldier has held his own. One of the largest producers of such toys uses every year large quantities of 20 x 28-in. tin THE GOVERNMENT DOLLAR Where It Comes from, Who Spends It and Where It Goes Talk of Federal income and outgo is often so be clouded by millions and billions that it is hard to get a clear understanding of just what the Government col lects and what it spends on the various departments The Bureau of the Budget appreciates this and has prepared the following set of figures showing what happens to a typical Government dollar. Where It Comes From Source lmount (Ce Income and profit tax....... ‘ $9.16 Miscellaneous internal revenue 22.8 CPO COPED. cadcednsneeaes 14.43 Interest, premium and discount. 4.95 Fees, fines, penalties and forfeitures 0.84 Repayments on investments... ; ; 1.62 Trust fund receipts ..... ieee wid 2.16 Other miscellaneous receipts .. 99 Where It Goes Destination General functions of National defense Military pensions, retirement pay, annuities, World War allowances and life insurance claims ie Government 16.55 PR EE. ec icccnannene as 5.60 Promotion, regulation and operation of marine er er ee a ; 1.88 Other civil functions ..... Sica ib. piace ee Aol ber 7.40 POE ncscdmhednsn tac oe Peek : 4.91 Public debt retirement from ordinary receipts 14.76 Interest on public debt ‘ aa 22.7 DC ann coeds bee bh 6s keen 6.48 Who Spe nds It Organization Legislative establishment 0.46 Executive office . sor dias ‘ ; 0.01 Veterans’ Bureau . nah ot : 10.52 Other independent establishments .. ; 1.61 BOI. nao « 00 0 os allt Aer fasinasd 4.33 CEUs. oeccecadcheawee vou sale 0.86 TE Loe ie ow 6 araatan ee Shek 7.66 Justice (including judicial) .. ; aa : 0.70 ST oto nen 6e 00% ; 0.25 DT ein witede 6 ume uns 4 ee soe ee Catan ke ~ 9.55 Deficiency in postal revenues aheieey ‘etait 0.71 i inh nh th ces oe 8 : etna 0.47 Treasury ..... Oa OO ee a 8.78 Public debt retirement ........ 14.76 Interest on public debt ........... 22.75 Investment of tr@est funds . a War, including Panama Canal ..... oie 9.94 ne GEOG; cco a oacee nes Samesw mas It will be noted that, while the War and Navy de- partments together account for about 20 cents out of every dollar spent by the Government, money spent THE IRON AGE plate for stamped playthings and the quantity is in- creasing every year. Outdoor Toys of Metal ETAL is being used more and more in outdoor play- 4 things, too. The all-metal scooter and coaster- wagon are forerunners in this field. The output of skates, metal skis, sleds and what may be called juve- nile sporting goods takes more metal every year. The use of metal for automobiles, velocipedes, sidewalk bicycles (new this year) and all sorts of wheel goods may be expected to show a steady increase. With constant improvement in the machinery and methods of automatic machine production, the advan- tages of metal for playthings should be accelerated in the near future. Add to this fact a continued willing- ness of parents to pay $50 or more for playthings, and a rapidly growing population and it does not require a clairvoyant to see that the present retail value of $200,000,000 a year will soon be materially enlarged. Some 3000 lines of playthings will be shown at the great annual toy fair held in New York this February. It is a safe assertion that a larger proportion of these toys will be made of metal than last year, and that the year after that a still larger proportion of metal toys will be found. The phrase “more and better toys” of the manufacturers. tendency in the ance for those is not a slogan It is the expression of a definite industry which has a growing signifi- who make and work in metal. for the development of trade and production through the Departments of Agriculture and Commerce amounts to but slightly over 5 cents out of every dollar. Advertising in Economy of Marketing Results of survey of market analysis, advertising and advertising mediums, made by the Chamber of Commerce of the United States, place advertising in the ranks of business economies, when properly handled and directed. The special committee making the sur- vey lists the advantageous effects of proper advertising as: Decreasir the et of Lowering the ost f productior on account ofl reased volun Lowering prices to consumers, and thereby raising the standard of living As a by-product, aiding in the education of the general publi wastes in found, however, uninformed study of markets and to imperfect coordination of advertising with other activities.” Large advertising are “due to inadequate or Mechanism of Scale Formation in Steam Boilers Investigation is being conducted at the Pittsburgh experiment station of the Bureau of Mines to deter- mine whether the character of the precipitates forming in boilers may be made to assume a form in which they do not attach themselves to the walls; and if the material in the boiler wall exercises any influence. Data have been obtained on the non-condensible gases carried off in the steam, and the correct relationships to be maintained when carbonate becomes unstable and phosphate must be used in boiler water eonditioning. The use of phosphate may form objectionable de- posits. This condition is being looked into. Further, indicators used in titrating boiler waters do not neces- sarily represent the true phosphate or carbonate con- centration. Means of controlling this indication are being investigated. Conditions which may bear on wet steam are being watched, in the hope that definite information may be acquired on the factors influential in wet steam development, and thereby control be obtained over them. 1730 THE Tantalum Rated Equal to Platinum- Iridium as a Resistance Metal Tantalum is showing “astonishing properties” as a chemical engineering material, declares Prof. James R. Withrow, head of the department of chemical engi- neering in Ohio State University, Columbus. In a statement made public through the American Chemical Society, Professor Withrow compares it with platinum and platinum-iridium. Tantalum, he says, lasts 1600 times as long as plati- num, while it is one-twentieth cheaper. Of the ex- periments at the university, called new in this field, Professor Withrow’s statement says: The hemist looks upon platinun f his esistant metals to corrosior It jewelry, weve s damaging chemical engineering and re- searcl rt has stimulated engineering devices ! ts use entirely It has almost disappearea I I manuta £ chemica) dust ] x} ivenes i su velr flue s st f nitr itmosp! r which might |} i xte! ve [ platinum we xp Ss is at T ntal S wn a i ilys i I a ngine nd d oO] I iln lable res i I peril Ol State Unive hov Ss] ! ridiun ! s sist il ow ] tir s gram ] I Ss 0) ? i a pia ) I 2 N i | t athod hick! f } inu \ intalur wi I ‘ Zz I id platinun idiu i bot ] I th ut iving i ibout Ve 4 xX] \ mn fir I | inul ridium costs day, { 2 ! o4,U per |} and tantalun I 0 g if uli nvestigation < tir i a I I ‘ her il eng Ww I Birth of the Canadian Iron Industry The British Empire Steel Corporation, in its weekly bulletin for employees dated Dec. 12, publishes the his- tory of the development of the iron industry in Canada. It was in St. Maurice Valley that the existence of iron ore was first discovered, the discovery having been made as early as 1667, or perhaps before that. Fronte- nac mined some ore there five years later and samples were tested in France and found to be of workable quality. In 1730 M. Francheville was granted a license by Louis XIV of France, together with a subsidy of 10,000 livres to work the St. Maurice iron ore mines. The project contemplated the construction of a blast fur- nace which, according to the records, does not seem to have succeeded, as in 1735 he surrendered his rights to the French Government. Some later another license and subsidy were given to La Compagnie des Forges, which made not only the iron kettles which were needed by the pioneers for boiling potash and sugar, but furnished the French Government with can- non and mortars for military enterprises. In 1743 the works again reverted to the French Government and was operated by the Government until the country passed into the possession of the British. After the war some of the cannon made by the French were melted and converted into iron bars. In 1767 the enterprise was rented by the British Government for £25 per annum and for some years was quite successful, until part of the output was put into munitions and sold to the invading American forces, with the proceeds of which the manager de- camped to the United States. From 1783 until 1809 the plant was very actively operated, the output in- cluding potash kettles, stoves and other castings, and bar iron, of which a considerable quantity was ex- ported. In 1861 the property was again sold by the Government and $1,700 was the modest price paid for the furnaces, forges, foundries and other buildings. years IRON December 24, 1925 AGE Operations continued for about 20 years until the sup- ply of suitable ore failed and it became increasingly difficult to procure a supply of charcoal. In 1883, when the plant was abadoned, it was the oldest active iron works on the North American continent. New Plant to Supply “Crodon” for Chromium Plating Demand for “Crodon,” the chrome alloy plating ma- terial developed by Dr. Colin G. Fink, Columbia Uni- versity, New York, has grown so rapidly that the Chem- ical Treatment Co., Inc., 26 Broadway, New York, which was incorporated to develop this process, has purchased another plant at Waterbury, Conn., which becomes plant No. 2 of this company’s production units. The Waterbury plant was formerly used as a brass tube mill and some of the equipment will be available for the production of “Crodon.” The buildings offer 24,000 sq. ft. of floor space. The plans of the company call for further expansion by the eventual location of other plants in or near other manufacturing centers. The discovery of this new process was described in THE IRON AGE, June 4. Coke Plant and Blast Furnaces at Philadelphia At a meeting of engineers at the Engineers Club, Philadelphia, at noon on Tuesday, Dec. 15, Walter Wood, of R. D. Wood & Co., Florence, N. J., cast iron pipe manufacturers, again discussed the advantages of Philadelphia as a location for a by-product coke plant and blast furnaces operated in conjunction. Mr. Wood said: “We all want cheap gas in Philadelphia for lighting and heating, and gas made by by-product ovens will be the cheapest kind the United Gas Improvement Co. can make. Will the United Gas Improvement Co. put up by-product ovens, thus securing as cheap as possible gas, selling the coke which the ovens produce, thereby furnishing cheap fuel, not only for blast furnaces, out also for the inhabitants of the city?” Mr. Wood pointed out that the gas business 1s on the point of large development and he is advocating the construction of a by-product coke plant on the Delaware River at Philadelphia with a battery of four blast furnaces. Bill Proposes Establishment of Free Ports WASHINGTON, Dec. 22.—Representative Briggs, Democrat, of Texas, has introduced a bill providing for the establishment of foreign trade zones in ports of entry of the United States. Legislation of this char- acter, sponsored by Senator Jones, of Washington, was passed in the Senate, in 1922, as an amendment to the Fordney-McCumber tariff bill but was struck out in conference. It is not believed that the Briggs bill will be given consideration at the present session of Con- gress. Will Build Large Shale Oil Plant For obtaining oil from shale on a large scale, the Bethlehem Shipbuilding Corporation, Ltd., will build for the N-T-U Co., at a cost of $400,000, a plant near Santa Maria, Cal. The plant will be built to extract no less than 1000 bbl. of oil per day from oil shale rock. Two years ago the Bethlehem Shipbuilding Cor- poration built a smaller capacity plant for this com- pany upon the same property. Three 40-ton units have just been added and the contract mentioned is to bring the capacity of the plant up to a capacity of 1000 tons of shale daily. The National Pressed Metal Society will hold a meeting at the City Club, 315 Plymouth Court, Chicago, on Jan. 11, at 8 p. m. metal work are invited. Those interested in pressed New Stack for Ferrophosphorus Lower Portion of Furnace of Special Construction to Prevent Escape of Phosphorus—Large Bell Rigidly Connected with Bell Rod MONG blast furnaces recently placed in operation A is the new stack of J. J. Gray, Jr., located on the Louisville & Nashville Railroad at Rockdale, Tenn. Although the stack would be considered of small daily capacity among iron producing furnaces, it is of special interest as the only blast furnace in the country in which ferrophosphorus is produced. The manufac- ture of this alloy, which is extensively used in making sheets and other products is carried out also in electric furnaces, but as Mr. Gray controls patents for making ferrophosphorus in a blast furnace, he decided to produce it on a more extensive scale, and made ar- rangements to replace his old furnace with a larger and more modern stack. The contract for designing and building the new furnace was awarded to Arthur G. McKee & Co., Cleve- land. The dismantling of the old furnace was started in May of this year and the new stack was completed and placed in blast on Sept. 23. It is 70 ft. in height, with 12-ft. hearth and 16-ft. bosh, the bosh angle being 78 deg. 41 min. 25 sec. The furnace shell is of %-in. steel plate throughout, with the exception of its bottom ring, which is % in. in thickness, and is supported on eight 14-in. 107.5-Ib. Bethlehem H-section columns. Because of the peculiarities and hazards in making ferrophosphorus, and the necessity of preventing any escape of phosphorus during the smelting process, the lower portion of the furnace is of special construction and differs materially from orthodox blast furnace design. The hearth jacket is of cast iron, approximately 6 in. in thickness, and is made up in eight sections with Gereral Arrangemerh of Werm ~_ a Top Ring “4 machined joints. The tuyere jacket is also of cast iron in eight sections, and is provided with 1%-in. extra heavy pipe cast integral with it. Both the hearth and tuyere jackets are securely held together by means of forged steel links, which were shrunk on in the field after the sections had been set in place. Cast iron Shannon plates for cooling the bosh, copper tuyeres, cinder notch coolers, etc., were also provided. The furnace has a 12-ft. 6-in. diameter stock line with an 8-ft. 6-in. diameter large bell and 3-ft. 10-in. small bell. The large bell is rigidly connected with the (Above) Because of the Hazards in Making Ferrophosphorus and the Necessity of Preventing the Escape of Phosphorus During the Smelting Process, the Lower Por- tion of the Furnace Is of Special Construction The Larae Bell Is Rigidly Con- \) nected with the Large Bell Rod. \ The entire drive for the revolving ‘ distributer is supported from a a spider casting, which prevents the drive mechanism from getting out of alinement and facilitates the re- ¢ moval or replacement of the drive as a unit SA 1731 1732 _— THE IRON large bell rod by means of a wedge-shaped key, which insures the bell hanging plumb, and eliminates any Swinging of the bell at its connection to the rod. The furnace top includes a McKee revolving distrib- iter of the latest improved type, with self-contained rm and gear drive running in oil. The entire drive, including the motor and supported from a spider casting, which prevents the drive mechanism > . P irom getting out of wu brake, is alinement, and makes it possible to remove or reinstall the drive as a unit in a minimum period of time. A jib crane for handling the large bell and hopper, together with bell-operating mechanism and the othe auxiliaries usually installed on the furnace top plat form, were also provided. For removing the gas from the furna tw downcomer These are lined wit! pipes were provided. firebrick, and extend to a brick-lined dust catcher, 12 ‘t. in diameter by approximately 16 ft. in height, whicl provides a preliminary cleaning of the ga Additional cl ing is effected by a D ype W I ock house and filling ¢ )I \ I S I a e! ed ne old r? ( ere T AGE December 24, 1925 size and capacity to fill the new stack, with the excep- tion of the skip bridge and car. The existing bridge was, however, in good condition and it was decided to utilize this as a part of the longer bridge required for the new stack. An old hoist tower remaining from the davs when the furnace was hand filled, was converted ‘nto a counterweight tower and was also used as a shear leg support for the bridge. No alterations were necessary to the skip pit, although a skip car of larger capacity was furnished. / The equipment previously employed in delivering materials from the bins to the skip pit consisted of a scale car and cable, driven by a steam engine at one end of the stock house. This system has now been im- nroved. The scale car has been converted into an elec- cally driven unit and a conductor system has been installed in the stock house. All of the work in connection with designing the new furnace and auxiliaries, together with the fur- nishing of materials and erection, was executed by Arthur G. McKee & Co., engineers and contractors, Cleveland. The furnace interests were directed by J. J. Gi Jr.. and John W. Walton, plant superintendent. Conference on Distribution Costs Elimination of Trade Abuses and Better Coordination of Statistical Research Pro- »osed—Advertising Commended—Survey Shows Variation in Costs* > ~ \SHINGTON 2 Wi ! I te ] re resenta VE I nt Ca t nes il I istria ne t! tY a { eld here last week under tl { f ¢ merce the United S ed change the recommendatio1 f ( hic were ay pointed about a yea i tua lem of distribution. There w much discus- ! e rep made by Committee No. 6, with th re t that the conference eliminated recommendat ce maintenance and the necessity of amending erman an 1 Cla n ar LW \ gy re I ‘ I ne ro! al Le i! l I ed I ue rie ittending the conference were R. Shively, Tenness« Coal, Iron & Railroad Co., Birmingham; Georg if g, General Electric Bridgeport, Conn A. ] Meck ce-president International Harvester C Chicago; Frank Parish, United States Steel Corpor: tion, New York; and Georg Melivaine, secretar reasure? Nat na Pipe l Puppile A ssi it Pittsburg! WI! e conference was concerned principally with distribution in wholesale and retail trade, the ad principle itself engaged great interest through- = : it the business and industrial world because of the wearing it has upon their operations One of the outstanding steps taken by the confer ence was a plan to set up machinery for the purpose of self-covernment and the tracing and elimination of vaste in marketing. The conference recommended as a first step in the elimination of trade abuses and di structive trade practices that the Chamber of Com designate a joint trade relation committee to act as a clearing house for complaints. It was also pro- posed to take further steps in the joint collection of statistics and business figures and the conduct of eco- nomic research in the interest of business and the pub- lic at large. facturers, This committee will be made up of manu- wholesalers, retailers and consumers. This program was undertaken at the suggestion of Secretary of Commerce Herbert Hoover who said, in a brief address: Wwe yould be grateful if there would come out of this ganization for the promotion ‘ f I kind of ar and the better coordination of research; that some sort of definite, organized expression and impulse might be given to the building up of the statistical and research activities thr z t tl uuntry And I make that general expression because I believe that research, through the business world I | mpletely col than the Wastes in rketing as they now exist were laid at e door of the producer and the consumer as well as tributor. It was the view of the conference that “present methods of distribution have been devel- ved by « mic forces and fundamentally are sound.” Wasteful practices were declared not to be inherent in the present machinery of distribution, but “arise igh human failings, such as lack of definite organ- ed information and the imperfection of performance vhich characterizes alike producer, manufacturer and ( 8 ] Ee Among resolutions adopted, other than those indi- ated, Was one recommended by a committee on market analysis, advertising, and advertising mediums, which reported that first hand testimony from a large number advertisers had been presented, demonstrating that advertising decreases the cost of selling and produc- tion, reduces prices to consumers, and raises the stand- ard of living. The resolution, as adopted by the conference, de- clared that the only safe basis for advertising and mar- plans is an accurate and adequate knowledge and what the market is and the means by can be reached most economically and effec- It was further stated that existing wastes in ing result in large part from lack of market- ng information, from unintelligent direction and from poor correlation of advertising with the sale of the product. Mr. McIlvaine was a member of Committee No. 4, on “Expenses of Doing Business,” which recommended uniform classifications of accounts and studies into the expenses of doing business. A critical survey of manu- facturers’ distribution costs, according to the commit- tee, discloses that it is impracticable to attempt to arrive at an average figure, because of the difference in methods used. Even the costs of manufacturers en- gaged in producing the same commodity, it was stated, cannot be compared because it is found that as many as six methods are followed in reaching the ultimate consumer. In a chart in the committee report on the distribu- tion of the wholesalers’ margin, the selling expense for 16 firms distributing pipe and supplies was given as 20 per cent of the margin between the purchase price and sales price; the warehouse expense, approxi- Keting of where which it wey vely. adverti December 24, 1925 mately 17 per cent; the general administration ex- penses, about 40 per cent; other expenses, about 20 per cent; and the net profit, about 3 per cent. The total direct selling expense in these lines in 1924 was 4.12 per cent of the net sales; the warehouse expense, 3.57 per cent; total administrative and general expenses, 8.57 per cent, and other charges, 3.76 per cent. The total common operating expenses were 20.02 per cent of the net sales, the margin, 20.57 per cent, and the profit, 0.55 per cent. The turnover was not given. For 52 machinery equipment firms common operating ex- penses in wholesale business, in terms of percentage of net sales, were given as follows: Total direct sell- ing, 5.30 per cent; warehouse, 3.15 per cent; adminis- trative and general, 9.97 per cent; other charges, 3.42 per cent. Total expenses were averaged at 21.13 per cent; the margin was 21.69 per cent; profit, 0.56 per cent. The stock was turned over 3.52 times for the year. The report spoke especially of the unusual selling ratios, which are sometimes approximately 10 times as much in one company as another. “In studying the results of these companies as a whole,” said the committee, “it appears that one gen- eralization may safely be made—that is, the expense ratio is generally less in the largest companies and the Rates on Wire Rods Not Limited to Steel of Round Cross Section WASHINGTON, Dec. 22.—Steel manufacturers have succeeded in defeating a proposal of railroads in Offi- cial Classification territory to change the description on bolt, nail, rivet and wire rods, in coils, so as to re- strict the application of the so-called billet basis of rates on carload shipments to rods round in cross section. The decision by the Interstate Commerce Commis- sion in this important case, made public on Wednesday of last week, held that a limitation of the billet basis to rods round in cross section is not justified. It or- dered the suspended schedules cancelled. The change in classification was strongly opposed at the hearings by the Jones & Laughlin Steel Corporation, Pittsburgh, the Sharon Steel Hoop Co., Sharon, Pa., the Youngs- town Sheet & Tube Co., Youngstown, the American Steel & Wire Co., Cleveland, and the Pittsburgh Steel Co., Pitsburgh. The effect of the proposed description would have been an increase in rates on all rods in coils which are not round in cross section. The Interstate Commerce Commission in arriving at its decision adhered to pre- vious opinions, notably one handed down in connection with a complaint of the Lancaster Steel Products Cor- poration against the Director-General of Railroads. In that case the commission held that the material in question was properly classed as “wire rods” and was so known to the steel trade generally, notwithstanding the fact that some of it was rectangular and some hex- agonal and that part of it was ultimately manufactured into articles other than ordinary commercia! wire. The upshot was that the commission held that com- modity rates were applicable. In the present case, which took on a still broader aspect, the commission pointed out that it had often held that in interpreting the tariff the terms must be taken in the sense in which they are generally understood and accepted commer- cially. The decision of the commission goes into a technical description of the manufacture of various forms of steel, including billets and wire rods, and states that steel rods are used for the manufacture of wire, bolts, nails, rivets, and other commodities. The production of steel rods was estimated at about 4,000,000 tons per year, of which the shapes, other than round, comprise about 10 per cent. It was pointed out that a steel rod which can be used in the manufacture of wire and which, in that sense, is a wire rod, can also be used in the manufacture of other commodities such as bolts and then is commonly referred to as a bolt THE IRON AGE 1733 margin is generally higher, or at least as good. The better expense ratio is probably due to the attainment of a large volume of business without a corresponding increase in fixed expense. The better margin may be due partly to the advantage in buying in large quanti- ties.” Individual items of expense, it was pointed out, do not show a uniform tendency contributing to these re- sults, except that administrative and general expense seems to be invariably lower in the largest concerns. A second uniform tendency in all business studied is the turnover of inventory which, it was stated, in- variably is best in the largest companies. The committee, in pointing out difficulties in getting more facts as to manufacturers’ distribution costs said that in some instances Government restrictions on in- terchange of information between manufacturers made them reluctant to disclose details of their costs. Be- cause of this and the absence of any uniform system of expense classification, it was declared, the slender col- lection of percentages cannot be considered as repre- sentative or used for comparative purposes. The com- mittee said there is need for a better understanding as to the end of the manufacturing process and the begin ning of the distribution process, in order that the costs ¢ of one shall not be confused with the costs of the other. rod. It was further noted that the wire is drawn from flat and hexagonal rods as well as from round. While finding that the schedules under supervision as they restricted the application of the billet basis to bolt, nail, rivet, or wire rods and chain, iron or steel, when round in cross section were not justified, the com- mission vacated schedules on wire and chain steel which contain no limitation on shapes. Coke Rates from Chattanooga to Pacific Coast Declared too High WASHINGTON, Dec. 22.—Rates on coke in carloads from Chickamauga and Durham, Ga., and Chattanooga, and Alton Park, Tenn., to the Pacific Coast are not unreasonable or unjustly discriminatory, but are un- duly prejudicial to the extent that they exceed the rate from points in the Birmingham district to the same destinations, according to a decision announced last Friday by the Interstate Commerce Commission. The rate from the Birmingham district and Chicago to San Francisco is 60c. per 100 lb., as against 68c. from Chat- tanooga, Durham and Chickamauga to the same des- tination. Of shipments from the Chattanooga district to Texas and Pacific Coast points since 1919, the move- ment of foundry coke is estimated at 5000 to 6000 tons a year since 1919. The transcontinental carriers participating in the movement, according to their witnesses, published the rate of 60c. from the Birmingham district upon repre- sentations that it would move some of the low-grade coke from that territory and would permit the ship- pers there to compete with the coke imported from for- eign countries and with coke moving from the Atlantic seaboard and Gulf ports by water. The report says that a substantial amount of coke has been imported through Pacific ports during the past few years and to some extent foreign coke has driven domestic coke off the Pacific Coast. It was shown that during 1922, 1923 and 1924, receipts of foreign coke at San Fran- cisco by water amounted to 63,368 tons, while 113,501 tons of coke were received at Pacific Coast points by rail over the Southern Pacific during the period from 1921 to Sept. 30, 1924. An existing washer will be remodeled into one of the Brassert type and gas burners at the hot blast stoves of the Sharpsville Furnace Co., Sharpsville, Pa., will be installed by the Freyn Engineering Co., Chi- cago. ek te a ot ap aie aed arg ny, Pa bai oa pe rE ro er a 1734 NOVEMBER SHEET SALES Not So Large as in October but Good Showing Against November, 1924 lhe independent sheet manufacturers did bett per nat! they did last month in all three barometric factors: sales, production and shipme! Sales decreased 33.130 tons in N en ! i th the month before, production was 12,69 lower and shipments 37,551 tor rdin oI y report of the National Associat a nd J Plate Manufacturers November ever, Ww 75,701 tons in exc: f shipment led orders increased 40,987 tons, the difference being rgely accounted for by the fact that the orders « leted and awaiting shipment at the end of November ere 23.883 tons greater tha ne end U . While he November sl] I mparis vith Octobe. make bie mparisor x } N ember. )P4 ea ? rY +} ¥ iles 7 ched 162 10 1 é yreatest I 1 ai né ‘ ifacturer ‘ rtiz é I r f mth was 101,09 great n the ime I a> Ca e! I { > wl the ‘ 1¢ NX i) wel 104,72 oO! I x Che I th « Production of Steel Barrels Falls Off ( ? ? , g¢ 36 } 198 U De! Shipm«e de Ww roduct The rea Wit! } A rrels N ¢ I eI according yur ne xs lrers Inst lL Cle il ] :4. I pacity Producti = { rre rted at 1.3 per cent of « A gl iced at 48.5 per cent I le l rae! e I Ni en 24s TT | VT cn A ) ? ‘ were T T ey U { The Increas¢t I I Na nin the onge erm at f re ( f Oct er, am I SVUIU4 f rf N I 1 30 day ( re ] é t Tl “€¢ T ( t French Steel Industry Stimulated—The 1925 Production Due to the broadening of foreign purchas« n o1 ke ivantage of the dep ! S ecause of the pyramiding of dome ed partially r stock, the production of iron ar France has risen to new levels, ‘ Atta Chester LI i Jones, Paris, cables the Depart ( - Commerce During O 739,000 et I nig iror I 668,000 tons of steel were turnes t, against 717,000 tons and ¢ 000 tons, respect vely, for the preceding month. Ne reast in he number of furnaces n operation < curr I Ni Ve mbe1 Prix tor 1 ¢ I sale are ! n¢ I ne rat THE IRON December 24, 1925 AGE f increase in quotations is less than the rate of de- ease for the franc. The domestic prices on semi- finished steel and finished products are stiffening and wuotations for January deliveries are considerably higher in anticipation of higher taxes and wages and f increased material and transportation costs. Further probable Estimating the output for November and December, e total production for 1925 approximates 8,500,000 of pig iron and 7,650,000 tons of steel ingots and which is a considerable advance over the 1924 ncereases are astings, put of 7,657,000 tons of pig iron and 6,907,000 tons teel ingots and castings. Automobiles in November Dec. 19.—Production of motor ve- in November, according to the Department of Commerce, totaled 336,358 passenger cars and 39,893 trucks, of which 327,617 passenger cars and 37,704 trucks were made in the United States, the remainder ing American models made in Canada. The Novem- er output showed a decline as compared with that of when production of passenger cars totaled 106,572, while production of trucks was 45,914. by far the largest November out- W ASHINGTON, nicies Uctober, It was, howevel! . Y Tr it he history of the industry, comparing with 204,343 cars and 27,905 trucks last year, with 284,921 ears and 28,066 trucks in 1923 (the previous record ear) and with 215,352 cars and 21,949 trucks in 1922 (also a record year). Trucks produced in eleven months have aggregated h is 85,000 more than in last year’s record- ng 12-month total. If December equals Novem- k total will pass 500,000. British Steel Exports and Imports Lower WASHINGTON, Dec. 22.—Exports of iron and steel Great Britain amounted to 322,188 gross tons lu Nove er, a ss of 13 per cent from the Octo- er figure 1 cable to che Department of Com- e! } Acting Commercial Attaché Mowatt M. Mit ll, Lond Tr} more pronounced declines were : galvanized sheets, tin plate, rails and r ! shapes, tubular products was noted for signment f pig iron and ferroalloys. A aerabdie increase n the import trade also. Receipts teel into Great Britain 218,250 tons in October to 212,154 tons in Yovembe semi-finished iron and steel, plates and ( ea sses on the other hand greate} lantitic f pig iron and ferroalloys, steel ie eel angles entered the country. Wants $2,000,000 a Year for Pure Scientific Research WASHINGTON, De ».—The National Academy of an appeal to a body of prominent with the leading scientists of the country endeavor to secure larger resources for research [he academy hopes that an annual east $2,000,000 can be obtained to estab- h professorships and in other ways niversities and other institutions € e prepare d to do their full share nental research in the mathematical, gical sciences. The academy state the United States is leading all esearch it falling far behind : : S nd thus is failing to pro- ge which advances in ap- ‘ tT res “aA Ce ] sali 1 . ad Steel & Iron Co. has started operating e iis at the plant of the Aetna Nut Co., ~~ oO ‘ay rT) . ° yy . ' The second mill will be started shor © company has spent considerable money tioning machinery Refractories for the Open-Hearth Causes of the Failure of Some Magnesite Brick— Various Tests Carried Out—Tentative Specifications Proposed BY L. HILE I was serving in the capacity of refractory engineer for a large steel plant, a peculiar yet not unusual type of premature magnesite brick failure was forcibly brought to issue and investigated. In one particular case the back wall and body corners of a large open-hearth furnace had been built up com- plete with a brand of commonly used magnesite brick of good reputation. For test convenience let this brand of brick be known as Brand A. The method of installation used, as to furnace de- sign and procedure of laying up the brick, was the same as is always employed. The furnace was lighted and burned-in according to common practice. On the sixth day following the lighting-up date, the body cor- ners and back wall developed a very serious type of failure. The whole inside section of magnesite brick, about 4% in. thick, failed by a shearing off and sag- ging down process to such an extent that in certain places parts of the structure slid or fell completely into the furnace. An interesting fact is that apparently on many previous similar installations this brand of ma- terial proved quite satisfactory. This outstanding and unusual type of failure was deemed worthy of a complete and minute investigation. After carefully examining and discussing the failure with several practical mill men, the conclusion was unanimous that the failure was a direct result of poor and improperly made bricks. If it were a case of poor brickmason workmanship, there would be every reason to expect the whole thickness of wall to fail, and not just a thin uniform inside section, as was the ease. If it were a result of improper (too rapid) “burning in” of the furnace, we would then very likely find such a type of failure as severe surface fusing and running of the brick ends, which was absent. It is quite certain that neither of these agencies caused the trouble. It then reflects back to the one remaining item—the bricks themselves. In order to diagnose this brick failure, a complete set of laboratory tests was planned and made. The tests included the following items, the results of which should show the immediate cause of the trouble: 1—Modulus of rupture Load test Chemical analysis 4—Apparent porosity 5—Apparent specific gravity 6—True specific gravity In order to make this investigation more complete, samples of two other brands of well-known magnesite bricks were also included and tested. Again, for test- ing convenience, let one of these brands be known as Brand B and the other as Brand C. Through the ad- ditional test data, as secured from the two other MUVMMMAD ELIANA LPUNMIA NYA NAMATH laa cial dc RTICLES on the practical phase of S. LONGENECKER brands, it should be possible to determine partially what characteristics a magnesite brick must possess, regardless of brand, in order to be of most service in actual steel mill practice. Before entering into a discussion of the test it may be w