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Business P ap ers I n c ., a n d N a tion a l P u b- Jishers A s so cia tio n .
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°P) right 1937 b y the P cn to n P u b lis h in g C o.
/ L
FOR FORTY-EIGHT YEARS —IRON TRADE REVIEW
o n t e i ^ ù
V o l. 10 1 -N o . 18 N o v e m b e r 1, 1937
R E A D E R C O M M E N T S ...
AS T H E E D IT O R V IE W S T H E N E W S ... 2I N E W S
Steel Profits for Nine Months Up 143 Per Cent ...
W ith Steel Executives at Fall Outing ...
Institute o f Steel Construction’s Convention ...
Lull Brings N ew Labor Problems ...
Youth for Action, A ge for Counsel in U. S. Steel
Jones & Laughlin Scrapping T w o Shape M i l l s ...
H ow Freight Rise Affects Steel ...
Machine T ool Builders Review National Issues ...
Steelworks Operations for the W eek ...
Meetings ...
Men o f Industry ... .. . Obituaries ...
M IR RO RS O F M O T O R D O M ...
W IN D O W S OF W A S H IN G T O N ...
E D IT O R IA L — Progress in Metals Industry Has Origin in
Scientific Research ...
T H E BUSINESS T R E N D
Decline in Steel Rate Causes Break in Activity I n d e x ... 46 Charts and Statistics ... . . ...46-47 T E C H N IC A L
Selective Flame Hardening ... ...
Flash W elding Rails . ...
Highlights o f the Metal Show A .I.M .E. Studies Steel making
W ire Men Discuss Processes ...
W elding Research Is T opic o f A .W .S.
Study Steels for H igh Temperature Use M A T E R IA L S H A N D L IN G
Haulaway Trailers Transport Autos ... g7 PROGRESS IN STEELM AICING
Development o f Steam Generation from Engine Exhaust . ... 62 SU R FA C E T R E A T M E N T A N D F IN IS H IN G O F M E T A L S
W hat Is Future o f Cadmium in Electroplating? ... 68 W E L D IN G , E T C.—Robert E. K in \ ea d... ... ?2 P O W E R D R IV ES
Advantages o f Belts, Chains and Variable Speed Units ... 85 N E W E Q U IP M E N T ... 89 IN T E R N A T IO N A L A C E T Y L E N E A S S O C IA T IO N S E C T IO N . 93-124 R E C E N T P U B L IC A T IO N S O F M A N U F A C T U R E R S ... . . ,2 8 M A R K E T R E P O R T S A N D PRICES ... ... ...
T he Market W e e k ...
17
23 2625 28 29 3 1 31 32 34 35 36 37 39 43
45
48 52 74 75 77 81 I2S
B E H IN D T H E SCENES ...
C O N S T R U C T IO N A N D E N TER PR ISE IN D E X T O A D V E R T ISE R S ...
129 r3°
144 153 178
P R O D U C T I O N • P ROC
N o vem b er 1, 1937 ^
• D I S T R I B U T I O N • US E
19
THE INTERNATIONAL NICKEL COMPANY, INC., NEW YORK, N.Y.
2 0 / T E E L
0 T h e stream lined flier p ictu red above is the “ Super-C hief,” A tch ison ’s new ligh t
weight train w h ich makes the run between Chicago and Los A ngeles (2,228 m iles) in 39 hours, 45 m inutes. Such fast tim e is m ade possible, because this train o f eight cars weighs on ly h a lf as m u ch as the steam train w hich it replaces. A n d responsible fo r this app recia ble w eight-reduction is the use o f a m o d e m a lloy o f N ickel, stainless steel. T he p rin cip le o f light-w eight construction em p lo y e d b y the E dw ard G. B u d d M anufactur-
! ing Co. calls fo r the use o f stainless chro
m ium n ick el steel w h ich is fabricated by the B u dd “ sh otw eld” process. W h en you con
sider the saving in fu e l costs and the saving in costs o f m aintaining ro a d b e d and rails, it’s easy to understand the constantly grow
ing p o p u la rity o f stainless steel construc
tion. P erh aps there’ s eq u ip m en t in you r line o f business w h ere the h igh strength-weight ratio o f the N ick el A llo y Steels m ay be used to bring about w orth w h ile econom ies.
0 A t the left we have another strik
ing exam ple o f the cost-reducing ad
vantages o f another N ick el A llo y Steel com position . T h is huge crusher shaft o f 3 Ni c kel Steel w ith about .30%
carbon , was m ade by B eth leh em Steel fo r the G eneral Crusher Stone Co., Easton, Pa. Installed in 1906 it wras still going strong in 1930. It was retired fro m service then, but o n ly because the crusher w a s o b s o l e t e . W h e n equipm en t parts stand such gruelling service fo r 24 years, th ey’ve certain
ly paid fo r themselves over and over again. But that’s characteristic o f the N ickel A llo y Steels.
© I f you have a grum bling gear in you r plant it’s fairly safe to wager it isn’t m ade o f N ickel A llo v Steel.
T h e dark detail in the phantom cut pictu red here shows a typical in stallation o f gears and oth er parts m ade o f N ickel A llo y Steels. The lathe is a product o f T h e M onarch M achine T o o l C om pany, o f Sidney, O hio. N ickel A llo y Steels b y C rucible
Steel C om p an y o f A m erica. Mainte
nance costs are k e p t low with Nickel steel gears because they have such high resistance to wear, shock ami fatigue.
I f freq u en t gear failures is one o f you r p roblem s, o r if you want to be sure y ou r p rod u ction cycle has no vulnerable points, N ickel A lloy Steel gears are the ones to specify.
/ T E E L
PRO D U CTIO N • P R O C E S S IN G • D IST R IB U TIO N - U S E
As the Editor Views the News
sign o f the times— a recognition o f the new school o f econ om ic thinking. Maybe so, but steelm akers recall youngsters in h igh positions 30 years ago.
There is always room at the top fo r old and young who have ability. A ll industry unites in con gratu lating U. S. Steel’s new chiefs upon their fo rth com ing prom otions.
C
ON SID E R IN G the volum e o f desirable w ork to be done to adapt the cou n try’s physical facilities to m odern needs it is a pity we seem unable to conduct affairs so as to avoid interruptions such as the current falterin g in the progress o f re covery. T od a y we witness a general feelin g o f hesitancy. Y et all around us are im portant tasks beg
ging fo r action. I f we had unlim ited funds, we could work at cap acity several years and yet could not in that time rehabilitate cities, streets and highways sufficiently to adju st them to requirem ents o f pres
ent standards o f m otorized life.
In the approaching decade A m erica w ill be re
built in m any respects, and the sooner we can pave the way fo r rebuilding the sooner we w ill release a stron g new fo rce fo r recovery.
America
Mem bers o f the steel construction industry in convention last weekTomorrow
(p. 26) were given vivid outlines o f elevated highw ays, new designs for buildings, grade separation, housing, and numerous other types o f w ork necessary to relieve congestion in cities and prom ote safety. This con stitutes a new fron tier w hich will challenge the skill and resources o f the nation. Steel and allied in
dustries will play an im portant role in this work.
Because changes had been expected, the announce
ment by Chairman M yron C. T aylor o f U. S. Steel (P- 29) that E dw ard Stettinius, Jr. and Benjam in Fairless soon w ill becom e chair-
Young Men man an<^
Presic*ent, respectively, o f m the w orld ’s largest steel corpora-0 Top
tion did not elicit widespread surprise. N or will an industry that repeatedly has witnessed the thrusting o f great re
sponsibilities upon you n g shoulders be unduly moved by the fact that posts now held by 63-year-old in
cumbents will go to men aged 38 and 47 years.
Outsiders m ay say that this sh ift to you th is a
Centerpiece in this w eek’s issue is the section de
voted to the 38th annual convention o f the Interna
tional A cetylene association to be held in B irm in g
ham N ov. 10-12. R apid develop- 3 , 1 . ments in this industry (p. 96) have y provided m uch o f interest fo r dis-
Chemistry
cussion purposes in the annual round table sessions, feature o f the m eeting (p. 1 06 ). O f unusual interest is the marked trend toward w ider use o f acetylene in the chem ical industries, as outlined in the presidential address (p. 108). One o f the m ost rapidly grow ing uses o f flame hardening is in selective w ork where only parts o f m etal pieces require hardening, allow ing the balance o f the article to rem ain free fro m any tendency to scale or distort (p. 4 8 ). Several interesting applications have been developed along these lines.Continuous rails o f a mile or more in length are now in use in several sections o f trackage on A m e r
ican railroads. Field w elding apparatus fo r rapid layin g o f this join t-free track (p.
Cadm ium 52^
ieatures many interesting developm ents, including a special lo-
Nears Record
com otive w hich supplies steam fo r the turbogenerators. Pronounced successful a fter two years’ operation (p. 62) are boilers using waste heat from gas engines used in steel plants. These units supply the necessary steam econom ically, low erin g fu el costs. A cco rd in g to metal men (p. 68), the upper lim it in cadm ium p ro duction is approxim ately 4,000,000 pounds, and it m ay be reached this year. Present sources o f ca d mium, which is obtained on ly as a by-produ ct in refining other metals, are being w orked to the u tm ost to supply the grow in g autom otive demand.
November 1, 1937 21
C h a n g e th e d e s i g n o f y o u r p r o d u c t a n d o f t e n it b e c o m e s n e c e s s a r y t o c h a n g e th e k in d o f s te e l y o u a re u s in g .
W h e n e v e r th is p r o b l e m a r is e s I n la n d fie ld m e n ca n b e o f re a l s e r v ic e t o y o u r p la n t.
F O R E X A M P L E :
R e c e n t ly a l a r g e e q u ip m e n t m a n u fa c tu r e r , s e e k i n g t o i m p r o v e h is p r o d u c t , a d o p t e d a h e a t -tr e a te d p a rt.
T h i s p a r t r e q u ir e d a m i n im u m h a r d n e s s ( R o c k w e l l C - 4 3 ) a fte r q u e n c h i n g a n d d r a w in g .
S a m p le s h a d b e e n s a t is fa c t o r y , b u t m a ss p r o d u c t i o n b r o u g h t a g r e a t d e a l o f l o s s f r o m c r a c k i n g in th e q u e n c h . A s te e l o f d iffe r e n t a n a ly s is w a s o r d e r e d ,
b u t a fte r th e q u e n c h it l a c k e d s u ffic ie n t h a r d n e s s .
A S U G G E S T I O N
T h i s m a n u fa c t u r e r th e n f o l l o w e d th e s u g g e s t io n w h i c h is n o w b e i n g p a s s e d o n t o y o u . H e c a lle d his n e a r e s t I n la n d o f fic e f o r s o m e s p e c ia l h e lp o n the p r o b l e m . W it h i n a f e w d a y s I n l a n d m e t a llu r g is t s had th e p r o p e r a n a ly s is s te e l m o v i n g s w ift ly a n d e c o n o m i c a ll y t h r o u g h h is p la n t.
I T ’ S P R A C T I C A L
I n la n d is e s p e c ia lly e q u i p p e d a n d o r g a n i z e d t o p e r f o r m th is k in d o f s e r v i c e f o r s te e l u s e rs . O th e r s are fin d in g it h ig h ly v a lu a b le — s o w i l l y o u .
S H E E T S S T R I P T I N P L A T E B A R S R A I L S T R A C K A C C E S S O R I E S P L A T E S N G B A R S
Steel Profits for Nine Months 143% More Than in 1936
P
ROFITS o f steel producers thus far this year are nearly two and one-half times larger than they were in the co r
responding period o f 1936.
This calculation is based on re
ports from the 12 leading makers, including the United States Steel Corp., Bethlehem Steel Corp. and Republic Steel Corp. These 12 have 82 per cent o f the nation’s ingot capacity.
Using total ingot production as a measure, this year is 26.8 per cent ahead o f 1936. In profits, as indi
cated by financial reports o f the 12 companies, 1937 is 143 per cent bet
ter than last year.
In the nine-month period this year, steelworks operations aver
aged 83.12 per cent o f capacity, and in the comparable period last year 65.4 per cent.
Net profits o f the 12 producers
for the first nine months this year aggregate $193,371,350, as compared with $79,604,755 in the three quar
ters o f last year.
On this basis, total net profit in the nine months fo r the whole in
dustry was $236,000,000. For the full year 1936, the industry’s net profit was approximately $137,572,- 488.
Third Quarter Profits Down Net profits o f the 12 companies, in the third quarter this year to
taled $62.205,335, against $67,514,- 573 in the second quarter, and $35,- 566,602 in the third quarter o f 1936.
Indicated average profit per ton o f ingot capacity fo r nine months this year fo r the 12 producers is
$4.59, com pared with an indicated
$1.89 fo r the nine months last year.
Estimated individual profit per ton, based on each com pany’s ingot capacity fo r nine months, was
higher than last year, as shown by the follow ing detailed figures:
1937 1936 N atio n al Steel Corp... 58.36 54.21 Inland Steel Co... 7.19 5.14 U. S. Steel Corp... 4.93 1.55 A m erican R olling Mill Co___ 4.89 2.30 S haron Steel C orp... 4.88 2.44 A llegheny Steel Co... 4.73 3.63 Y oungstow n S heet & Tube Co. 4.48 2.92 O tis Steel Co... 4.33 2.25 Bethlehem Steel C orp...3.87 1.21 W heeling Steel Corp... 3.81 1.58 C ontinental Steel Corp...3.78 1.89 R epublic Steel Corp... 1.87 1.28 A verage ...54.59 51.89 COMMON DIVIDEND RESUMED BY UNITED STATES STEEL,
United States Steel Corp. directors last week declared a dividend o f $1 per share on com m on stock, the first com mon dividend since March 30, 1932. The regular quarterly divi
dend o f $1.75 per preferred share also was declared.
Earnings for the third quarter were $48,213,455, compared with
T h ir d Q u a r t e r a n d 9 - M o n th F i n a n c i a l C o m p a r i s io n s fo r S t e e l, I r o n
ü. S. Steel Corp...
Bethlehem Steel Corp...
Republic Steel Corp.
Youngstown Sheet & Tube Co.
National Steel Corp.
American R olling Mill Co.
Inland Steel Co...
Wheeling s te e l Corp...
Otis Steel Co. . . ...
Allegheny ste e l Co...
Sharon Steel Corp...
Continental Steel Corp...
T otals ...
f i n i s h i n g c a p a c i t y o n l y
Acme Steel Co...
Superior Steel Corp...
PIG IRON CAPACITY ONLY In terla k e Iron Corp...
' irginia Iron, Coal & Coke Co.
November 1, 1937
All figures a re profits except w here a ste risk d enotes loss T hird
q u a rte r 1937
Second q u a rte r
1937
Third q u a rte r
1936
m onthsNine 1937
m onthsNine 1936
A nnual ingot capacity, gross tons 530,617,638
9,249,560 3,237,155 3,586,495 5.227,071 2,646,525 4.433.375 1,230,192 948,285 271,579 408,570 258,890
536,173,682 10,022,874 487,251 2,022,112 6.013,077 4,321,854 3,178,383 2,463,034 1,040,424 864,449 672,258 255,175
513,663,177 4,575,058 3,311,555 2,359,998 3,359,704 2,063,603 3,788,199 1,186,660 495,110 349,277 342,418 71,843
595,352,853 27,566,267 9,291,470 10,494,627 16,935,967 9,289,296 12,620.532 5.002,033 2,691,105 1,687,082 1,646,606 793,512
529,901,904 8,609,514 6,333,649 6,845,385 8,542,419 4,368,668 9,021.022 2,068,859 1,395,459 1,297,045 823.370 397,461
25,772,400 9.360.000 6.533.000 3.120.000 2.700.000 2,531,120 2.340.000 1.750.000
828,000 476.000 450.000 280.000 562,205,335 567,514,573 535,566,602 5193,371,350 579,604,755 56,140,520
305.863
103,492 669,441
120,648 538,847
118,010 2,070,245
310.260 1,444,474 205,824
837,371
30,335* 572,835
33,135* 99,311
8,029* 1,782.408
93,168* 67,634
89,984* 1,215,000 200,000
O'23
$30,044,389 fo r the third quarter, 1936. For the first nine months this year earnings totaled $147,190,286, nearly double the $75,786,019 for the first nine months last year.
Net income on capital stock for the third quarter amounted to $30,- 617,638, against $13,636,177 in the corresponding 1936 period. For nine months this year net income was
$95,352,853, compared with $29,874,- 904 in nine months o f 1936.
Earnings and net income figures are stated before deduction or al
low ance.for fedei’al surtax on undis
tributed profits. Amount o f this tax can be determined only after final results fo r the entire year are known. However, the statement for the nine months comprehends an estimated allowance for such taxes o f $4,500,000.
Expenditures during the firit nine months this year fo r additions and betterments to plants and property, and fo r payment o f maturing bonds and other capital obligations o f sub
sidiaries, amounted to approximate
ly $81,000,000. Unexpended balances on authorized appropriations fo r ad
ditions and improvements are ap
proximately $113,000,000.
Net working assets o f the corpoi’a- tion and subsidiaries, exclusive of dividends declared and unpaid, were as follow s:
Dec. 31, 1935 ... $389,123,253 Dec. 31, 1936 ... 391,330,566 Sept. 30, 1937 ... 419,031,875 Operations for the third quarter as measured by finished product output averaged 73.6 per cent, com pared with 88.4 per cent in the pre
vious quarter, and 63.6 per cent in third quarter o f 1936.
For the nine months this year shipments totaled 10,956,846 tons, or at the rate o f 81.4 per cent o f ca
pacity. In recent weeks a rather marked falling off in shipments to customers occurred resulting in an October average to date o f approxi
mately 54 per cent o f capacity.
Approximately 276,000 employes were on the payroll in September.
Employm ent and payroll statistics for the first nine months o f 1937 and the corresponding period o f 1936:
9 m onths ending Sept. 30
1937 1936
E m ployes... 263,542 216,709 P a y ro ll... $354,217,827 $242,635,540 BETHLEHEM EARNS $6.88 IN FIRST NINE MONTHS
Bethlehem Steel Corp. reports net profit o f $27,566,267, equal to $6.88 per common share, for the first nine months o f 1937. This compares with
$3,609,514 fo r the corresponding period in 1935.
F or the third quarter, net profit was $9,249,560, equal after preferred dividends to $2.31 per com m on share, compared with $2.56 per share in the second quarter and 84 cents per
share in the third quarter o f 1936.
Directors declared a dividend o f
$1.50 per com m on share payable Dec.
24 to stockholders o f record Dec.
17. Dividends o f $1.75 on the 7 per cent cumulative preferred, and o f 25 cents on the 5 per cent cumu
lative preferred, payable on or be
fore Jan. 3 o f record Dec. 3, also were declared.
The $1.50 com m on dividend is the fourth consecutive quarterly dis
bursement, payments having been resumed on com m on stock with the declaration o f $1.50 per share last Dec. 8. This was the first dividend on com mon since Feb. 15,1932, when 50 cents a share was paid. F or the first quarter this year $1 per share was paid, and in the second quarter
$1.50.
E. G. Grace, president, reported current operations are approximate
ly 65 per cent o f capacity. Opera
tions in the third quarter avei’aged 85.1 per cent compared with 92.9 per cent in the second quarter and 69.5 per cent in the third quarter last year.
Current rate o f bookings is at 45 per cent o f capacity. Estimated value o f orders on hand Sept. 30 was $125,820,124, compared with
$147,216,591 at the end o f the sec
ond quarter and $93,272,198 Sept. 30, 1936.
W ages in the first nine months amounted to approxim ately $134,- 000,000 as against $86,000,000 in the corresponding period a year ago.
Bethlehem reached its peak in em
ployment in the third quarter with 103,000 men on the domestic payroll, as compared with 85,000 in the third quarter last year. Since the end o f the third quarter there has been approximately no change in num
ber o f men employed.
Average hourly earnings last quar
ter per em ploye amounted to 89 cents, against 71.6 cents in the sim
ilar period last year.
Average number o f hours worked per week was 40.2 fo r the first quar
ter, 39.4 fo r the second and 37.8 for the third. Last year the average was 3.57 for the first quarter, 39.5 fo r the second, 39.3 fo r the third and 40.3 for the fourth.
Capital expenditures during the first nine months this year were
$35,000,000, with $14,000,000 yet to be expended. Mr. Grace estimated
$10,000,000 wou'd be spent in the fourth Quarter bringing the total to
$45,000,000 fo r the year and leaving
$4,000,000 unexpended. Last year
$16,000,000 was spent for capital equipment.
REPUBLIC’S NINE MONTHS NET UP 46 PER CENT
Third quarter net profits fo r R e
public Steel Corp., Cleveland, after deducting all charges, amounted to
$3,237,155. Net profits fo r the first nine months are $9,291,470, com pared with $6,333,649 fo r the same period in 1936.
The provision fo r estimated fed
eral income tax for the nine months period this year ending Sept. 30, 1937, was $3,600,000, including $1,- 350,000 for estimated surtax on un
distributed profits.
The new 98-inch continuous mill in Cleveland, is nearing completion with the hot mill and the hot mill finishing going into production last week. The cold mill is expected to start operating about Nov. 15.
INLAND’S NET UP 39 PER CENT; $1 DIVIDEND
Inland Steel Co., Chicago, has declared a dividend o f $1 a share, payable Dec. 1 to stockholders of record Nov. 15. In the nine months ending Sept. 30 indicated net profits were $12,620,532 against $9,021,022 in the same period last year, an increase o f approximately 39 per cent. Third quarter net was $4,- 433,375 compared with $3,178,383 in the preceding quarter and $3,788,199 in the September quarter last year.
No provision fo r undistributed earnings tax was made in the third quarter figures.
NATIONAL STEEL PROFIT EQUAL TO $7.81 PER SHARE
National Steel Corp., Pittsburgh, reports third quarter net income after all charges except provision fo r federal surtax on undistributed profits was $5,227,071.04, equal to
$2.41 per share on 2,167,777 outstand
ing shares. These earnings com
pare with $3,359,704.57, equal to
$1.56 per share on 2,157,777 shares in the third quarter 1936. Nine months net profit is $16,935,967.16, equal to $7.81 per share, against
$8,542,419.36 or $3.96 per share in the same period 1936.
JONES & LAUGHLIN POSTPONES QUARTERLY MEETING
The regular quarterly dividend meeting o f Jones & Laughlin Steel Corp., Pittsburgh, scheduled for Oct, 26, was indefinitely postponed. It was understood that directors wished a clearer view o f this year’s operating results and profits prior to taking dividend action. At the pres
ent time the com pany is paying divi
dends at the rate o f $7 annually on the preferred stock, on which there still are dividend arrears o f $26.25 a share.
AMERICAN ROLLING MILL DOUBLES NINE MONTHS NET
F or the nine months ending Sept.
30, American Rolling Mill Co., Mid
dletown, O., reports net profit of
$9,289,296, equal to $3.09 a common share, more than double the^ $4,363,-
(.Please turn to page 151)
24 / TEEL
■ R. J. W ysor, p residen t, R e
p u b lic S te e l C orp., d e m o n strates his skill
a t ten n is
With Steel Executives at Fall Outing
■ Executives o f m em b er com p an ies o£ the A m erican Iron and Steel in stitu te en jo y e d an in form a l ou tin g at the G reenbrier h otel, W hite S u lph ur Springs, W . Va., O ct. 23-25.
A t the left is T o m M . G irdler, ch a irm a n o f the board, R epu b lic Steel C orp. B elow , in g olf togs, are left to righ t, F. R. F rost, p resi
dent, Superior Steel C o rp .; B. F. Fairless, president, C arnegie-Illin ois Steel C o rp .; S. E.
H ackett, president, Jones & L a u gh lin Steel C orp .; F. B. H ufnagel, president, C rucible Steel Co. of A m erica. The group o f th ree at the extrem e left, left to right, are W . A. Irvin, president, U nited States Steel C o rp .; Frank Purnell, president, Y o u n g stow n Sheet & T ube Co., E. G. Grace, president, B eth leh em Steel
Corp.
■ In the grou p at
the t r a p s h o o t i r g range are the fo l
low in g : E. L. W y m an, vice president, C layton M ark C o., C h ica g o ; Hayward N eidringhaus, president, G ranite C ity Steel C o., G ran ite C ity, 111.; A. K . A ndrew s and W. N. Andrews, vice presiden ts, A n drews Steel C o., N ew port, K y. ; Paul Kruesi, president, S ou th ern Ferro A lloys C o., C hattan ooga, T e n n ; G . W . C onn ors, president, C on n ors Steel C o., B irm in gh a m , A la .; D. P. S o m m e r and R. E. S o m m e r, vice presiden ts, K eystone Steel & W ire C o., Peoria, 111.
C u m m in s P h otos
November 1, 1937 25
Modernize Cities! Meet Traffic Demands!
Heard at Structural Convention
W
HEN the United States gets around to tackling the job o f rebuilding America to meet the new requirements o f automotive transportation, a heavy share o f the responsibilities and opportuni
ties involved in this work will fall upon the steel construction industry.
This was the outstanding conclusion to be drawn from the extensive pro
gram o f the fifteenth annual conven
tion o f the American Institute of Steel Construction held at the Green
brier hotel, White Sulphur Springs, W . Va., Oct. 26-29.
The necessity o f extensive rebuild
ing was stressed by Henry M.
Stevens, vice president, J. Walter Thompson Co., New York. Speaking on “ Rebuilding Our Cities,” Mr.
Stevens said:
"You hear o f snarled traffic con
ditions in every size city. The de
scription is fitting. It embodies the annoyance o f those endless traf
fic jams, the aggravation o f being stopped at every corner by cross traffic, the despondency that has re
sulted in forsaking the private auto
mobile by five to ten million A m er
icans. These five to ten million would own automobiles today if they could drive safely to their destina
tions in good time, and park their cars without difficulty.
Traffic Is at Saturation Point
“ Today there are 26,000,000 cars on our roads. Particularly in m etro
politan sectors, our streets are jam med almost to what is called stagnation point. Could any traffic at all move if 37,000,000 cars sud
denly tried to use these same roads?
That is the number Charles F. Ket
tering, research engineer fo r Gen
eral Motors, estimates will be on our streets in 1960.”
Reconstruction o f roads for the increase in traffic as well as to make driving safer and faster will neces
sitate m ore elevated express high
ways, Mr. Stevens said.
Development o f this type o f high
way will enlarge steel’s mai'ket along a broad front, not only for the steel used in constructing the new roadways, but also fo r its re
sulting effect on sales o f steel to
automobile manufacturers, he de
clared.
“ While we regard Park avenue in New Y ork as the best example o f a submerged market, where the per capita ownership o f cars is lower than that o f a small town sidestreet, the submerged market extends from coast to coast—from New York with its ‘horse and buggy’ traffic speed, to Los Angeles, where 15 miles an hour is averaged by our 80-miles- an-hour cars. And this average is maintained by dangerous crest speeds o f 35 to 40 miles an hour.”
Mr. Stevens also referred to the parking problem. “ Its solution, as much as preparing the roadways o f tomorrow, rests with the steel in
dustry,” he said.
Reconstruction Needed
E. J. Russell, St. Louis, carried the theme a step further, when in an a d d r e s s “ Construction Industry Prospects,” he declared that the need o f rebuilding involves not only the reconstruction o f streets and highways, but also the redesign o f buildings to fit into the new re
quirements.
Something must be done to per
mit the use o f automobiles in con
gested districts and this requires the design o f new buildings which recognize the acute parking prob
lem. He cited the Grant building in Pittsburgh as one in which provi
sion has been made fo r parking tenants’ cars within the building.
Further emphasis on this subject was given at the Thursday morning session when F. H. Frankland, chief engineer o f the institute, devoted a large part o f his annual report to a discussion o f rigid fram e construc
tion fo r bridges and buildings. He was followed by H. D. Hussey, American Bridge Co., New York, who presented an illustrated ad
dress on the “ Design, Fabrication and Erection o f Rigid Frame Struc
tures in Buildings and Bridges.”
Mr. Hussey described the applica
tion o f this type o f construction to the parkway system in Westchester county, New York, and to the West Side improvement project in New York city where 397 rigid frames
were used in a 2 ‘A mile stretch of elevated highway work.
The discussion o f this subject at the convention served to accentuate the timeliness and importance of the national competition recently an
nounced by the institute for the most suitable design o f an elevated highway.
F. E. Schmitt, editor, Engineering N ews-Record, New York, in an ad
dress, “ Steel Construction Progress,”
reviewed the record o f steel con
struction in the past 50 years and touched upon its opportunities in the future. He said:
“ Taking the normal construction demand as o f 1930 at 8% to 9 bil
lion dollars, we would be justi
fied in counting on a 1940 normal of about 11 billion. When we ap
ply this same ratio o f growth to steel construction, we find that the present normal requirement, which may be placed at 3% million tons, will increase to about 4% million tons by the end o f the next decade.”
In one o f the most comprehensive addresses o f the convention, F. T.
Llewellyn, research engineer, United States Steel Corp., New York, spoke on “ Light-Gage, Flat-Rolled Steel in Housing.” Said Mi\ Llewellyn:
“ More than 1400 homes using steel as a m ajor building material have been built in the United States.
Some 3000 others have used steel to lesser degree.
Steel House Is Potential Market
“With the small steel house requir
ing 5 tons o f steel, our annual de
mand o f 300,000 homes in the coun
try makes a potential market of 1,500,000 tons o f steel every year.
“ Steel construction would elimin- 70 per cent o f residential fires which start below the first floor and 15 per cent more which start on the roof, but this is not an outstanding advantage because residential fires are rare and insurance rates already quite reasonable.”
Mr. Llewellyn cited as affecting the utilization o f steel housing the tendency towards no basements; an increase in flat roofs with portions used for living purposes; more glass in walls; disposition o f windows
26 / T E E L
near corners; and the increasing de
mand fo r standardized, mechanical units such as fabricated kitchens and bathroom equipment.
Part o f his paper was devoted to taking the “ bunk” out o f steel hous
ing and dispelling belief that it will be an immediate panacea for all residential ills. "Steel is seeking its own level o f usage in housing,” he said.
Close attention was given to an .address by Edward L. Ryerson Jr., vice-chairman, Inland Steel Co., (Chicago, on “ Market Problems.”
Mr. Ryerson chose to place the m ajor emphasis in the marketing
•of structural steel upon the broader aspects o f the service o f steel con
struction to the public than to the specific applications o f this type of construction. Therefore instead o f stressing the opportunities fo r steel in housing, bridges, etc., he touched upon the importance o f effective promotion whereby the public may acquire a better appreciation o f the value o f structural steel. Such pro
motion, he declared, is more effective in the long run than effort expended
•to produce prompt, tangible returns in the form o f immediate tonnage.
Mr. Ryerson discussed the effect
■of the high tax burden upon indus
try. Drawing from his extensive ex
perience with relief work in the Chicago district, he outlined the ad
vantages and disadvantages o f the Works Progress administration and the Public W orks administration.
He criticized the policy o f the former, wherein workers were placed on the federal payroll under conditions which made fo r waste of public money and demoralization of the persons thus employed. The tax
payers, he declared, received much more for their m oney under PW A, wherein the government provided the funds fo r certain projects which were carried out under pri
vate contract and under conditions which not only guaranteed a better and a more economical job but also afforded a sounder basis o f em ploy
ment for the workers thus engaged.
Urges Self-Regulation In his annual address as presi
dent o f the institute, Clyde G. Con
ley, president, Mt. Vernon Bridge Co., Mt. Vernon, O., touched upon problems confronting the steel con
struction industry. Mr. Conley said:
“ Next year we are promised a complete overhauling o f the anti
trust laws o f our country. Are we to understand our political leaders have failed to learn well the lessons of 1933-34?
“Industi-y in this, country has grown great because we have fo l
lowed a system o f competition. The purpose o f the antitrust laws was to preserve the freedom o f com peti
tion. We would never have had any demand fo r a change in those laws November 1, 1937
had we been mindful o f the rights to free competition and careful to restrain all form s o f commercial license.
" I f license has grown so rampant as to warrant the intervention of the government, then probably wo deserve no better. It should be made impossible fo r any company to com pete so freely as to destroy either its competitor, itself, or the industry, or to injure the customer. I, for one, do not believe we have reached such a dire extreme.
“ Through voluntary co-operation we can erect that measure o f self
regulation as to make governmental interference unnecessary.”
Lags Behind General Business Mr. Conley reviewed the indus
try’s experience with the code and contacts with the government, say
ing: “ It has been sufficient to con
vince us that government can do almost nothing for business that business cannot to better fo r itself.
“ At this crucial day in our political life let us continue to do all in power to preserve the elements o f democracy fo r a guide to the rest o f the world.”
R eferring to the consumers’ situa
tion in the industry, he said:
“ Our operating capacity is still less than our plant capacity but we are no longer slipping. Gen
erally, I would say, the structural steel industry is lagging one year behind general business. As other
activities gain, we will gain. The nation must prosper before we can prosper.”
In the present disturbed state o f social unrest, industry has a more serious public relations problem be
fore it than at any other time in history, V. G. Iden, secretary o f the institute, stated in his report.
Instead o f petitioning the govern
ment for special legislation, he pointed out, industry could serve itself better by developing its prod
uct to serve mankind better. Not only research, but market develop
ment and advertising should be un
dertaken to tell the world what great things can be built o f structural steel.
“ Collective bargaining with labor, even though accomplished under the most altruistic system, is but the first step towards a rigid price struc
ture,” said Mr. Iden. “ If the govern
ment intends to control this most fundamental cost o f production, it will sooner or later find it necessary also to control selling prices.
“ Inflexible costs will quickly ad
vance prices and give us an unheard o f level o f cost o f living. By thus artificially advancing the cost o f living, we will fail entirely to achieve the abundant life which is alleged to be the goal o f our political leaders.”
He reviewed briefly proposed legislation schemes, and said:
“ What all this means we can only surmise, but very definitely we
Moonlight and Rivets
■ The effect o£ light on th is new Lockheed E l e c t r a , a l l - m e t a l plane, b u ilt by the L o c k h e e d A i r c r a f t Corp., B urbank, C alif., was to reveal m yriads o f rivets used in its
con stru ction
can expect that an effort will be made to bring all industry under more rigid inspection and control.”
Robert T. Brooks, executive vice president, in his report reviewed the scope o f the organization’s work. In the ten months from Nov. 1, 1936, to Sept. 1, 1937, he pointed out, as a direct result o f its engineering staff’s efforts, the ton
nage fo r the year had been increased 117,796 tons.
“ At present more than 200 com panies, representing 85 per cent o f the industry by volume, are assist
ing in collection o f our statistical data,” T. H. Hendrix, director, in
stitute’s statistical department, re
ported.
Bookings o f fabricated structural steel in the first eight months o f 1937
— 1,197,381 tons— were 12 per cent over the tonnage in the comparable period in 1936. Shipments amount
ed to 1,082,844 tons, 9 per cent more than in the eight months in 1936.
Robert C. Post, treasurer of the institute, reported that its finances are “ in an especially strong posi
tion,” resulting from larger ship
ments this year, and payment of dues based on that tonnage.
Efforts are being made to have lifted the requirement fo r bonding government contractors fo r protect
ing material men and labor, accord
ing to the committee on bonds. Ths com mittee recommended that the movement be resisted and govern
ment be petitioned to continue the practices as set down in the Miller act.
This year 38 per cent o f the struc
tural steel sold went into industrial and com mercial buildings, against 31 per cent in 1936. Government work also took 38 per cent, com- pai'ed with 48 per cent in the previ
ous year. Bridge and grade cross
ing eliminations, included in gov
ernment work, dropped from 32.7 per cent o f the total in 1936 to 24.7 per cent o f the sales this year.
The committee on technical re
search reported that a number of research problems were successfully prosecuted during the year.
Thomas H. Beck, president, Crowell Publishing Co., New York, banquet speaker Thursday evening, declared the belief that “ trade fo l
lows the flag” is outmoded. “ T o
day trade follow s advertising,” he said. “ Improved air transportation, better com munication systems, are shrinking the world, presenting the opportunity to show the masses of people all over the world the vir
tues o f American products.” Mr.
Beck described his experiences on the first trip o f the China Clipper to Hong Kong.
At the session Friday morning, C. Oliver Wellington, McKinsey, Wellington & Co., New York, spoke
on the fallacy o f selling below costs.
Discussion elicited many criticisms o f the present federal tax structure.
The convention elected Paul Cod- dington, Lakeside Bridge & Steel Co., Milwaukee, a director to suc
ceed the late J. Lloyd Kimbrough.
C. H. Blakeley, vice president, Beth
lehem Steel Co., and Charles R.
Michael, president, Virginia Bridge Co., Roanoke, Va., were elected hon
orary members of the institute.
Navy Opens Bids for Ferromanganese, Ore
H Bids fo r approximately 50,000 tons o f manganese ore or 11,000 tons o f feri'omanganese were opened last week by the navy department.
Bids for ore were received from Leonard J. Buck Inc., Jersey City, fo r full ore tonnage at 46.7 cents per unit, but was o f low er grade than asked for; Cuban American Manganese Corp., New York, on 10,- 000 tons only, at 59 cents per unit.
Bethlehem Steel Co. submitted bids fo r 11,000 tons ferromanganese, also lower grade than asked for, at
$128.75 per long ton o f contained manganese; Carnegie-Illinois Steel Corp. and the E. J. Lavino Co., Phil
adelphia, bid the same; Jones &
Laughlin Steel Corp., Pittsburgh, bid $125,953. Electro Metallurgical Co., Alloy, W . Va., bid $139 per ton in barrels and $132 in bulk.
Electrical Manufacturers Convene in Chicago
E3 More than 600 delegates gathered at Chicago last week for the annual meeting o f the National Electrical Manufacturers association. Principal business o f the six-day convention consisted o f nearly 150 separate meetings o f various divisions, sec
tions and groups o f the associa
tion.
A feature o f the program was the presentation o f the James H. Mc- Graw award for the most important personal contribution to progress in the electrical manufacturing indus
try. The recipient was C. E. Swartz- baugh, president, Swartzbaugh Mfg.
Co., Toledo, O.
D. Hayes Murphy, president, W ire Mold Co., Hartford, Conn., was elect
ed president o f the association for the com ing year, succeeding F. R.
Fishback, Electric Controller & Mfg.
Co., Cleveland. Other officers chosen include: Vice presidents, F. W . Ma- gin, Square D Co., Detroit; Matthew Porosky, Gamewill Co., Newton Up
per Falls, Mass.; W alter Robbins, General Cable Corp., New York; C.
E. Swartzbaugh; and N. G. Symonds, W estinghouse Electric & Mfg. Co., East Pittsburgh, Pa. H. C. Petty, Crocker-Wheeler Co., Ampere N. J., was chosen treasurer.
Lull Brings New Labor Problems
The steel industry’s shift from high gear into low has brought cer
tain features o f the labor situation into prominence, particularly in re
gard to CIO contracts that were signed seven months ago when ac
tivity was strong.
Mill forces, overtime and hours per week have been reduced. In some plants the fact that overtim e was paid in the boom months in preference to hiring additional men has helped cushion the dismissals.
Seniority clauses in contracts are facin g tests, although the Steel W orkers Organizing committee has made few protests. The time is not advantageous fo r the union to com plain too loudly. It is exceedingly anxious to renew its contracts in the early part o f next year; its officers have been tied up recently in nego
tiations with the AFL, and it faces a lean period from the stand
point o f dues.
In regard to seniority, some mills, which hired numerous men during the peak months o f this year, are adhering fairly closely to seniority, but in some o f the sm aller plants any reasonable arrangement to spread the w ork is permitted.
14,500 Idle at Pittsburgh Under an arrangement supple
mentary to the contract, some com panies and their employes have agreed that the com pany may put into effect fo r one month a share- the-work plan, while awaiting a pickup in business, but at the end o f the month the grievance committee m ay require the com pany to reduce its forces so that senior employes may get full time.
Rough estimates show that around 14,500 persons have become idle in the Pittsburgh district alone in the steel and allied industries due to the subsidence in activity in the last month. Allegheny county relief officials report that applications are on the increase and now coming in at the rate o f around 1000 a week.
Pennsylvania steel mills, metal
w orking plants and foundries face the necessity o f obtaining exemp
tions or else revising some o f their operating schedules in continuous operations when the new 44-hour state law becomes effective Dec. 1.
The law is expected to be used as a pattern when congress starts to write a new wage-hour law.
Under the new Pennsylvania law no em ployer shall em ploy any per
son fo r m ore than 44 hours in any one week or 8 hours in any one day or on m ore than 5% days in any period o f consecutive days.
28 / T E E L
Youth ior Action, Age For Counsel, in Steel
W
HEN M yron C. Taylor publicly announced last week his intention to retire as chairman o f the United States Steel Corp. at the next annual meeting o f directors April 4, he signalized the virtual completion o f the vast job for which he was drafted to under
take 10 years ago.
This job, briefly, was to revise the capital structure, revamp the plants and physical properties and reor
ganize the personnel, injecting younger and newer blood into posi
tions o f high responsibility. Atten
tion to this latter objective was stressed only last week, when coin
cident with the stated intention o f Mr. Taylor to retire, came the an
nouncement o f the selection o f 37- year old Edward R. Stettinius Jr., (37, Oct. 22) as his successor; 47- year old Benjamin F. Fairless as president and 45-year old Enders M.
Voorhees, a relative newcomer in steel, as chairman o f the finance committee.
Appointees A re Young Men still young as big-time execu
tives go were also elected to the presidency o f the Carnegie-Ulinois Steel Corp., the Steel corporation’s largest subsidiary and the largest steel producing organization in the world, and o f the up-and-coming Tennessee Coal, Iron & Railroad Co., namely, J. L. Perry, 57, and Robert Gregg, 52, respectively.
However, that the Steel corpora
tion is not unmindful o f the value of counsel o f older heads was em
phasized by the retention o f W il
liam A. Irvin, 43 years in steel and retiring president, as vice chairman o f the board o f directors, and by the intention o f Mr. Taylor to con
tinue on (with officers still on the top floor o f 71 Broadway) as mem ber o f the board and o f the finance committee.
Seldom, if ever, have a greater number o f important personnel
E dw ard R. S tettin iu s Jr.
C hairm an of the finance com m ittee, U nit
ed S ta te s Steel Corp., who w ill succeed Mr. T ay lo r as ch airm an of the board
A pril 5, 1938
changes in the ranks o f the Steel corporation come at one time, than were announced last week. Yet the changes in no respect were startling.
They involved no drafting from the outside, such as has been the case upon occasion in recent years, o f
men new to the steel industry or new to the organization o f the Steel corporation itself. Perhaps the near
est approach is in the appointment o f Mr. Voorhees, form er vice presi
dent and director o f the Johns- Manville Corp., who became a f
filiated with the United States Steel Corp. and the industry fo r the first time only last April.
A s a matter o f fact, the changes, and especially those at the top, were expected about this time. Certainly Mr. Taylor has indicated strongly upon various occasions his intention o f retiring when his program was completed. He undoubtedly would have retired long ago had it not been fo r the depression, which not only retarded his work but made mandatory his staying on the jo b until conditions became m ore settled.
His successor, Mr. Stettinius, has been groom ed fo r the post since he resigned from the General Motors Corp. to join the Steel corporation in 1934, to become, first, vice chair
man o f the finance committee and then, Jan. 1, last year, chairman o f the committee.
Fairless 23 Years in Steel Likewise, the appointment o f Ben
jamin Fairless to the presidency is hailed generally as a "natural.”
Coming along fast, since his first a f
filiation with the steel industry 23 years ago, at Massillon, O., he left the Republic Steel Corp., as vice president, in 1935 to becom e head o f the newly organized Carnegie-U- linois Steel Corp.
His succession to the presidency o f the Steel corporation itself was regarded only as a matter o f time, and not too long a time at that, as Mr. Irvin, the present incumbent, was approaching the voluntary re
tirement age. Mr. Irvin will be 65 Dec. 7.
The appointment o f Mr. Perry as head o f the Carnegie-Ulinois, is re-
B enjam in F. F a irle ss
President, C arnegie-U linois Steel Corp., elected to succeed W illiam A. Irv in as President of th e U nited States' Steel
Corp., Ja n . 1, 193S
R obert Grefje:
Vice P resident, U nited S ta te s Steel Corp., w ho on Jan. 1 w ill become president, Tennessee Coal, Iron & R ailro ad Co.
J. L. Terry
President, Tennessee Coal, Iron & R a il
road Co., who on Jan . 1 w ill succeed Mr.
F airless as president, C arnegie-U linois S teel Corp.
November 1, 1937 29
W illiam A. Irv in
President, U nited S ta te s Steel Corp., elected vice c h airm an of th e board of
directors, effective Ja n . 1
garded as highly logical, for, still vigorous and active at 57, his asso
ciation with the Steel corporation goes back to its founding—in fact, he started his business career in 1899 with the wire plant at W or
cester, Mass., which a couple o f years later was merged by the United States Steel Corp. Becoming on Jan. 1, 1933, vice president o f the American Steel & W ire Co. and on Feb. 1, 1935, president o f the Ten
nessee company, he possesses a well- rounded experience, an experience that has taken him from New Eng
land to the Mid-West (Cleveland) to Birmingham in the South.
As for his successor, Robert Gregg, his change will be like going home, for it was in the South that he was born and raised and spent much o f his life in steel. Before join
ing the Steel corporation, he was president o f the Atlantic Steel Co., Atlanta, Ga. Following a few years as president o f the Tennessee com pany, he was brought to New York as vice president in charge o f sales for the United States Steel Corp.
N ow he is going back to his old job.
He likes it down there.
His successor has not been an
nounced, and it is believed that with this possible exception, no further important changes are in the offing.
Oldest Member Resigns Along with his new duties as president, Mr. Fairless also becomes a director, succeeding Thomas M or
rison, resigned, o f Pittsburgh, who was the oldest member. With James A. Farrell, he was one of the two Andrew Carnegie men still remaining.
In winding up his w ork as active head o f the United States Steel Corp., Mr. Taylor has wrought many changes. Coming into active charge in 1927 (he had been a director since 1925) at the request o f J. P. Morgan, then serving as tem porary chairman o f the board, he evolved the three-
M yron C. T nylor
C hairm an of th e board of directors, U nit
ed S ta te s Steel Corp. He will re tire as chairm an, April 4, 1938, but w ill continue as a m em h -r of the board and of the
finance com m ittee
point program mentioned. The cor
poration, he was told, was in need o f rehabilitation; the job was his to perform .
Revam ping o f its capital struc
ture was his first objective, and this culminated in 1929 in the retire
ment o f bonds valued at $340,000,- 000, a refunding operation which was to reduce the fixed annual chai'ges from $24,000,000 to $5,000,- 000, a particularly welcome saving in the depression years soon to fo l
low.
Progress with respect to physical properties and personnel was nat
urally to com e m ore slowly by virtue o f the character o f these undertak
ings. The depression made advance
ment along these lines particularly difficult, but slow at first, progress became highly accelerated over the past three years.
Expansion Costs Half Billion Reorganization o f the physical properties called fo r the abandon
ment o f som e units, modernization of others and the construction of various new plants, with the em
phasis on light, flat-rolled products for the consumer trade. Up to the beginning o f this year $364,000,000 had been expended, with $157,000,- 000 appropriated for additional work, which is now going forward.
These changes were made not only with a view to im proving facilities, but to giving them the best possible geographical location. Thus expan
sion has been particularly notable in the Chicago-Gary and Birmingham, Ala., districts, as well as around Pittsburgh, Youngstown, Cleveland and other points.
A long with this change in physical properties, came a revamping in various lines o f personnel, particu
larly the sales force, with a center
ing o f executive direction, as im por
tant subsidiaries were merged to accomplish this end and to sim plify the corporate structure o f the or
Eiulers M. Voorhccs
Vice ch airm an of th e finance com m ittee, United S ta te s Steel Corp., who will su c
ceed Mr. S te ttin iu s as ch airm an
ganization. As well known, the out
standing consolidation is that now represented by the Carnegie-Illinois Steel Corp., effected in 1935.
Mr. Stettinius was reared in the realm o f finance and industry. His father, now dead, was a partner in J. P. M organ Co., and the younger Stettinius upon being graduated from University o f Virginia was given first a minor post with the Hyatt R oller Bearing division o f the General Motors Corp., then made assistant to the vice president in charge o f General Motors accessory division and fou r years later as
sistant to A lfred Sloan, head of General Motors.
He displayed keen interest in pub
lic and industrial relations from the first and it was in charge o f this w ork that he in 1931 was made a vice president o f General Motors Corp. So capable was he in this field that General H ugh Johnson drafted him as liaison officer when the N.R.A. was organized. His con
tinued interest in industrial rela
tions, as well as in financial prob
lems, has been manifest since his affiliation with the Steel corpora
tion.
Kettering To Speak at Laboratory Dedication
■ Charles F. Kettering, vice presi
dent in charge o f research, General M otors Corp., w ill be the principal speaker and guest o f honor at the dedication o f the American Rolling Mill Co.’s new research laboratory building at Middletown, O., Nov. 5.
Mr. Kettering will speak on “ Re
search, Industry and Progress,” be
fore 250 leading scientists, research men, editors, and scientific writers.
George M. Verity, chairman, and Charles R. Hook, president o f the company, also will speak.
The new laboratory building was described in St e e l, Oct. 4, p. C-8.
30 f TEEL
