The Iron Age 1926-01-28: Vol 117 Iss 4

> ~ sat Sk Sala THE IRON AGE New York, January 28, 1926 ESTABLISHED 1855 VOl 117, No. 4 Fair Prices for Fair Profits Examples of Lack of Courage and a Lack of Under- standing of Pricing Factors Manufacturers Thus Kept From Getting Proper Return sé NINTELLIGENT pricing of products is th explanation for lack of sufficient profits in American industry,” said William Luci Churchill, industrial engineer, White Plains, N. Y., i ommenting on “the editorial signed by A. I. Findley appearing on the front cover of THE IRON AGE of Jat 7.” “That message,” he said, “calls attention to thi most deplorable and inexcusable condition of Americar manufacturing.” To indicate something of the extent of existing faulty practices, THE IRON AGE asked him to mention a few specific cases, the hope being that the way might thus be made the easier for righting a condition pe. meating all industry. Mr. Churchill cited the case of a special machinery builder who designed and built a machine for a cus tomer on a cost-plus basis, charging $2,000 for the con pleted machine. As he had invented a novel detail, he had this part patented and made preparations to mar ket the machine generally. His first prospective cu tomer was the company for which he had built the first machine. A price was requested on two additional! machines and the manufacturer decided he could build them for $1,000 each. Adding 25 per cent for profit he suggested to his financial backer and business asso ciate that he could sell them for $1,250 each. The financial backer, however, had no such rule-of-thumb idea of pricing and had the question studied from the standpoint of the value of the machines to the cus- tomer. The result was that the two machines were sold for $4,750 each and both buyer and seller profited. This machine, Mr. Churchill said, has since developed a steady sale at prices never below $3,250 and has com- peted successfully with other machines ranging from 5600 to $2,100 for the same purpose. “This merely illustrates,” said Mr. Churchill, “that his capacity of industrial engineer, in vhen there a legitimate demand tor any product fall ce can be obtained Che temptation to lower the rice and get more isiness has been resisted by the nowledge that low prices would not create sufficient demand to offset the proposed price sacrifices. In the case cited the prices have not proved unduly profitable, but they have enabled the firm to equip its plant with modern tools, develop foreign trade connections, im prove its product and substantially increase its line, n addition to paying stockholders a fair return. The competing companies which sell on a basis of price only n the hope ' building up greater volume stagger along from year to year hoping for better returns that never materialize and that make them look longingly toward a merger or consolidation as the solution of their profit problems To point it another experience, he told of two manufacturers making two sizes of an article costing $10 and $20 \ adds 100 per cent, while B adds $15 per unit. ‘“‘We get prices from A of $20 and $40. while B asks $25 and $35. Of course A has to meet B’ price f $35, and B has to meet A’s $20 price, so we get a rice level of $20 and $35, or an average of $27.50 in- ead of $30 that should be paid “Manufacturer are constantly triving to reduce ”* he said, “and then they pass these cost reduc 7 n to their customers instead of to their stock- holders. Despite the marked ability of American manu facturers along technical, operating, financing and dis- tributing lines, we fail lamentably in our rewards to stockh: ders for the use of their capital in enabling us + ] ‘ ] ” oO exerciss ur exceptional talents. opinion as to the outstanding rea- f American manufacturers to earn fair and reasonable profits, Mr. Churchill said: a “Manufacturers don’t get fair prices because they + with a background of a varied experience manufacturing, selling and consultation work, William Lucius Churchill, indus- trial engineer of White Plains, N. Y., has given intensive study to the subject of prop- er returns on capital invested in the manufacturing business. Mr. Churchill was in- vited by the Machinery Builders’ Society o f New York to delive address on “Dan gerous Selling Prices” at a meeting at the Machinery Club, New York, on Jan. 7. Some of his statements at that time suggested the advisability of securing an elabo- ration of his ideas and the result is the accompanying interview | Mr. Churchill has been connected in executive capacities with the National Pneu- matic Service Co.. Chicago; the Schrieber & Conchar Mfg. ¢ Dubuque, lowa; Yale & Towne Mfg. Co., Stamford, Conn.; McKinnon Dash Co., St. Catharines, Ont., and has served as industrial engineer and consultant with Stephen T. Williams & Staff, C. E. Knoeppel & Co. and the McDonald-Churchill Corporation; he has also been pres- ident of the Weeks Engineering Corporation and the Arizona Vulcan Mining ‘ 60 THE IRON AGE January 28, 192) Th greement I “2 Faulty profiting principles used in ap ne of how to arrive at fair prices, and plying profits to the different lines of product Sher ‘lr prices, manufactured. : . Te “In addition to these causes of erratic and irrat ling of how \o ar selling prices we have also the prices made without e greatest SINBI© | nowledge or in utter disregard of that knowledg: ae “Pricing without knowledge of the relation bet prices when the industry’s productive capacity and the normal ne li fair sorbing capacity of the trade (existent or prospect : eee ere ee is the most serious error that manufacturers mak: When this 18 thoroughly under- its effect upon stockholders’ interests. 5 5 manulacturers the courage “Obsessed as we are with the idea that volum oar : duction reduces costs and that low prices stimu . wa sales, we go on cutting costs and reducing prices as { and as far or farther with the expectation that f Profit Little Understood lowered prices will multiply our sales in still gr t’ricing tor on ic iS ratio. inderstood by even “They don’t. And then we make frantic effort rganized and progressive manu ecure enough business to operate to capacity. who d ippreciably send processions of salesmen around in each other enforced mpetition with those trails trying to take trade away from competitors. S ing costs multiply, sales prices decline, profits d I ng of ind pric appear. All because we fail to recognize that there not refer to la f cost knowledge, uch a thing as a saturation point in the sales of t tisfactor particular product and because we fail to make ou ree nal ing prices what they should be to earn us our norn r just how chea goods may profit, when the normal market is supplied. “One big province of manufacturers’ associatior hiefly done to enlighten their memberships in regard to the pro} iring volume of busin and with tion of productive capacity of their industries to tl vill bring the profits as a by normal market for their products. with profit as a pos “The manufacturer who figures prices on a bas th r hat they may be if he operates to full capacity, o1 s of two or even three shifts when his industry a whole can only average two-thirds its capacity, rhe Question of a Fair Profit simply attempts business suicide. Sooner or later such policy results in lessened net income, as his only source for more than his share of the prevailing busi- fa ness is from his competitors. They will not and cannot Their ideas are ex et him take and keep business from them. His prices w what are met and lowered and the entire industry gets int mniform und tand 1 state of chronic price warfare. No one profits except Rul temporarily and the public ultimately pays for this war ites art fare as it does for all warfares. . Excessive Capacity Not Sole Cause h “Most manufacturers in industries suffering und pr this ndition blame excessive productive capacity explana t aust There are too many in this business they manufac will tell you. If this were the true cause many of then ) per cent of would simply have to quit all business, for there ar $5,000 a year few if any lines of manufacture in this country in whicl With tl nit pe ent the line apacity of production is not greatly in excess of tl irrow that the keeping normal market for the product. yorker “Our very progressiveness, resourcefulness, and ney o1 genuity are tending continuously to force our produ mel tiveness ahead of our markets. Our abhorrence of waste ution services, such a goads us on to find business for our idle or semi-idle kers, sales agencies, etc., equipment and buildings We develop lines, sizes rn many times the profits of the pri tyles, varieties and finishes beyond all reasonable und this for rendering a service juirements in the belief that they will enlarge f e money ll, knowledge markets. “We put on additional selling pressure. Sales! Sal vestigated 40 American manu We must have sales to fill our plants! We don’t g nly five had what he considered the sales we desire, so we fall back on our supposed ide: These companies ranged from infallible salesmen, lower prices. Disguised possibly : ng about 2 nen to some with several extra discounts, rebates, commissions, allowances n eX Son f the manufacturing plants what not. Result: Low prices; low profits; rancor an e! make profits and had _ bitterness among competitors. Inadequate returns ed to breaking even. None of the 40 enable upkeep and maintenance of plants; lack of 4d n é makir f profit ilthoug! elopment in the products and eventually a discredit profit Even those ind unprogressive industry. . pani had proper profit ideals were unable “Profits make progress. Lack of profits can resu { tne partly because f the low price level niy in stagnation and decay. f eir industry} Continuing, Mr. Churchil “It is the profitable industries that make the great development. It is the profitable industries that indu!g' in research, experiments and tests of products, equi! . ment and markets, and that employ the best talent a! a tet ng even when costs are known pay the best wages and salaries, and in every way aid | | ind develop our material welfare. as to what volume of “When they lose sight of the necessity for keeping should be based upor their prices at levels that insure these profits continu Causes for Failure to Price Properly re are v ma > é TOY at ; ; } January 28, 1926 ing they quickly lose all of the advantages of their pri gressiveness. “The American manufacturer has done a splendid job in developing his products and his markets but need: now to take a little thought for his stockholders in orde1 that he may be supported in further developments of product and markets. With manufacturers averaging to earn the present small profits there is little encour agement to investors to assist in the starting of new manufacturing enterprises or increasing the of older ones. “There is nothing inherent in manufacturing its: that tends to make it a precarious investment. Ther: is no economic reason for the discouragement of fair prices for services rendered by manufacturers for thei: customers, aetir activit Reducing Selling Costs “There are very few elements in sound pricing pra: tice that need to be understood to insure profit stability in any industry. These few elements can be quickly absorbed by the heads of our manufacturing enterprises who must absorb them instead of leaving them to minor officials and employees, if they are to insure against faulty interpretation and application. “Stabilized profits will make for lower costs becaus: by common understanding of the elements in pricing that insure sound and continuous profits manufacturer will: “1. Reduce selling costs now caused by ex cessive sales effort aimed to obtain impossibl permanent additions to business. “2. With reasonably uniform profits assured, manufacturers will not need to add the present high rate of profit necessary to offset the ex treme recessions that now occur. “A few industries have already undertaken edue: tion of members along these lines and with results that are very promising in their effectiveness and perma nency “In one industry of some 30 manufacture THE IRON AGE 263 of the leaders have received the instruction and the effect has been to improve prices so that the entire ndustry is now reported to be on a profitable basis where formerly few, if any, made any money. There are no agreements as none are necessary, but a com- mon understanding of pricing elements has reduced variations in selling prices to very small ratios. One firm formerly doing less than $100,000 of business finds itself netting more than $20,000 profit—and that after four years of no profit and with no additional business. Another in the same industry reports to the Stock Ex- change earnings of well over $100,000 for first nine months after receiving the instruction and after sev- eral years of no profit. A third firm has extricated itself from banker control and taken a new lease on business life because of substantial profits earned when they began pricing for profit in place of scrambling for lume. “A few manufacturers with the courage of their con- ‘tions will adopt SO ind, sensible prices regardless of what competitors will do. Others, more timid, discour- age sales on the less profitable lines and wait for others to name more satisfactory prices in the less desirable hey will follow Io most manufacturers it is a revelation to find how little firmness they need to use to insure fair and rea- onable returns for their efforts. suyers are not generally anxious to deprive manu products before tl facturers of profits. The latter are almost entirely to lame in urging buyers to take their products at prices inprofitable to themselves “Manufacturers need common education in ] Wha tit é il? rofits for hei? nd t? ». What propor f the ipacity mu irn the normal profit ” How ipportior rot lifferent rodu “Group effort wv quickly effect these understandings vith resultant benefit of improved and stabilized profits Trade Associations Again Questioned Federal Trade Commission Said to Be Trying to Determine What Is an Open Price Association WASHINGTON, Jan. 26.—Acting under authority of a Senate resolution sponsored by Senator McKellar, Democrat, of Tennessee, and passed more than one year ago, the Federal Trade Commission has revived the old issue as to the legality of “open price” trad associations. The general opinion had been accepted that in decisions of the Supreme Court last year in the cases of the Cement Manufacturers’ Association and the Maple Flooring Association, the question had been clearly answered. The circumstances governing the move of the commission at this time, however, were unusual and explain why trade association throughout the country are being quizzed at this time It will be recalled that there was a division of opinion in the commission as to its authority to inst tute investigations called for by resolutions passed by a single branch of Congress. Some members of the commission maintained that that body could act on); upon joint resolutions and only in instances where the proposed investigations related to violation of the anti-trust laws as distinguished from investigation relating to inquiries involving economic studies. The upshot was that the question as to the authority of the commission to act under a resolution passed a single branch of Congress was submitted to the Department of Justice. Attorney General Sargent held that either branch of Congress had authority to adopt resolutions calling for investigation by the com mission. The McKellar resolution is directed at so-called open price associations and asks the commission t termine Vnat issociations of thi cnaracter tnere are in the country and to ascertain their activities vith a view to learning whether they are engaged in restraint of trade in violation of the anti-trust laws The ymmission itself has not made public the questionnaire but it is known that it has not a clear idea as to wnat constitutes an open-price association. TI aid to be the reason why all associations Known t tne ymmission wer ent the juestionnaire some or tnem have replied tnat they ire not open price associations and therefore that the questionnaire loes not apply to them. This, however, is not accept- able to the commission and it is returning the ques- onnaire to those who have failed to fill it out Contentior made at the commission that this is ary in order to determine what are and what ire not open price associations. It remains to be seen vhat the commi yn might do in the event some associatior lecline to answer the questionnaire. This inderstood to be elaborate and to call for the most intimate sort of information, which, it is pointed out, the associatior might not want to disclose, not be ause it would reveal any illegal activity but because t fa nfidential business character A list, with analyses, of standard samples of ores, steels and metals, issued or in preparation, is found in a supplement to circular No. 25 (Sept. 1, 1925) of the Bureau f Standaras supenees PE UTE AEE COREE ES 88S Me Steel Treaters’ Seventh Sectional Gathering at Buf- falo—Electric Melting, Tool Stee] Inspection and Macroscopic Exami- nation Discussed — Splendid Finan- cial Condition of Society EGEBER( ‘| t t il meeting apacit f metallurgist for a large Westphalian tee] Treating was ompany in Germany, and as chief metallurgist fo. ea arge nicl company in Norway, as well as chi +} +} f +} metallurgist with the Stavanger Electro-Stahlverk ery B - Norway from 1919 to 1924, he entered upon his preser . | { two years ago. A libs ral abstract of Dr. Eg: : 0 rg’s paper follows ” Or *the main problems in the making of iron a1 ste the reduction of iron from its oxide ore rgest ul e- rheoretically, this reduction is simple but, due to tl Ma f tl nherent complexities of present-day smelting methods ere lirect reduction is still a thing of the future. Th deals with the complexities met with in the ersion of pig iron and scrap materials into ste ally egards some features of electric furnac: x The electric furnace for the melting of steel becan y t . ° ° . ortancs hen the expanding automobile industry ' began to demand high-grade steel in large quantiti 43 5 j 4 rice. With the increase in the consum} there developed an additional fi mall 1 tf usefuln for the electric furnace, namely, the r v of ng elements from scrap material. T! onomic value of the electric furnac: herto, to have been given too little considera | he melting down of the charge in the electri Phe Technical Papers \ | ' r ( ‘ r \ ( ) irtme I I - Cleveland ly — ‘ ‘ Thursda | leetris Steel Melting irgist ! Ha dD OS } l r, wl 1 dus { Norw ry b d 6 " TR Sais ‘ © Prom Un versity Over 300 Members and Guests Attended the Ba th After serving in thi Treatin: Winter Meeting Delta Iron and a New Art in Heat Treating—X-Rays and Special Al- loys—Size in Steel Hardening Judge Gary and Mr. Schwab New Honorary Members furnace FeO is formed. This will di until the saturation point is reached SSOLVE ! tne np a It its saturation point for FeO is lowered. is therefo W. L. FINK W. H. WILLS, JR. th Brittleness of Electric Steel When silicon and manganese are present in sufficient amounts in the bat sh peculiarity Heat f electric tool steel occasion: yw great ‘ tii No tT) hardened conditior has ever . , ° cl 1 oO etallog mn ynstituents advantageous to add austenitic manganese steel or fe : : srt F metaliograpnic Col oon a as e detect to account for t ittleness. steels romanganese as part of the charge. The preservatior el le ed a un tor I prittle e In : : : p : ; s nade in the acid oper earth o ‘ucible f né s 5 of a desirable amount of manganese in the bath predi- sie he acid open-hearth or crucibl oa he a > : ; : . " detect ess commor! t seems asonabie, theretor cates the use of partial oxidation during the melting — mm It seems reasonable ierefore, down period. Other advantages of partial oxidatior ude EBA cast apeneinenion 1 the beha “a f thes during melting are: ypes of steels may be accounted for by difference I As . heir manufacture i In the crucible and in the acid open-hearth furnaces, °?.—Preservation of easily oxidized all , the oxides in the bath are continually in reaction witl . yes . : the silicon in the linings of the furnac: In the ele¢ Phosphorus is eliminated in much the same way a : , : t] . ‘ 2 . ric turnace ne Kidde In the Dath react oniy with tne in the open-hearth furnace. On the other hand, the a yor 1 . ° ° . r VIng act ne rea ng iriace el! ton o neta electric furnace is much more efficient in removing 7 ; ay ae. ° . ° . ower and tine ePoxid ng theretore ow process sulphur because in it it is possible to maintain a cal ri ¢ al nage ; b ; : e qua he teel depen not niv o ie cium slag, which effectively removes the sulphur fron : the bath ’ : ent tf Vnic! i¢ x1d1 il TY I ike piace b it i oO oT ie bath. oe . ' e amount i nature of the deoxidization products re In spite of its greater purity, electric steel did not : u , ' na c ood . i. : maining m tne tes oody tructure ll alioy struc- live up to expectations. It led, however, to the heliet ae 4 . . : i ‘ iral steel iitnoug! ot generally attributed to nor that stringent chemical specifications are illogical b« F oe a ee me ( isior ilways associated with inclusior cause we lack sufficient data to inform us whether cer } I : d, in the aut opinion, the extreme stringiness tain chemical elements or certain structures are or are a rage era TI lit e th ie to the resen rf ib-microscopic inclusion T he not deleterious, ne quality o tne steel seems t me . ’ ‘ ! ’ “fit : : leoxidization products may be MnO, SiO:, Al.O; or CO controlled by some factor not measured in the chemist : ; rm tallurgi t’s laboratori The first three are solids and therefore less desirabl« ) evs “PISTS aboratories > : ' : E nan tne CU But deoxidization witl irbon alone nt } t ¢ ; onal Meeting of the American Society for Steel Hote Statle a, oxidization product In the open-hearth furnace, the i. final deoxidization takes place either just before 0 it ust after the metal is teemed and, because of the short : time allowed for their escape, the products of i tne gaseous torn yarogen gas may a » be presel! Dut it Nas not ye been ¢ tablished that the presence f either or both of the latter gase In r T ne tl ite he therefore D leves tnat oxyge! vnetner n the form of dissolved f gas or in tne form ( les, dissolved or precipitated, ; responsible for n t f those defects which today cannot be explained by the chemist or by the metallog raphist. In order to emphasize what has been said y before, attention called to the fact that steels of dentical chemi al « omposit n, made from the same kind of raw materials in an identical way by the same men and in the same furnace, and given identical mechanical and thermal treatment irious enough may ymetime greati' I auallit Al y 4 nciu- THE IRON AGE January 28, 19 266 according to brand names. Mr. Wills therefor: ; s cusses some of these specifications and the necessa1 a Sad spection covering tool steels and special alloy steels = : d 1h duce d by steel mills. The present-day requiren é; ol f large users as to quality are discussed in detail. és eed f loser check on quality has contributé e recent growth and development of the labora nd the irrying out of the idea of technical cor he w from raw material to finished product, he author The duties of the chemical and phy iboratori nd their relation to technical contro far nspt were discussed. Special emphasis was p ! ter by the ithor upon various tests carried out by nta metallurg aboratory. In conclusion the other vitie aboratory, other than routine te ic} tigation of plants and the pros: ! F arch work, were touched on briefly ) & M ( Pit Delta tron and lron-Chromium Alloys )) :' ™ erest was manifested in the paper ' ( B _ meta rgist, Union Carbide and Carbo : ratories, Inc., Long Island City, N. ¥ C ‘The Nature of the Alloys of Iron and ¢ Before presenting his paper, Mr. Bain ention to a paper decidedly analogous which is t resented by W. P. Sykes, Cleveland Wire Works, Ge) Elect: Co., Cleveland, on “The Ilron-Tungst eoric Syste it the February meeting of the American | ete as pos titute of Mining and Metallurgical Engineers a: which has already been distributed in preprinted for He spoke of the high character of Mr. Sykes’ cont: Macroscopic Examination ition and referred to the fact that he had been mort less acquainted with some of the work which M: s é ad done on delta iron. pape! Mr. B is paper, which was fully illustrat Y. 2? nte describes the development an S rese} room temperature of delta iron soli on The allo are heated above the range for ‘ ind, upon quenching in water, the n mn rar ! iustenite is suppressed and the delt: lid preserved unchanged in a perma = ; ' ent table form, identical with alpha iron solid so . ! errit The name delta iron signifies only that A ; nate? is been heated to a higher temperatur¢ A br ussion Of the mort han permits austenite to exist, in contrast to alph: — ice In U mater which has been transformed from aus ; — per t enité ooling through the transformation tempera . a -" Pe ture a proper rate. Physically the two are ide! or cal 7 ee Ir n it pha form, accepts up to at least 6 : hromium in solid solution and probably form : , a t 1 solution series with it in all propo , wae 4 ' au The lutions of chromium in iron, containing aa 7 é than about 14 per cent chromium, exhibit the alpha gamma and gamma-delta trnsformations upon heating lhe temperature for the alpha-gamma transition 1s LISE vith increasing chromium content while th: n gam) lelta change takes place at a lower and lowe! emperatul the chromium proportion is increased lhe temperature range for gamma iron stability, theré ‘ Vi Curran. ) ] \ re ecome narrow above about 10 per cent chr« ( Ste ( America. Ne Yor! im, a gamma iron is not formed at any tempera mi ! tt lloys having much more than 14 per cent pre ! } ! pt as influenced by carbon In alloys if 1 ’ hromium, alpha and delta iron solid solutions icture } ! ious and are physically identical. Delta iror He ret \ ns have been preserved, by quenching, pet Is‘ li E M. I t stable at room temperature. Applied S Cie ry irbon, which is usually present in any allo) eg ( e, acts primarily to enlarge the region é tenite rmation—raising the gamma-delta tempera ire and lowering the alpha-gamma temperature. Fu thermore, carbon extends the region of gamma iro! Inspection of Alloy and Tool Steels ‘ormation into the richer chromium alloys. Carbor , vhen present in as large amount as 0.35 per cent, ma} . Fact he | ection of produce some gamma iron even in alloys containing 3! 3 VW ts ieee ‘ , "Ste ( e ; ‘ e ” ah ene a ae enteen a z , aot chromium and carbon render the austenite more . , as tetas sol at: — sluggish and reluctant to transform into alpha iro! E o ee rda- (martensite) upon cooling. About 12 per cent chi aici ru to purchas« mium is required to preserve any appreciable austenit at room temperature after a water-quencl he carbon as high as 0.35 per cent. Discussion \ written discussion of Mr. Bain’s paper by D Jeffries was read by Mr. Bayliss, editor of 7 tions, and was as follows: “I do not wish at this time to enter int sion of the many interesting scientific aspects of this paper, but desire only to call attention to certain of the broad aspects of what seems to be a new step in the field of ferrous metallography. The field embraces not merely the retention of so-called delta iron solid solu- tions, at low temperatures, but the practical heat treat ment of these-solid solutions. In other words, there has recently been developed what may be termed a new art in steel treating in which gamma iron plays no part To the best of my information, the originator of this is W. P. Sykes. “The following is quoted from the first Robert Henry Thurston lecture on ‘Engineering and Science in the J.J. CURAN H. J. FRENCH Metal Industry,’ delivered by me on Dec. 3, 1925, at the annual meeting of the American Society of Mechan- ical Engineers in New York. The following statement made by Prof. Bradley Stoughton in his ‘Metallurgy of Iron and Steel,” page 103, fairly represents the state of the art with refer ence to the role of carbon in high-speed steel as we as other steel. “It is commonly stated in the trade that tungster will take the place of carbon in producing hardness but this is not true It is far more correct to say that tungsten will assist carbon in producing hardness and, therefore, with high-tungsten steels we may have lower carbon The distinction may appear merely academic, but it is well worth recognition by thos who expect to make a study of these steels. N amount of tungsten or any other element will mak: steel hard in the absence of carbon, or even wi tl carbon is low.” W. P. Sykes, Cleveland Wire Worl nde lamp department, General Electric ‘ has ecently made a development which changes this rt Uy about 22 per cent of pure molybdenun adde t pure iron it is found that the molybdenun s soluble in the iron at a temperature of say 1400 deg. C Or slow cooling, a compound of iro! ind molybdenum separates out in relatively large particles and the resulting alloy, when cooled to room temperatu not very hard The microstructure molybdenum alloy after being slow!ls how in Fig. 13 When the alloy was quenched from the hig perature and solid solution preserve tr em perature, the Brinell hardness number r nstar Was 214 This material is coarse-g! i ‘ in Fig. 14 Gamma iron plays no part in this systen lle retaining the body-centered cubic space |attice from room temperature up to.the melting point t quenched solid solution is supersaturated in yo January 28, 1926 THE IRON AGE 267 £ 6 deg. ‘ it is i Ss diffuse in the s i I f } I lyvbd mn ‘ al (crit a } nm bade itt S } f ( ht it 600 dee I wl mp N s tl hard rt | tul f gh-speed the har Fig \ New Science and Art in Steel Treating “I should like to call especial attention to Mr. Bain’s Fig. 7. The region of this diagram, marked “austenite,” indicates that, with negligible carbon the iron-chro- mium alloys containing less than about 14 per cent, chromium will, when properly cooled, from a high tem- perature (above about 1450 deg. C.) transform from a body-centered cubic to a face-centered cubic space lat- tice, and then back to a body-centered lattice again. It also indicates that with more than about 14 per cent chromium only one type of crystal structure obtains un- less carbon is present. “As is shown in the preprint of the paper by Sykes “The Iron Tungsten System,” to be given at the annual meeting of the American Institute of Mining and Metal- lurgical Engineers in February, 1926, this identical phenomenon is shown in the carbon-free alloys of iron and tungsten. While Mr. Bain has been aware of these results of Mr. Sykes’ for a good many months, he quite properly avoided mention of this information, which he no doubt regarded as confidential. It might be men- tioned that the “earlier work” described in Mr. Bain’s paper on page 10 of the January issue of Transactions of the A. S. S. T. was done by Bain when he was con- nected with the Cleveland Wire Division of the General Electric Co. “I know that the other members of this society will join me in welcoming the advent of this new science and art in the field of steel treating.” J. V. Emmons, Cleveland Twist Dri!l Co., Cleveland, related some interesting experiences which took place about 1915. In heating to a high temperature some high-speed steel, there was discovered a structure, which at the time had not been seen before and which it was impossible to identify. Mr. Emmons stated that Mr. Bain’s paper evidently threw light upon the situation in that the material formed, in the experience referred to, was probably delta iron. At any rate, steel so treated could not be restored by any further treatment and was virtually worthless as a cutting tool. In response to one or two questions Mr. Bain said that, the etching medium, used in his work, was aqua regia mixed in equal proportions with dilute glycerine and that the period of immersion was as high as 45 min. The X-Ray and Pure Iron-Carbon Alloys An interesting contribution to the X-ray analysis of metals was contributed by Dr. W. L. Fink, research de- partment, Aluminum Co. of America, Cleveland. The title of his paper was “Influence of Changes in Carbide Concentration on X-Ray Structure of Some Pure Iron- Carbon Alloys.” The material used was Armco iron properly melted with increasing contents of carbon. The author’s presentation was irterspersed with a large number of lantern slides. He prefaced the paper with a brief review of the production and diffraction of X-rays and outlined some of the methods of X-ray crystal analysis. The investigation embraced two series of pure iron-carbon alloys with a constant amount of impurities (less than 0.10 per cent). At the end of the presentation of his paper, Mr. Fink read the fol- lowing conclusions: Changes in the dimensions of the minimum ilpha iron lattice (body centered cubic) which take place during heat treatments are small (0 to 0.30 per ent approximately) and are a function of the carbon content and heat treatment. The side of unit cube nereases slightly as the carbide concentration in creases, but the hange is not uniform throughout th-« latt Ate Sper ar =b8 THE IRON AGE January 28, 192 t $88,109. The Henry M. Howe fund nereased from $3,000 to $5,000. A committee consisting of directors W. S. Bidle, G. Hughes, and W. H. Eisenman was appointed to vestigate invitations from the Philadelphia and N« York chapters for the 1927 convention. The report of the committee, having charge of 26 convention and exhibition, stated that an invitat been extended to the Society of Automotive Ens eers to hold their production meeting in Chicago September, and also to tne American Society of M hanical Engineers to participate in the machine s] ice division of the exhibition. {ll standing committees were reappointed and ew members were added to the recommended pra ‘ ommiuttee, namely, George H. Wright, Gener Electr ( and P. C. Osterman, president Ameri Ga irnace Co., Elizabeth, N. J., with Dr. F. C. Lang berg. Watertown Arsenal, Watertown, Mass., a) nted take the place of R. M Bird, resigned. Pre lent Bird announced his poli \ of periodi nference with the executive committees of the va hapters, including the two .qn.the Pacific Coa iring the coming year. It is also the plan of variou meet with the executive-committees of thi irious chapters. The establishing of 24 new chapte irded as possible was discussed. Mr. Bird resigns mber of the committee on heat treatment def t s, and was replaced by Prof. Bradley Stoughto1 Lehigh University. This committee is cooperating tI ibject witl eS .. E. and the A. S. T. M. size and Shape in Hardening Steels The Banquet - g Work |] g S] he H ( g of Steels” by ( )\ ER 300 sat down at the banquet in the ballroom 0. Zz. = { Bur 1 of Stand the Hotel Statler Thursday evening, Jan. 21. B« Mr. Frenctl It ci the spe akers there were about 20 guests of hono tur ng curv at the head table The post-prandial program wa f rious sizes and pened by G. |] Armstrong, chairman of the Buffalo nt ich as water hapter and in charge of the efficient arrangement { al all Based n the ae nade for the success of the convention. He introduced ined whic] is toastmaster W. T. Buckley of the Buffalo Chambe ape yuenched of Commerce: The various speakers were R. M. Bird f the national society; Dr. M. L. Hartman: e! ng temperatur lirector research laboratory, Carborundum Co., Niagara n for the ant Falls, N. Y.; Albert F. Dohn, president Atlas Steel Cor- ration, Dunkirk, N. Y.; Prof. W. Z. Irons, Universit ' f Buffalo, and W. H. Cutler, metallurgist Lackawanna pore plant, Bethlehem Steel Corporation, Lackawanna, N. Y re rye eT a wr ed The npresidqgent } vho spoke in place of T. W. Burns, general manager o! t f a the plant, who at the last minute could not come. 4 ' siesa feature was the large representation from various ste¢ re made anv plants in the district, who, when called upon by the hic} toastmaster, arose in a body and were roundly cheered Committee Meetings Board and Committee Meetings rhe entire ‘ committee on publications, consisting 0 embers, with Prof. H. M. Boylston, chairmar ing, discussing various polici particularly the question of practical and nor practical papers. Later in the day this committee joined (Cyan nd Schwab New Honorary Members vith the board of directors and discussed features of ts repor Late in the same day there was a joint of nference of the board with the recommended pra‘ f tor he Wed ’ Lice mmmittee at which it was brought out that data nusiasti¢ mee { heet n 38 subjects had been published covering 282 Mm. G nairmal! the board ges, with material for 21 additional subjects printed Charles M r on the way to the printer. ‘ ra t the be ehem Stes On Sat irday, Jan. 23, the recommended practice + ng ed mn ee held an important meeting at which the f thi ad ns to the . Plant Visitations . ° ‘ ndustrial plants in the neighborhood of is the afternoons of Thursday and rriday and the morning of Saturday were devoted, ( vere largely attended. The plants visited were thos« | the Donner Steel Co.: the Lackawanna plant of the a t ght eY g the Bethlehem Steel Corporation; the Curtiss Aeroplan nar ret & Motor Co.; the Pierce-Arrow Motor Car Co.; th f $147,8 The re American Brass Co.; the Simonds Mfg. Co., Lockport in excess of N. Y.; the Carborundum Co., and the Niagara Falls bringing Power Co., Niagara Falls, N. Y., and the Atlas Steel end of only five Corporation, Dunkirk, N. Y. Tonawanda Furnace Modernized Rebuilt Stack Produces More Than Two Old Furnaces Anemometer for Ore Bridge and Heat Exchanger for Washed Gas Are Features ITH the acquisition early in 1923 of the Tona ! 1 12-ton grab bucket with a capacity of 500 tons wanda furnaces, North Tonawanda, N. Y.. th per hr. American Radiator Co., New York. obtained . . . Anemometer on Ore Bridge potential independent source of pig iron, and through a subsidiary organization—the Tonawanda Iron Corpo Because of the destruction of and damage to several ration—took steps immediately to modernize the plant pieces of similar equipment in the Lakes region by [This consisted of two old furnaces without rigs for evere storms, this bridge, in addition to the usual inloading and stocking ore. It was decided to abandor safety appliances, is provided with an anemometer “B” furnace, and entirely to rebuild the “A” furnace. which automatically cuts off the power ‘and sets the lhe rated capacity of the reconstructed stack is 400 rail clamps when the wind reaches a certain predeter- ms of foundry pig iron a day, but the average produc mined velocity. The dock and yard are capable of m has been well over that amount. In fact, the out- extension and increase of capacity. put of the single furnace is more than the productior Material in the yard is transported to the individual f the two old furnaces together. teel storage ns by the bridge and a 50-ton transfer The Ore Bridge Is Provided with Anemometei Which Automat- cally Cuts Off the Power and Sets the Rail Clamps When the Wind Reaches a Predetermined | ity. The idge is of the ( Ooci »nbined unload- a) d stocking ty pe The “A” furnace was originally built in 1873 and car supplied by the Atlas Car & Mfg. Co., Cleveland. remodeled in 1918. It was of the open top hand-filled The system of storage bins consists of seven ore, stone type, and although well located as to raw materials and scrap bins, each of 4000 cu. ft. capacity, and one had become antiquated as to equipment and was bul coke bin of 16,500 cu. ft. capacity The coke bin i lened with operation costs which made it difficult to centrally located over the skip pit and so arranged that neet competition. In the modernization only the essen the coke creened by a set of bar grizzlic and di tials were installed, with the aim not only to place’ livered to the skip cars by gravity. The coke braize t in the country, falling through the grizzlies drops upon either one of the stack upon a par with the bes nsofar as economy of labor, unit capacity and efficiency two lateral belt conveyors, and is fed to a belt bucket ‘ parts were concerned, but—as important—to kee] elevator, which in turn discharges the braize to an ant investment and fixed charges low, thereby insur verhead carload storage bin for intermittent delivery ng a minimum cost of iron production. railroad cars at yard elevation. The ore, stone and The plant site consists of 127 acres front n the rap bins are equipped with the Freyn double-lip gate Niagara River. Furnaces and equipment occupy vhich are actuated by an air cylinder mounted on the than half of this area, leaving ample room for futur ile car. This is the sixth installation of this type of improvements and extensions. There is a dock, 500 ft nechanically operated bins and gates. They are said long, of reinforced concrete construction, heavily piled to insure free inning ores, accurate wi ights, ab enc and riprapped, and capable of handling the largest or o1 pills on the stock house floor and ec: nomy in labor ‘arriers now operating on the Great Lakes. Runt “a Their u e also makes it easier to Keep hign grade men the full length of the dock is a stock yard, 268 ft wide n the filling job, it is asserted. ae from pier to the shear legs of an ore bridge, the bridge There are two scale cars of the single hopper typ pier being incorporated in the dock design. The ore with weight recorder and with air brakes and air- L tune rs a4 loors 7 >t ils } f rnisned by the AS bridge is of the combined unloader and stocking type. operat i doors. They al were furnished by the Atla ‘ e ; Ren at ’ fo h(n It was furnished by the Mead-Morrison Mfg. Co., Ea Car & Mfg. Co. ’ . nnn Thea ft meline 145 #3 “ oth af tha o " Boston, Mass., and is of the man-trolley design, operat- The skip incline, 145 in length, is of the cant — Pd noe ERNE Rai Prog my tel I Eee oe eae ae 27 THE Lype, ipported by an A-frame I removed from t furnace shell. The re oO ne Db f ire operated Dy al en single drut hoist engine controlled is¢ The bel p dly supported r ( depende! he skip incline. A { ad I I onstruction is that an A I 1 occur, 1d not tnrow it of their proper alinement The bells are rate [ steam cylinder in tl SKip | st house, I I he us ’f the riginal furnace proper, only the I i t shell anda retained. Prior to the remodeling, 7 ft. 8% in. high with a 19-ft. 4%4-in ( Stat ne | rt has been in x4 ft s in. by providing a dome top o1 } ind the bosh has been increased to he result tl I olumetric capacit eased by approximate 2000 cu. ft. The ¢ VY D) eight tuyere equally paced De tween the eight column A larger bustle pipe and hot ) ection have been provided. The hearth jacket fr built up construction, composed of a steel plate ned with 14 cast iron cooling segments with me ntegrally cast The tuver iacket cor IRON AGE January 28, 192: The Furnac: Blown by E Tuyeres Sp Between Eig! Columns. A | er bustle pips a feature of ti new construct The tuyere ja consists of a steel plate arn with openings f tuyeres and c ing plates. Th hearth jacket of built up ec struction, posed of a ste plate jacket lined with 14 cast iro? cooling segment with cooling pip: integrally ca con with The bosh construction is reinforced by five steel bands securely held in place by cast iron supports. For cooling the bosh 226 cooling plates, inserted in cast iron boxes, are provided, but no cooling has been provided above the mantle The cinder from the i notch plate the tuyeres and cooling plates. sists of a solid steel armol openings [or notch is located 53 deg. iron The top construction is of the double bell arrangement, incorporating a McKee revolving distributer. The lining is of Olive Hill brick, furnished by the General Refrac- tories Co., Philadelphia. The original layout of cast house has been retained with parallel iron and cinder tracks on the one side and a track for removal of dust catcher dust on the other Iron is run to track and trans- machine for casting. Slag is run into cinder cars and is sold and delivered hot to the Buffalo Slag Co Blast for the heated by six of eight original 18-ft. x 80-ft. two-pass side combustion stoves, each having a heating surface of approximately 32,000 sq. ft. These stoves have been recently equipped wit! Steinbart pressure burners. ladles on the nearer ported to the pig casting furnace is The furnace has been provided with two new steeple-type efftakes, each provided with Baer safety bleeders. From the top of the offtakes, extend to the The gas system has been completely revamped. two downtakes » January 28, 1926 THE IRON AGE 271 new dust catcher. Water seals are provided, and tions have been made in the gas main system crease the resistance to the greater rate of gas flov and to increase the flexibility of the system. alilera Heat Exchanger Removes Moisture from Gas Gas for both stoves and boilers is cleaned by a 14-ft Brassert gas washing unit. A heat exchanger in rated in this design passes the hot raw gases in pipe counter-current to the cold clean gas. A _ portio: the heat is thereby transferred to the washed gas, increasing its sensible heat and raising its temperature above the dew point, thereby overcoming the detri mental effect of moisture at the gas burners. Th« overflow water from the washer is led in an open trench to a 40-ft. Dorr thickener, where the flue dust is removed and the water clarified before it is wasted to the Niagara River. The sludge obtained from th« Dorr thickener, containing approximately 55 per cent moisture, is pumped to an Oliver continuous filter, where the moisture content is reduced to 25 per cent The filter cake thus obtained is discharged to railroad cars. The original power and blowing equipment was suit ably rebuilt to meet the more exacting needs of the new furnace. Steam is produced by eight Babcock & Wilcox longitudinal drum boilers fired by blast furnace gas. Blast for the furnace is furnished by five reciprocating blowing engines with a combined capacity of 80,000 cu. ft. per min. In planning plant equipment steam rather than electrical drives have been given the pref erence and, as a result, a material reduction in the electrical demand is obtained. Under normal operating conditions power is purchased from the Tonawanda Power Co., but the plant is prepared to generate its own in case of an emergency, by use of an existing engine-driven generator. As the power purchased 1s 1400-volt 25-cycle alternating current, a new 500-kw. Allis-Chalmers motor generator set has been provided for the direct current loads. The original water system consisted of pumps at the power house, which drew from a well in the power house basement. The well was supplied by a gravity intake extending from the dock front through the ore yard to the power house. To safeguard the water supply, a new gravity intake has been provided, extend- ing from the north end of the plant and clear of the ore yard. A new turbine-driven, centrifugal, service water pump has also been installed. The furnace bosh water is reused for the gas washer water supply. The steam piping has been completely changed. Considerable old piping was removed and simpler lines and connections were provided. Duplicate leads have been installed at certain points. This work was done to eliminate condensation and loss, and to increase plant safety. The remodeling has permitted a material reduction in the number of men required for operation of the plant, besides augmenting the tonnage output. The Freyn Engineering Co., Chicago, had charge of the design and construction. The furnace was blown in Nov. 1, 1924. Robert McClurkin is general superinten- dent. Manufacturing Hazards and Profits Deficits Shown Each Year by 35 to 40 Per Cent of Industrial Companies—Saved Only by Variability of Adversity ETWEEN 35 and 40 per cent of the manufac- turers of this country showed deficits in the years 1920 to 1923, said Charles Piez, president Illinois Manufacturers’ Association and chairman Link- Belt Co., Chicago, in a statement before the Interstate Commerce Commission, Jan. 15. The great hazards of manufacturing were emphasized by him to indicate the danger of radical changes in the existing rate struc ture, which is now the subject of an investigation by the commission. Net earnings of industry for four years averaged 6 per cent, as against 4.50 per cent for 61 railroads, but, says Mr. Piez, considering the greater hazards in industry, its lesser stability and higher mortality, the difference is no greater than it should be. One of the popular fallacies of the day, according to Mr. Piez, is that all manufacturing is so profitable that the imposition of additional burdens is but an equitable process of reducing excessive profits. Mr. Piez’s statement is, in part, as follows: “Manufacturing is an extremely hazardous under- taking with a high percentage of mortality. It is sub- ject to many vicissitudes, usually brought about by conditions over which the manufacturer has no control. “Let us refer to the condition in the textile indus- tries due to the changes in fashion of women’s attire, to the shrinkage in leather manufacture due to the supplanting of high shoes with low, and the substitu- tion of fabric for leather. The introduction of the radio almost wiped out the demand for victrolas, the develop- ment of the cotton mills of the South brought heavy losses to the cotton industry of New England. The excessive development of the facilities of certain in- dustries demanded by the war has resulted in heavy losses to these industries since. “The loss from shrinkage in inventory values is a constant menace to that large group of manufac turers who are compelled to manufacture in advance of actual sales. “But the hazard to the manufactu