The Iron Age 1936-06-04: Vol 137 Iss 23

a JUNE 1936 Xx Licensed under Chemical Foundation Patents Nos. 1316817 and 1339378. STAINLESS STEEL PRODUCTS building new sales and bigger profits for their makers. You, too, can take advantage this remarkable stainless and heat-resisting metal the manufacture your products. Write for booklet 156, invaluable text book for every manufacturer making articles stainless steel. Please address Depart- ment IA. epublic OHIO STEEL \ 2—THE IRON AGE, June 1936 PROVIDE EFFICIENT, ECONOMICAL FACILITIES FOR THE SAFE STORAGE From single wardrobe for private office installation requiring thousands lockers, Berger offers complete range units for every requirement! Millions Berloy Lockers and Wardrobes are daily giving highly satisfactory service many, many thousands instal- lations. These efficient Berloy Products are built for lifetime utility. They have every desirable feature, correctly balanced strength, durability, safety and beauty. For factories, schools, offices, clubs, etc., there are types Berloy Lockers and Wardrobes meet every need and furnish every feature desired. These Berloy Products embody half- century metalcraft experience, plus unequalled manufacturing facilities. For accurate and economical planning any kind locker wardrobe installation, ask for the expert services Berloy engineer. There THE BERGER MANUFACTURING CO. CANTON, OHIO DIVISION REPUBLIC STEEL CORPORATION STEEL THE IRON AGE, published every Thursday the CHILTON CO., (INC.), Chestnut Sts., Philadelphia, Pa. November 1932, the Post Office Philadelphia under Act March 1879. $6.00 year S., Canada $8.50, Foreign $12.00. Vol. 137, No. = Berloy Lockers are built for heavy-duty service installa- tions where rough treatment and con- i Stant use are com- mon. They STAND under daily abuse workmen, school children, | ue DOUBLE TIER LOCKER TYPE WARDROBE CABINET .. 1 COMBINATION LOCKER TYPE SINGLE TIER LOCKER TYPE | FRITZ FRANK, President VAN DEVENTER Editor Managing Editor Editor Emeritus Machinery Editor Washington Chicago Cleveland Pittsburgh whers are FRANK OLIVER GERARD FRAZAR McINTosH Detroit Boston Cincinnati rough and con- are com- CHESTNUT AND 56TH STREETS, PHILADELPHIA, Sales Offices daily workmen, 239 WEST 39TH STREET NEW YORK, N. Y. une Sharpen Axe, You Need Grindstone............ Place Electric Furnaces Metallurgical Progress...... } Here, There and Copyright 1936 Chilton Company (Inc. CHILTON COMPANY (Incorporated) BAUR, General Advertising Manager Executive and Publication Offices, DIX, Manager Reader Service Chestnut and 56th Sts., Philadelphia, Pa. Member, Audit Bureau Circulations ADVBRTISING MUSSELMAN, President Emerson Findley, 621 Union Cleveland Indexed the Industrial Arts Index. Herman, 675 Delaware Buffalo, Published every Thursday. Subscrip- FREDERIC C. STEVENS, Vice-President a é H. K. Hottenstein, 802 Otis Bldg.. Chicago gt tion Price: United States and Pos- sessions, Mexico, Cuba, $6.00; Lundberg. Chilton Chestnut GEORGE GRIFFITHS, ada, $8.50, including duty; Foreign 56th Sts.. Pa. EVERIT TERHUNE. $12.00 year. Single copy, cents. 239 39th New York Robinson, 428 Park Pittsburgh ERNEST HASTINGS, Sweetser, 239 West 39th New York Cable Address, ‘‘Ironage, Box 81, Hartford, Conn. WILLIAM BARBER, Treasurer JOHN BLAIR MOFFETT, Secretary 37, No. 23. » | | aa Pug ; speed with which Bethlehem pre- pared handle rush orders for headed and threaded products makes the great ware- house Lebanon Plant practically your own. Here are stocks more than 3500 standard items and many more with or- specialists bolt-and-nut manufacture, and ganization ready leap into action speed reflect the accumulated experience many them their way. years. Prompt service only one the reasons Whatever types fastenings you may re- why users bolts and nuts and allied products quire, from standard machine bolts studs find Bethlehem completely satisfactory for high-temperature service, the facilities source supply Lebanon Plant products Bethlehem’s Lebanon Plant are assurance are made under the supervision men who are prompt service and quality products. STEEL 24—THE IRON AGE, June 1936 | | _ | > x 7 F - ... THE IRON JUNE 1936 ESTABLISHED Vol. 136, No. You Need Grindstone the natural penalties coming from our editorial criticism the New Deal the occasional receipt critical letters. One that came recently read follows: “Why spoil good trade journal with editorials from deluded mind that evidently. functions neither good bad weather? want trade journal and are not interested G.O.P. junk and you persist writing this kind stuff, please cancel our subscription.” Mr. G., who wrote the letter, has been patient under long provo- cation, for have been bearing down heavily, week and week out, for the past three years what consider serious defects the alterations our economic machine being made Washington. have done this the firm conviction that trade journal these days cannot fulfill its duty its readers unless deals boldly with the eco- nomic proposals that affect their interests. And intend continue doing just this until the people decide accept reject the new economic blue-prints. Judging from our reader reaction and almost continuous increase circulation, the majority those who receive The Age appreciate our editorial sincerity. those who not agree with us, may point out that criticism useful function especially when considering changes great import. The both time honored and useful office which prevents the canonization the unworthy. know that Mr. G., like any wise executive, would approach new invention with caution, matter how promising the blue-prints. would summon his best ad- visers and say them, all the holes you can this proposed device before risk money the part wisdom subject simple mechanical device re- uds the severest possible criticism, not far more necessary search for possible flaws that which will affect the future whole industries and the living all our people? As oy ary. F 2 | | | SS 3; d “ited Steel ndustry Revitalized steel industry took time off last week regard itself with bit pride. proud the achievements the past year. also proud the future cutting out for itself. The long depression years finally seem drawing close and the industry being revitalized. Not since 1930 had the American Iron and Steel Institute been session while steel production had been above per cent. Not since the steel industry was born the United States had the major problems which every great industry encounters been faced with such constructive program. wonder that the 2000 steel men who sat down banquet the Waldorf-Astoria New York Thursday evening were inclined rejoice over job well done. was this feeling which made the forty-fifth general meeting the Institute one the best its history. Eugene Grace, president the Institute and the Bethlehem Steel Corp., presided the dinner meeting. Hugh Morrow, president, Sloss-Sheffield Steel Iron Co., Birmingham, discussed the Constitution. believes and the members the Institute. Mr. Morrow pointed out, the facts presented served sharpen old knowledge. Myron Taylor, chairman, United States Steel Corp., faced the future with optimism. the head the world’s largest producer steel, spoke with authority the problems which confront the industry today. And Mr. Taylor feels that they are being solved. Charles Schwab, the grand old man the industry, arrived from Europe just time for the meeting. was introduced his hundreds friends amid thunderous applause. Dr. Neil Carothers, the school business administration Lehigh University, discussed the New Deal. doesn’t like it. His address was greai success. The steel industry seems share some his opinions. the morning session, the industry’s leaders discussed the principal problems the steel business. Their addresses are printed here abstracted form. The technical papers the afternoon were unusually high They appear elsewhere this issue. Industry and the Public Eugene Grace are fully aware that attain orderly process recovery our much question what should done. The chief question how and whom corrective measures shall applied. freedom enterprise survive, shall our social and economic exis- tence dictated and controlled Government? This the momen- tous issue confronting us. would the last one sug- gest that there should not proper relationship between Gov- Shall freedom initiative and ernment and industry. Industry 26—THE IRON AGE, June 1936 MYRON TAYLOR has not thought asking left regard the rights others and the public interest. The danger the present situation that regu- lation has gone too far. Businessmen not claim that under our system free enter- prise have attained the ultimate the abundant life, but claim that industry has conscien- tiously cooperated in, and large measure has been the means advancing our standards liv- ing beyond those any other na- tion earth. Our obligation now make sure that this trend neither reversed nor halted. The thing that confuses the average businessman unemployment situation what sees every day. many communi- ties where practically normal num- bers are employed private enter- prises and where the private char- itable organizations are doing their regular job caring for those actual need, there are still vast sums relief money being dis- pensed the Government. matter fact, the vol- ume business and employment has increased, relief expenditures have run race outstrip them. favorite pastime shift the blame for continued unemployment the shoulders industry. The fact that there are proportion- ately fewer unemployed the manufacturing industries than —— — — 2) HUGH MORROW many other lines. the steel in- dustry, which typical, the 450,- 000 people employed today are many were employed the height prosperity 1929. course, some these employees are not working full time, but they are self-sustaining citizens their respective communities. Given the supported stable and econom- ical Government the form pro- vided our forefathers, there reason why this trend should not continue. The people their own efforts and industry will seek and obtain still higher standards living. This the past will create new industries and widen present markets, resulting in- creased employment. Our own industry example the benefits flowing from tech- nological progress. Not only have improved quality and stimulat- new uses for steel through re- search and technology, but also through large investments and en- gineering prowess there have been vast improvements processes and equipment resulting creased well more efficient production. Here believe the steel industry has performed real public service. The results these achievements have been passed the con- suming public and labor. hope the time will come when our stockholders may also receive larger share these benefits. Mounting taxes serve dry markets. Taxes must added costs and they decrease the pur- chasing power the buyer. Taxes business, matter how they may disguised, the last anal- ysis must borne consumers. They are necessarily charge upon production and must reflected selling prices. The great body consumers the United States made earners. Consumers in- dividuals are, the mass, farmers, employees, stockholders, their fam- ilies and dependents, that taxa- tion hits everyone’s pocketbook. Workers, therefore, have direct concern and great responsibility see that the structure whereby they make their livelihood not undermined excessive taxes. Wage levels employees largely determine their purchasing power consumers. Wages and profits and their significance consump- tion cannot discussed apart from the consideration prices. Any tax industry, therefore, tax the main body con- sumers, or, other words, the workers. Excessive taxation not only adds the cost production, thereby tending increase prices con- sumers, but jeopardizes the pos- sibility making reasonable profits which are essential healthy and growing business. Social Betterment Interrupted American industry was well the way solving the problems social betterment and stabiliza- tion when the depression inter- vened. Had not industry raised the liv- ing and working standards its workers far above the levels those any other country the world? Certainly this true the great mass the employing con- cerns the United States. True there were some who still observed sweat-shop policies, but they were decidedly the minority and the way out. unfair place the whole legitimate business strait- jacket reform few recalci- Whatever might achieved this method would too dear price and the wreck- age resulting general business and the vast majority work- ers would too great. Industry through achievement has demonstrated its belief social security. Even though legislation may necessary some instances protect employees, there are cases where employees would not well provided for through legislation they are now. Where EUGENE GRACE voluntary programs are providing benefits comparable excess those contemplated under legis- lation, they should permitted the job. these programs all funds jointly contributed and ad- ministered employee and em- ployer are fully productive and devoid the evils politics. The present systems social betterment have been carefully and gradually developed along healthy and sound lines through coopera- tive endeavor the part em- ployees and management. Working together these problems has pro- moted confidence, understanding, loyalty and efficiency. their great strength compared islative regulation under bureau- cratic control. Opportunity Must Continue The path progress lies keep- ing open the doors opportunity, protecting our institutions and affording them opportunity grow and prosper, under the sys- tem free enterprise that has made ours the leading nation the world. ognize our responsibilities. This evidenced our efforts and achievements during the trying days the depression guide our industry toward sound and permanent basis recovery. evidenced also the research and effort which are going im- prove our products many ways THE IRON AGE, June 1936—27 : 5 a 4 ; 2 for the better service the con- suming public. have tremendous responsi- bility conduct this great enter- prise manner eminently and jointly fair the workmen, the investors and the public. These responsibilities and obligations are fundamental all industry. state, see them, few our paramount necessities are properly discharge those respon- sibilities and obligations. need Governmental condi- tions encouraging free and com- petitive enterprise. need Governmental policies that will strengthen our belief American initiative and achieve- ment. must have relief from ex- cessive costs Government, order that products may made minimum cost the consum- ing public. must have guarantees the right opportunity the Amer- ican worker employment with- out interference coercion from any source. need condition confidence that the investing public may feel assured obtaining ade- quate and reliable return upon their savings. need have effective and workable basis for social security and restore relief sound basis local administration. must allowed have un- hampered efficiency production that industry may pay wages leading improved standard living, and that lower costs the public may provide in- creased purchasing power for everyone. Above all, our people, whether they laborers capitalists, must made feel that spirit con- fidence themselves, the insti- tutions the country and their national life, which will permit them forge onward still high- standards accomplishment and living. Competition From Imports Foreign Steel Products Irvin raw steel capacity roughly 70,000,000 tons an- nually, raw steel capacity outside the United States roughly 73,- 500,000 tons annually, thus have about per cent the total capacity the world and all other countries have per cent. 1935 our own markets con- sumed steel products originating from about 34,000,000 tons raw steel, and similarly outside mar- kets consumed about 62,000,000 tons. Thus our home market con- sumed about per cent the world’s output and the markets outside the United States rep- resented about per cent. Hence with per cent the world’s capacity, had home 1935 but per cent the world’s consumption. this basis alone are justified seeking preserve, far possible, our own markets for our own mills and workers. recent estimate the American Iron and Steel Institute shows that during the past five years have averaged only per cent the world’s production, which the lowest since the five- year period ending 1897. 1919 produced per cent and 1929—48 per cent. 28—THE IRON AGE, June 1936 The steel exports the other chief steel producing countries are, course, much greater propor- tion their production than the case the United States where less than four per cent our pro- duction currently exported the form mill products. From Germany, France and the United Kingdom, the percentage exports ranged from per cent per cent, whereas from Bel- gium and Luxemburg much higher, probably per cent their total production. But are not concerned with the percentages nor the amount the exports these chief produc- ing countries, but the amount they export into our domestic market the detriment our own opera- tions and interfering with the abil- ity our employees secure ad- ditional employment. Let compare our direct exports the leading steel pro- ducing countries and our direct imports from them. The figures will those for the year 1935. (1) The United Kingdom took about 11,500 gross tons steel products from the United States and imported from the United Kingdom 18,000 tons. IRVIN (2) France and the Saar shipped 14,000 tons and shipped 1800 tons. (3) Germany shipped last year 85,000 tons. return shipped them 400 tons. (4) Belgium and Luxemburg 1934 shipped here 52,000 tons and this figure rose 86,000 tons 1935. shipped that country 2000 tons 1934 and last year only 1500 tons. has recently been reported that Japanese steel makers have joined the ranks exporters and are directing their attention our Pacific Coast markets, offering there wide range common steel products. Steel importations from Japan have been negligible the present time. Our Gov- necessary increase the duties cotton textiles because American mills are unable compete with the cheap Japanese material. The United States Tariff Commission reports about per cent the operatives the entire Japanese cotton textile industry are females mostly between and years old. Our total importations iron and steel products 1934 were 272,36 tons, which 115,470 tons was pig iron. 1935, importa- = ; —— | | | tions rose 405,221 tons, which 130,937 tons was pig iron. This increase one year some per cent, figure sufficiently im- portant alarming. the first three months the present year the increase over the first quarter 1935 245 per cent pig iron and per cent rolled and finished steel products, which indicates that the growth this movement still continues. The most significant increases seem pig iron, nails and wire products, structural shapes, bars and pipe. What are going com- bat this situation? Unless there marked change the general industrial activity Europe, the amount steel shipped into this country promises continue in- crease rather than decrease. Our immigration wisely prevent the influx cheap foreign labor protection the Amer- ican workman, but when steel produced abroad with cheap for- eign labor and shipped into our market low prices, depriving our mills equivalent tonnage and transferring the labor for- eign countries instead having the work performed here, looked upon some economists boon American industry. But we, the steel industry, who have felt this cheap competition, and the steel worker who has been deprived employment, feel dif- ferently. the production one ton American barbed wire $41.50 paid the American steel worker, $16.10 and Belgium only $10.50. The Government, however, does not view these importations the same light do, because barb wire the free list and action has been taken prevent such importations under our Anti- dumping law. Barbed wire only one the products included the 230,000 gross tons imported 1934 and the 348,894 gross tons 1935. During the latter year these im- portations represented 11,750,000 man-hours—enough give 10,000 American steel workers employ- ment for six months. What constitutes injury home industry? Must importations attain such magnitude that indus- try forced close down? The decisions under this act seem imply that when you can longer operate, when your mills are idle, when you are unable give em- ployment thousands Amer- ican workmen, then and then only can this law enforced. This sharp contrast with the prompt and effective action taken Can- ada such matters, and recently the Government South Africa shutting out American imports galvanized sheets prohibi- tive dumping duty. The dumping laws these countries are framed protect their industries against the importation any quantity imported, large small. Ship only one ton steel into these countries and the price too low dump- ing duty will apply although that ton was the only lot involved. The steel and other American industries should give these mat- ters greater consideration. Our present Anti-dumping Law should supplanted one which ef- fective and which can put into force soon dumping occurs. Our tariff rates should high enough protect American indus- try and labor against the cheap costs and pauper labor rates foreign countries. the meantime, our only hope seems lie convincing purchas- ing agencies the Government whether Federal, State munici- pal, and private buyers generally, that their best interests are served placing their steel orders home not only for the benefit American industry and labor but the end preserving the high standards living which en- joy and are trying maintain this country. these importa- tions foreign goods are en- couraged and allowed expand indefinitely there can but one answer, one defense: namely, lowering our costs production here meet that challenge which GIRDLER immediately leads lowering our standard living level somewhere nearer that level wages with which are compelled compete. Problems Confronting the Industry Girdler basic problem facing the steel industry, just faces every other business, one operating profit. All the other questions with which deal every day lead back this one all-im- portant problem. Upon its solu- tion depends the life our busi- ness, fair wage for our employees, reasonable return for our stock- holders, and the reserves necessary keep our plants and for emergencies. The profit record the steel in- dustry, even good years, has been most unsatisfactory. Over the past years the average annual return investment the industry has been only little more than per cent. believe the time has arrived when those charged with the responsibilities management this industry must face the reali- ties the problem profits. must take fresh look all the factors involved, and apply our- selves the job making prof- itable industry out the steel business. owe this our em- ployees and our The problem profits the steel industry complicated the factor costs, which for many special reasons are high. Not only large initial investment re- quired for steel plant, but ob- solescence most rapid the industry. Last year the industry spent $140,000,000 plant im- provement and this year ex- pending $200,000,000. Moreover the steel industry degree un- known many other industries must sink large sums capital raw material reserves, and heavy THE IRON AGE, June 1936—29 | “a j By 4 q | | a amounts must charged off each year for depletion. Furthermore, the nature pres- ent-day consumer demand such that impossible for the steel industry, spite its enormous investment plant and equipment, reap the same degree benefit from such equipment possible with industries such the auto- mobile industry, where complete development mass production possible with its resultant econo- mies. automobile plant may concentrate its entire production facilities upon turning out vast numbers single model; but the steel industry must stand ready today turn out literally thou- sands models its product. Today every user wants steel made especially for his particular requirements and according his particular specifications, with the result that must prepared make steel many thousands specifications. Once was possible schedule mill for weeks even longer for uninterrupted rolling standard product general de- mand. But that day gone. The ability the industry meet this changed situation does credit its engineering ingenuity, but that has added enormously costs one can deny. Thus there are practical limits what can accomplished along lines reduction costs—and must therefore rely upon volume the source profits. This has always been true the steel in- dustry, and even more true today. The great question now be- fore the industry how main- tain and increase its volume. Low Prices Necessary strongly believe the principle low prices under our modern system mass production and con- sumption. Prices for steel ought sible order encourage the wid- est possible use. That sound business. only proper that the industry should pass share savings from improved methods and increased efficiency the cus- tomer lower prices. But that not say prices should below costs, low that reasonable profit impossible. That ness suicide and betrayal our stockholders. The problem one increasing volume basis which will yield satisfactory prof- its. Many steel markets are reviving and new ones are developing—but how soon broad and enduring market for steel will materialize will depend upon the factors in- fluencing long-term investments. spite the many uses steel 30—THE IRON AGE, June 1936 the consumer these industries alone strong enough develop the breadth market needed the industry. Durable goods activities, such re-equipment and rehabili- tation, railroad repair, pipe lines, and building, both industrial and residential, are necessary properly round out future markets. The threat additional and un- sound taxation typical the factors originating Washington which continue retard long-term projects. The steel industry affords excellent example the heavy burden which taxes have already imposed upon business. 1935 taxes paid the steel industry were nearly $10,000,000 greater than 1934. The industry paid the equivalent $3.30 for each ton finished steel produced taxes local and Federal governments, while its earnings amounted only $2.30 ton. The tax bill was equal over five weeks’ average pay for each the industry’s em- ployees. amounted $133 for every employee and $132 for every stockholder. When taxes reach this propor- tion, and under the new revenue bill and the social insurance tax they will much higher, they be- come charge major concern every person attached the in- dustry. one the responsi- bilities management call the attention both employees and stockholders the excessive tax burdens imposed upon business tax-spending How acute the tax situation has become the steel industry summed the simple fact that for every 50c. going stockholder dividends last year, went tax spenders and wasters. Market Unlimited opinion there literally limit the potential markets for steel this country. The need Sound Commercial for developing these markets their fullest extent made all the more evident the large increase strip and sheet capacity that has been under way recent years. For one thing believe are going see great increase the use steel the building homes, means steel frames and other forms construction, once the building industry gets under way. Modern alloy steels are finding new applications every day. Must Educate Public our job bring the aver- age man the street and the woman the home better under- standing what the steel industry and the important part plays their lives. one the great changes that has taken place the industry that steel longer used exclusively few great consumers like the railroads and heavy construction. Steel now fabricated into thousands articles every day use every- one. may said that although there are this country only few thousands first-hand buyers steel, used the entire population 127,000,000 people the form automobiles, refrigera- tors, and innumerable products. These people, whose daily lives are made more comfortable and convenient because steel, consti- tute our ultimate market. Certain- want them have better understanding what the steel in- dustry and what does. want them realize that this in- dustry which serves them aggregation individuals com- posed 450,000 employees and 500,000 stockholders. the will know that when politi- cians attack the industry, that at- tack fact directed against the bread and butter and the savings nearly million families. Policy for Ste Makers Weir OMMERCIAL activities repre- sent the culminating point any business—the point which transfers its product into other hands for immediate use for further processing. commercial policy may construed includ- ing only matters immediately bear- ing upon this transaction, may thought embracing many, other phases business that indi- rectly affect the transactions are affected it. ond way, because not consider the selling product isolated action. believe the mid- dle link continuous chain that begins where the product begins made and leads all the way through the plant the producer into that the cus- tomer even beyond, the ulti- mate consumer. commercial poli- cy, course, involves every rela- tionship between seller and buyer. addition, affects the relation- ship producer his own busi- ness and his own people, the other members his industry and ERNEST WEIR the general public. Therefore, believe that for the commercial policy steel maker sound, its effect must constructive every direction which its influ- ence extends. Since under any commercial poli- everything must lead away from actual sale, the best start- ing point probably the relation- ship between the seller and the buyer. While not necessarily op- posed, the interests the seller and buyer are different. this cir- cumstance have the reason why essential for the producer establish general policy that will guide him making com- mercial decisions which will protect his own interest, and the same time will fair everyone else concerned. the sale his prod- uct the producer endeavors re- cover all his costs, plus reason- able profit. the purchase product, particularly where in- tended for further processing and resale, the purchaser endeavors secure the commodity which most adequately fills his needs, the lowest price and therefore the greatest profit himself. sound commercial policy one which shaped that every transaction that occurs under brings adequate return the producer and the same time gives the consumer the product wants, when and where wants it, the form that permits the great- est efficiency use, and the low- est consistent price. addition, every such transaction must the interest society. mat- ter fact, any private transaction that against public interest the long run injures one all the parties directly concerned. Value Product sound commercial policy for steel makers must inviolable rule that every transaction shall yield the value the product the producer—the value consist all prevailing costs plus reason- able profit. However, while producers should resist every outside pressure and every temptation their own lower prices below economic levels, another fundamental part their commercial policy must deter- mination constantly lower the prices which they can economi- cally sell their product. This type price reduction, which made pos- sible only through lowering unit costs production, has vir- tue the opposite every vice the other method. The pressure from customers for lower economic prices spur their initiative and ef- ficiency. Producers and their cus- tomers should join whole-heartedly continuous effort reduce costs and prices all along the line, the end that better and cheaper finished product may offered the ultimate consumer. Producers may follow two main avenues lower unit costs and prices. They may increase volume, which within easily determinable limits lowers unit costs. Greater volume steel production must found, has been the past, completely new developments, such air conditioning; the develop- ment steel superior product for applications which other ma- terials are now used, many ex- amples which will occur you; and the extension the present uses steel, such the compara- tively recent merchandising mo- tor oil cans. Steel makers should conduct laboratory research their own plants, and should cooperate practical studies the use steel the plants their customers, the end that the consumption steel expanded. Improved Operating Methods The second great avenue for the economic lowering unit prices the improvement operating methods and the reduction costs. All items cost have possibility reduction. One the most impor- tant cost items the process manufacture the cost labor, which doubtless will continue af- ford great opportunities for econo- mies the advantage labor, the manufacturer, and the customer. The effect upon labor reduced per unit costs labor often mis- construed. This probably due confusion the costs labor with the wages labor. eco- nomic reduction per unit labor costs should never produce reduc- tion wages. fact, the direct contrary should true. Reduction the cost labor per unit es- sentially reduction the amount time expended labor each unit work with consequent greater output and greater return which labor not only has the right share, but must share economic principles are ob- served. The sound manner reducing labor costs implement the worker with improved machinery and increase the efficiency his working methods that able given time turn out great- amount material, better while lower price may received for each unit his work, turns out many more units that the aggregate return for his work much greater than was under older methods. Labor Relations the Steel Industry Charles Hook* first plank the platform satisfactory employee em- ployer relationship wage sched- ule which compensates the worker fairly and generously within the continuing ability the employer pay. would manifestly un- fair the worker establish wage schedule that would stop the *Read toemer, president, Sharon Steel Corp. purchase the goods, upon the sale which his employment de- pends. high hourly rate pay and hours work will not buy food, clothing and shelter. The un- employment situation the build- ing industry example high hourly rates and few hours work. The second plank contemplates (CONTINUED PAGE 48) THE IRON AGE, June wa | | J | = “es i 4 = , ‘ SINCE the bulk all electric furnace steel used today melted the basic Heroult type furnace, this process almost synonymous the public mind with “electric furnace steel.” One the first things learned about this furnace was the fact that elec- tric heat was magic cure-all for the ills steel making. The subject will discussed more length under “Interchangeable Steels”, but necessary say here that the basic are furnace the most versatile piece steel melting equipment ever devised. Although can make the purest, the cleanest, and the most uniform, high quality steel ever known, can also make most non-uniform and questionable product. three- manual pipe organ may thing beauty the hands master, but its very complexity the un- Abstract paper and comments presented before the American and Steel Institute, May 28. 32—THE IRON AGE, June 1936 doing the tyro. So, listing the virtues electrically melted steel, must understood that while these are things which the process has demonstrated its ability things are not necessarily the in- evitable consequence melting steel electric furnace. Electric furnaces are unique that there need for oxidiz- ing atmosphere support fuel combustion. Since many the useful elements steel, such carbon, manganese, silicon, chromi- um, ete., are readily oxidizable steel melting temperatures, they obviously cannot conserved the bath under oxidizing furnace conditions. With the neutral reducing conditions that can read- ily produced and maintained the electric furnace, many these oxidizable elements can held constant the bath for long periods. Time allowed send samples the control laboratory for exact analysis and then, “dead reckoning”, alloy additions can made order arrive the chemistry desired. must not inferred that all alloys can added electric furnace easily salt may dissolved water, but cer- tainly true that the electric melter not called upon catch his anal- ysis the fly” the sense that must often done open hearth melting. Another pertinent factor the much smaller average size elec- tric furnaces compared open hearth furnaces. Obviously, easier maintain accurate and molten metal than 100 tons. The high-frequency induction furnace has still another advantage which may bear upon the subject accurate analysis, especially the very rich alloy steels. That advantage the rapid stirring action set the bath the induced currents. Courtesy American Bridge Co. cT We would desirable this dis- cussion could concluded with tabulated list showing just how close limits the electric furnace can work to. Unfortunately, this can- not done—there are too many variables. For one thing, the de- sired percentage individual ele- ments, differs widely different steels, and the analysis tolerance must take this into account. For example, the carbon specified different steels may range from 0.05 over per cent, and tol- erance that would practical 0.05 per cent would too narrow when aiming for 1.20 per cent. Chromium might wanted low 0.25 high 20.0 per cent; obviously the same tolerance could not apply these extremes. The same difficulty presented many the other elements. The balance alloys present often determines how close par- ticular element can maintained. Consider metalloids like sulphur and selenium, both which are being deliberately added electric ectric Furnaces and Their Part etallurgical ° ° FRANK PALMER Assistant the President, The Carpenter Steel Co., Reading, Pa. furnace alloy steel for free machin- ing properties. Aiming for 0.25 per cent selenium, would easy stay within limits 0.20 0.30 per cent the manganese less than 0.50 per cent. However, attempt made add these same metalloids Hadfield’s manganese steel, the loss metalloid control. Faced given chemical anal- ysis, the steel maker can tell how close can keep each element, and must content say here that can hold definitely closer limits electric steel than can the open hearth furnace. This applies, course, point blank shooting and not “heat selec- tion.” Lower Phosphorus and Sulphur Phosphorus removed under oxidizing conditions basic furnace, hence the electric furnace has particular advan- tage over the open hearth furnace except that because customary employ lower phosphorus melt- ing stock the electric furnace, the final content generally lower. Sulphur yields slightly oxid- izing condition under basic slag, but can substantially elim- inated only under reducing atmos- pheric conditions. This was one the earliest advantages pointed out for the electric arc furnace. double slag are furnace prac- tice, both the phosphorus and sul- phur can reduced point that out-distances even the justly famous Swedish ores. The most casual control double slag prac- tice should keep both elements under 0.03 per cent; more con- centrated care will easily keep them under 0.02, and entirely pos- sible with added time and cost get both under 0.01. have even seen melters given limit 0.005 maximum for sulphur and stay under it. should again emphasized that the above figures are given simply describe the capacity the process. Phosphorus and sul- THE IRON AGE, June 1936—33 gore: 3 tell | | | } % > : he > ¢ - > l ) Lene | “a phur limits cannot practically arrived without due considera- tion the rest the analysis. The high-frequency induction furnace, like the crucible melting process, has capacity elim- inate either phosphorus sulphur. this process the raw materials used determine the ultimate com- position. Cleaner Steel “clean”, refer relative freedom from slag and other non- metallic impurities. Clean steel necessarily guaranteed eiec- tric furnace melting, because the non-metallics that appear “dirty” steel not all originate the furnace; considerable part may come from ladle spout re- fractories result from dirty mold practice. Insofar clean steel made inside the melting furnace, the de- gree success depends upon deoxidation and the removal sulphur, both which can ac- complished the electric furnace. the steel not properly deoxi- dized the slag, some the sili- con will converted the oxide (silica) and the metals like iron, manganese, chromium, will also oxidized degree. The metallic oxide combines with the silica form the glassy slags such iron silicate, manganese silicate, chromium silicate, etc. these are being continuously formed oxidized bath, they never get chance float out. Sulphur always exists the final product metallic sulphide which slag- like inclusion. These sulphides are soluble the molten steel and are precipitated only the moment solidifying the mold; hence sulphides are always present steel direct proportion the percentage sulphur contained. The only way get rid sulphide slag get rid the sulphur. making clean steel, the elec- tric process depends upon its abil- ity work under reducing at- mosphere and reducing slag. Not only these deoxidize the metal and inhibit the formation sili- cates, but they remove large part the sulphur and decrease the sulphides proportionately. The smaller average size elec- tric furnaces again big help. easier avoid slag contam- ination the metal after tapping when handling few tons metal 34—THE IRON AGE, June than when handling hundred tons more. Segregation Steel crystaline material and must, therefore, freeze selectively solidifies the ingot mold. This selective freezing gives rise segregation, the degree which may vary greatly depending upon electric furnace product? High phosphorus and sulphur, high oxide content, high pouring tem- peratures, large ingots, fast teem- ing and slow freezing promote segregation; their antipodes dis- courage it. What the effect electric furnace practice upon these variables? The electric furnace prefer- many circumstances. able all these cases. gives The question is, “In given steel, sulphur and less segregation likely the oxides. The proper pouring tem- Crucible Steel Co. America line with the recognized duty being critical, Mr. Palmer should congratulated the excellent presentation the subject, and admit general agreement with his thesis. There are some points which issue can taken, least the extent not being full agreement with the author and without quibbling over terminology facts. felt, for example, that the sequence events used presenting the concept “interchangeable” steels has overlooked most important stage the history the tool steel industry. The impression given that about years ago method metal- lurgical testing was devised McQuaid and Ehn, and that interchange- ability steels the direct result this metallurgical development. Without any way detracting from the importance, novelty and usefulness the work McQuaid and Ehn, the maker fine tool steels can take well-founded exception the chronological position and the inference novelty which has been given interchangeable steels. The brand names reliable tool steel manufacturers are guarantees interchangeability, and, the same time, give convenient method designating the kind steel represented. steel well-established brand the same steel the full sense interchangeability whether purchased Boston San Francisco, from its home mill. Brand names have been used for more than years, and the use this cumbersome word metallurgical sense novel only far the use the word itself concerned. Metallurgical interchangeability defined as—“If the two shipments (of steel) are indistinguishable their behavior his shop, then these two lots steel are interchangeable.” The brand steel reputable tool steel maker complies fully with both these definitions. made according the mechanical definition and tested according the metallurgical definition. The brand the guarantee composition and quality every sense the word. felt that novelty cannot claimed for metallurgical inter- changeability merely because new tests have been devised for assisting the laboratory testing the product the mill. New methods testing have facilitated the work and have reduced the personal element skill and judgment. The testing brand steels tool steel makers, however, developed with the industry and has long been such insure those uniform characteristics property and performance which the tool steel maker guarantees when uses brand name. connection with the general statements which are made the paper regard the coreless type induction furnace and the are furnace, and particularly mixing the molten metal the induction furnace and size the are furnace, will interesting note the extent which element such chromium can segregate quiet, well-killed bath metal under reducing conditions. | | | = | | | | | | | | | | cr melt, small ingots are more eco- nomical for electric units than for larger furnaces, teeming, speeds are lower, and all these factors serve shorten the time required for the metal freeze. tion. When mention made “interchangeable machine parts” everyone knows exactly what perature can attained for each meant. The day caliper mea- surement not remote that many cannot remember when parts were literally “custom made” fit certain machine. repair parts were needed, they had specially made else extensively “fitted” adapt them for use. “Interchangeable steels” may carload certain type steel purchased today and the buyer goes back for more the same Interchangeable Steels This caption needs some explana- Some years ago, one the plants the Crucible Steel Co. America, 16,000-lb. heat per cent chromium steel was brought to.composition and finished under the best type reducing conditions. The heat was then held the furnace for about three hours after was ready tap. During this holding time, hand shanks, each about one hundred pounds metal, were poured from time time carefully tilting the furnace. was like pouring the cream from the top bottle milk without stirring. The samples metal thus poured all showed chromium from per cent, and one sample, which represented the condition maximum segregation, contained 26.38 per cent chromium. The heat was finally tapped and teemed and proved very high-quality heat. The chromium content the finished heat was 12.10 per cent, which was very close the compo- sition estimated for the heat before the long holding period. The steel maker will probably interested these results relation the author’s remarks regard size furnaces. Abstract Comments Gilbert Soler, Manager Research, Timken Steel Tube Co. PALMER has very ably presented complete picture the electric melting process and has clearly explained the reasons why electric furnace steels should lead the way metallurgical progress. The construction the electric furnace and the mode heating definitely provide greater flexibility operation than other types melting. the open-hearth process the metal bath thermo- chemical equilibrium with the slag during the oxidation period, but during the refining deoxidation period the success the operation lies counteracting the force the slag attain equilibrium with the bath. Time additions and temperature, and the composition, shape and viscosity slag are variables that may prevent achieving uniform conditions and consistent repetition practice. the other hand, electric furnace practice the slag equi- librium with the bath during the oxidation period, and slag entirely different character used during the deoxidation period. condi- tion equilibrium exists between this reducing slag and the metal bath, the variables time additions and temperature and the com- position, shape and viscosity slag not affect the operation high degree the open-hearth process. addition, temperature can more closely controlled the electric furnace. Adding the bulk the alloying additions and deoxidizing agents the furnace advantage the electric process, for allows com- plete solution these elements, and, the case deoxidizers, provides sufficient time for any oxidies formed rise through the bath and into the slag. During tapping, less oxidation and slag contamination will occur tilting electric furnaces than stationary open-hearth furnaces. general, the electric furnace combines flexibility and ease con- trol such manner that high-grade steel with definite properties can consistently produced. six months hence, expects get material just like the first lot. the two shipments guishable their behavior his shop, then those two lots steel are interchangeable. the sec- ond lot requires higher hardening temperature, lower drawing machine, the finished parts are not tough, then the two lots are not interchangeable. Appreciation the interchange- ability steels the same chem- ical composition developed only when means testing, comparing and using steels were advanced point where such variations could distinguished. When all tool steel was hardened eye blacksmith’s fire, who could posi- tively say that two steels bought months apart were different? There was too much question about the interchangeability the heat treatment support more than suspicion the steel. Today look back and realize that some those old smiths could see more piece steel than the steel maker himself knew. The first definite step toward making and inspecting interchange- able steels was the work done 1922 carburizing steels. They were seeking the reason why dif- ferent heats low carbon steel the same analysis responded non-uniformly case hardening. They found test which has served ever since sort steels according their response thi