The Iron Age 1926-06-03: Vol 117 Iss 22

* 926 Turn to the orange-bordered page for the convenient News Summary. HE IRON ACE qumsnnnnnnnnnsonseesteestSUDEEEEEONEDNRONDUNDUNUUNDNSDUDNOUEGHNNEOTRONOONONOOEDOONNCOEEDNOLERIANEEEDESUEGUENUNDIEDESOUSULGUEDOSOUEDENONEOEDONSUEDUSUEAOUSONONEDUNONEOERONSUEOUSOUSONSUNOUOOUCOUSONGONGOEREGUUSOUEONUORURUOSUUSUNUSONCOELONOEOUSOEOOESORAOENOOONGAEDUSSUNDUCONCHSONENECOEOUEANOUEDESUEDUNONCHECOEUONERONORESUONOONORD aed Weeki NEW YORK, N. Y., JUNE 3, 1926 ___ Single Copy, 25 Cents Published |} y Entered as second-class matter June 18, 1879, at Post Office Six Dollars a Year in U. S. Vol. 117, No. 22 at New York under the Act of March 3, 1879 Canada $8.50; Foreign $12 qunnnnnnnnnseesteTETUELELEEEDELELANUOUEOUEEREREOEGUUGEUEDOUEDDNROOEGOENOONGUONOOEROUOROUEOOEOEEEDOUGUUEDUCUSUEEOUSSOEGUOCSOUODUCEONCDONOOUGODESAENEONEDUCHUEENECAHEONOERN: UDEEUEGOUGEGUEGUEGASESGGAGAEGORCAOOAeAReaRadeapeneeoeds CONUONO SCO ONO SRO NUEnOOEasEaeansoeeES THE IRON June 3, 199% In determining the type of by-product oven to be built, the iron and steel company must consider not only present requirements of coke and gas, but possible future require- ments, especially the amount of gas that will be required. THE BECKER TYPE COMBINATION COKE AND GAS OVEN which can be heated with coke oven gas, producer gas, blast furnace gas or blue water gas, is designed to take care of present and future demands for gas. That the iron and steel industry recognizes the advantages of this oven is demonstrated by the fact that virtually all of the by-prod- uct ovens contracted for in the past three years have been of this design. eK eppers rs Company | Pittsbur Penna. sel ry THE IRON AGE New York, June 3, 1926 ESTABLISHED 1855 VOL. 117, No. 22 Teaching Foundry Practice Plea for Cooperation Between Foundry Managers and the Schools—Survey of Subjects Proposed BY C. EARNILL* Y failure to encourage the college student to enter B the foundry, an important human field is being neglected by foundry managers. Few engineers are thoroughly familiar with foundry work and few can speak intelligently of practical or technical foun- dry problems. Foundry work does not appeal to the college grad- uate, because of the unpleasant surroundings which often there exist and because of the small compensation of- fered during the first few years. In other branches of work he usually can obtain cleaner work with greater compensation at the start and, therefore, overlooks the fact that, later, he will be one of too many in his chosen branch of work and meeting with keen com- petition. For years the foundry has been looked upon as a necessary nuisance carried along with a machine plant. Too often it has been considered as a department re- quiring no skilled labor. Such ideas have created con- ditions which cause great losses. The present difficulty in securing skilled help is a result of these primitive ideas. A more technical control of the smaller foun- dries is necessary, that they may compete with the larger manufacturing companies equipped with modern laboratories. Foundry Lags in Scientific Advance S it not true that the foundry is far behind other branches of industry in scientific improvement and advancement? There are numerous unsolved prob- lems awaiting investigation and research in this field. As a delegate at the International Conference of Foun- drymen, held in Paris in 1923, the writer had the op- portunity to visit many large machine plants in Eng- land and France. The leading men in industry there have for years realized the value of having technically trained men in their foundries. To keep this supply sufficient they encourage young men to enter work of this nature. *Department of Mechanical Engineering, University of Illinois, Urbana, IIl. TOLLUOLETORERRGLTOOEDEGRSTEGRGGRROEDALERGENA SHON NUDLGEGAL TOUSONANSEMDANAOMRESPRE ET ALAEEL ALLEN ADEN LES SURRENPEA PNA SUONA ELA EMANATE SHDN LAMAN GYM I noted with interest the manner in which such a well known man as Sir Robert Hadfield conducted us through the foundries of Hadfields, Ltd., Sheffield, England, and explained the entire operation in detail. How many executives of our great organizations can do the same thing? It is surprising that so little attention is given, by the majority of our universities and colleges, to foun- dry instruction of engineering students. On June 30, 1925, there were 366 such institutions listed by recog- nized accrediting agencies throughout the United States. Out of these, to my knowledge, only 39 give instruction in foundry and pattern work. Many en- gineering students graduate from these institutions with only a general knowledge of foundry science, lim- ited by the short period the student is required to spend in a shop course. - Practical Application Essential T is essential not to lose sight of the value of prac- tical shop training for an engineering student. What would science mean to him if he did not know how to apply it? Is it not true that many graduates expect a “white-collar” job after they have spent four or five years in college? The number of students graduating each year would constitute a vast army of non-producers for our industry to support, if they were not taught that the way to success is through hard, practical work. Our institutions of learning should not be a breathing place for a mahogany armchair en- gineer, but a place where the student is taught to be- come a producer of high order. The University of Illinois conducts its shop labora- tories, including instruction in heat treatment, machine, pattern and foundry work, on a strictly manufactur- ing basis. A two-cylinder, marine type, gas engine is the standard product. The students conduct the work throughout the departments. They deal with those practical problems which occur in a manufacturing plant. Each mechanical engineering student spends 8 hr. a week in the foundry laboratory during the aca- 1 aT Halt Oh 4) .of DUDA Au DENN AAO UREA LED SUPRA AANA HAT the foundry is lagging in adoption of scientific methods—that close cooperation should exist between the foundry and those schools teaching the elements of fowndry prac- tice—that definite measures should be taken in lifting the foundry into line with other pro- ductive industries, in its appeal to men of college caliber, so that their continuing efforts may have the natural effect of producing steady technical lines. These form the thesis of the article here MMA eh NNN MSE ONANRC MENEAME LSS 1a development of the foundry industry along presented. SLVOYOMARUDENSEUGLLA 404240144400 QNNSDOOERLSOLLUELY (400004005) MARSA PANT ALANNA ASS 1573 1574 demic year and performs manual as well as executive work. Some leading electrical firms, cooperating with the technical institutions, are conducting conferences for engineering teachers during the summer. These firms appreciate the advantage of being in close contact with the schools and realize the importance of cooperation between schools and industry. Many firms employ en- gineering students during their vacations and the schools try.to secure summer employment for their en- gineering students, so that they may gain some prac- tical experience. Few foundries are cooperating with the schools to this effect. To Make Technical Foundrymen E cannot expect to get expert foundrymen from any college or university, but we can direct tech- nically trained men into -the foundry and make foun- drymen of them. The problem of scientific and mod- ern control of the foundry is a big problem. But if the technical institutions and the foundrymen realized the importance of having a sufficient supply of tech- nically trained foundrymen on hand in the future, this problem would become of minor importance. The American Foundrymen’s Association has ac- complished a great and important work by standard- ization in various branches within its field. The first attempt of having a “get-together” of instructors in foundry work was made last year at its Syracuse con- vention. The writer is looking forward to closer co- operation among foundry instructors through this yearly opportunity of meeting and discussing duties toward students and toward the foundry industry. Would it not be possible for a committee of foundrymen and foundry instructors to co- operate with the institutions teaching this type of work and to formulate standardized instruc- tion in it? The instruction should be of such a nature that the students would become trained in the more important features and thus absorb a sound fundamental knowl- edge of foundry work. Such a committee could un- doubtedly have great influence on the instruction given in high schools where foundry work is given as a manual course. The instruction in the high schools could be arranged as a preliminary training to that given in the engineering schools. The majority of students taking foundry work in high schools will not follow this work through life. However, if this work is a part of their training, there seems no reason why stand- ardized instruction should not be given. In making out a schedule of standardized instruc- tion it may be well to begin in the high schools. In preparing the form of standardization too much stress should not be put upon actual skilled labor, such as teaching the students to produce perfect molds. The schools cannot expect their students to compete with the skilled mechanic. What Should Be Taught ECHNICAL and administrative phases of the foun- dry should be taught, such as foundry chemistry, metallurgy, metallography, sand testing, scientific man- agement, control of production, time study and dis- patching. Actual skill cannot be obtained from any college or university course, but a student who grad- uates from a course in foundry work should have a fundamental knowledge sufficient to enable him, in a few years of practical work, to do more important work in the foundry. A variation in the kind of instruction given in dif- ferent parts of the country would be necessary. In- struction in an automobile center should be somewhat different from that given in a pipe manufacturing cen- ter. Standardized instruction can harm no student and, even if the majority of students do not receive direct benefit, the students who intend to follow the foundry business should profit from it. Likewise, the foundry business must be benefited. Following is a list of foundry problems and phases which should be taken into consideration by a commit- THE IRON AGE June 3, 1926 tee making up a form for a standardized course in foun- dry instruction: 1.—Molding sand testing; 2.—Chemical. analysis of cast iron; 3.-—Brinell hardness test; 4 Scieroscopic hardness test; strength of cast iron test; 6.—Microscopic examination of cast iron; 7.—Study of the formation of crystals in cast iron ; 8.—Making a standard test bar; 9.—Shatter coke test and standard analysis ; 10.—Pyrometer reading and control of pouring temperatures ; 11.—Recording thermometer in connection with control of core oven temperatures ; 12.—Effects of the elements on each other and on cast iron; 13.—Changes taking place during melting in a cupola ; 5.—Transverse method of 14.—Making up mixtures by analysis; 15.—Changing the mixture in the cupola during its operation; 16.—Mixing non-ferrous metals; 17.—Study of the non-ferrous elements, effect on each other and on the mixture; 18.—The effect on the non-ferrous metals by ad- dition of Cu Sn, Zn, Pb, Ni and Al; 19.—Calculating the capacity of large ladles; 20.—Estimate weight of castings from blue prints; 21.—Calculate the ferrostatic pressure ; 22.—The technic of risers and gating; 23.—Defective castings, causes and remedies; 24.—Fluxes for ferrous and non-ferrous metals; 25.—Safety inforcements, necessity of goggles, molders’ shoes, leggings and safety bulletins; 26.—Principles of foundry management operation ; 27.—Time study and dispatching; 28.—Making up core sand mixtures; 29.—Various kinds of core binders and usage ; 30.—A study of time required for baking cores; 31.—The construction of a core oven; 32.—Blast furnace operation; 33.—Air furnace operation; 34.—Non-ferrous furnace operation; 35.—Bessemer converter operation; 36.—Cupola operation ; 37.—Electric furnace operation; 38.—Le¢tures on the various types of foundries and the difference in the operation of a steel, gray iron, brass, aluminum and malleable foundry. These are but suggestive of the many problems that a foundry executive is dealing with every day, and it seems that problems of this kind should be taught to engineering students. Undoubtedly, it will be impossible to cover all of this in the short period of time the average student spends in a foundry course. However, if a committee could arrange to cooperate with the high schools and preparatory schools, much elementary work could be covered before the student enters college or university. More time then could be devoted to the higher studies during his college training. It is surprising that a number of foundry courses are given under the supervision of departments such as chemistry or electrical engineering. It would seem far more satisfactory if these courses were given in con- nection with the mechanical engineering department, where other shop courses generally are given. The importance of teaching a course that is up to date and true to modern manufacturing conditions should be the aim of our schools. That, of course, would mean that obsolete equipment, now most exten- sively used, should be condemned and modern ma- chinery installed in its place. It is not possible to in- struct engineering students in up-to-date methods through the use of old and obsolete equipment. their and their United States exports of agricultural implements amounted in April to $8,572,687, according to figures of the Department of Commerce. This was an increase of more than 7 per cent above the $7,939,597 of March and of more than 9 per cent above the $7,845,474 of April last year. a eS we eS Mill Competition Hurts Jobbers | Steel Warehouse Men at Atlantic City Convention Decide to Formulate Code of Practice to Remedy Situation steel jobbers consider to be legitimate warehouse business was held responsible, in part at least, for present unsatisfactory conditions in the distri- bution of steel products out of stock, when members of the American Iron, Steel and Heavy Hardware As- sociation discussed the subject at their annual meeting on May 24, 25 and 26, at Atlantic City, N. J. The topic came up again and again in various re- ports and discussions. It was emphasized in the fol- lowing statement by Andrew Wheeler, president of Morris Wheeler & Co., Philadelphia, chairman of the association’s iron and steel committee: “Many of the heavier or more desirable warehouse orders have been taken by the mills—that is, for direct shipment to customers. So much so, that in frequent cases, customers who were formerly warehouse buyers have learned that they can obtain their requirements for moderate sized lots from the mills at the regular mill price. This has had a most unfortunate effect on steel warehousing, and it is hoped that something may be worked out with the manufacturers so that orders of 1 to 5 tons, or even less than carload lots, should find their way through some warehouse instead of going direct to the mills at the regular carload price, which has been the case for some time past.” It was also stated by Mr. Wheeler that his commit- tee has held conferences with many of the steel com- panies with a view to working out a line of demarcation between proper mill business and proper warehouse business. One of the larger steel companies, he said, has made, as a result of conferences with the com- mittee, an exhaustive study of the cost of handling small orders by the mill. Mr. Wheeler said that ideal conditions prevail in the pipe trade, where the mills confine their sales to large consumers and all other orders are filled from jobbers’ stocks. Mr. Wheeler admitted that jobbers have sometimes reached out for what are properly mill orders, but said that this is not done to the extent that mills reach out for small orders that he believed should go to a warehouse. Other points stressed by the speaker as having made competition more difficult for the steel warehouse are price cutting by “small, irresponsible competitors” and importations of steel at prices below costs of do- mestic steel. Increasing demand for bars and other Mss competition for the smaller orders which ' UDEUUATOUNLETEUAEEGUEO ATER EA DASE DAMR AENEAN UA products cut to special lengths instead of regular stock lengths was commented upon. Association to Formulate Code of Practice A sub-committee on relations with the structural industry brought in a report recommending that the association adopt a code of practice, and after consid- erable discussion this committee was continued in office and authorized to draft such a code to be presented to the next convention. T. J. Foster, chairman of the board, National Bridge Works, Long Island City, N. Y., who is chairman of this committee, said in his report that the policy of some mills of supplying anyone from mill stocks at the reg- ular or about the regular mill price “cannot logically be defended.” He said that unless the mill charges a sufficient price for all material delivered from mill warehouse “it is cheating its stockholders as well as giving away something to one customer to the detri- ment of its warehouse customers.” The best method, he said, would be for the mill to take no small orders, but to know that it received its proportionate share of the business of the warehouses. “In addition to teaching consumers to carry their own stock, the mills have opened some warehouses of their own,” said Mr. Foster. “The independent ware- house must therefore sell at the same price as the mill warehouse. * * * * As both the warehouse and the mill have been undergoing changing conditions, it is only natural that bad practices should have grown up, and it is impossible for one warehouse or one mill to put an end to bad practices; it must be done in concert, and it must be apparent to anyone who has the slight- est acquaintance with the business that a study of the conditions would reveal that both the warehouses and the mills are guilty of practices that are injurious to the industry. If this is true, then these practices should be studied and an attempt made to eliminate them. The method of doing business as might be outlined by a committee appointed to make this study would be a code of practice, and if this was reasonable, it should be recognized by all of the mills and all of the warehouses trying to do business in a way considered safe and wise by the majority. You have gone a long way toward rectifying abuses if you can segregate them and point to the companies permitting abuses. IUSNUDULIUREIEEADUALIESEAELTUAEEOT SEU EAAT EONS ETAT ANNAN STON RAUNT AG NET RRASENN NANG dh, Outstanding Features of Meeting of Steel Warehouse Men American Iron, Steel and Heavy Hardware Association decides to formulate Code of Practice as a means of establishing line of demarcation between proper mill business and proper warehouse business; also as a means to “get its own house in order.” Sherman law assailed by speaker as an “economic absurdity” and suggestion is made that agreements between producers and consumers should be permitted. Recent series of articles on steel frame houses published in THE IRON AGE com- mented upon, and steel jobbers are told this is a profitable field for development. Bolt and nut industry reported as showing improvement and price stability. Some railroads have been induced to give up making their own bolts and nuts. Market prophecies held by president of the association to be “pointless and mere guesses.” NNN ‘YVLUEQUONAOEOOECONOOOUUNUUEHHTNNRgNONERGNNAGNAGYOVOOGaasodnunusvaabtauononnoqanvasgarneen ertereagnngnsnngvststsutevgcrosugneareaneresanstsins¢9040i0040000N90Q0000QUEUGMNPEUOUOUYYUMUELN AUQQULOUUONOLUOUCYUOUUCUOLGSUUUEEULUNEEEEOPERONRENLOGAAGONU400044000000090009Q00000 0000000000 PO UOEOOUOO UULUGUUHORUOETQOTUUREONRNRRBPRRSEECTeTEOC En EEUNEPLE}} E0220 (0 1575 1576 At present there is no standard by which any man’s method may be gaged.” Conditions in Cold Finished Steel Trade Some makers of cold finished steel bars and shaft- ing are competing seriously with the warehouses for small-lot orders, according to a report submitted by the chairman of the cold finished steel committee, A. J. Lockwood, of Edgar T. Ward’s Sons Co., Newark, N. J. Mr. Lockwood said that more cold finished steel can be made with existing facilities than can be sold. The mills do not want small orders, he said, but are obliged to take them. He suggested that an effort be made to induce the mills to charge an extra for small quanti- ties, such as $5 a ton up to 10,000 lb. and $2 a ton from 10,000 to 24,000 Ib. Bolts, nuts and rivets are also particularly subject to strong mill competition, said W. E. Hansen, Hansen & York Co., New York, chairman of the bolt and nut committee. One company was singled out as having been particularly aggressive in this particular, although it was said that others also are taking small orders at prices below those at which warehouses can profitably sell. Mr. Hansen mentioned an export order for bolts, amounting only to $18, which his firm lost to a manu- facturer because of a lower net price. In a discussion of this subject it was pointed out that the twist drill manufacturers, against whom com- plaints had at one time been registered, had “cleaned house” and that the method of quoting prices they have adopted, if followed by manufacturers in other lines, would afford a solution of much of the competition from manufacturers that the jobbers now contend with. The twist drill manufacturers, it was explained, have a schedule of discounts divided into four classifications, A, B, C and D. Distributers come under the A classi- fication, which gives the highest discounts, while large consumers get the B discounts and the C and D sched- ules are for smaller consumers, rated according to the volume of their purchases. G. K. Conant, St. Louis, Elected President The association elected as its new president, G. K. Conant, Sligo Iron Store Co., St. Louis, who succeeds G. M. Congdon, Congdon & Carpenter Co., Providence, R. I. E. McK. Froment, of Froment & Co., New York, was elected first vice-president, and H. A. Sadler, Sioux City Iron Co., Sioux City, Iowa, became second vice- president. The executive committee, as elected, consists of C. C. Dodge, George F. Blake, Jr., & Co., Worcester, Mass.; A. J. Lockwood, Edgar T. Ward’s Sons Co., New- ark, N. J.; F. J. McNeive, W. F. Potts Sons Co., Phila- delphia; A. J. Bragg, Egleston Brothers & Co., New York; L. C. Davenport, Weed & Co., Buffalo; R. H. Sanderson, E. P. Sanderson Co., Boston. A few months ago the executive committee of the association selected Benjamin R. Sackett as secretary, with T. James Fern- ley and George A. Fernley, Philadelphia, as advisory counsel. A committee appointed at the Detroit convention a year ago to select a new name for the association rec- ommended the American Steel Warehouse Association, and after considerable discussion this name was adopted by a large majority, but the action later was rescinded in order to give all of the members a chance to vote. The secretary was instructed to take a refer- endum by mail. Market Prophecies Pointless, Says President President Congdon, in his opening address, discussed business conditions, but refrained from making any prophecies, saying that such prognostications are “pointless and merely guesses.” In this connection, he added: “I remember going to a luncheon in New York two or three years ago where addresses were delivered by the president of one of our large steel companies and by one of the editors of THE IRON AGE. One of these gentlemen stated it as his firm conviction that steel would be selling at $4 to $5 a ton more than the then going price within three months and that the in- dustry was in for a period of very marked prosperity. THE IRON AGE June 3, 1926 The other gentleman took exception to this prophecy and gave his reasons for differing. What happened? The steel companies all announced raises in prices to take effect the following quarter. Everyone jumped into the market and bought more steel than they could use; they couldn’t take up their contracts, the mills lost the short-lived backlog of orders that had been built up, and the market sagged off until within a compara- tively short time we were way below the point at which the boom started. A very similar condition arose in the market a year ago last winter. We were all told that steel bars would cost us 2.10c. in the second quarter; many companies bought beyond their requirements, history repeated it- self, and before many months had elapsed the market was weak at 1.90c. By the first of this year it had gradually worked itself back to 2c., where it remained during the whole first quarter. “Personally I am glad the mills refrained this year from making their annual ‘ballyhoo’ about higher prices. The country was in no mood to pay higher prices; the mills evidently sensed that fact and decided to let well enough alone. Of course the whole thing in a nutshell is that we have a material over-capacity of steel pro- duction, so that when the mills are producing anywhere near 100 per cent they are making an amount of steel far in excess of the demand. It seems to me that this is being generally recognized now and the effect is salu- tary.” Steel for Dwellings Discussed T. J. Foster, National Bridge Works, pointed out to the members the opportunity open to them to act as distributers for steel frames for residence construction. “Is there a demand for better buildings,” he asked, “and, if so, how does it interest the steel warehouse? THE IRON AGE realized that there was a demand, made an investigation of the subject, and recently printed five articles on the better building of residences.” This type of construction, Mr. Foster pointed out, needs a warehouse in each community. “We are in the infancy of a new type of building using non-combustible mate- rials,” he added, “and someone must furnish the ex- perts for designing and furnishing the materials of construction. You (owners of steel warehouses) should occupy this field. It is worth investigating.” Sherman Law Assailed “There isn’t an economist in the world who doubts the stupidity of ‘the Sherman law,” said Felix H. Levy, former counsel to the Department of Justice, in an address on “Competition and Cooperation.” Mr. Levy advocated an amendment to the Sherman law permit- ting agreements between producers and consumers as to prices. He pointed to the insufficiency of profits in many lines of industry, and said that members of a group of distributers who pleaded guilty to an agree- ment as to prices in violation of the anti-trust laws could show profits of only 2 per cent on invested cap- ital. Major A. E. Foote of the Division of Simplified Practice, Department of Commerce, illustrated by a series of lantern slides the work which that bureau has done. J. J. Hill, Jr., Edgar T. Ward’s Sons Co., Newark, N. J., told how his company cuts down the overhead in the accounting department. W. E. Bitten- bender, Bittenbender Co., Scranton, Pa., showed by means of figures how profits often decrease as volume increases. I. L. Jennings, secretary and general man- ager Lamsen & Sessions Co., Cleveland, bolt and nut manufacturer, reported improving conditions in that industry. Price stability, he said, has been maintained for more than a year and the demand is increasing. Some of the railroads have been shown, Mr. Jennings said, that they can buy bolts and nuts cheaper than they can make them, and three or four have already discontinued the making of their own bolts and nuts. G. A. O’Rielly, Irving Bank, Columbia Trust Co., New York, delivered a talk entitled “The Trend of the Times.” The report of the secretary, Benjamin R. Sackett, dealt in detail with the work of the association office during the past year. June 3, 1926 NEW ACID-RESISTING ALLOY Pioneer Metal Contains Nickel Chromium, Molybdenum and Iron Interesting development work in the production of an acid-resisting ferrous alloy containing nickel, chromium and molybdenum has been conducted by the Pioneer Alloy Products Co., Inc., Cleveland. The Pioneer company controls patents on the metal, which, it is stated, will resist practically all corrosive liquids used in the chemical industry, except possibly hydro- chloric acid. It has been introduced, for example, as the material of valves, cocks, pump parts and pipe fittings in the petroleum and chemical industries. The alloy is composed of approximately 35 per cent nickel, 25 per cent chromium and up to 5 per cent molybdenum. The remainder is practically all iron from Armco iron crop ends from 4 x 4-in. slabs, used because of purity and low-carbon content. Zirconium ferrosilicon to the amount of approximately % per cent is added as a deoxidizer. The zirconium fluxes off and the silicon stays in the metal. The carbon content of the alloy ranges usually from 0.20 to 0.30 per cent, although occasionally it is desirable to run it up to 0.50 per cent. The alloy has a tensile strength of 74,000 lb. per sq. in. in the cast condition. In forg- ings it shows a tensile strength of 110,000 lb. Pioneer metal is produced in a 500-lb., 3-phase basic lined electric furnace of the Moore type, built by the Pittsburgh Electric Furnace Corporation. The iron and nickel are first charged in the furnace, the former directly under the electrodes and the nickel on the out- side, and as the iron melts the nickel comes into the bath. After the iron and nickel are fused, the other metals are added. Starting with a cold furnace it takes 4 hr. to bring the metal up to 3000 deg. Fahr., at which temperature it is taken from the furnace. After about 75 per cent of the metal is drawn off, a new charge is put in consisting of gates and sprues and as much new metal as may be required to fill the furnace to capacity. By following the practice of pouring only 75 per cent of the heat, there is always molten metal under the electrodes to keep the contact between the metal and the electrodes. After the first heat in the morning, another heat is taken off every 2 hr. All the metal is taken from the furnace when the last heat is poured at night. The metal is poured in 100 to 150-lb. ladles at a temperature of 2900 deg. It cools very rapidly and consequently has to be poured quickly. Various difficulties were encountered in casting this Onin WHlt UE THE IRON AGE 1577 metal, but these are said to have been overcome. At first magnesite sand was used for the molds, providing a basic mold so that there would be no chemical or other reaction, but the production cost of castings was found to be too high to be practical and silica sand molds were substituted. The molds are baked from 6 to 14 hr., depending on their size, to take out the moisture, in a special oil-fired oven of the coke oven type. Large risers are required for heavy castings. In casting ingots, 55 per cent of the metal goes into the mold and the remaining 45 per cent forms the head containing the impurities and pipe. Chills have been used in making castings from this metal, but with varying success because, if they are used, the metal has to be poured while the molds are still warm. If the molds are left on the floor for any length of time they absorb moisture, causing the metal to blow when pouring, if chills are used. If chills are to remain in the castings, they have to be of the same metal. Other metal has been used for chills, but it has been found that, if the chills are of any size, they do not adhere to the molten metal. The shrinkage of the metal is about %-in. per ft. or practically the same as in cast steel. Announces an International Conference on Coal An international conference on coal will be held at the Carnegie Institute of Technology in Pittsburgh the end of November, 1926, according to an announce- ment of plans now being devised by Dr. Thomas S. Baker, president of the institution. The fundamental idea of the meeting, it is announced, is the discussion of new uses of bituminous coal. Several prominent scientists of Germany, France and England have been, or will be invited to participate in the discussions. Some of ‘the topics that are now receiving consid- eration for discussion during the conference are the low temperature carbonization of coal, generation of power at the mines, domestic use of coke, and water power vs. coal energy. Abandoning Paxton Furnaces Dismantling of the two Paxton furnaces of the Cen- tral Iron & Steel Co., Harrisburg, Pa., was decided on recently and is now under way. No. 1 furnace was built in 1855 and rebuilt in 1886. No. 2 furnace was built in 1872, remodeled in 1917 and relined in 1919. Hailed as Dawn of a New Era in Transportation - JEW 100-tun oil-elec- tric locomotive on the Long Island Rail- road. This self-con- tained power unit is so easy to operate that a steam or electric driver can learn to manipulate it within a few hours. Its internal combustion engine, using low-priced fuel oil, drives an elec- tric generator furnish- ing power to motors geared to the driving wheel axles. Hauling a loaded freight train 537 miles, without tak- ing on additional fuel or water, the total cost of fuel and lubricating oil was $26.15. 4 TTL LULU LULL LEGER PLAUEUUOOLAULEAOOOOADENUERE ERA UDONTNO SUUUIUOONLETSQNONGROUOUUAOTENENANTALC YUU ELEENOLL AO Evolution in American Industry Great Growth in Machine Power, Drift to Large Corporations, Rise of Industrial Management, Increase of Per Capita Output, and High Buying Power of Workers BY MAGNUS W. ALEXANDER* HAT are the more significant recent changes in the economic environment of industry? Let us look first at population. The population of the world in 1800 was 850,000,000. In 1900 it was twice as large. It took ages to produce the first 850,000,000 persons, but only 100 years to double that number. In the 24 years after 1900 it increased another 153,000,000. In the United States alone, population has been in- creasing at a rapid rate. In 1870 it was 39,000,000; but 30 years later it had almost doubled, reaching 76,000,- 000. Since 1900 the increase has been even more rapid, and for Jan. 1, 1926, the population was estimated as 115,940,000, an increase of over 10% millions since 1920 and of about 40 millions since 1900. Reduced Labor Supply, Increased Power Between 1820 and 1920 over 33,000,000 immigrants came into this country, and in 1920 of every 100 per- sons in the United States 35 were foreign born or of foreign parentage. The limitation of immigration, of course, will do much to curtail the rate of increase. With the damming of the immigrant tide a new and even more striking factor affecting industry has ap- peared. This has been the increased use of power, to offset the restriction of labor supply without diminish- ing production. In 1869, the first year for which power statistics were collected in the United States, the num- ber of horse power available per wage earner in fac- tory, hand and neighborhood industries was 1.14. By 1919 it had increased to 3.26 hp. In 1923 the figure was 3.77 hp. per wage earner and by this time bids fair to be about 4 hp. Production Rate Much Greater, Hours Less During the World War and particularly since its termination, the industries of the United States have gone ahead in introducing machinery, power and effi- cient methods at a high rate, so that if we compare the year 1914 with the year 1923 we find that for the same unit of production there were required in 1923 13 per cent less installed power, 25 per cent fewer wage earn- ers and 17 per cent less management personnel than in 1914. For each wage earner, hours of work were 7 per cent lower in 1923 than in 1914. Improvements in organization and in technical processes, however, re- flecting increased industrial efficiency and a greater amount of installed power placed behind each wage earner permitted a 33 per cent increase in production per wage earner, while at the same time there was an increase of 19 per cent in the cost of managerial super- vision and a 36 per cent increase in the cost of labor. Production Drift to Large Corporations Another significant change in the economic environ- ment of industry has been the marked development of large-scale production and corporately owned estab- lishments. In 1904 1.3 per cent of the total number of manufacturing establishments in the United States were in the class whose value of product was $1,000,- 000 or over. This group employed 26 per cent of the total number of wage earners and contributed 38.5 per cent of the total value of manufactured products. By 1923, 5.3 per cent of the manufacturing establishments *From president’s address at the tenth anniversary meeting of the National Industrial Conference Board in New York, May 20. were in the class with a value of product of $1,000,000 or over per year, but the proportion of the total wage earners in manufacturing that they employed had mounted to 57.1 per cent and the total value of their product to 66.4 per cent. Manufacturing establishments whose value of product was under half a million dollars in the year 1923 comprised nearly 90 per cent of the total number, but employed less than 30 per cent of the wage earners and produced not quite 22.5 per cent of the total value of manufactures. More Workers in Large Plants A similar view of the development of large-scale production is afforded by an examination of establish- ments according to their size. In 1923 only 1.4 per cent of the total number of manufacturing establish- ments employed more than 500 persons each, but this 1.4 per cent of the total establishments employed 38.1 per cent of the total number of wage earners. If to this be added the number of plants employing from 251 to 500 wage earners each, we find that in the class of factories employing more than 251 workers are com- prised 3.4 per cent, of the total number of establish- ments, but 53.3 per cent of the total number of wage earners. Closely intertwined with the growth of large-scale production, and no doubt a contributory factor in its development, is the increase in the influence of corpo- rately owned establishments. In 1904, 23.6 per cent of the manufacturing establishments in the United States were corporately owned, and in 1919 the per- centage was 31.5. But this 31.5 per cent of the manu- facturing establishments produced 86.5 per cent of the total value of manufactured product. Size Not a Menace This development of large-scale production, and its influences in the number of persons dependent upon it for employment and in the share of the product which it céntributes, is no less a significant factor in the changing economic environment of industry than the increasing population. But instead of the trend point- ing toward a decline in the influence of the large plant, the outlook is rather for an increasing growth in this direction. Size alone no longer strikes the American people as a menace and in the development of large-scale pro- duction has been the seed of a new force of industrial organization which is largely responsible for the gains that have been attained, and which is a further impor- tant factor in the changing environment of industry. Manufacture and Mining Far Outrun Agriculture Important also is the trend in production. If we look at the trend of population since the end of the last century and compare with it the three productive ac- tivities which employ the major part of our gainfully occupied population, we find that agriculture has not held its own with population growth. While the phys- ical volume of agriculture has risen 39 per cent be- tween 1919 and 1924, the physical volume of manufac- turing production has risen 162 per cent and of mining production 222 per cent. In few periods of the history of mankind has man had so much to eat, so easily and so cheaply obtained as now. Agriculture, since the be- ginning of the century, has set the world a full table 1578 June 3, 1926 at low prices. Its trend of development since 1919 has been downward, and its whole tendency since the begin- ning of the century has not been in line with other basic production. In this, and the reasons for this con- dition, lies much of the explanation of the present agri- cultural problem in the United States. The greatly increased manufacturing and mining production is a further evidence of the growing drain of our industries on our natural resources, a situation which in itself calls for wise economic planning. Min- ing output per capita, measured in dollars of constant 1914 purchasing value, rose from $12.61 in 1899 to $26.96 in 1924, per capita manufacturing output from $77.34 to $134.28, whereas per capita agricultural out- put declined from $69.55 to $64.13. This unequal balance between agriculture and other basic production has created a problem which is well deserving of the attention of industrial executives. In- dustry cannot for long exist on a prosperous basis with agriculture in the position in which it finds itself. Our agriculture exercises normally a purchasing power of 10 billion dollars annually for goods and services pro- duced by others; it purchases about one-tenth of the value of manufactured goods produced; it supplies ma- terial upon which depend industries giving employment to over half of our industrial workers; it supplies about one-eighth of the total tonnage of freight carried by our railroads, about one-half of our exports, and pays about one-fifth of the total cost of government. Marked Rise of Industrial Management Then, there is a wholly new force in our industrial organization. This is the rise of industrial manage- ment as a dominant influence in the integration of in- dustrial processes and the efficient operation of indus- try. The development of industrial management is a separate entity and may indeed be referred to as one of the silent revolutions within modern industry. This development of management as a new force has brought with it a different attitude of mind and a new spirit. It has emphasized more than ever the re- sponsibility of the employer to employees and the com- munity. It has helped to do away with the deplorable class spirit, all too evident in the industry of the past, and to introduce a human as well as a more scientific attitude into industry. Significant Changes in Exports and Imports Our emergence as the leading manufacturing nation has given us a certain place in the world economic or- ganization which in turn has affected our environment and reacted upon our industries and people. In the last few years we have been buying goods from other nations to the extent of about $3,755,000,000 a year and in turn have been selling them goods at an average of about $5,035,000,000 a year. An examination of the export trade shows a fairly steady decline in crude materials for manufacturing and of foodstuffs, and a SH Lene penne neneenernene cee eecaneneepaee ee, president. steel company. Electric Co. M. W. ALEXANDER THE IRON AGE 1579 corresponding increase in partly and wholly manufac- tured goods. Our import trade has been characterized, on the other hand, by a steady increase in crude materials for manufacturing and a corresponding decline in manu- factured articles. Thus, our exports of crude materials for manufacturing which averaged well over 60 per cent of all of our exports between 1820 and 1870 have averaged under 30 per cent since 1900, while semi- manufactured and other manufactured goods, which between 1820 and 1870 averaged under 15 per cent of the total, have since 1900 comprised about one-half of our total exports. Manufactured goods which from 1820 to 1870 constituted over two-thirds of our total imports have since 1900 averaged under 30 per cent, whereas our crude material imports which prior to 1870 averaged under 20 per cent of the total have since 1900 run at the rate of between 35 per cent and 40 per cent of the total. Control Many Raw Materials, But Exceptions Are Important Due to our fortunate position in natural resources our competitive position is especially strong. No other country is more nearly self-supporting in minerals and in no other country can the mineral raw materials be delivered as a whole more cheaply than in the United States. Yet, while we have within our boundaries 38 per cent of the installed water-power and produce 83 per cent of the world’s automobiles, 38 per cent of its coal, 70 per cent of its petroleum, 54 per cent of its copper, 40 per cent of its lead, 46 per cent of its pig iron, 49 per cent of its steel ingots and castings, 57 per cent of its paper, 53 per cent of its lumber, 55 per cent of its cotton, 25 per cent of its wheat, and 30 per cent of its cereals other than wheat, we are as a nation dependent upon other nations for certain important raw materials or for products essential in the manufacture of goods in which we excel. This dependence on other countries for certain es- sential materials in the face of attempts by certain of the foreign nations to control the supply and hence the price of these has resulted in a head-on collision be- tween economics and politics and confronted certain of our industries with a most serious situation. If the right is accorded to any nation to monopolize either temporarily or permanently the output of a commodity which is dominantly produced within its boundaries, and on which other nations are dependent for their comfort and standard of living, then we must face a situation of economic warfare in which every nation must inevitably suffer and which can bring no satisfac- tory result to any. The controls of Egyptian cotton, of coffee, rubber, potash, nitrates, and other commodities have very prop- OneeeeeNnEDEseeneNDEDeNnEDONUHEDUERRONE SG OUREEDOEDENOUEDEOSDLAIONRURSUDEDONEOORA#UENETOOTERIDONGOCLEAINAEOOADOUTEOUUEDERCURO TIC TIEGOLEOERHONLEDOENDRENND 081 eeneneaee (Concluded on page 1625) AULD OUNNOGNADEDNEDEONELODORSLONELINENLLDEDLOOSDEEGUED I>ENDEOEROEDDELEDINS ELOGEEDEOFEDITOPOOUSROLOGG FOOSEDDAESOLESONDAOSRDEEDEUOASEOS SEDOREEDEDSSCGIIEREEUSSLESLOLES FDUDEGERDEREDIOEDOTTERDOUEQGEINGDONELENINFOLOCHOLOOEINUGULOONOLENESIOUALEOESET IOC OONGEDUSEAUESSONEET IONE’ ORURT LOCUUEEGROOG® S the directing head of the National Industrial Conference Board, Magnus W. Alexander has carried on a work of the highest consequence to the industries of this country in the trying readjustment period following the Armistice. On the organiza- tion of the conference board ten years ago, Mr. Alexander was made managing director. For several years past he has been Mr. Alexander studied engineering in Austrian uni- versities and was engaged as engineer by the largest Austrian For many years he was associated with various electrical concerns in the United States as designer and engineer, his last connection being with the Lynn works of the General Some of his most productive effort was in the pro- motion of advanced methods of industrial education, which he urged most effectively in addresses before employers’ associations and in magazine articles. trial and economic problems. He has written much on modern indus- URED scee APRS ONOESDEPOERBERSDOOEESOLELSERERERDEGE: SOEAEDOUENEDNEEDEDIVANN/ASRENSLDOINOSOONOERESSEERERSLONSREDET SOCOUEDOOASEDE OTL DOLDEONENDEOESIORED ITDURDNG FOU REESEDNAREDODEDLOSOEONEOOHORDEDAESETONS DDLESLOOOSADENODLISAEOTSASTINSDLOSED ORAS DENOERDEAebAOMEHOEEEABEN SL FON+ 6 Machinery Exports Continue Heavy April Shows Largest Movement Since Last August—First Four Months One-Fourth Above Last Year—Imports Also Large WASHINGTON, June 1.—Making a gain of more than $3,500,000, exports of machinery in April were valued at $38,755,467, against $35,241,960, in March, and $33,- 468,086 in April, 1925. There was also a striking increase in exports during the 10 months ended with April, 1926, with a value of $335,139,521, compared with $268,291,559 in the corresponding period of last year. This gain was 25 per cent. Exports of all power-driven metal-working machin- ery in April were valued at $1,479,337, against $1,297,- 616 in March. Exports of this equipment in April of the present year were slightly less in value than in April, 1925, when the value was $1,694,761. There was a large gain, however, during the 10 months ended April, 1926, when exports of this class of machinery were valued at $14,026,896, as against $11,777,165, for the corresponding period ended April, 1925. The in- crease was nearly 20 per cent. Exports of power- driven metal-working machinery listed in THE IRon AGE table numbered 1213 units, valued at $697,714, against 787 units, valued at $620,515, in March. Imports of machinery in April were valued at $1,814,021, against $1,567,912 in March and $1,167,099 in April, 1925. Like the export movement, incoming shipments of machinery during the 10 months ended April, 1926, showed a large increase when compared with the corresponding period of one year ago, the respective values being $12,394,861 and $8,624,951. A gain of 44 per cent was thus recorded. The gains were United States Exports and Imports of Machinery Exports of Metal- Exports of Imports of Working Machinery Machinery Machinery The year 1924... $317,040,424 $9,711,618 $8,644,444 1925 January 952 803,829 845,986 February 5.776 814,703 707,445 ee 2,473 999,237 1,364,930 April 8,086 1,167,099 1,694,761 ee eee 54,865 861,655 1,230,914 PO avdéwn wa ,061 935,487 1,003,325 Fiscal year 5,075 10,404,337 14,011,404 OS a ee 533 905,872 1,188,069 August ,823 747,912 1,308,372 September ...... ,342 956,250 989,379 Pe. c<csévevs 007 996,557 905,826 November ...... ,814 876,113 1,007,376