The Iron Age 1937-06-03: Vol 139 Iss 22

FRITZ FRANK President VAN DEVENTER Editor Managing Editor Editor Emeritus Machinery Editor Art Editor Metallurgical Editor Associate Editors JURASCHEK Consulting Editor Washington Editors Resident District Editors Pittsburgh Chicago Cleveland Detroit Editorial Correspondents London, England Cincinnati FRAZAR Boston Hamburg, Germany MEYER LOREN IRWIN Milwaukee San Francisco SANDERSON ASA ROUNTREE, JR. Toronto, Ontario Birmingham ALLISON toy EDMONDS Newark, N. J. St. Louis TURNER Buffalo Editorial and Executive Offices 239 WEST 39TH NEW YORK, Owned and Published CHILTON COMPANY (Incorporated) Chestnut and 56th Sts., Philadelphia, Pa. 239 West 39th Street, New York, OFFICERS AND DIRECTORS MUSSELMAN, President FRITZ FRANK, Executive Vice-President FREDERIC STEVENS, Vice-President JOSEPH HILDRETH, GEORGE GRIFFITHS, EVERIT TERHUNE, ERNEST HASTINGS, WILLIAM BARBER, Treasurer JOHN BLAIR MOFFETT, Secretary JOHN VAN DEVENTER JULIAN CHASE THOMAS KANE CHARLES BAUR CARROLL BUZBY FAHRENDORF BAUR, General Advertising Manager DIX, Manager Reader Service Member, Audit Bureau of Circulations Member, Associated Business Papers Indexed in the Industrial Arts Index. Published every Thursday. Subscrip- tion Price: United States and Pos- sessions, Mexico, Cuba, $6.00; Can- ada, $8.50; Foreign, $12.00 a year. Single copy, 25 cents. Cable Address, ‘*Tronage, N. ADVERTISING STAFF Emerson Findley, 621 Union Bldg., Cleve'and Herman, Chilton Bldg., Chestnut 56th Sts., Philadelphia, Pa. H. K. Hottenstein, 802 Otis Bldg., Chicago Leonard, 239 39th New York Peirce Lewis, 7310 Woodward Ave., Detroit C. H. Ober, 239 W. 39th St., New York W. B. Robinson, 428 Park Bldg., Pittsburgh D. C. Warren, P. O. Box 81, Hartford, Conn. McINTOSH Cont JUNE 1937 Right Plus Wrong Equals Wrong American and Steel Institute Meeting ............. Labor Unrest Casts Shadow Over Steel Institute Meeting Robinson-Patman Act Has and Can Rigorously Technical Advances Steel Products The Great Iron Chain ............. Production and Quality Control Automobile Sheets... The Contro! Electrically Driven Machinery Gear Makers Hold Annual Rate Activity Capital Goods Automotive Industry ............. Statistics Metal-Working Activity Washington News NEWS CONTENTS Plant Expansion and Equipment Buying vr Advertised Index Advertisers Copyright 1937 Chilton Company (Inc.) j a | omg |_| | | et Wuen bethanized wire was introduced 1933 its qualities indicated that existing ideas the utility and durability zinc-coated wire would have completely revised. Here, for the first time, was zinc-coated wire with coating that, re- gardless the thickness, would not damaged any fabricating operation that the wire itself would stand. And the bethanized coating was uni- form thickness, could put any desired weight and was per cent—as PROMISE offer greater resistance attack even the most corrosive, sulphur-laden atmospheres afforded any previous type zinc coating. the time its introduction, was predicted that bethanized wire would not only serve better where galvanized wire had been used, but would also open new fields for zinc-coated wire. This prophecy has been more than justified. COIL SPRING BETHANIZED WIRE BETHANIZED WIRE MESH SPECIAL BETHANIZED WIRE FENCE SOME UNUSUAL USES FOR BETHANIZED WIRE bethanized wire being suc- where zinc-coated wire had never served before. Among many unusual applications its use wire mesh fabric for conveyor belts used washing, sorting and grading vege- tables. For this purpose bethanized wire drawn down gage and woven into compact mesh without cracking weakening the coating any way. Bethanized wire also being extensively used The tightly-adhering bethanized coating not damaged either 30—THE IRON AGE, June 1937 the forming operations manufac- ture the repeated flexure serv- ice. And any weight coating neces- sary meet corrosive conditions can applied. This remarkable wire has also been used with great suc- cess for durable, strong enclosures zoological gardens. setting entirely new standards durability railroad right-of-way and farm fence; strand, wire and chain-link fence; scores appli- cations where the combination difficult fabricating operations and exposure corrosive agents all types taxes the protective value zinc coatings. The success bethanized wire has resulted definite swing to- ward electrical coatings, bethanizing process unique among electrical coating processes. makes the zinc right the wire without the formation any purity-reduc- ing zinc-iron alloy not just transfer process. For purpose you need wire protected against corrosion will worth your while investi- gate bethanized wire. THE IRON JUNE 1937 ESTABLISHED Vol. 139, No. HERE old and very true saying which has been handed down from genera- The spirit that proverb was exemplified the lives and actions our fore- fathers. They did what they believed was right, hewed the line and refused compromise with wrong. Their strict adherence this principle built the British Empire and built America. Both these nations have become great largely because their refusal com- promise with wrong, even when the refusal has been costly. England, there was compromise with the opium traffic; America there was compromise with slavery. Lincoln could have compromised and taken the easier way. could have said the South: believe that slavery wrong and that should abolished. But freeing all the slaves will cause great inconvenience you. let compro- mise freeing half But that wasn't Lincoln's way. knew that right plus wrong always equals result like mixing pure and muddy water together and hoping that the whole will clear. wrong. That little wrong mixed with large proportion right can never Today, our legislative well our business and industrial lives, need resurrect the old principle compromise with wrong, for ex- ample, pack the Supreme Court the United States with six additional wrong for employer coerce employees into not joining unions, equally wrong for self-appointed labor dictators compel them join through force and intimidation. right that worker should enabled bargain collectively through rep- resentatives his own choosing, cannot also right make him bargain through representatives who are not his choice. Compromising right and wrong never built great nation but has destroyed great nations. Right plus wrong always equals wrong. we 4 Sea | | - = chy GIRDLER ITH labor troubles the in- thoughts, members the American Iron and Steel Institute held their 46th general meeting the Waldorf-Astoria New York Thursday, May 27. Despite the last-minute absences caused labor disturbances, the attendance was the largest the history the institute. the dinner the evening about 2000 were present. This meeting was the final chapter the two-year term president served Eugene Grace, president Bethlehem Steel Corp., and Mr. Grace announced that Tom Girdler, chairman Republic Steel Corp. had been elect- succeed him. “There Was real contest this election and you will appreciate the choice the directors,” said Mr. Grace introducing Mr. Girdler 32—THE IRON AGE, June 1937 Labor Unrest Casts Shadow Over Steel Institute Meeting Tom Girdler Succeeds Eugene Grace President for Two-year Term the new president and William Irvin, president United States Steel Corp., and Weir, chairman Na- tional Steel Corp., presi- dents. Mr. Grace did not amplify his remark, was left his listeners assume that present labor policies the industry had influence the election new officers. Labor Unrest Retards Recovery his address the institute its morning session, Mr. Grace dwelt considerably labor mat- ters, but did not refer specifically the strikes that were the moment harassing some the im- portant independent companies. “While substantial progress out the depression has been made most industries, fact,” de- clared, “that the labor unrest many places retarding movement.” Recent price advances were unavoidable, said Mr. Grace, because rising costs labor, materials and government. His address full printed below. The morning session was also featured addresses taxation and the Robinson-Patman Act. “The Growth and Incidence Taxation” was the subject discussed George May, senior partner Price, Waterhouse Co., accountants for many large corporations, and Con- gressman Wright Patman Texas, Act, explained the aims and ex- pected accomplishments legislation. his address taxation, Mr. May dwelt length comparisons British and American methods. concluded with criticism the undistributed profits tax law. this law continued, said, there should amendments that would relieve profits reinvested productive plants. aiso advo- cated amendment that would permit the offsetting losses one year against the profits an- other. urged, however, that even bad tax law should borne tem- porarily that method the Fed- eral budget could balanced. budget balancing not effected, added, are likely find our- 4 © al 7 4 4 7 ° ° : t selves “using our savings pay for unemployment instead using them equip the country,” the words Marshall Keynes. Newton Baker, Secretary War President Wilson’s Cabinet, was the speaker the dinner. gave scholarly discussion “Democra- yzed the various philosophies ancient and modern times, stating that Karl Marx’s philosophy was “the most repellent and sterile them all.” His remarks about the Wagner Labor Act brought great applause when said that this act one-sided that requires one side great labor problem re- main silent while the other does the discussing. Mr. Baker predicted that this law will amended that “will impose both sides responsibility for their actions well their words.” Clyde Williams the Battelle Memorial Institute was given the annual award the institute for his paper “The Technical Im- portance Iron and Steel Scrap,” read last year’s meeting. Eugene Grace Pictures Steel Industry Most Solid Foundation Years term office president our institute, and wish ex- press gratitude for the efforts all the membership, official capacity otherwise, who have worked make the institute constructive force service its members and public usefulness. feel that the recognition which has been given the accomplish- ments our Steel Institute can attributed its sound objectives. Each steel company has complete independence action conduct- ing its business, including labor policies. The institute ad- visory body. research body. studies and acts upon subjects steel’s relationships general economic conditions. has con- trol over individual companies, and does not handle the steel busi- ness any its productive commercial phases. The institute has been free its own creative job without at- tempting boss others. has de- veloped such activities the tech- nical committee, which defines the different grades steel and clari- fies specifications for the buying public. has made good start research the uses steel products. has set division gather and publish facts relating the industry. Its service as- sembling reliable statistics pertain- ing the steel industry, and making them available all com- panies and the public, much value. not necessary for elaborate further the work the institute. known, and believe appreciated for its worth, all us. industry has made progress since our last meeting—yes, splen- did progress. Employment new high level. Production the first quarter the current year set new record for the first three months any year. These are healthy Not only for our companies, but for the effect general business. Country Needs Prosperous Industry Our country needs progressive and prosperous industry. Anything that adversely affects the steel in- dustry adversely affects all indus- try and all the people. This true because steel some form other essential nearly every manu- facturing enterprise. the home, our motor cars, our railroads, the highways, our buildings and bridges, and virtually all tools our daily life, steel essential part. the steel industry its job for the public the way that should, must have healthy industry. must have period reasonable earnings make the losses the depression, and give fair return the patient investors. Over period the past years the average earnings the major steel companies have been less than per cent the invested capital. And this business, where, due the large initial cost plant construction and rapid ob- solescence, the investment risk has been high. 1936, spite better production, the earnings invested capital were only half one per cent above the 12-year average, per cent. This seems most conservative return, not only compared with other manufacturing industries, but also when one considers that are using our basic raw material supplies which are irreplaceable anything like their original cost. The cost making steel reached very high -level. The high cost level not because inefficient facilities, obsolete processes, but principally because increases the cost labor, materials and government. There better investment than liberal pay labor. Likewise individual interest should shirk responsibility paying its share meet the costs govern- ment. But have come point national economics where gov- ernment expenditures are grave concern all, regardless party, and where they threaten the prog- ress the country’s economic advance. Government expenditures extraordinary character may necessary and wise during de- pression, but every dollar taxes collected the government from American industry dollar added the cost goods and services. Many overlook the fact that, under normal conditions, low taxes are just necessary for sustained buying power are lower prices increased wages. Industry can- not expected practice all the economy. Let’s give the consuming public few billions reducing taxes and see what that will enhance buying power. Price Advances Unavoidable The accumulation costs labor, materials and government made the recent price advances steel unavoidable. hopeful that the trend will higher, for the growth industry this country, including our own, has gone hand hand with increased output, bet- ter products, and lower prices. THE IRON AGE, June 1937—33 1 > 1 ’ 1e the betterment our products, the price benefit the consumer sometimes overlooked. When the buyer receives better product the same price really getting lower price for value received. would seem that the present prices steel products the buy- ing public are reasonable bal- ance, judged the test that there has been vastly extended use steel materials widening range markets and products. fact, the competition other service- able materials and the need maintain our own wide markets are controlling forces which operate keep steel prices reasonable basis. have commented this matter fair prices, fair producer well buyer, because whatever the line business, its future de- pends upon its ability make reasonable profit. enterprise can prosper demands more than fair for its products, and thereby kills its markets. the other hand, every industry must earn something over bare manufac- turing costs order keep going, and advance. should earn enough pay dividends for those who have provided the capital, conduct research, modernize its plants, build new ones de- mand requires, and pay decent wages. All these factors must cared for you are have pro- gressive and prosperous industry. Indeed, the future well-being the United States, industrial country, dependent upon its in- dustries being profitable. are sometimes inclined forget that bumper cotton crop means nothing unless there thriving textile industry make use it. The wheat fields are the bread basket the nation because the grain processed the miller and the baker. And industry, moreover, very considerable part the total American people, for any industry nothing more than group individuals employees, managers and owners their ser- vices and interests common enterprise. May Record Year The enterprise steel making recent months has been highly encouraging, respect produc- tion and markets. the rate operations for the first four months continues throughout the balance 1937, the ingot output the steel industry for the year will close million tons compared with 56,433,000 tons the record year 1929. But should like introduce word two caution. Unless the mounting costs which have re- 34—THE IRON AGE, June 1937 ferred can held check, the future may disappointing. And must careful not permit this high production lead into the building excessive ingot ca- pacity. Our present high production has been needed satisfy market starved during the depression. But must not stampeded into trying meet existing demands overnight. The subnormal with 458,000 1929, increase fine record for our industry that throughout the depression there was minimum amount ernmental relief required. While substantial progress out the depression has been made most industries, fact that the labor unrest many places retarding that movement. Signifi- cantly the problem does not arise UGENE GRACE, retiring president the American Iron and Steel Institute, chatting with William Irvin the institute meeting. for steel lasted for seven years, and will take considerable pe- riod super-normal operations supply the accumulated shortage. should, course, continue our development new finishing proc- esses, improved the efforts make better and more products; but the situation today does not, judgment, justify making capacity. Experience has taught more than one occa- sion that idle plant investment expensive luxury. Another factor which must carefully weighed the appraisal our industry and its opportuni- ties the labor situation. fact, the labor question its many as- pects and ramifications the out- standing problem today’s indus- trial life. What are doing our industry promote permanent industrial peace? Certainly, un- employment this time can charged the steel industry end that true industry gen- eral. The steel industry today employs 577,000 men compared within industry itself. The rela- tions between management and em- ployees basic American indus- tries are and have been healthy. The pressure coming from the outside. The employee tween various factions seeking one way another gain control. Every enlightened industrialist knows that peace and prosperity industry depend upon firm and lasting friendship between em- ployer and employee. Cordial relationships have ex- isted for many years most the industries this country. In- deed the attainment this objec- tive, believe, has done more than anything else contribute our industrial development. Nothing will more adversely affect our na- tional well-being than the disturb- ance this essentially fundamental relationship. There are those who now would have the public believe that man- agement’s objective seeking promote friendly relationships with employees has been frustrate é f ar ite, particular type labor organiza- tion. Nothing further from the truth. Management’s objective has been promote and foster indus- trial peace. matter through what form organization em- ployees may choose deal, relations between them and man- agement are not friendly and co- operative, the business will suffer from inefficiency and bad morale. prominent labor leader has said: “There employer group employers who can keep employees from organizing they want organize.” agree with that statement. what employer may think the merits one form labor organization another, the vast majority the workers this country have chosen not join with the trades union movement because they have made this choice their own free will. the long run, allowed act with- out interference coercion either side, employees will choose for themselves the kind organi- zation representation they want. That should be. The question has been much agi- tated recent months the interests all concerned, great public service has been ren- dered. fact somehow obscured re- cent times that many employers for years have recognized the need for cordial relationships with their employees. and large that prin- ciple gained nation-wide impetus from President Wilson’s industrial conference following the World War. appeal was made for all parties cooperate promoting industrial peace. That conference marked high point cooperative relations between business and la- bor and government. The report the conference signed William Wilson, Secretary Labor, and roster other leading citizens, was Magna Charta collective bargaining. advocated special type organization. said rep- resentation definite principle rather than form. recognized the validity employees repre- sentation, works councils, plant committees, national local trade unions effective forms mutual dealing. But above all stressed that the real objective was the goal industrial peace. There was whole hearted, GIRDLER, chairman Republic Steel Corp. and the newly elected presi- dent the American and Steel Institute, was caught the camera the institute meeting while talking with Frank Purnell, president Youngstown Sheet Tube Co. whether those engaged indus- trial enterprise have voice their working conditions. Within industry, real progress made along these lines over the past years. The phrase “collec- tive bargaining” new popu- larity but old fact. Wherever employees have freely chosen the form organization through which they wish deal, and the results those dealings have promoted nation-wide response the con- structive Wilson report. Over the intervening years relationships developed, wage standards were lifted, hours were shortened, working conditions were bettered, jobs were made more se- cure and long reign industrial peace was enjoyed throughout the country. the maze present day propaganda which clearly de- signed discredit the motives employers, few people realize that what industry has done build good relationships with employees largely the outcome sincere effort high public officials, out- standing citizens and business lead- ers this country find the solution this fundamental indus- trial problem. Almost everything that the em- ployer now does for the employees being discredited. Next thing the employer will accused domi- nation provides free lily cups for the drinking fountains. The real issue, which the mainte- nance and promotion industrial peace and the progressive improve- ment the standard living for the worker, relegated the background. wish, therefore, restate simple terms the fundamentals good labor relationships have existed and they should exist the future. With respect bargaining, the employees can have what they want. employers want them have what they want, but they ought not forced have what they don’t want. The employee protected that right the law, and employers respect the law. Violations Law have seen some shocking vio- lations law industrial centers during recent months, but believe that the long run the public instinct for the safety and security government law will prevail. activity can above the law. individual, group, type enterprise can long allowed take the law into its own hands. laws are needed prevent abuses any group establish responsibility for their acts the interest the people whole, such laws will enacted. essential permanent pros- perity that transitory conditions shall not obscure the real funda- mentals. Collective bargaining currently much discussed topic. While necessary, nevertheless the conditions and standards under which employees render service are paramount importance. The em- ployee wants steady work, wants good working conditions, wants opportunity rise his merit, wants security against the hazards sickness, accident and old age. Enlightened employ- ers their own best interests and the interest industrial peace are continuing, and will continue, fulfill these desires the fullest extent. These favorable conditions THE IRON AGE, June 1937—35 e jec- han our na- with where industry can operated with maximum economy and ef- ficiency. But industry alone cannot its best job for the country un- less has effective and under- standing support from the people. The general public and their gov- ernment should have friendly at- titude toward industry. the life blood our civilization. and large, people who are familiar with industry’s and accom- plishments are friendly. But others need know the facts. Our institute has real job ahead continue present the country the facts about the steel industry. Steel has often been used whipping-boy persons hav- ing ulterior purposes. conse- quence, some sections public opinion been prejudiced against our industry. The leader- ship steel high wages, favor- able working conditions and many aspects social security has been largely ignored. Its contribution the growth and stability other industries has not been fully real- ized. But not need give up, become discouraged. sure there better under- standing and appreciation steel today than there was five years ago. believe that, continue hammer away with the facts, the public large will time fully recognize the high purpose, the good faith, accomplishments, and progressiveness our industry. Industry Solid Foundation appraise the situation to- day, convinced that over the long pull our business more solid foundation than any time the immediate past. The great gains which have made re- cent years placing steel the consumers’ goods industries have brought closer the public and assure greater stability pro- duction. Steel has taken broader life. The day has passed when the industry depends for its markets chiefly large structures. Tomor- row, the other side the con- tinent, there will celebration for the completion the great Golden Gate Bridge. There will doubtless other achievements this nature the future, but the everyday operation the steel business has come more and more depend upon the thousands upon thousands small orders for steel going into vast diversity products. are longer depending largely upon capital goods, but capital goods plus wide range consumers’ goods. 36—THE IRON AGE, June 1937 Patman-Robinson Act Has session the American Iron and Steel Institute general meeting, Wright Patman, co-author the Robinson-Patman Law, pointed out the reasons for its enactment. His address follows: This law part the Clay- ton Act 1914, and sidering its terms and provisions the other provisions the Clayton Act should also given considera- tion the same time. This bill became law June 19, 1936. had been introduced about year before its enactment. very unusual for law such major importance and controversial enacted such length time. The proposal was given considerable impetus the disclosures special Congressional investigating committee which was chair- man. was known committee investigate the American Retail Federation and large-scale buying and selling. This committee disclosed and re- ported Congress the following: were favoring mail order houses and large corporate chain stores giving them large quantity dis- counts that were not justified reasons differences cost manufacture, sale and delivery. before the morning Such vendors were giving con- cerns with enormous buying power secret allowances and granting them pseudo dummy brokerage, which were not given their com- petitors proportionally equal terms. Such vendors were favoring these large concerns with adver- tising allowances, services and facilities that were not available their other customers competi- tion with them proportionally equal terms. The big and powerful were gradually obtaining control re- tail distribution this country and independent merchants all kinds were being crushed. The special Congressional com- mittee recommended Congress that these abuses and unfair prac- tices prohibited law. The Robinson-Patman Act has enacted into law every recommendation that committee. has been ef- fect almost year. make the statement, with the knowledge that cannot successfully contradict- ed, that this law has been more helpful independent business than the Sherman Act 1890, the Clayton Act 1914, any other law passed Congress intended protect the weak agianst the The Federal Trade Commission actively and vigorously prosecuting all persons and corporations guilty violating this law. Cases are already pending that will eventual- test every question that can raised connection with it. Restore Equality Opportunity The law intended restore equality opportunity business without penalizing service and ef- ficiency. Only small per cent business men are unfair and are guilty bad practices. these Captain Kidds who have been de- touring the Golden Rule that this bill will inconvenience. This law has been referred anti-chain store law, anti- big business law and many other similar titles. not anti-chain store law, anti- big business law unless such chain store big business should guilty practices which this law prohibits. applies all alike, big small. will way penalize big business unless con- cern should become large that reason its power and size, such great reductions, discounts and benefits quantity purchases, that can destroy small the event one concern come large, few concerns should become large, this law permits restriction their bene- fits give smaller businesses equal opportunity compete. predict that the law will not changed this session Con- gress. not need amend- ment strengthen and be- lieve that can successfully de- feat amendment that proposes weaken the law. Local Business personal belief that there proper place Amer- ican business for absentee owner- ship either stores banks, that chain stores and branch banks will eventually become institutions the past. The American people t realize that profit system the best; that one should encouraged work, cultivate initiative and earn return profit for his knowledge and labors. They also realize that the business each local community should owned, possible, local people, and just far removed from absentee ownership control as_ possible. There are certain businesses which require aggregations capital for their successful ownership and con- trol, such railroads, telephones, steel and many others, but the businesses that are necessary local community should owned locally and operated local peo- ple far possible. The inter- est industry and public mutu- al. is, therefore, the interest the general welfare ness regulated just little possible, but equality opportu- nity should preserved and monopoly prevented. Constitutionality Congress can only pass such laws the Constitution the United States authorizes Congress pass. other words, the Constitution grant power. Fortunately, however, for those who de- sire stop chiseling, cheating and racketeering business through Congressional act, have the as- the Constitution that Congress may pass such law prohibit such practices involving interstate transactions. This section the Constitution says effect that Congress has the power regulate commerce among the states. The Interstate Commerce Act, which was intended prevent dis- criminatory freight rates, was en- acted pursuant this provision and such act has stood the test the Courts for more than forty years. The Clayton Act 1914 has stood the test the courts for more than years, and the Rob- inson-Patman Law merely amendment the act. The Supreme Court the Unit- States has recently enlarged the interpretation the phrase “in- terstate commerce” “commerce among the Many lawyers who doubted the constitutionality fore this broadened interpretation the Court not doubt its con- stitutionality this time. Threefold The law has more ways en- forcement than any law upon the statute books. The particular pen- alty that feared more than any other part the law the three- fold damage provision. venture- some concern possibly willing take chance with the courts and the Federal Trade Commission, knowing the delay that will obtained before final decision, but not willing take chance with the threefold damage provi- sion effective, since damages will accumulate all the time that the test cases are court before the Federal Trade Commission, and proper suits for the collection such damages can filed the end the test suits. has been rumored that some ponents are endeavoring get the threefold damage pended Congress return for agreement favor shorter hours and higher wages. Those for long time behalf this legislation are not going agree any such change. will fight such effort regardless the source from which comes with all the power our command. can secure the enactment such law such short length time, can certainly prevent emasculating amendment. our opponents want real fight, fight the finish, they can get very quickly proposing substantial amendment this law. Transactions Affected The Robinson-Patman Law ap- plies only interstate transactions, retail, wholesale manufac- turing business operating wholly within state, that is, all the customers such establishment are wholly within the state, such institution seller, this law will not apply. buyer from outside the state, such estab- lishment will entitled all the benefits this law all its penalties. Therefore, practically all the retail establish- ments are affected only buyers; only limited number are effected and Can Rigorously Enforced, Says Co-Author sellers. estimate that from per cent all manufacturing, jobbing and wholesale business affected this law. jobber wholesaler has customers only within the state, the place busi- ness may come under the law and dealer subject the law either the following conditions prevail: goods are shipped cus- tomer within the state for resale outside the state. goods that are received interstate commerce are shipped the original packages the cus- tomers within the state. Commodities Only Included This law does not include ser- vices; merely includes commodi- ties which are sold for use, con- United States its possessions. order for discrimination occur, the seller must sell commodi- ties like grade and quality two customers who are competitors, and the commodities must like grade and quality. The law does not include special designs specially built commodi- ties for one customer. should noted, however, that the law says like grade and quality. The word “like” means similar, the com- modity need not exact iden- tical. long similar, there will discrimination two cus- tomers are given different price. What Discrimination Must Result The law that seller must not discriminate price where the effect may substantially les- sen competition tend create monopoly any line com- merce injure, destroy pre- vent competition with any person who either grants knowingly receives the benefit such dis- crimination with customers either them. The old Clayton Act, which was ineffective, pro- vides discrimination unlawful where the effect substantially les- sens competition tends create monopoly, but did not include the part now embodied the Rob- inson-Patman Law about injuring, destroying preventing competi- tion. The Robinson-Patman Law, re- THE IRON AGE, June 1937—37 + 4 r : 0 f e > t 3 Ae gardless quantity, prevents dis- crimination price between dif- ferent purchasers who are competi- tors. There exception the law following which permits differential made which “makes only due al- lowance for differences the cost manufacture, sale delivery resulting from the different meth- ods quantities which such commodities are such purchasers sold delivered.” One who desires make different price for dif- ferent quantity has the burden showing that the different price for certain quantity was justi- fied reason conditions the cost manufacture, sale de- livery. prima facie case made when the Federal Trade Commis- sion the court shows discrim- ination price regardless quan- tity. The burden rebutting such case shall upon the alleged vio- lator. The theory this provision that the facts which constitute justification are necessarily the possession the alleged discrim- inator. The law specifically provides that the seller may select his own cus- tomers bona fide transactions and not restraint trade. The law, however, says effect that when seller has selected his cus- tomers cannot cheat them; must treat them fairly and equally. Price Changes The law specifically provides that prices may changed from time time where response chang- ing conditions affecting the market for the marketability the goods concerned, such as, but not limited actual imminent de- terioration obsolescence seasonal goods, dis- tress sales under court process, good faith discontinu- ance business the goods con- fact nothing prevent one from changing his price often desires long the price change not made for the purpose, and the effect not grant one more customers discriminatory price, which discrimination against his other customers. price change should made and one large customer should get the benefit much lower price and then the price should restored, very likely the Federal Trade Com- mission and the courts would hold that was not bona fide price change and was discrimination against the seller’s other customers and violation the law. Meeting Competition Under the old Clayton Act order for one guilty grant- 38—THE IRON AGE, June 1937 ing discriminatory price, the gov- ernment was compelled allege and prove that discrimination the same different communities was not good faith meet com- petition. This destroyed the use- fulness that law the burden upon the Government was too great developed that would give excuse for lowering prices meet competition. The Robinson-Patman Law does not permit meeting competition defense, but does permit the one against whom discrimination charged show that the lower price was made good faith meet equally low price the competitor (not lower price, but equally low price). will noted too that the burden upon the accused rather than upon the Government make this showing. Brokerage Under this law unlawful for bribe the other party the trans- action. Brokerage shall not paid intermediary who acting ject the direct indirect control any party such transaction other than the person whom such compensation granted paid. This law will effectively pre- vent pseudo-brokerage. buyer not entitled collect brokerage because not performing the functions broker. Advertising Allowances Advertising allowances are not prohibited under the Robinson- Patman Law, but such allow- ances are granted customer anyone for the benefit customer, such allowances must made available equal terms all other customers competing distribution such products commodities. This pro- vision will force advertising money used for advertising purposes. cannot used for reduction price. The small customers will get allowances proportionally equal terms with the large custom- ers. Pseudo-advertising allowances ‘are outlawed. under this act. Services and Facilities seller grants the use particular facility dispense the products the seller retail store, the same facilities propor- tionally equal terms must ac- corded all purchasers. This will prevent large national concern from granting special facilities for the distribution retail its products particular market where independent concern can- not compete and may destroyed. the facility furnished one customer, must furnished all customers whether competi- tion not. Demonstrators and services that type and description may furnished customer offered the competitors that custom- proportionally equal terms. The law specifically provides that the one who knowingly induces knowingly receives tion price which prohibited law guilty under the law the one who grants the discrimina- tion. How Law May Enforced This law has more ways effec- tive enforcement than any law upon the statute books the Unit- States. All the weasel phrases have been taken out the old Clayton Act and biting teeth have been inserted instead. The law may enforced any the following methods: Any United States District Attorney the United States may seek and obtain injunction against one who violates any part this law. The Attorney General the United States may seek and obtain such injunction. The Federal Trade Commis- sion may issue cease and desist order against the one violating the law. Any one violating injunc- tion cease and desist order may sent jail, fined, both. The injured party may through his own attorney seek and obtain injunction against one who discriminates against him under that law. The injured party may sue anyone who discriminates against him for threefold damages and cost suit, including reasonable at- torney’s fee. Section the law provides for punishment fine not more than $5,000 imprisonment not more than one year both for any one who discriminates against competitors that any discount, rebate, allowance advertising service charge granted the purchaser over and above any dis- count, rebate, allowance adver- tising service charge available the time such transaction said competitors, sell contract sell goods any part the United States prices lower than elsewhere the United States for the purpose destroying compe- tition eliminating competitor, sell goods unreasonably low prices for the purpose de- stroying competition eliminating competitor. (CONTINUED PAGE 43H) ‘ j | % i i Diges enumerate the mod- ern types stainless alloys fairly sim- ple matter, although laborious. describe their prop- erties and characteristics more difficult assignment. But em- phasize their shortcomings presents almost insurmountable difficulties. The best criterion for judgment the behavior the metal under actual service conditions and with respect the time element. Thus are fully able maintain that many the standardized proc- esses the difficulties encountered have been solved, the most suitable alloys installed and that long the conditions for which the problem was solved changed, neither expect nor fear any difficulties. With ever moving progress our complex in- dustries are also ever changing, ever striving toward further im- creating extremely difficult conditions service. times the exact conditions under which the metal serve are either unknown cannot told. consequence, single process often presents literally multitude problems. Some these cannot foreseen. That the reason why may difficult empha- Size the shortcomings stainless and heat resisting alloys. begin address with what may not that. plea addressed the engineers, chemists, and executive officers various con- cerns extend the metallurgists the necessary cooperation first understanding the problem and then give time which intel- ligently work out these problems. Considering the long period the Age Iron, the stainless steel alloys are relatively new. expected from the multitude *Abstract paper presented before the general meeting the American Iron and Steel Institute, New York, May 27. Stainless Steel KRIVOBOK Associate Director Research, Alle- gheny Steel Co., and Professor Metallurgy, Carnegie Technology various conditions service that some deficiency the character- istics such alloys will found. These deficiencies had elim- inated, either means some thermal treatment whenever pos- sible, or, the case chro- mium-nickel austenitic alloys, either balancing modifying the composition. Further, specific re- quirements had met the field applications grew. Both the considerations mentioned have resulted the development “modified” chromium and chro- mium-nickel alloys, some which have already become standard. The almost classical example early discovered deficiency the phenomenon which some call “car- bide precipitation,” “intergranular inter-crystalline corrosion,” and others less technical terms such “sugaring,” “powdering,” was already stated the chro- mium-nickel austenitic alloys are not stable. Like other ferrous alloys, they have definite, limited solubility for carbon, estimated about 0.02 per cent, smaller total carbon content than pos- sible produce commercially. When the alloy heated within the range about 800 1500 deg. the carbon (in excess 0.02 per cent) separates out the form carbides. The formula the Cr.C. Ordinarily the separation the excess constituents not serious objection. fact some instances deliberately bring about for example the process univer- sally known precipitation hard- ening. The troublesome behavior chromium carbides that they separate out preferentially— the grain boundaries the metal. This results the dimin- ishing chromium content the metal immediately adjacent the boundaries, least this the more less generally accepted explanation. grain boundaries suffer lessening the resistance corrosive at- tack. Hence the alloy has been heated some time within 800 1500 deg. and then sub- jected even mildly corrosive media, begins corrode the grain boundaries and finally reduced powder. the discussion the same subject 1933, the suggestion was made that the logical efforts combating decomposition should directed toward producing matrix which would resist migration carbides their grain boundaries; producing matrix which itself would resist corrosion even car- bides were separated; and forming carbides elements other than chromium. These ciples were applied the develop- ment work which followed. now recognize that the following methods have solved the problem carbide precipitation all prac- tical purposes. (a) Additions such elements titanium, columbium, vanadium and tantalum with which carbon unites preference chromium. Variable amounts these elements, depending upon carbon content, are required. Some manufacturers recommend the use so-called treatment which usually consists heating from 1400 deg. 1500 deg. for considerable time. (b) Adjustments chromium, nickel and carbon concentration form what termed “balanced” alloy (in ap- plications where only short-time heating involved) for example welding. Welded constructions these alloys are used with safety and satis- faction when high temperatures are not involved. problem intergranular corrosion THE IRON AGE, June 1937—39 2.) | | ° + ‘ - | Wi 2 practically solved, provided that the condition service, methods construction, etc. was stated, titanium, columbium, vanadium and tantalum are used order slow down eliminate carbide precipitation with all its subse- quent evils. Tantalum has only re- cently been advocated Europe and its action yet time- tested. Vanadium required larger amounts and not pow- erful either titanium colum- bium. Hence might consider detail the latter two. Either one should added chromium-nickel alloys when such alloys might subjected heat- ing within the carbide precipitation range and exposed some corro- sive media. one will obliter- ate the danger corrosion due carbides. This recommendation has, however, important stipu- lation, namely that welding proc- ess has not been employed the construction. When welding has been used, the two additions, titan- ium and columbium, must con- sidered separately. sufficient amount titanium oxidized and lost from the metal during welding render the remaining amount inoperative. Consequently titanium alloys are not used the construction requires cross welds, illustrated Fig. the sec- tions welded are heavy, still more important, welded ma- temperatures. Nor should they recommended those cases when annealing for stress relieving required code, unless posi- tively assured that cooling after stress relieving can accomplished sufficiently fast that carbides will not precipitate out the areas previously depleted titanium. For many installations such fast achieve. Little columbium lost during welding. Its addition and provides reasonable measure safety under such cir- cumstances for example the use heavy welded cross-sections installations, when the operating temperature the welded con- struction the carbide precipi- tation range, rapid cooling after stress relieving cannot guaranteed. The balanced alloy, already men- tioned, contains 0.12 per cent max- imum carbon, approximately 40—THE IRON AGE, June 1937 per cent chromium and per cent nickel. has the characteristic “sluggishness” the precipita- tion carbides. certain appli- annealing after welding, siderable advantage. Another recent development the field austenitic chromium- nickel alloys that alloy with per cent molyb- denum added. For manufacturing reasons was found expedient modify the composition somewhat and the stainless steel code its Type 316; 0.10 per cent maximum carbon, 16.0 19.0 per cent chro- mium, 14.0 per cent maximum nickel, 2.0 4.0 per cent molyb- denum. suggested that this alloy possesses increased resistance attack solutions sulphurous and sulphuric acid, hence its use has been advocated such instal- lations digestors for pulp and paper industries. advis- able mention, however, that very satisfactory been rendered the alloys per cent chromium-10 per cent nickel type and that equally good results are expected from the alloy per cent chromium-20 per cent nickel composition. The satisfaction the paper industry has been voiced Miller his discussion most desirable materials for his doubtedly the decision the selection the very best material should again dictated careful considerations all involved fac- tors. For example and with molybdenum alloy susceptible carbide precipitation and, weld- ing construction employed, either desirable obligatory anneal the alloy after assembly. the best our knowledge alloys per cent per IG. weld ium bearing chro- mium-nickel alloy showing the ef- fect second bead one previously de- posited. cent nickel per cent chro- mium-20 per cent nickel are less susceptible carbide precipitation adjacent the weld. Thus, an- nealing may unnecessary unless for the purpose relieving mentioned that the composition chromium-nickel-molybdenum al- make about the same calibre either “20-10” inso- far carbide precipitation con- cerned. The fabrication finished articles, such tubes, from alloys this adjusted chromium-nickel- molybdenum composition most difficult not commercially im- possible. denum alloy has one advantage: markedly less susceptible the type corrosion which gen- which the forma- tion either very small or, times, quite large holes, which may penetrate through the whole thick- ness, while th