The Iron Age 1944-09-07: Vol 154 Iss 10

VAN DEVENTER President and BAUR Vice-President General ° ° Editorial and Advertising Offices 100 East 42nd St., New York Johnson, Market Research Baur, Typography and Layout Regional Business Managers New York New York 100 East 42nd St. 100 East 42nd Cleveland Pittsburgh 1016 Guardian Bidg. 428 Park Philadelphia Chicago Chilton 1134 Otis PEIRCE LEWIS WARREN 7310 Woodward Ave. Box KAY Los Angeles 2420 Cheremoya Ave. ° ° ° Owned and CHILTON COMPANY Executive Offices Chestnut and 5éth Sts. Philadelphia 39, Pa., U.S.A. OFFICERS AND DIRECTORS MUSSELMAN, President JOS. HILDRETH Vice-President GEORGE GRIFFITHS EVERIT TERHUNE Vice-President BAUR Vice-President WILLIAM BARBER, Treasurer JOHN BLAIR MOFFETT, Secretary HARRY DUFFY CHARLES HEALE ° Member, Audit Bureau Circulations ° ° indexed the Industrial Arts Pub- lished every Thursday. Subscription Price North America, South America and Possessions,. Foreign, $15 year. Single Copy, cents. ° ° ° AGE Vol. 154, No. September 1944 Editorial Too Little and Too ° ° Technical Articles Corrosion Behavior Magnesium Alloys.............. Permeable Refractories for Gas Fired Furnaces Industrial Precision Conveyor Boosts Welding Multiple Drilling Engine Lathe.................... Bar Bucking Assemblies Speed Features News Industry News and Markets Steel Company Profits Non-Ferrous Metals News and Non-Ferrous Metals Prices; Scrap Prices.......... Iron and Steel Scrap News and Prices.................. Finished Iron and Steel Steel and Warehouse Prices............. Semi-Finished and Tool Steel Prices................... Steel Pipe and Tubing Prices....................... Railroad Material and Stainless Steel Ferroalloy Prices Index 109 112 168 170 171 172 174 176 178 179 180 181 182 183 184 275 102 104 106 109 Member, Associated Business Papers 3 Ryer -located Ryerson service plants. Our operators will con- ¥ a When You Need Ste Every type steel from stainless all q structurals immediately available from Ryerson stock. Just reach for the phone and call any one the nect you once with experienced eleven conveniently 56—THE IRON AGE, September 1944 ESTABLISHED 1855 ° Sept. 1944 VAN DEVENTER President and Editorial Director BAUR Vice-President and General Manager ° DIX Manager, Reader Service Editorial Staff LIPPERT Technical Editor........ OLIVER Commercial Editor, CAMPBELL Associate Editors WINTERS TRUNDLE ALBIN JOHN ANTHONY BARMASEL Assistants SCHIEN WILLIAMS VAN CAMP MUNZER O'CONNOR MILLER Regional News and Technical LLOYD Pittsburgh 428 Park POST Chicago 1134 Otis MOFFETT DONALD BROWNE EUGENE HARDY Washington National Press MacDONALD Cleveland 1016 Guardian 7310 Woodward Ave. OSGOOD MURDOCK San Francisco Market St. Editorial Correspondents ROBERT McINTOSH Cincinnati DEAN Buffalo FRAZAR Boston HUGH SHARP Milwaukee SANDERSON Toronto, Ont. RAYMOND KAY Los Angeles JOHN McCUNE Birmingham ROY EDMONDS St. JAMES DOUGLAS TOO LITTLE and TOO LATE HORTAGES lose wars. Overages never do. That something keep mind connection with the current fuss and furor con- cerning the question shifting back civilian goods production. One the reasons, for example, that Germany was obliged sue for armistice 1918 was her shortage liners for field guns. Not that this particular shortage won the war for the Allies. For had not been that shortage, would eventually have been another. Yes, shall have tremendous surplus some, items war ma- teriel and other products ordered for the Army, the Navy and the Maritime Commission left over V-Day. That something that should rejoice instead complain about. The nation that loses this war will not have surplus worry its people. Germany, for example, will have surplus fighting aircraft after this war. We, the other hand, may actually obliged scrap many thousands perfectly good planes because shall have too many them and because design changes will make them obso- lete few years’ time. Most our war planes are one purpose mechanisms that cannot economically converted used for purposes. And experts tell that less than 6000 planes, about month’s production our present rate would saturate the entire world market for commercial transportation. Theoretically, suppose, perfectly planned war the last bullet will have been manufactured and shipped time kill the last Jap German the last battlefield, the last day the conflict. And with the thousands other items which are expendable war. Unfortunately human mind has the power prevision when the last day will come where the last battlefield will be. And must remember that the Allies have begun win the battlefields Europe only during very few recent months. this present conflict opinion home between those who want quick resumption civilian goods manufacture and the Army and Navy who want make sure that shall have more than enough finish the job, sympathies are with the latter. there any item which shall have just enough and sur- plus when the war ends, then some procurement officer has been remiss his job and has gambled with the fate the Nation. man group men can plan detail the strategy and requirements world war with its shifting center gravity. only during the last few months before victory that the pattern begins clear and gen- eral staff however capable and commander-in-chief however omnis- cient can prevision the shifting viscissitudes that war this duration and magnitude bound bring. let patient little longer and rejoice that shall have too much soon rather than too little and too late. BRAMS Detroit Ready Visit any Inland’s properties and you will meet men who live and work with steel—they are the metal-wise men Inland. They will found mines and quarries, using their special training and skill assembling selected raw materials —ore, coal, and limestone. Only metal-wise men operate the Inland blast furnaces, open hearth fur- naces, and rolling mills—and staff the metallurgical and inspection depart- Help You ments. All are steelmakers highest qualifications, and many them rank high among America’s foremost authori- ties the production and use steel. Quite frequently you will meet metal- wise men Inland helping manufac- turer solve problems steel selection, part design, and manufacturing method. Inland specialist, wise the ways making and fabricating steel, always ready help you. Sheets Strip Tin Plate Bars Plates Floor Plates Structurals Piling Rails Track Accessories Reinforcing Bars INLAND STEEL COMPANY Sales Offices: Cincinnati Detroit Kansas City Metal-wise Men Inland rocu: Wes ime here inanc arrow izes onsti A News Front September 1944 That steels will discarded the automotive industry just full steels will made available, the opinion prominent automotive engineer. Automotive manufacturers fear that obtaining deep drawing sheets will one greatest reconversion problems. The residual alloys the steel scrap will make steel sheets brittle preclude their deep drawing. The producers are confident, however, that they will able supply auto builders the necessary material. First aircraft company announce its intention entering the automotive field Consolidated Vultee whose plans for were revealed recently. The huge flying boat under construction Howard Hughes (originally one enterprises) will take off from six months year, according also insists that will build huge land plane, far the largest ever soon materials become available. postwar railroad dining car, offered Pullman Standard Mfg. Co., will ave diagonal seating (to eliminate interruptions arrivals and departures), ionless tables, illumination, and small tables for dining for Nearly two-thirds the more than billion spent for war time industrial ies the midwest was spent for equipment, and for structures. One reason for current difficulties securing adequate labor the midwest hat that section was the war effort. Very few facilities here were completed the close 1942, the expansion that time amounting ess than per cent the district's present total, compared with nearly percent that time for the nation. all government financed plant and equipment expansion the nation, DPC has inanced percent, Army percent, Navy percent, Maritime Commission percent, other agencies percent. Surplus stocks steel continue grow, but they are overwhelmingly larrow strip unusual specifications. Merchant bars wide variety shapes izes run poor second. The situation evidence that perhaps surplus stocks will little threat future steel production. aid from the United States its allies for the period from March June 30, 1944, totaled $28,270,351,000, percent all defense and war addition, approximately $700,000,000 worth supplies were forces. For the same period, reverse lend-lease supplies and services furnished and merchant shipping overseas amounted over $3,000,000,000, with the the British Commonwealth. commenting reverse aid, MacGregor, director general war supplies for Australia, believed impossible balance There mathematical formula whereby anyone could possibly tell who who what after the war. Under the WPB order July automotive companies have begun place orders achine tools without waiting for DPC equipment made available. Average delivery ime weeks, but good promises special machines have not been forthcoming. Postwar existence the Geneva Steel Co. can insured only the government decide sell the plant for fraction the $190 million has invested. the government does cut its price, will accused throwing away money for the benefit private buyer. survey conducted Detroit the research department the UAW reveals the 447 war plants polled, 167 have received cutbacks. result employment from the peak 925, 000 about 775,000. Grumman's new two-motor, fighter plane will known contest held among the company's employees resulted two prize the other winner, will held for some future plane. | | | | | — United States Steel Corp., expressed doubts about the postwar Pacific Coast steel market San Francisco three weeks ago. pointed out that steel consumption the Far West had increased 6,700,- 000 tons annually during wartime, but that 3,000,000 tons this was plates, mostly for shipbuilding. for the Steel Corp. oper- ated Geneva plant, said, “We have option buy, lease otherwise eontinue production there after the war. However, this does not mean that wouldn’t interested oper- ating the plant the postwar days Western consumption warranted and could obtain the right basis.” said didn’t know whether the Steel Corp. could operate the plant profit, pointing out that the capacity now much greater than the consumption any prewar year. Some three years earlier Fair- less told his friends, when the deci- sion had been made the government construct huge, fully integrated steel plant Utah, “We will build the best plant know how quickly possible. will build without cent profit, and irrespective the corporation’s own interests. one will ever able say that had any selfish motives construct- ing this plant and that didn’t our best make operate satis- factorily possible.” Only three weeks before Pearl Har- bor, members the steel industry, Washington, had been told that the plan was build blast fur- naces, facilities Utah take advantage the superior raw material facilities there. Finishing facilities would constructed San Francisco Bay near the plants operated Beth- lehem and Columbia, the Steel Corpo- ration subsidiary. Needs the ship- building industry then were such that this arrangement would suffice re- lieve the burden the Eastern mills. proposal Henry Kaiser, West Coast shipbuilder and contractor, who 60—THE IRON AGE, September 1944 raw and semi-finished steel Much the speculation about the future the Geneva steel plant goes deeper than concern whether Western steel consump- tion will sufficiently great warrant its existence after this emergency period. The Geneva plant has now become symbol the postwar threat DPC plants those which have been built and nurtured private industry. Being high cost producer, can maintain its competitive position only some form govern- ment subsidy. This article appraises Geneva's potentialities and comes conclusions opposition those Geneva enthusiasts like Dr. Mahoney, abstract whose report will appear next week. recently promoted government funds for magnesium plant, had been tabled. earlier proposal Bethlehem erect fully integrated plant, with two blast furnaces Los Angeles, had been turned down follow- ing objections from the War Depart- ment. When the Japs unleashed their initial terrifying power, the crotch the Steel Corp. plant was tied form single plant Utah, far from the Coast. Somehow, military security objections the Kaiser proposal were overcome, and approval given first build blast furnace, and later, bit bit, full fledged steel works and mill Fontana, miles east Los Angeles. Although President Roosevelt more than once had let known that felt decentralization the steel indus- try westward would good thing general economic, and presumably, political principles, all this expan- sion was tagged strictly emer- gency measure necessitated war- time demands Pacific Coast indus- tries, notably shipbuilding. The fact that early Japanese successes caused the Steel Corp.’s plant recoil from the Coast far that its tail rubbed the Rocky Mountains, was incidental. This plant faced the Pacific Coast. The Fairless vow was carried out the letter. Defense Plant Corp., which proclaims that “instrumen- tality the United States Govern- ment” everything from paper clips power houses, made the Steel Corp. subsidiary, Columbia Steel Co., agent without fee build the new plant. conscientiously was the con- struction operation divorced from nor- mal Steel Corp. activities that offices from which the project-was master- minded were located office building from the corporation’s own offices Chicago. With con- sideration necessary for adjacent fa- cilities, building the plant from the grass roots was steel dream. Plans called for 252 by-prod- uct coke ovens, three 1100-ton blast furnaces, nine 225-ton open blooming and slabbing mill, 132-in. plate mill, 28-in. blooming mill and 26-in. structural mill. Actual building the plant was battle all the way, with equipment delivery schedules disrupted sion equipment other projects far away Russia, and other avoidable contingencies plaguing every step. Before the first units the plant were ready for operation, new Steel Corp. subsidiary, Geneva Steel Co., was formed operate the plant without fee for DPC. Assigned tive duty with this new company were the corporation’s best management brains, with Walter Mathesius, vice-president charge operations for the entire corporation, dent. This Rolls Royce the steel indus- try yet operates only two ders. Although moss grows pig iron destined for West Coast ment, only two the blast furnaces have been blown in. Instead 2200 tons pig iron per day, they are gether producing only 1300 tons. Only three the open hearths are melting, and ton buil the jus bill oin onl Iro ste cor pre eff dot cor the ati bec ble pes see the pec adc uni eye pla str has ack the mil cou Te: tur mp- this and con- nor- ster- con- fa- the eer’s blast his, ill, ming ment new Steel plant were ndus- pig ship- naces 2200 to- Only and instead the anticipated 2500 tons plates daily for the Coast ship- only about 600 tons daily are being produced. The structural mill, whose construction was temporarily halted last December because then anticipated satiety shapes, has just commenced operate, producing billets for Kaiser’s shell forges Denver. The big bug the Geneva ointment lack manpower, with only about half crew the job. From the day 1941, when Walter Tower, president the American Iron and Steel Institute, said the steel expansion program that “it may come too late have any value the present problem,” and “it extremely doubtful whether any measurable effect could expected before the end 1944, then,” there have been doubters who felt the Geneva plant never could reach capacity operations time for peak war demand. corollary some went say that the plant did not reach capacity oper- ations during the war, never would because the limited Far Western markets for its present potential finished steel products. Don’t misunderstand. one quib- bles over the plant’s being beautiful modern piece steel making machin- ery. Allegorically said that Rolls Royce beautiful piece machinery, too, but you wouldn’t use Rolls Royce draw peanut wagon you wanted make money your peanuts. Additional Facilities Necessary the opposite extreme, enthusiasts see rosy future for Geneva. They would add $30 $40 million the $190 million already spent more nearly shape the finishing facilities the normal market needs the sur- rounding area. The mill now equip- ped turn out 700,000 tons plates and 200,000 tons shapes. the addition slab squeezer, two more finishing stands, coilers and accessory units the hot rolled strip and sheet market could invaded. Addition cold reduction facilities, with eye the substantial West Coast tin plate market and whatever cold-rolled strip demand could drummed up, has been described “the most sig- nificant step that could taken achieve more nearly full scale utiliza- tion the units already established and meet the specialized needs the western market.” The structural mill, said, could supplemented seamless tube mill tap the oil country market California, the Rocky Mountain states, Oklahoma and Texas. Less speculatively, the struc- tural mill ideal position roll 18,000,000 tons high grade ore has been removed from the Sunrise Mine Colorado Fuel Corp., Sunrise, Wyo. Commercial operations were first open pit then milling pit until depth made further development along these lines impossible. Ore now removed underground mining and new 800 ft. shaft being com- pleted permit further exploitation. rails, and this point which should kept mind for later discussion. Return competitive mar- ket the Far West certainly will bring awakening from dreams based solely metallurgical and produc- tive feasibility, however, these, car- ried inductive conclusion, would have fully integrated plant the North Pole using Alaskan lignite and pyrites deposits make electrical sheets and piano wire. The postwar nature the steel in- dustry serving the Pacific Coast can only determined when water trans- portation available thfough the Panama Canal from Sparrows Point and Birmingham and when the price and quantity scrap available Pacific Tidewater for mills located there becomes apparent. Before the war, better grade open-hearth scrap ranged from $8.50 depression depths $16.50 per net ton, when Japanese competitive buying pressure became heavy. Those who would toss apple discord into the Eden scrap supply which was the Pacific Coast before the war, point out that the region west the Continental Divide now has nearly net tons ingot capacity compared with little over million before the war. There- fore, they insinuate, the demand for scrap should push the price upwards materially making 100 per cent scrap operation economically unfeasible. develops, however, that 1,280,000 tons this capacity Geneva, which THE IRON AGE, September | not geographically situated draw from the happy hunting grounds the Coast, and that 720,000 net tons Fontana which has its own blast furnace. Actually the old line mills the Coast whose melt close 100 per cent scrap have added less than 250,000 net tons their capa- city. About one-half this the Pacific Northwest which has been overflowing with scrap. Most the balance the San Francisco dis- trict where scrap supplies never were problem. Only Kaiser veered sharply towards extremely high scrap melting ratio, which not be- yorid the realm possibility, would the market upset. Even then, the price impact would heaviest southern California, always pre-war plus-scrap area, and some extent central California. the Pacific Northwest were tapped coastwise vessels, there little doubt that the entire Coast industry, Kaiser and all, could comfortably supplied. There tendency among those who fore- see the end the Coast scrap abun- dance regard scrap some sort mineral whose supply ex- hausted once mined. These same people, strangely enough, age the ones who foresee big demand for steel the Coast for heavy industry and even shipbuilding, the very industries which will leave the Coast with big scrap stockpile the day the war ends. Before this great day many the boys coming back from the Pacific War zone will testify first hand that Japan found our West Coast scrap re- sources far excess the demands the pre-war mills there. Too much the thinking concern- ing Far Western steel production, par- ticularly Capitol Hill, trussed the Census Bureau strait-jacket that the Western states contain about per cent the nation’s population and only per cent its steel making and finishing facilities. The concept-is passed over numerical grizzly, which shifts out the fact that the West may normally expected consume around 400,000 tons tinplate. Com- pletely ignoring trade customs the purchase tinplate. which large degree became matter public rec- ord with the TNEC hearings, then argued that Geneva, Kaiser some sponge iron plant yet con- structed can con- tinuous strip mill, cold reduction fa- cilities, and electrolytic tinning line supply this entire need. Likewise, there tendency look the book and note that the tubular prod- ucts market the Western states, mostly California, ran nearly 700,000 tons annually before the war. this 62—THE IRON AGE, September basis, and without conscience, seam- less tube mill installed, backed only 200,000 tons structural mill capacity. These statistical meanderings, which fail appraise realistically prob- able market for any one mill, take little notice the minimum volume required produce such items hot- rolled strip tubular products upon competitive basis. Only cursory ex- amination made the numerous finished items such tarpaulin headings “tubular products” “flat rolled products.” few other industries does unit cost come close declin- ing geometric ratio beyond the break-even point the steel indus- try; yet this point almost universally overlooked appraising the policies competing Eastern firms which ship the West Coast. Overhead Must Reduced Under only one condition can Rolls-Royce used economically draw peanut wagon. it-can bought distressed merchandise, price far less than more econom- ical power unit, that the overhead does not eat the returns from pea- nut sales, the use fine equipment Geneva stands. today, repre- sents investment—Uncle Sam’s capital—of about $148.44 per ton ingot capacity. finishing facilities were modified that the plant serve more diversified postwar market, the figure would stand $175. privately financed American steel company even ap- proaches such figure. United States Steel Corp., whole, 1943, stood $47.96; Bethlehem $50.76; Re- public, $40.48; Colorado Fuel Iron, across the Rocky Mountains from Geneva, $32.16; and Kaiser, $125. Such handicap, itself, might tossed off during years capacity operation but, the operating rate retreats normalcy, could well become ex- tremely oppressive ball and chain private operating company. There are confirming indications that Geneva expensive operate unless capacity operation achieved. Although paper, and before the Geneva blast furnaces were blown in, the cost raw materials per ton pig iron was estimated only $10.85, the total cost producing pig under present restricted operating conditions somewhere near $22.00 per ton. This high cost, course, result primarily. the two big furnaces operating slack wind blowing only 45,000 cu. ft. air per min. instead the 85,000 required for capacity operation. Exceptions maximum price regu- lation No, the OPA schedule goy- erning steel prices, give Geneva $64.64 per gross ton f.o.b. Coast ports for forging billets, and $3.20 per 100 lb. for hot rolled plates. The latter price will also apply shapes. The billet price $12.64 per ton above the ceiling, representing competitive con- ditions, the plate price $11 per ton, and structurals per ton. OPA went the tap root Geneva’s cost situation explaining these exceptions, although missed some the rootlets which later de- veloped with operating experience mentioned above. The OPA said that Geneva’s cost production was “com- parable cost other steel mills with the exception depreciation which considerably out line be- cause the excessive cost con- structing such facility war time; that further cost factor which must considered freight since this mill very minor (sic) demand for steel,” and that even these exceptionally high prices which granted “do not appear adequate cover the most tion.” Geneva not become post- war ghost, quite obvious that overhead must reduced, and suffi- cient markets developed enable operation profitable rate. The whole matter government policy disposal government-owned plants involved the first consideration. Geneva were sold private oper- ator sufficiently low price, fixed charges could reduced point where prices were sharply competi- tive. Lower prices could broaden the market geographically and the possi- bility emerges profitable operat- ing rate. Disposal the Geneva plant any figure below the $190 million which the government paid for amounts, therefore, thinly veiled form government subsidy. Peculiarly, the case Geneva, such subsidy could viewed aid the development whole geo- graphic region. other parts the country, however, this subsidy would wreak havoc with private cap- ital invested other firms attempting capture the same markets. The so-called Intermountain States never have felt any stigma attached government subsidization their mineral industries, although thrifty, hard working residents indi- vidually are the type that would deign hold out their hands for charity. Utah’s Congressional representatives have talked long and hard for “free” silver that would simple matter point out the advantages almost free par plat gre’ ope! the stat ma} ing tucl ces: pac pro ing set the pro dus equ be anc gov the for con 2—Main plant free steel plant would bring that part the country. you can per- suade yourself that great industrial plant flourishing where only alfalfa grew before boon not only the operating company but all the citi- the fact that plants neighboring states developed private enterprise may trampled upon. This reason- ing applied here Utah, but may with plants Kansas, Ken- tucky and Carolina! Utah economists urge that the ex- cessive wartime cost construction Geneva, and the fact that its ca- pacity unbalanced with regard products normally consumed its market, should reflected sell- ing price sharply reduced below cost construction. The correct price, argued the Utahans, should set whatever necessary make the plant not only comfortably com- petitive, but allow sell its products such low price that in- dustry will attracted the area. break the plant, and ship its equipment points which could economically used, would sacri- legious, they say. other words, plant not economic the point and the cost was built the government wartime stopgap, Uncle Sam should tug and until the plant made sheer force. refer this happy thought the Malamutes for possible use connection with the Canol project. Although the $190 million Geneva, Colorado Fuel Corp. Pueblo, Colo. Utah, steel plant was constructed monument wartime demands the Coast, the big plant in- evitably will cast larger shadow eastward the Rising Sun sinks to- ward oblivion. Contemplation the shade which Geneva eventually may throw already enough make some firms the Denver area reach for their coats. Geneva taken the symbol gov- ernment-owned plants all over the country, the shadow that may chill the atmosphere for all private indus- try can easily imagined. The exact effect which Geneva will have upon the economy the Rocky Mountain and western great plains states depends principally three factors: (1) Price concessions which the government may make its sale private operator accounting which the government may take operates the plant itself; (2) products which the plant will make, and affiliations the new owner with plants other parts the country and pricing policy which may adopted. Ingot Cost High the government should decide .to sell Geneva for fraction the $190 million which has invested, the new owner will have his hands com- petitive weapon with which may massacre plants which have been painstakingly built through the years with private capital and private sweat. From engineering stand- point Geneva powerful competi- tive shillalah, for has been designed unit from the ground with the finest and newest equipment avail- able. Most plants install modern labor saving equipment only when cuts production expense sufficiently af- fect the capital outlay, often many years after the equipment fully de- veloped technologically. Geneva had choice. Built with expensive war- time material and labor, its cost per ton annual ingot capacity high that there little likelihood that any commercial steelmaker willingly will assume new venture such high fixed cost uncertain market. the other hand, the govern- ment cuts its price that the buyer’s: investment relation ingot ca- pacity more nearly comparable to: those other plants, could ac- cused throwing away money that private buyer may handed the best steelmaking equip- ment the world forth and slay his enemies. The possibility con- tinued operation for government ac- count private operator, such now being done Geneva Co., United States Steel Corp. sub- sidiary, presents such complicated range possibilities when price com- petition again appears, that has place normal speculation. Although Geneva has been decked with tinsel and glamor because its spectacular rise from the desert floor, rts ter ‘he on, ing sed de- as hat ills ion ne; ust sa igh ear uc- hat ion. xed eti- the not generally realized that the Colorado Fuel Iron Corp. plant Pueblo, Colo., couched close along the eastern Rocky Mountain slope, com- parable ingot capacity, being 1,- 121,000 net tons against Geneva’s 1,280,000. war baby any stretch come the hard way over period years, until now places Colo- rado ninth among the states steel production. From the day 1882 when the first heat steel was rolled into rails for the Denver Rio Grande Western Railroad, the Colorado plant’s destiny has been closely tied with the rail- road industry. The founder, Gen. Wil- liam Palmer, who had set out build railroad from Denver Mex- ico City, wanted avoid the heavy cost hauling track material half way across the continent, and like other railroad men his day, was closely bound with promoting gen- eral industrial developments. less industrial giant than John Rockefeller was sold the idea that the Far West would enjoy railroad building spree paralleling the sprawl- ing railroad systems the Midwest and East, and gained control the plant shortly after the turn the century. this day, control the company lies with the Rockefeller in- terests. Incidentally, Rockefeller’s visions did not stop Colorado, and the company acquired iron ore de- posit California. Title the larg- est these, the Iron Chief deposit the Eagle Mountains, after passing through other hands, recently came rest the hands Kaiser Co., Inc., and hoped will eventually feed the Kaiser mill Fontana. Currently, the Iron Chief deposit owned fee Kaiser but the River- side Iron which Harlan Bradt the president, 1942 ac- quired 10-year lease and purchase agreement the property from the previous owner. Thus, unless Kaiser make satisfactory terms with the Riverside organization (which has been unable thus far) barred from mining ore the prop- erty until the middle 1952, presum- ably long after his present Vulcan deposit has been exhausted. The Iron Chief deposit said some con- tain over per cent all the ore economically available the Fontana plant. Although the Far Western railroad network never fully materialized, the Pueblo mill during the last war enjoyed the twin advantages modern plant and high prices underwrite tidy period prosperity. With approximately two-thirds 64—THE IRON AGE, September 1944 plants elsewhere. the plant’s capacity rails and acces- sories, full operation $59 ton for open hearth rails was sugar candy. The story for the next quarter cen- tury was not happy, with the com- pany’s fortunes tagging along behind the railroads until, after disastrous depression years, the firm was re- organized 1936. Tied one basic consuming indus- try, has had two others for stabilizing influences. The remaining one-third the company’s normal business not involving the railroads split between tidy sale wire prod- ucts wire conscious agricultural section the country and bar and structural steel products. These, great extent, pass through fabri- eators into mine and mill Naturally, whatever other construc- tion business takes place the sparse- settled territory boon, and the Bureau Reclamation has been years. I.’s annual capacity for finished steel looks like this: Gross Tons Finished Hot Rolled Steel Products: Rails—60 less per yard...... 10,000 Rails—over Ib. per yard ....... 300,000 Splice bars and tie plates ........ 100,000 Structural shapes—heavy ......... 20,000 Structural shapes—light .......... 25,000 Universal plates (up in.).... Hot rolled strip (up in.)..... 5,000 Bars—other than concrete reinforce- Bars—concrete reinforcement ..... 50,000 Other Finished Products: Wire—galvanized 30,000 Nails and staples 33,000 Fence and sign posts ............. 4,000 Finished ground grader blades..... 4,500 Bolts, nuts, spikes and rivets ..... 36,000 balls ......... 13,000 2,960 Iron castings—ingot molds ....... 14,000 1,000 Iron castings—all other .......... 6,600 450 Cast iron pipe—gas and water..... 12,000 The foundry obviously devoted plant requirements, the cast iron pipe business having gone the Boards entirely with the advent low cost Since the war emergency, the forge shop has been expanded considerably, al- though the newest and largest ham- mer owned DPC. first glance, the government- owned war baby Geneva, across the mountains, does not appear offer much threat marketwise this child peacetime industry and agriculture whose products more less conform the needs commercial customers. The Geneva semi-continuous plate mill built roll 700,000 tons 132 in. wide annually; the 24-in. struc- tural mill will able turn out 200,000 tons year. Because has part the flatrolled mar- ket, the Geneva plate mill holds threat. Moreover, even the space the Geneva plant which yawns for continuous strip production eventu- ally filled, the big market for this material the Pacific Coast rather than the eastern slope the Rockies. The market for light gage material the Denver sales district probably amounts not more than 20,000 tons year, part which accounted for Hardesty Division Armco Drainage Metals Products Inc., American Rolling Mill Co, affiliate. The district plate market, though will welcome source, appears scarcely large. Rail Market Good The Geneva structural mill appears more likely competitor for even its wartime attire, but changes its dress and puts bow its hair before the postwar party could pull the heartstrings some Colorado’s customers. The relative- small. amount “powder and paint” required produce rails Geneva cannot overlooked. Pur- chasing the railroads reci- procity basis, the amount business which would accrue Geneva with its tremendous traffic the Coast, would provide nice nest egg. Al- from all the Western lines, examina- tion rail tonnages placed the past, reported THE IRON AGE, shows that Santa the big customer, possibly providing third the mill’s rail business. Most, not the entire Denver Rio and Colorado Southern business, although amounts only 12,000 15,000 tons year, plus re- spectable proportions the entire tonnages placed the Missouri Pa- cific, Southern Pacific, Union Pacific, Great Northern, and Northern are rolled the Pueblo mill. Geneva should tap the business these lines the middle, would serious competitive threat; Kaiser should start syphon from the Coast end, might tragic. However, must pointed out that the prospec- tive status the Kaiser plant that private competitor, whereas the key the entire Geneva riddle the government’s handling its financial interest there. The profit accruing rail manu- facture $40 per gross ton—or even $45 per gross ton now allowed the OPA—may not suf the ani Rolled blooms and billets for forging 12,000 its ja a 4 FIG. 3—View Geneva's bank open-hearth furnaces, looking south. sufficiently handsome warrant the new mills’ seriously wooing this trade modifying their facilities. Although the rail business may the bread neither the company’s cake nor frosting. This brings this analysis the matter pricing policies which Gen- eva’s new owners may adopt, the government may force, even before the end the war. Denver now boasts steel fabricating industry far larger than normal for city its size, partly because the only industrial center note wide area, and partly because the recognized fabricating and machinery center for mining and petroleum ac- tivities throughout the Rocky Moun- tains and western great plains. market map leading Denver manufacturer and engineering con- tractor shows thick cluster proj- ects Colorado, Wyoming, western Utah, the Black Hills South Da- kota, fanning out scattered jobs Nevada, Arizona, New Mexico, north- ern Texas, western Oklahoma, Kan- sas, Montana and Idaho. has shipped the foundry trade the Coast, that area never has been never will normal market outlet for steel produced Colorado, and only under unique cir- cumstances for finished products. some products the rail freight rate from Pueblo the Coast just shades being twice that the intercoastal enough make absorption out the question. This situation, incidentally, exists less serious scale for Geneva. Even Dr. Mahoney, director the Bureau Economic and Business Research the Uni- versity Utah School Business— one Geneva’s most rabid boosters— acknowledges “It would quite un- realistic consider the prospects the Geneva plant meeting competi- tion the Pacific Coast markets the basis existing class The freight rate matter, inciden- tally, provides interesting example how insidious government compe- tition could the going got tough and politics dirty. This spring, De- fense Plant Corp., which not only owns Geneva, but retains title the the mill makes until delivery, pursued campaign lower freight rates the Coast finished steel. The medium its attack was section the Tariff Act which permits railroads allow rates lower than the established commercial tariff agents the federal government, political subdivisions eleemosynary institutions. The regular rate for garden variety businessmen $12 per ton from Geneva San Francisco, $17 per ton from and $22 ton from Chicago. The DPC thought that its shipments from Geneva war- ranted the rate approximately $7, and the traffic bureau the Depart- ment Industrial Development the State Utah asked that the rate set $5.31. Certain railroads, ap- parently seeing the handwriting the wall, volunteered take the “gov- ernment” traffic $8. Businessmen other parts the country, who face the possibility competing with DPC plants, should remember that DPC subsidiary the Recon- struction Finance Corp., which still has heavy hand policies many railroads. Granting favorable rate from Geneva eastward, possibility exists considerably broader sales territory for the Denver fabricators. Fabri- cators located between Eastern mills and Western destinations long have taken advantage fabrication-in- transit provisions whereby, for small additional fee, theoretical rail rates from mill the consumer the fab- ricated product are obtained. Because not possible ship through Den- ver direct line from Pueblo po- tential customers the eastward, the Denver fabricators never have been able take advantage pro- visions this basis, although some tonnage has found its way into the Kansas City district. Too avid pursuit such eastbound f.i.t. business, however, might provoke serious reprisal from Omaha fabri- cators, with cooperation Midwest- ern mills, into Denver’s own back yard. Thus, practical competitive sit- uations alter the pursuit pure theory. “Live and let live,” date, has been the law the West, and the entire Geneva situation may even work itself out this manner. Pricing Practices Influenced Even Geneva does not seriously solicit business Colorado, can still alter the pricing customs there. Currently, steel sold Denver Chicago basing point. This allows Chicago and Eastern mills after THE IRON AGE, September 1944—65 ive- and eci- ast, Al- na- the ern nly Pa- ser ast hat the nu- ven business there extent which would impossible were neces- sary for them absorb big portion the freight between Chicago and Denver. Even Bethlehem, shipping Chicago from its Lackawanna mill lake vessel, thence rail Denver, does tidy business the Rockies times. The Denver price bread- and-butter steel items developed adding $2.10 per 100 Chicago base price freight, giving enjoys this same delivered price al- though the freight from Pueblo Denver only 20c., providing nice cushion. Now that Geneva rolling plates basing point has been established nearby Provo, Utah, for that com- modity, with base price $2.60. appears quite possible that Provo also will become basing point for struc- turals. long the basing point price Provo remains $2.60, the present competitive situation the Denver district will remain much the same. But the postwar period, Geneva should bring its Provo base price down figure comparable Eastern basing point prices, the East- ern mills would virtually shut out would lose the favorable status which now holds. Two factors will determine whether such cut the Provo base price ever takes place. the mill which purchases Geneva has Eastern con- nections which ship wide range products Denver, may not en- tirely advantageous upset the prac- tice. Too, considered that the present high Provo base price plates was approved the OPA partly because Geneva’s costs require it, lower postwar price would not possible. Agitation groups the West Coast for home ownership and operation Geneva has been loud and vigorous. Where any Far Western group could secure the necessary capital purchase the plant not clear, but Uncle Sam ap- pears the most likely soft touch. Such plan would, course, allow pricing Geneva’s products divorced from tie-in with Eastern mills which might considerable influence Eastern steel company acquired the plant. However, Western ownership would not solve the basic problem costs. Like anyone else, unless the plant could acquired for fraction its cost, the Westerners would have hard time undercutting steel shipped the Coast via the canal mills bent raising their operat- ing rates. Running through the entire IRON AGE, September 1944 Geneva saga are hints, such this, that for all its modern equipment and for all the boasts its supporters, the mill not low cost producer. For instance, the experience Co- lumbia Steel Co. operating its own Ironton No. blast furnace Provo, eight miles from Geneva, was drawn upon heavily designing the Geneva stacks. When the present Columbia organization acquired this furnace from its predecessor company ore was charged mined. The output the furnace was between 275 and 350 tons pig per day with coke consump- tion 2600 2800 lb. per ton iron. beneficiating the ore, sintering part it, and careful charging, the capacity 1936 was rated 600 tons per day with coke consumption 1700 1800 lb. per ton. About the same time Geneva was built, WPB de- cided more pig iron capacity was needed the Ironton plant, which has facilities, and DPC was commissioned move ancient blast furnace from Joliet, re-erect and re-build Ironton. This furnace was have rated pacity 800 tons per day. Despite all the experience with the Ironton No. furnace, the newcomer never produced satisfactorily after was blown in, and after few months operation was blown out, probably for good, despite the tight pig iron situa- tion the Coast. One the chief difficulties oper- ating the Utah furnace has been the local coking coal. Coal used pro- duce coke for the original Ironton furnace contained approximately per cent volatile matter, and was par- ticularly high oxygen. Coked high temperature the resultant coke had fingerlike structure was small size. The coke was satis- factory for the original small Ironton furnace (height ft., hearth ft. in., bosh 19.6 in.). The larger Iron- ton furnace brought from (hearth 20.9 in) gave hint the trouble that was come the new Geneva furnaces. The tremendous size the Geneva development required coal mine ex- program involving the open- ing completely new beds. the percentage volatile matter was considered high the coal coked Ironton, the coal from the new beds can only rated strato- spheric. first, the net yield coke per ton coal charged ran about per cent. last word, this had been boosted about per cent, but still obvious that the resultant coke tends small and friable. Geneva’s operators are confident that better coal will reached the beds are opened up, and that sufficiently good coke can produced that the fur- naces can operate full blast when suf- ficient labor recruited man the mill. this may, the difficulty many headed operating carbuncle. While the spotlight has been focused has not been asleep the balcony. More comfortable financially than for many years, large part wartime income has been devoted girding the plant for stiffer postwar compe- tition. Sunrise Mine, southeastern Wy- oming, which has sufficient ore take for years come, has been the scene development program which may cost the company close million. new two compartment shaft be- ing sunk the 800 ft. level allow complete exploitation the principal ore body. The steel headframe, 199 ft. tall, claimed the highest the United States. Skips 8-ton will carry the ore the surface. Sizing and screening machin- ery located the headframe whence will pass three ore bins ready for loading directly the cars for shipment Pueblo. substantial new boiler house which are located hoist and power equipment nearing completion. Mining costs Sunrise are prob- ably cheap any underground mining operation the United States, for about three-quarters the ore suited block caving and the balance sub-level caving. the Pueblo plant, elaborate ore bedding system plant have been installed which in- crease blast furnace output per cent, reduce variations pig iron analysis, cut melting time, and sim- plify operations. All these improve- ments have been installed the com- pany without financial aid from the government. addition, DPC sponsoring con- struction new Koppers-Becker coke ovens which will have annual capacity 327,000 net tons coke. Although sufficient coke for operation the plant obtained from the present ovens, these new ovens will serve insurance against future con- tingencies. Coke yield, incidentally, about per cent. has been the East; plant long holds advantage over its competi- tors from the standpoint modern equipment. Either the competitor slowly but surely goes out business, he, himself, modernizes his plant. oblivion. ur- Naval cle. sed the Pierce and Draw Method for ime ing pe- MPORTANT production advan- Vy- tages have resulted nts Inc., Pittsburgh, through its sub- ene sidiary, Porter-Blairsville Co., Blairs- ville, Pa., the pierce and draw method forging large caliber be- projectiles for the Navy low The general aspects this method pal are reviewed here the basis 199 information furnished John Norman, general manager, Porter- ton Blairsville Co. the Previously straight cavity forgings had been used for projectiles the nce produced Blairsville. The ady operation consisted first upsetting for and piercing one pass the press, tial using straight punch; and second, ted drawing the draw bench using five ing rings. The forging was then machined give the proper contour for the operation. and the new forging method shaped tes, punch used produce “contoured using shaped punch produce contoured cavity, not only machining the cavity,” flaring out size from the bore lessened but also rough turning operations bring the concentric with nee closed the the forging. the bore are reduced. This view shows the billet piercing operation. Otherwise the operation the although number important fac- ing tors may noted. Due the fact that the contoured cavity larger diameter than formerly pierced, larger punches mandrels are used, which give rigidity and wear operation. tends produce more concentric the forgings and give better tool life Also, because the larger mandrel used the draw bench, there ker less tendency for the base punch through drawing than with the smaller mandrel used for straight forging. the Much less machining required, will since the required taper has been pro- duced large extent the forging process. this feature alone, the contoured type forging has reduced the metal required per unit approxi- ong mately per cent, which constitutes eti- very valuable saving critical ern shell steel. Closer concentricity itor bore means that for nearly two-thirds Slug draw bench basket where drawn through five rings. ess, the length the shell, the amount metal turned from the out- creased the capacity the rough carbide cutting tools this operation side diameter has been reduced al- turning lathes per cent. Due been increased even greater most inch. This reduction has in- the lighter cuts required, the life percentage. THE IRON AGE, September | | | Corrosion Behavior Magne: presence electrolyte establishes continuous chemical reaction that disastrously corrosive. Inclusions can prevented care- ful foundry procedure. They may also detected and repaired prior the installation castings service. increas- ing demand for lighter and stronger air- craft materials recent years has ticularly instrumental ing the commercial importance magnesium base alloys. This due their high strength-weight ratio, coupled with the fact that produc- tion cost su