BOSTON PUBLIC LIBRARY

9999 063

7 538 2

^'

NATIONAL RECOVERY ADMINISTRATION DIVISION OF REVIEW

EVIDENCE STUDY NO. 20

OF

THE IRON AND STEEL INDUSTRY

Prepared by A. G. WHITE

JUNE, 1935

PRELIMINARY DRAFT (NOT FOK RELEASE: FOR USE LN DIVISION ONLY)

)

)

TH3 ZvirSIICE STU^Y SEHIES

The E7IDE1TCE STUDIES ■were originally planned as a means of gathering evidence tearing upon various legal issues which arose under the national Indastrial Ee- cover^' Act.

These studies have value' quite aside fron the use for which they wore originally intended. Accordingly, they are novr made available for confidential use nithin the revision of Review, and for inclusion in Code Histories. . .

The f-jll list of the Evidence Studies is as follo-Js:

1. Autorr.ohile Manufacturing Ind.

2. Boot and Shoe Mfg. Ind.

3. Bottled Soft Drink Ind.

4. Builders' Supplies Ind.

5. Chenical Mfg. Ind.

6. Cigar Mfg. Industry

7. CoTistruction Industry

8. Cotton. Garnent Industry

9. Dress Mfg. Ind.

10. Electrical Contracting Ihd.

11. Electrical Mfg. Ind.'

12.' Eab. Metal Prod, Mfg., etc..

13. Fishery Industry.

14. Furniture Mfg. Ind.

15. General Contractors Ind_.

16. Graphic Arts Ind.

17. Gray Iron.Eoundry -Ind. ■'" ' •

18. Hosiery Ind. ' "

19. Infant's & Children's TTear Ind,

20. Iron and Steel Ind,

21. Leather

22. L^'omher & Tiaher pfou, Ind.

23. Mason Contractors Industry

24. Men's Clothing Industry

25. Motion Picture Industry

26. Motor Bus Mfg. Industry (Dropped)

27. i:eedl8T7ork Ind, of Puerto Eico

28. Fainting & Paperhanging & Decorating

29. photo Engraving Industry

30. plumhing Contracting Industry

31. Retail Food (See No. 42)

32. Retail Lumber Industry

33. Retail Solid Fuel (Dropped)

34. Retail Trade Industry

35. Rubber Mfg. Ind.

36. R?ibb>-r Tire Mfg. Ind.

37. Silk Textile Ind, ' .

38. Structural Clay Products Ind,

39. Throv.'ing Industry

40. Triicking Industry

41. Xaste Materials Ind.

42. Tnolesale & Retail Food Ind.- (See Ho.

43. Iholesale Fresh Fruit & Veg,

£1^

In addition to the studies brought to conpletion, certain materials have been assonbled for other industries. These MATERIALS are included in the series and are also nade available for confidential use T.'ithin the Division of Review and for in- clusion in Code Histories, as follovrs:

'i4. Tiool Textile Industry 49.

45, Automotive parts & Equip. Ind. 50.

46, Baking Industry 51, 17. Canning Industry 52. 43. Coat and Suit Ind. 53,

Household Goods & Storage, etc, (Dropped) Motor Vehicle Retailing Trade Ind. Retail Tire & Battery Trade Ind. Ship & Boat Bldg. & Repairing Ind. TJholosalin.-r or Distributing Trade

L. C. Marshall Director, Division of Review

THE IHON MD STEEL INIUSTRY TABLE OF CONTENTS

Page

I. TEE NATUHS OF THE INDUSTRY

1~2. Numter of Plants and Mein"bers of In-

dust ry 1

Position of 15 Major Companies 2

3, Steel 77orks eaid Rolling f.lills by States 4

4, Capital Investment 5

5, Numter of Failures 5

6-7-3. principal Products and Consuming Industries.... 5

II. LABOR STATISTICS 10

III. MATERIALS - RAW AilD SEMI-PROCESSED 18

1-2-3, Principal Materials 18

4. Machinery and Equipment 19

5. Percentage Cost of Materials to Value of

product 19

Raw Material Tatles 19-20-21-22

IV. PHODUCTION AND DISTRIBUTION 22

1. Value of products oy States 24

2. Production "by States - Pig Iron, Ingots

and Finished Steel 25-26-27

3. Interstate Shipments - Sample Study -

Pittsburgh District 28

4-5-6. Viholesale and Retail Distribution 29

7. Exports 30

3. Advertising Media 30

9. Shifts in pig Iron production and Rolling

Mill Capacity 31

10-11. productive Capacity Utilized 33

V. TPJVDE PRACTICES 34

VI . GENERAL INFORMATION 39

1 . Ki story 39

2. Description of Operations 39

3-4—5-6. Organizations - Industry and Labor 40

7. Financial Conditions of the Industry 40

8. Effects of the Code on the Industry 40

9 . Trade Marks 41

10. Effect of Imports 41

11. Persons Qualified as Experts 42

-oOo-

8317

-1-

I. TIIE IIATUEE OF THE liDUSTHY

1-2*

ITijjnber of plants and .-lenbers of Industry.

The test souce of information is the Iron and Steel Directory prepared "by the American Iron and Steel Institute and the lists of sif^natorv rnemhers and non-si "-natorv meuters of industry compiled "by the Code Authority. The last published directory is for 1930 "but tah'olations were made by Research and Planning Division from the proof of the 1935 directory, '/rhich is about rea.dy for pv.blication.

The 1935 directory includes about 305 companies who operated 488 plants or works. The secretary of the institute submitted a list of 46 companies which had been djropped fron the directory list since 1930, practically all of which were sraall companies operatin,^ one plant.

Eased on this data, there were approximately 351 companies operating 534 plants in 1930 and 305 companies operrting 488 plants in 1934.

The latest list (April 26, 1935) of signatory members submitted by the Code Authority shows a total of 241 companies (counting all subsidiary companies shown under separate names). The list of members of industry, submitted by the Code Authority, believed to be eligible but who had not signed the Code included 58 names. Combined the two lists total 299 com- panies. This total is in substantial agreement with the number of companies indicated by the 1935 directory,

ISOF Am STEEL IITOUSTRY

Companies classified according to votin^: strength and voliome of sales 1934, (l vote for each $0.5 million sales - fractions not counted - each member at least 1 vote)

U^ojiiber of Cora^oanies

Total Sales Value

Votes Trillion Dollars

Comoanies with 1 vote

	2	votes
	3	votes
	4	votes
	5	votes
	6	votes
	7	votes
	8	votes
	9	votes
	10	to 20	votes
	20	to 50	votes
	over 30 votes

Total

106

20

9

13

8

9

3

4

2

9

6

13

202

106

40

27

52

40

54

21

32

18

116

144

1,646

2,296

$53.0 20.0 13.5 26.0 20.0 27.0 10.5 16.0 9.0 58.0 72.©

823.0

$1,148.0

Note: The above represent the members of industr^^ under the Code, The 202 companies represent controlling companies which, together with their subsidiary companies, represent a total of 241 company names. In ad- dition there are 58 companies, listed as non-signers of the Code for which no data on sales is available.

Source: Company lists furnished by the Code Authority.

8317

IHON Aim STEEL INDUSTRY

POSITIOH OF THE 16 LARGEST I/iEI3EP.S CE HOUSTHY

1934

						livnbev	of Dif-
						ferent	States
			Sales	Carjacity	in Which Are
		Code	Iviillion	Million Tons		Sales
Com;	oany	Votes	Dollars	Pig	Ingot	Plants	Officf
1.	U.S. Steel Corporation	575	287.5	21.3	27.3	13	a/
2.	Bethlehem Steel Corpora-
	tion	180	90.0	5.6	9.7	3	17
3.	Republic Steel Corpora-
	tion	166	83.0	2.4	5.0	6	17
4.	National Steel Corpora-
	tion	143	71.5	2.0	2.2	3	10
5.	Yoion^stoTTn Sheet and
	Tube Comr^any	92	46.0	3.0	3.1	3	17
6.	Jones and Lau,p;hlin Steel
	Corporation	78	39.0	3.0	3.7	1	15
7.	American Rollin,^ Kill
	CoraiDany	78	39.0	0.7	2,2	3	11
0.	Inland Steel Company	76	38.0	1.0	2.0	2	5
9.	Wheeling Steel Corporation 74	37.0	1.0	1.5	2	19
10.	Cruci'ble Steel Company
	of America	55	27.5	0.5	1.5	3	21
11.	Continental Can Company,
	Incorporated	51	25.5	-	-	2	-
12.	Corri.T;an Mc^inney Steel
	Company	45	22.5	1.2	1.0	2	1
13.	Otis Steel Company	33	16.5	0.4	1.0	1	9
14*	Span,?:, Chalfont and Com-
	pany, Incorporated	29	14.5	-	-	1	8
15.	Allegheny Steel Company	26	13.0	-	0.3	1	6
16.	Wisconsin Steel Company	25	12.5	0.5	0.6	-	-
Total 16 Companies	1,726	863.0	42.6	61.1
Total all Members	2,296	1,148.0	49.0	63.9
Per cent of 16 Companies	7r.2fo	75.2^4	86. 9f.	88.7^

Source* Lists of Code Authority and 1935 Directory of American Iron and Steel Institute.

a/ The ten subsidiary companies have offices in from 4 to 18 different states.

8317

I HON AND ST3EL IIOUSIRY

POSITION 0? THE ITiJITSD STATES STS3L COllPOilATION FSR CENT 0? TOTAL UlTITED STATES PEODUCTION

1929 1930 1931 1952 1933 1934

Production of Iron Ore Production of Coke Production of Pif!; Iron Production of Ferr-Alloys Steel Ingots and Castings

41.6	41.3	43.5	36.3
29.0	27.2	21.0	13.5
39.0	40.6	38.6	35.9
22.1	24.5	19 i 8	12.8
38.8	41.2	38.9	36.0
35.4	36.6	34.2	29.6
50.6	51.2	52.0	46.9
41.6	44,6	45.4	43.9
36.4	38.1	32.4	28.2
45.7	46.1	45.3	44.2

Eolled Products

Steel Rails

Structural Shapes

Plates and Sheets

Wire Hods

Other finished Holled Products

28.9 29.5 27.6 22.4

Wire Nails

Tin and Terne Plats

39.0 44.6 43.4 42.4 38.8 37.5 32.4 30.4

8317

-4^ IROIT AlID STEEL Active Steel Works and Rolling: Mills Number of Establishments by States

1929

1931

1953

1	a/
9	a/
3	a/
1	a/
24	22
12	10
146	131
3	a/
4	a/
2	a/
14	13
4	^
74	62
18	17
37	32
16	15
15	12
4	a/
8	a/
2	a/
2	ay
1	a/
2	a/
3	a/
8	7
—	a/
2	a/
3	a/
1	a/
19	17
3	3
5	a/

Maine

Massachusetts Connecticut Rhode Island

New York New Jersey Pennsylvania Delaware Maryland Virginia West Virginia Kentucky

Ohio

Indiana

Illinois

Michi,°:an

Wisconsin

Minnesota

Alabama

Georgia

Tennessee

Louisiana

Texas

Iowa

Missouri Nebraska Oklahoma

Colorado

Utah

California

Oregon

Washington

TOTAL

1 9 3 1

26

17

158

3

4

2

16

4

80 20 36 14 17 5

9 1 2 3 2

2 7 1 2

3

o

19 3 6

486

446

394

Source: U, S. Census of Manufactures, 1929, 1931, 1933. a/ Details not available.

8317

IRON Ain? STEEL 1-4, Capital Investment

Canital investment, computed on the "basis of net property value, in- vestments, net assets and inventories, was approximately $5.0 iDillion at the end of 1932 and "between $4.7 and $4.0 hiilion at the end of 1934. These figures are compilations "by the American Iron and Steel Institute for 190 companies and include some affiliated operations which are not properly chargeable to iron and steel. However, since many smaller com- panies are not included, the total as here given may te considered as a fair approximation, which is cixrrently accepted.

IRON AND STESL INDUSTRY

1.5- Failures and Liahilities Involved,

No exact data is available,

W. S. Tower, Secretary of the Code Authority, stated that the volume of failures had been relatively small and would have been much f^r eater ex- cept for the stabilizing influence of the Code. He submitted a detailed statement for 46 companies whose names had been dropped from the Iron and Steel Institute Directory between 1930 ond 1935. Tliese companies represent- ed a total capacity of about 2,1 million tons of pi^ iron capacity, 0,4 million of ingot capacity and 1,5 million of finished steel capacity. Only about one- third of these companies had operated since 1929, About 90 per cent of the pig capacity, 30 per cent of the in;Tot capacity and 40 per cent of the finished capacity did not operate even in 1929. Consequently a large part of the abandoned and dismantled capacity may be considered as obsolete,

Dunn and Bradstreet report the following with regard to failures under the classification of "Iron, Steel and Founderies."

Year Number of Failures Liabilities

1929 148 $6.2 million

1933 1C3 3.B "

1931 181 ^ 19.8

1932 286 * 19.9

1933 250 11.3

1934 139 5,7

A very large part of these failures undoubtedly come under founderies or other operations not under the scope of the Iron and Steel Code, Even then it is notable that the total liabilities for the six years are only about $66 million whereas the capitalization in the Industry is close to $5 billion.

8317

-6~

IRON MD STEEL lOTDUSlRY Princinal Products And Cons-uming Industries

Rails and track accessories are hea.vy finished products of the rolling mills and the major de-nand is by the railroads viith snrille r demands for mining and industrial concerns and some ejrport. Demand is primarily affect- ed "by re-olacements and the curtailment of railroad transportation "by water and motor vehicle coripetition.

Plates, a heavy product of the rolling mills, are used in the "building industries, for railroad cars and locomotives, for storage tajiks and other purposes, in oil, gas and vrater comnany OTDcrations, in steel ship "building, in the manufacture of heavy containers and for many other purposes.

Black plate for tinning is a rolling mill product rhich is suhjected to further processing to make the final product of tin plate for containers either for food products or industrial products such as luhricatinT oils.

Sheets, either plain or galvanized, are one of the important rolling mill products. The largest use of sheets is in automotilc manufacture. The "building industries are the nezt largest consumer, using "both plain and gal- vanized (zinc coated) sheets.

Structural shapes are mainly used in the "building industry, for railroad cars and locomotives and for "bridge construction.

Concrete "bars are primarily used for reinforcing cement work in "building and highway construction.

Merchant "bars find a major use in automotive manufacture, in the produc- tion of agricultural machinery and in many other lines of machinery and equipment production.

Strips find their major use in automotive manufacture and a wide range of lesser uses.

Pipe and tubing finds its largest use in oil, gas and water company operations and in large sales, through jo'b"bers, for miscellaneous purposes, Skelp and tube rounds represent the semi-finished forms from which the final forms are processed.

Wire rods represent the semi-finished form from which wire is drawn to form the "basis of numerous wire -products, such as nails, fencing, etc.

Alloy steels find their largest in automobile parts.

8317

A.

PHODUCTION OF FIlIISilED STEEL BY MAJOR PRODUCTS (For 46 Companies Producing 88 Per Cent of 1934 Output) Production of Finished Steel in Millions of Gross Tons

Products	1929	1930	1931	1932	1933	1934
Rails	2.72	1.C7	1.16	0.40	0.42	0.98
Plates	5.-)2	3.66	1.97	0.83	1.16	1.38
Black Plate for
Tinning	1.70	1.69	1.43	1.00	1.96	1.65
Other Sheets	5.72	3.71	2.64	1.61	3.08	3.68
Strips	2.50	1.94	1.62	1.19	1.93	2,45
Wire Rods	3.13	2.35	1.04	1.19	2.02	1.70
Shapes	4.78	3.51	2.C6	0.94	1.11	1,33
Bars, Merchant	6.31	4.04	2.39	1.29	2.25	2.63
Bars, Concrete	0.95	0.G5	0.64	0.38	0.37	0.42
Pipe, Skelp and
Tube Rounds	4,80	3.G2	2.16	0.95	1.55	1.6C
Hoops, Bands, Cotton
Ties	0.59	0.13	0.11	0.08	a/	a/
Track Accessories	0.89	0.59	0.39	0.15	0.20	0.40
Other Finished
Products	1,53	1.03	0,57	0.35	0.56	0.80
Total ShoTjn	40.63	29.20	18.99	10.35	16.61	19.00
B. Production in Perc	; entases	of Above	Totals
Products	1929	1930	1931	1932	1933	1934
Rails	6,7	6.4	6.1	3.9	2.5	5.1
Plates	12.4	12.6	10.4	8.?	7.0	7.3
Black Plate for
Tinnin!^	4.2	5.8	7.5	9.7	11.8	8.7
Other Sheets	14.1	12.8	13.9	15.6	18.6	19.4
Strips	6,2	6.7	8.5	11.4	11.6	12.9
Wire Rods	7,7	8.0	9.7	11.4	12.2	8,9
Shapes	11.8	12. ->	10.9	9.0	6.7	7.0
Bars, Merchant	15,5	13.8	12.6	12.4	13.5	13,8
Bars, Concrete	2.3	2.9	3.4	5.7	2.2	2.2
Pipe, Skolp and Tuhe
Rounds	11.7	13.1	11.4	9.3	9.3	8,4
Hoops, Bands, Cotton
Ties	1.4	0.4	0.6	0.8	a/	a/
Track Accessories	•2.2	2.0	2.0	1.4	1.2	2,1
Other Finished
Products	3,8	3.5	3.0	3,4	3.4	4,2
Total	100.0	100.0	100.0	100.0	100.0	100.0

Source' Annual Survey hy Iron Age (January 3, 1935) aj Included in Strips

8317

DISxHIBUTIOlT OF PlillSIISD ST3EL BY COIISU^niT^J GROUPS (Por 46 Companies Producinf^ 88 per cent of 1934 Output)

Ai Distribution of Finished Steel in Millions of G-ross Tons

Consuming Grouns	1929	1S30	1931	1932	1933	1934
Buildin.^s	6.70	5.50	5.50	1.65	1.90	2.55
Railroads	6.90	4.40	2.55	1.25	1.50	2.05
Automotive	7.30	4.50	3.05	1.75	3.15	4.00
Oil, Gas, Mining	4.30	3,35	2.10	0.90	1.00	1.35
Metal Containers	2.00	1.75	1.70	1.20	2.25	1.90
Af^ri culture	2.25	1.15	0.85	0.35	0.65	1.40
Shipbuilding	a/	a/	a/	0.10	0.17	0.30
Machinery	1.20	0.90	0.60	0.30	0.50	0.92
Highways	a/	a/	a/	0.40	0.75	0.75
Miscellaneous	7.70	6.00	3.90	2.10	4.18	2.94
Total Domestic	38.35	27.55	18.25	10.00	16.05	18.16
S:?rports	2.25	1.60	0.75	0.30	0.55	0.84
Grand Total	40.60	29.15	19.00	10.30	16.60	19.00

B. Distribution in Percentages of Above Totals

Consuming Groups

1929

1930

1931

1932

1933

1934

Buildings	16.5	19.0	18.5	16.0	11.5	13.4
Railroads	17.0	15.0	13.5	12.0	9.0	10.7
Automotive	18.0	15.5	16.0	17.0	19.0	21.0
Oil, Gas, Mining	10.5	11.5	11.0	8.5	6.0	7.1
_Metal Containers	5.0	6.0	9.0	11.5	13.5	10.0
Agriculture	5.5	4.0	4,5	3.5	4.0	7.5
Shipbuilding	a/	a/	a/	1.0	1.0	1.6
Machinery	3.0	3.0	5.0	5.0	3.0	4.9
Highways	a/	a/	a/	4.0	4.5	4.0
Miscellaneous	19.0	20.5	20.5	20.5	25.0	15.4
Total Domestic	94.5	94.5	96.0	97.0	96.5	95.6
Ejrports	5.5	5.5	4.0	3.0	3.5	4.4
Grand Total	100.0	100.0	100.0	100.0	100.0	100.0

Source: Annioal Survey by Iron Age (January 3, 1935) a/ Included in miscellaneous

8317

-9„

R-P-28
IROK AiQ 5T.ra. ILDu3iSY P^UJCTIOl. 1
V-A	Total L'onf.Uy Production of Steel Ingots (000 gross tons) a/ 1926 1927 1928 ly^9 19 0 1931 1932 1933 1934 1935
	JAN	4.132	3.823	4.02O	4.545	0.808	2.534	l.t;00	1,017	1,971	-^,834
FEB	3.785	3.tj4o	4, Obi	4,372	4,06?	2,570	1,496	1,073	2,1 £3	2,742
MM	4.469	4.5''5	4.549	5.1-'8	4.268	3.083	1.448	898	2.761
APR	4.106	4.163	4.34	4.9.99	4.142	2.794	1.273	1,345	;:.898
MAY	3.928	4.083	4.2*6	J. 339	4.014	'-.574	1.137	1.976	3.353
JUN	3,734	3,520	3,7 ('8	4,951	3,445	2.149	923	2.564	3.016
JUL	3.635	3,23	3.841	4.898	2.945	1.907	8 5	3.168	1.473
AUG	3,987	3.529	4.217	4.9S8	3.085	1.733	8o6	2.864	1.363
SEP	3,913	3„296	4,166	4,573	.,863	1.560	1,00T	2.283	1.252
OCT	4,074	3.345	4.633	4.5 9	.714	1.605	1.099	2.085	1.462
MOV	3,706	5.155	4.3Ub	3.55	2.230	1.607	1.043	1.5a	1,C89
DEC	3.467	3.203	4.055	2.9 ..	1.995	1.313	871	1.799	1.941
^xQX&sa.	3.911	3.648	4.194	4.571	3.300	2.119	1,122	1,883	^.105
V-B		Index ol	' Steel Ingot ]	Production (1929*100) t/
	JAN	90 4	83.6	88.1	99.4	83.3	55.4	32.8	22.2	43.1	62.0
FEB	82.8	84.1	89.3	95. 6	89 0	56.2	32.7	23.5	47.8	60.0
MAR	97.8	100.1	99.5	112.0	93.8	67.4	31.7	19.6	60.4
APR	89 8	91.1	95.1	109.4	90.6	61.1	27 8	29.4	63.4
MAY	85.9	89.3	92.9	116.8	87.8	5fc.3	24.9	43.2	73.4
JUN	81.7	77.1	82.7	108.3	7 5.4	47.0	20.2	56.1	66.0
JUL	79.5	70 7	84.0	107.2	64.4	41.7	17.8	69.3	32.2
AUG	87.2	77.2	92.3	109.1	67.5	37.9	18.7	62.7	29.8
SEP	85.6	7 .2	91.6	100.0	62.6	34.1	21.9	49.9	27.4
OCT	89.1	73.2	102.7	100.2	59.4	35 J	24.0	45.6	32.6
NOV	61.1	6:?.0	94,2	77.8	48.8	35.2	22.8	33.3	34.8
DEC	75.0	70.1	86.7	54.2	43.6	28.7	19.1	39.4	42.5
Averaj^ei	8^.6	79 e	91.8	100.0	72.2	4t.3	24.5	41.2	4^.1
	JAN
FEB
MAfi
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
1
»/ Iron y Tbtaa	Age. Llonthl	y Production f	jh fted to 192	d base 1	4,571, (	300 gr.tons ■!<	DO)
RESE	ARC	:h & r	>LANN	INC.	N.R A .

Code Industiy iinalysis Jnit, PCB:rb 10':2-34

Bevieed ll/2l/34, BE?

-10- IHOJI AMD STEEL IHDUSTRY II. Labor St£.tistics

1. Estiiiic'.ted Average

Ixunljer Employed - TliousazLds

2. Total Aiinual Wages -

Millions of Dollars

3. Average Hourly Wage

pLate - Cents

4. Average Hours Worked

Per Week Per Employee - Hours

5. Average Weeks Worked

per Year Per Em- ployee

6. Number of Employees Under 16 years of Age

1929 1930 1931 1932 1933 1934

421 368 279 228 290 354

733 587 359 183 270 378

65.0 65.0 63.0 52.1 52.3 63.2

49.5 48.3 55.0 25.9 31.8 30.4

(Fairly continuous in 1929 but no later cor^parable figures available due to spreading work and decline in amount of work available).

(a relatively negligible factor as occupation Census for 1930 shows only 110 children under 16 years of age as employed in blast furnaces and steel rolling i-iills).

Source: Co'Joutations made by Research and planning Division based on Bureau of Labor Statistics Index for Blast Furnace, Steel Works and Rolling Mills, National Industrial Con- ference Board's statistics, and adjustments to Census reports.

8317

IROH AND STEEL INDUSTRY irUMBER OF WAGE EARNERS EMPLOYED, BY STATES - I929, 1931 and 1933

H>7

	Blast rurnaoes	1929 steel Works Rolling Mills	Total	Blast furnaoes	1931 Steel Works Rolling Mills	Total		Blast I^jrnaces	1933 steel Works Rolling Mills	Total
Total	2'^,960	39'^.57»^	»H9,53^	13.572	261f.634	278,206		12,098	276,847	288,945
Alabama Illinjis Indiana Michigan Hew York	2,398 «57 1.557	9.253 30,iu6 17,952	11.651 32.963 30,7*^3 5.581 19.509	1,468 1,531 875 667	y 19 079 18,641 5,249 10,175	1,468 20,610 19,516 5.249 10,842	y	964 829	17,005 22,379 5,555 10,266	964 ft/ 17,005 V 22,953 ^. 5,555 y 11,095
Ohio PennsylTanla Tennessee Iowa	5,8«o 8.186	89,123	95,003 153,870 ,,	IM	58,088 98,332 y 120	61,^61 102.477 120		Jull	64,286 l0l,53'^	67.913 105.706
Oallfornla Kentucky Louisiana Missouri Hew Jersey	1/	6,616 5,358 282 3,»«o6 8,056	6,616^, 5.358 y 282 3.'»o6 8,056	y	4,510 3,459 2.^6 5,499	4,510 3,459 2,336 5,*t99	y		4,289 1,979 4,953	4.289 i/ i'979 J/ 4.953 i/
Oregon Washington West Virginia Wisoonsin	2/	250 JZk 12.936 5.2W	250 72»^ , 12,936 y 5,248	y	9.^ 3.052	175 9,830 3,052	y		179 13.365 2,133	179 y 13.365 |< 2,133 y
Other States	1,511	25.377	26,888	1.613	26,089	27.702		1,932	28,924	30,856

a/ Blast furnace claselflcatlon only. £/ Steel Works and Rolling Mill claselflcatlon only. 0/ Included In other states.

Source: U. 8. Census of Manufactures. Data for "Blast Furnace* and Steel Works and Rolling Mills" classifications coablned.

IRON AHD STEEL IHDUSTRT TOTAL WASE8 BY STATES - I929 - I93I and 1933

n^s

	Blast runwoca	1929 Steel ffovha Rolling lails	Total	Blast ruroaoss	1931 Steel Works Rolling Mills	Total	Blast fumaoes	1933 Steel Works Rolling Mills	Total
Total	"n. 958,569	689,015,5'H	730,974,110	19.258,799	338.386,533	357,645 332	11,564,000	258.803,000	270,367,000
Alabau Illinois Indiana Michigan Sew lork Missouri	2,897,066 '^,224,l27 2,609,^«^7 1,502 103 2, 776, 5*^3	12.199.977 55.359.031 52,844,790 9.111.336	15.097 043 59,583,158 55.453,937 10,613,439 32,913.578 5,149.556	1,480,871 2,386,833 1.453.660 1,1^,815	23,678,934 28,343,905 7,883,360 l4, 145,060 2,731.380	1,4«0,871 26,065,767 29,797.565 7.883,360 15,286,875 2,731.380	705,641 880,533 830,730	17,747.801 25,234,026 7.084,923 10,010,950 1,877,497	705,641 17,7^.801 26,114,559 7,084.923 16; 841, 680 1.877,497
Ohio PeonsylTnnla Tennessee Iowa Louisiana Oallfomla	U.l»^3.535 13.918,094 338, lH2	167,200,199 248,618,590 1*08,236 10.837,585	262 ; 536! 684 338.412 408,236 10,837,585	'^.753.704 5,^68,430	7"* 593.573 122,100,471 129,607 5.085,857	79.3^-277 127,768.901 129,607 5,085,857	3,566,732 3, 595 396	61,683,924 85,203,207 4.623,5'^5	65.250.656 88,798,603 4,623,545
Washington lest Virginia Wlsooneln Kentucky Hew Jersey Oregon	1/ 1/	1,364.842 23.773,982 9,428,007 8,822,4«7 12,739.751 375.377	1,364,842 23,773,982 9,428,007 8,822,487 12,739,751 375,377	i/ 1/	14,542,263 3.303.170 3.635.832 6,74^,421 201,884	14,542,263 3,303,170 3,6j|,832 6,746,421 201,884		12,94«,107 1,657,055 4,383,117 212,441	12,94«,107 1,657,055 4,383,117 §121441
Other States	2,5*t9,5'^2	40,644,760	43,194,302	2,373,'W6	31,264,816	33,638,302	1,9*^,968	26,136,407	28,121,375

Souxos: U. S. Oensus of Manufactures ^ Included in other states

~13~

II - S. According to figures of the 1929 Census of Manufactures, wages paid in "blast furnaces represented 26 per cent of the value added "by manufacture and in steel works and rolling mills wages repre- sented 47 per cent of the value added "by mamafacture. A very rough approximation of the relation of lator cost to value of product for the two industries coratined can "be made "by taking the value of products for steel works and rolling mills of $3,356,000,000, which includes the larger part of the pig iron as a raw material and the combined wages paid ($42,000,000 for blast furnaces and $689,000,000 for steel works aaid rolling mills). This shows a ratio of about 22 per cent. This figure is too low to the extent of considerable duplication in the value of products, figure.

Steel Code figures for 1934 show a wage payment of $357,000,000 and a total sales value of about $1,148,000,000 or a ratio of 31 per cent for wage costs.

8317

-14-

	R-P-28
	T i		I BON AIQ BTFHsL INDUSTRY ZWLOYMEHT
	I-A	19?6	Index of Qnpl yment (1923 - 25sl00) a/ 1927 1928 1929 930 1931 1932	1933	1934 1935
		JAN	100.6	96.9	90.7	100.4	97.7	76.5	57.6	46.5	65,0	69.3
	FEB	102.4	98.5	94 1	101.2	99.5	76.3	57.8	48.7	67.3
	MAR	i02.2	100.0	96.1	102,6	98.6	77.1	56.8	4S,0	70.1
	APR	102.9	99.7	96.3	10?. 8	98.6	76.6	55.1	47.2	72,9
	MAY	101-8	99.0	96.3	105.3	97.9	73.8	53.0	49,8	76.8
	JUN	ADSUZ.	96.9	95.8	105.7	94.1	6 .5	50.6	54.6	79,1
	JUL	98-9	95.3	95.1	105.3	89.5	67.9	47.6	6 .1	72 4
	AUG	100-0	94.2	96.5	106 ■=	85.6	65.7	46.4	69 8	69
	SEP	101-7	93-8	97.1	1C&.5	83.1	62 3	47.3	71 8	65 3
	OCT	101-8	92.8	97.7	103.1	81 7	59.4	48.8	70 2	65.4
	HOW	101-7	91.3	99.6	101.	79 7	58.0	49.0	6 .9	5.y
	DEC	9fl-6	90.1	99.6	96.9	7.8	58.0	48.0	6	66.9
	Avflrfi^fl	101-0	95.7	96.2	103.2	0.3	68.4	51 5	56 5	6 '
	I-B		Index of Kmploy ent ( 929»100) J
	1 1	JAN	97.5	93.9	87.9	97.3	9 .7	74.1	56	53.1'	n s	»3S
	FEB	99.2	55.4	■ 91.2	98.1	96.4	73.9	7 3	56.4	81 1
	MAR	99-0	96.9	93.1	99.4	95.5	74 7	57.	54.5	84
	APR	99.7	96.6	93.3	100.6	95.5	74.2	56.	56.	87.
	MAY	98.6	95.9	93.3	102 0	94.9	71.5	54.	59,5	95^. 5
	JUN	97-1	93-9	92.8	102.4	91.2	67.3	52.9	64 8	9 .2
	JUL	95-8	92.3	92.2	102.0	66.7	65.8	50.7	2.7	8 2
	AUG	9fi-9	91.3	93-5	103.2	82.9	63.7	50.3	80.8	84.0
	SEP	98.5	90-9	94.1	102.2	80.5	60.4	51.	3 4	78 7
	OCT	9fl^6	89-9	94.7	99.9	79.2	57.6	53.9	82 5	6 8
	NOV	97,6	rifl^fi	96, fS	98.6	77-2	56.2	54.7	81.0
	DEC	cj«S-?S	87.3	96.5	93^9	75.4	56.2	54.4	80.7
	^yoyyiff^l	97. S	92.7	93.3	100.0	87.5	66.3	54.2	• .9	^'^.C
	I-C		Estimated Number Employed ((	300) c/
	r "7	wAN	410.3	39 .2	369.9	409.5	398.5	311.8	237.8	226.0	32 .£	i 1.4
	FEB	417.5	401.5	3.3.	412.8	405 7	311.0	241.1	237.3	34 3
	MAR	416.6	407.8	391.8	418,5	401.9	314.4	239.9	229. 3|	35 .2
	APR	419-6	406.5	392.	423.4	401.9	312.3	235.7	236. S	369 £
	MAY	414.9	403.6	392.6	429,3	399.4	300.9	230.2	250.4	38 .3
	JUN	408-6 1	395.2	390.5	430.9	363.8	283.2	222.6	2''2.7	400. e
	JUL	403-2	388.4	388.0	429.3	364.9	276.9	213.4	305.9	367. C
	AtG	407.8	384 2	393.5	434.1	348.9	268.1	211.7	336.7	353 6
	SEP	41 4- B	382.5	396.0	-ivO^l	338-3	254.2	217-6	351.0	331.2
	OCT	414.9	378-3	398-5	420.4	333.3	24 .4	226.8	347.2	331-6
	NOV	410-7	372-4	406.1	414,9	324,9	236.5	230.2	340.9	334.1
	DEC	4fn .q	3fi7.4	406.1	395-5	317-3	236.5	228.9	339.6	3 .2
	ATera«fi	411-6	390.1	392.6	420.8	368.2	L79.0	228.1	28 .9	3 35
	a/ Burea Puma b/ 3.;. .S 2J 19''9	u of La ces, St . Index Index m	tor Statistics Inde:^ for Iron and J eel Works and Rolling Mills), shifted to 192S base; adjusted to oltiplied by 420, 8-C'.	iteel L 1933 C	idustiy ensus b,	{Blast y NHA

RESEARCH fc PLANNING, N.R A

Code Industry Analysis Unit, FCR:br, ll/20/34 (revised

-15-

R-P	-28
		IRON AHD STEEL INDIKIRY PAYROLLS
II-A	I 1926 Iv^V	rde;^ of Payrolls (l?23-25=100) a/ 1^28 1929 1930 1931 1932	19 33	1934	1935
	JAM	,101.5	96.5	6-.b 104.6	95.0	62.7	31.9	20.7	41.2	.3: .E
febJ	104.9	102.6	100.7 10.'. 7	104.5	69.3	33.1	22.9	4£.l
MAR	106.9	1Q6.9	102.7	IIL..	103.5 1 72.3	31.7	20 6	5'. 2
APR	1 Ico.u	106.9	100.7	1^5.0	104.5. r. .4	2d. 4	22.6	59.4
MAY	103, c>	101.5^ 99.7	103.1	116 4	101.6 1 65.4	27.3	27.8	6b. 1
JUN	^102.1	9J.5 1 114.5	9^.6' 56.2	22.5	34 8_	66,9
JUL	96. i by, 3	94.0 ; 107.6 i 81.6 : 49.5	18.9	47.9
AUG	1 9d.4 ^1^.6	100.3 1 114.1 79.2 , 47.0	16.9	53.1	44.0
SEP	10-. 7	'Jltii	99.1 112.5 j 7fi,2 1 40.3	19.6	47.9	37.3
OCT	1 107.4	91.9	106.5 109.9 i 76.2 , 07.6	22.3	48.0	39.2
NOV	1f,a.- 00.0	106.6 10.^.7 1 b8.3 1 35.2	22.2	42.2	^' i."
DEC	111?. A 90.7	104.b	95.3 j 66.3 ' 35.8	a. 2	43.0	4'O.b
..ver.i^'ej	1 lQi,Q 1 i^y?	ICC. 5	109.6	67.7 i 53.6	24.8	35.4	4J.2
1 1-3		Lndex of Payrolls (1929=100)	y
1 1	LJAN	92.6	Ub.l	62.0	9 5.5	86.7	57.2	29.2	22.1	43.1	56.Z
FEB	95.6	93.7	91.9	100.2	95.4	63.3	30.7	24.2	48.3	^
MAR	97.5	96 9	93.6	lu2.4	94.5	66.0	29.6	22.4	54.6	-
APR	96.8	97 6	91.9	105.0	95.4	65.2	26.9	24.5	62.2	m
MAY	.'4.0	9;.. 7	9 4.1	106.3	92.8	59.7	26.1	29.5	69.2
JON	dZ.2	91.0	90.8	104.5	37,5	0I.3	a. 9	36.2	72.2
JUL	b7.9	01 .5	05.8	96.4	74.5	45.2	19.0	42. 't	50.2
AUG	89.6	o5.5	91.6	104.2	72.3	42.9	19.1	53.4	46.1
SEP	V^.B	bo • t	90.5	102.7	69.6	36.8	20.1	46.8	39.1
OCT	yo-1	o3.9	96.3	100.3	69.6	34.3	22.8	49.1	41.1
NOV	9h.l	02.2	97.3	J3.8	62.4	32.1	23.0	44.1	43.7
DEC	93.7	^2.8	95.7	87.0	60.5	32.7	22.2	45.1	48.8
ATnr.'v,P>l	94.0	68.3	91.9	100 0	BO.l	48.9	25.0	56.8	51,6
II-C	E3 iir^tei	;..onthly P^ roll 3 In Doll art	1 (000, (	)00) c/
	JAN	56 72	53.84	50.12	56.37	52.99	34.96	17.85	13.51	2r,34	34 .3 0
FEB	5 .55	57 27	56.17	61 .24	56.31	38.69	16 76	14.79	2^ -.52
MAR	59.59	59.16	57 33	62. S8	57.76	40.34	16.09	13.69	2 J 37
APR	59.16	i9.65	56 17	64.17	58.31	39.65	16.44	14.97	38.01
MAY	57.45	56.66	57 51	64.97	56.72	36.49	15.95	18.03	42 29
JUN	56.96	55.62	55.49	63.97	53 48	31 .36	13.38	22.12	44.13
JUL	53.72	49.31	52.44	60 14	45 53	27.63	11.61	25.91	30 68
AUG	54.88	52.26	55.9b	6^ 66	44.1	26.22	11. b7	'ii2.64	28.17
SEP	57.33	51.09	55. vl	6-^.77	42. 4	22.49	12.28	29.82	22. 9Q
OCT	59.96	51.28	58.86	61. ^x;	42 54	?0.96	13.95	?o,oi	25.12
NOV	56.12	50.24	59.47	57.33	38.14	19.62	14.06	26.95	26.71
DEC	57.27	50.61	58.49 1 53.17	36.98	1^.99	13.57	27.56	29.83
averso'e	57.45	53.97	5o.l0i 61.12	40.95	29.89	15.28	22.49	31.51
a/ B L. ana b/ BJ.. 5/ B L	3. Index, for I] do li ig 1. ills) ^. Index 3liift« S. 1929 Index 1	ron ajid bteel lidoatiy (Blasi 3d to 1929 tase. Adju3t«»d tc aultiplied by $61,117,000.	t >*'uma » 1933	:ea St( 2en UB 1	301 ..orl by iJRA	ca

RESEARCH & PLANNING, N.RA.

Code Ind-Btiy iuialysis Jnit, FCR rb, 10-2-34

Heviaod II/20/34, BHP

R P 28				-16-
	IRON AND STKFi INDUSTRY MAN-HOURS
III-A 1926 1927	Average hours Per Week_^ 1928 1929 1930 193?	1932 1933 1934 1935 \
	JAN				48.0	45.3	37.2	29.0	26.3	t9A
FEB				47.8	47.9	39.9	28.8	id. 5	Si .3
MAR	49.3	48.2	48.5	48.4	48.5	42.0	26. S	24,6	34.2
APR				5^.4	48.6	41.9	26.3	28,5	35.4
MAY				52.2	47.4	38.7	26.3	32.7	36.6
JUN	49.1	48.8	4J.7	51.2	^47. 3	35.5	24.7	37.9	37.2
JUL				48,9	42.0	32.1	22.8	40.0	28.1
AUG				51.0	42.0	31.9	23.2	39.6	27.0
StP	47.7	4i3.6	48.2	49.9	42,1	29.6	24. 3	33.7	24.1
OCT				50.0	42.1	29.4	26,7	33.4	25.1-
NOV				47.6	39.1	30.6	25.9	29.0	£6.7
DEC	48.8	46.8	49.9	46.6	38.6	31.0	24.9	30.0	^a
AY«r&.^	4L.7	47.4	^9.1	49.5	46.3	35.0	26.5	31 .S	_SM_
III-B Estimated Tbtal iiontlily kan-Houra	(000,000) b/ H
	JAK				89.25	81.65	54.28	31 .54	27.91	45.03
FED				69.40	86.21	58.53	32.63	30.49	60.03
MAR	93.41	88.97	85.22	91.62	86.73	62.54	32,13	28,29	£6.27
APR				,00.11	88.89	61.88	29.36	31.19	59.95
MAY				.01.20	86.46	56.40	28.43	37.02	66.35
JUN	93.02	90.39	89.37	99.64	83.17	48.68	27.96	45.89	68.52
JUL				94.56	70.37	42.97	23.55	53.64	48.31
AUG				99.82	67.88	41,16	23.91	59.02	44.02
SEP	69 a	81.16	86.33	96.72	66.26	35.93	25.22	52,50	37.11
OCT				94.45	65.45	33.86	28.66	50,52	38.7T
NOV				89.02	59.22	34.00	20.75	45.68	40.72
DEC	91 .47	79.98	91.52	82.95	57.24	34.70	27.81	47.11	4.5.06
Lta rn^n J	31. SI	&&.09	ea.QQ	?4.05	7§.3?	47.43	29.33	43.02	49.93
III-O	Index of ilan-Hours (1929-10	0) c/
	JAN				9 4.9	86.8	57.7	33.5	29.7	47.9
FEB				95.1	93.8	62.3	34.7	32.4	53.2
MAR	99.3	94.6	90.6	97.4	94.4	66.5	3. ,2	30.1	59,8
APR				106.5	94.5	65.8	31,2	33.2	53.8
MAY				107.6	92.0	60.0	30,2	39,4	69.5
JUN	96.9	96-1	95.0	106.0	88.5	51.8	29.7	48.8	72.9
JUL				100.6	7 4.8	45-7	25.0	57,0	51.4
AUG				106.2	72.2	43.8	25 4	62,8	46.8
SEP	94.8	86.3	91.8	102.9	70.6	38.2	26.8	55,8	39.5
OCT				100.5	69.6	36.0	30.5	6'3,7	41.Z
NOV				94.7	b3.0	36-2	SO. 6	48.6	43.3
PEC	97.2	85.0	97.3	06.2	t.0.9	36.9	29.6	50,1	4.7.9
a.Ysr&b'e [	. 97.6	90.5	92.7	100.0	80.1	50.4	31.2	45.7	53.1
a/ 1926-1931, derived earolnga (N.I.C.B. ^ EstlMited monthly c/ Monthly man-hour a	ly dividing average weekly X .985): 1932 o date, B.L. payrolls (II-C) divided ty a shifted to 1929 base {94,05C	earnings Ig.f.^. ) by hbUi*!^ S., curreat month, vera^e hourly vago (IT-A). ,000 man-hours ~ 100).

RESEARCH & PLANNING, N.R A

Code Industry ^inalysis Jnit, FCR:rh, 10-12-34

Bevised ll/zi/ZA,, BHP

R-P- 28

-17-

IROI^ ;JiD S1E3L D'i^UoTRY •VAGE RATES
j r/-A Average Hourly *a^e (Cents) a/ 1926 1927 1928 1929 1930 1931 1932 193^5 1934 1935
1	JAN				65.4	64.9	64.4	56.6	48.4	58.5
FEB				£t.5	66.1	66.1	57.5	48.5	58.0
MAR	62.4	63.	64.0	68 3	65.1	6 .5	56.3	48.4	59.3
APR				64.1	65.6	64.4	56.0	48.0	63.4
MAY				64.2	65.6	64.7	56.1	48.7	64.7
JUN	62.2	63.4	63.1	64.1	64.3	64.4	50.6	48.2	64.4
JUL				63.6	64.7	64.3	49.3	48.3	63.5
AUG				6v .8	65.1	63.7	48.8	55.3	64.0
SEP	62.0	62.9	63.2	64.9	64.2	62.6	48.7	56.8	64.4
OCT				64.9	.5 0	61.9	48.6	59.4	64.8
h40V				64.4	64.4	57.7	48.9	59.0	65£
DEC	63.9	63.4	64.4	64.1	6^^.^	57.6	48.8	58.5	6fi.2
Av e ra^^	62.6	63.4	b3.7	65.0	65.0	65.0	52.1	52.3	63,2
IV -B ATerage Aeekly V.age (iKjllara) to/
1	JAN	30.28	29.64	29.30	31.38	29.43	2":?. 96	16.06	12.71	17.19
FEB	30.69	31 02	31.90	32.73	31.67	2 36	16.46	13.31	18. 6£
MAR	^1.24	30.57	31.94	33.03	31.56	7 11	16.17	12.73	20.26
APR	30.77	31.90	31.17	33.60	31.85	2'-.;»8	14.87	13.79	22,19
MAY	30.34	30.4-	31.94	33.53	31.10	25.03	14.93	16.02	23.60
JUN	30.53	30,48	31.02	32.83	30 39	22 8'	12.88	18.33	23 86
JUL	29.17	27.69	P9.65	31.07	27.17	20.62	11.52	19.19	18.06
AUG	29.42	29. 48	31.20	32.52	27.35	20.35	11.74	21.94	17.23
SEP	30.21	28.92	30c62	32.38	27.00	18.53	11.99	19.19	15.56
OCT	^1.62	29.34	32.45	32.45	27.39	18.21	13 19	19.71	16.30
NOV	30.65	29.83	3£. 9	30.67	25.17	17.65	1^.00	17.20	17.43
DEC	31.08	29.83	31.70	29.89	24.89	17.87	12.50	17.49	19.12
ATsr^d	20.43	29.92	31. 2&	32.17	28,75	?2,13	13.78	16.80	IP.IS
< 1 1	JAN	1
FEB
MAR
APR
MAY
JUN	,
JUL
AUG
SEP
OCT
NOV
DEC
a/ 1926-31, N.I.C.B, multiplied \>y .985; 1932 to date, B.L.S _b/ B.L.S.

RESEARCH ft PLANNING, N.R.A

Code Industry Analysis IMit. FCR:bp, ll/20/34

-18-

IRQ]:' Aia STEEL SECTIOI III. KATEEI/iS - Vxr' and Serai-Frocessed,

1-2-3. - Iron ore, ccrep, coke niC. liraestone are the n£^,,ior ra;.-' j-iaterials urjed in "blost furnaces for the prodtiction of pi,^ iron. 3cre.p and f.lloy me- - terieJs, of wliich mangajiese alio;-;: are the largest in voliune, represent addi- tional materials used in steel maicir.v::. In further processing"-, large amounts of domestic zinc are used in aakin/;; galvanized sheets and of iuportcd tin in producing tin plate.

Iron Ore. - Iron ore is proouced in some lb different states but, in 1929, about £S per cent of the total shipments came from Michigo,n, I.iinnesota and TTisconsin (the Lake Superior pistrict) and moved in interstate lcl:e trade, Alabema is the only large pig iron producing state using loca''. iron ores. In ]929» there Fas en import of 3«1 million tons of iron ore valued at $0,000,000 and coming largely from Chile, Cuba, Sweden and Erench Africa. It -".■as used primarily to suvpleiner.t local ores in eastern Pennsylvania and Mary- land, Probably at least 30 per cent of fne iron ore mined in the United States is produced by iron and steel companies or their subsidiaries.

Coke. - In 1923. 75 psr cent of the coke produced in the United States v/as cons-oned by bla.st furnaces. Large iron and steel coraiDaJiies onn coal mines and produce their own coke, priiimrily in by-product ovens located in the same plant nith the blast furnace:^. Prodtiction of high grade coals used in coke manufacture is concentrated in ITest Yii';?inia, Pennsylvania, ICentuck;!-, Alabama and Virginia. In 1933, out of a total of Uo million tons of coal used for coke, 70 per cent nr 2o million tons v:as used in states in nhich it vas not produced.

Limestone. - Is used for a flu:; ond is of wide occurrence and generally'' of local origin.

Scrap. - Large amounts of irou anc steel scrap are used in blast f'arnace and open hearth steel :fV.rnaces. I'To accurate figures are ava.ilable as to its assembly but much of it nu.st nove in interstate commerce.

Tin. - Tin is used for tin and terne plate. Practically all of the tin is imported from the Dutch East Indies and British Malaya. The 2S thousand long tons used, in 1929 » by the Iron and Steel Industry was aboiit 32 per cent of the total import of ^.~{ th^V'.sand long tons valued at $|^ "',000,000.

Kickel. - ITickel is used in special alloy steels to impart strength and toughness. Almost the total supply is imported from Canada. The l6,000 long tons used, in I929, by the Iron and Steel Industry, represented 37 Per cent of the total import of '43,000 tons valued at $19,000,000.

Zinc. - 115,000 long tons of zinc were used by the Iron and Steel Industry for galvanizing in I92": and represented 3-bout I6 per cent of the total ::inc production. It was primarily of domestic origin. The chief

S317

-19-

zinc producing states were Oklahoma, Kansas, New Jersey, Montana, Utali, I6.aho, New Mexico and Colorado.

Manganese Alloys. - Manganese alloys are primarily made from imported high grade manganese ores coming largely from Russia, Brazil, India and Africa. Total imports of raangsjiese ore in ig23 were 6l5,000 long tons valued at $S, 000, 000.

Ill - U. Machinery and Equipment

There are no figures available as to the amount spent for machinery or equipment.

The Secretary of the Code Authority, W. S. Tower, stated that there were only a few companies producing "blast furnace and rolling mill equipment and that the most important ones were located in Pennsylvania and Ohio.

The Manufacturing Census of I929 shows a value of product of I9.6 mil- lion dollars for producers of rolling nill machinery. Of this total lU.l million dollars was produced in Peniisylvania and Massachusetts, U.9 million dollars in Ohio and the remaining 0,6 nillion mainly in Illinois, Indiana and Connecticut,

III ~ S. Percentage Cost of Materials to Value of Products

Census figures involve many duplications so that no very accurate per- centage can be determined for combined blast furnace and steel mill products. A very rough measure of total net value can be obtained by combining the values added by manufacture with the cost of primary materials as given. In the 1929 Census, the value ad.ded by manufacture in combined blast furnaces and steel works and rolling mills was $1,623,000. The major primary raw materials (as tabulated in the accompanying table with duplications largely eliminated) amounted to $923,000,000 \7ith an addition of $20S,000,000 for cost of fuel ar.d purchased energy in steel works and rolling mills. These combined figures give a total net value of product of 2,SlU million dollars of which raw materials, including fuel and purchased energy, represents 1,191 million dollars or about '42 per cent.

BLAST FUMACES AMD STEEL TOMS AKD ROLLING MILLS PRINCIPAL PATJ LIATERIALS 1929 .

Quantity

Value

Iron Ore

Coke

Limestone and Dolomite

Iron and Steel Scrap a/

Pig Tin

Zinc

Nickel

Copper, Brass, Bronze

Aluminum

Eerro Alloys

Total above

76,1 million gross tons 32,1 million gross tons 15;9 million gross tons

20,1 million gross tons

22,000 gross tons

115,000 gross tons

16,000 gross tons

51,000 gross tons

9,000 gross tons

733,000 gross tons

151,2' million gross tons

Cost of Fuel- and Purchased EnergS'' '^ Steel Works and Rolling Mills

2317

$35^	million
129	million
2l|	million
253	million
30	million
12	million
11	million
20	million
U	million
20	million
923	million
202	million

-20- .

a,/ Scrap reworked in the same plant (l'4,0 million gross tons) or transferred to other plants under the sme o'jnership (l.O million gross tons) has "been deducted from the total Census figure of 35 million tons as representing duplications in value. The s.vora/je value per ton has "been used to evalu- ate the remaining tonnage as u;;ed here.

Source: U. S. Census of Manufactiires, 1929.

IRON AND STEEL - 2AW MATERIALS

LAZE SUPEEIOH IPxOK ORE: l/ TOTAL SKIPIviEHTS AiiD RECEIPTS BY PORTS, 1929-1331-1933-193^- MILLIOITS OP GROSS TONS

1929	1931	1933	193^+
75.6	2S.5	2U.6
66.2	23.5	21.7	22.2

Total all U. S. Shipments

Total Lake Superior Ores

Per Cent - Lalce Superior of Total U. S. Shipments 87.6 22,5 SS.2

Receipts "by Portr, of Lake Superior Iron Ore

Indiana -

Indiana Har'bor

Gary- Illinois - South Chicago

Michigan - Detroit Ohio

Toledo

Huron

Lorain

Cleveland

Pairport

Ashtatula

Gonneaut Pennsylva,nip. - Erie Nevr York - Buffalo Canada - Ontario Ports

Total all Lake Ports

All Rail Shipments

Sources: U. 3. Bureau of Mines and Laice Superior Iron Ore Association.

1/ Production takes place in Miruiesota, llichigan and Wisconsin,

(	(	1.0	i.U
(17.5	(7.7	i.h	1.6
(	(
(	(	2.0	2.2
1.0	O.g	0,6	o.g
1.9	0.7	0,9	o.g
1.2	O.U	0.5	o.U
3.9	l.S	2.0	2.1
11.1	3.5	^r7	U.i
2.U	1.0	1.1	0.7
g.g	l.g	2.1	l.g
9.6	3.6	2.g	3.3
i.h	0.6	O.S	0.9
5.2	1.2	1.5	1.7
1.2	O.U	0.2	O.U
65.2	23.5	21.6	22,2
1.0	—	0.1	—

2317

-21-

IIITE2STATE i.IO^fflvIEHT OF COAL USED IN 3Y PRODUCT COKE PRODUCTION

1933 Millions of Short Tons

State

Coal Coal from

Used I7itliin State

Coal fi-on Other States

Alataraa

Colorado

Illinois

Indiana Maryland

Massachusetts liichigan

Minnesota

l^err Jersey IJew York

Ohio

P ennsylvania

Tennessee

Utah

Uash''.n5'ton

Uer, i Yirfrinia

Conn'-2ci leu ", , Kentucky Miss ou r .; , Hho de Island, "Jisr-oiisin

All Otl-.e-

Cote

All S'-z:

2.5	2.5	0
0.2	0.2	0
2.3	0	2.3
2.9	0	2.9
1,0	0	1.0
1.5	0	1.5
3.2	0	3.2

0.6

1.2

5.0

5.2

2.1

O.S

39.5

0 0

9.3	7.5	l.S
0.1	0.1	0
0.1	0.1	0
0.1	0.1	0
1.6	0.5	1.1

0.2

11.2

(Ky. O.U - Penna. 0.3 W. Va. 1.6) (Ky. 1,2 ~ "^1. Va. 1.7 (Penna. 0.3 - W. Va.

0.7) .

(¥. Va. 1,5)

(Ky. 1.5 ~ Penna. 0.7-

17. Va. 1,0)

(Ky. 0.2 - Penna. 0.2

W. Va. 0.2)

(Va. 0.2 - W. Va. l.o;

(Ky. O.U - Penna. 2.5

Va. 0.3 - U. Va. l.S)

{K-f. 0.2 - Penna. 2.2

Va. 0.1 - U. Va. 2.7)

(Ky. 0.1 - W. Va. I.7:

(Penna. l.l)

1.9 (TJ. Va, 1,9)

0.6 (Ky. 0.1~U. Va. O.5)

0.6

1.2 5.0

5.2

2S.3 (Ky. k,l -"Penna. 7.3 17. Va. 16.3 - Va. 0.6)

West Viri^'i.Aia furnished 16.S million tons of which 16,3 nillion went to other states, Pennsylvania supplied IU.8 million tons of which 7.3 million went to other states. IZentucky supplied ;lt-.3 million tons of which k,l went to other states. Alabama supplied and used 2.5 million tons. Virginia supplied 0.6 million tons to other states. Colorado, Tennessee, Utah and Washington supplied a total of 0. 5 million tons for their own use.

Source: U. S. Bureau of Ilines. Kineral year "book - 193^«

S317

-22-

PRIMAEY HAW i/IATEHIlLS - 1301' OHE AED COKE

A. Iron Ore. - liillions of Gross Tons

Domestic Production

iiinnesota Michigan TJisconsin Total Lake Superior

Ken York, Pennsylvania, Nerr Jersey

A.l8.1»ama

C-eorgia, Tennessee, Horth Carolina, Virginia

Missouri, Wj'-oming, Vemont, Ken Mexico, Colorado

Total Domestic

Foreign Imports Total Domestic and Poreign

1929

U5.S

I5.U

1.6

62.;

6.U

0.2

1930

3U.5

13.5

1.3

'+9.3

2.3

5.7

0.1

1931 1932

1933

17.^

7.6

_o^

25.9

5.1 2.6

s.i

0.9 0,2 3.6 i,h

12.0

2.U

0.2

IU.6

o.U 2.1

l.U	0.9 5S.3	0.7 31.1	0^2, 9r9	o.U
73.0	17.5
3.1	2.S	1.5	0,6	0.9
7S.1	61.1	32.6	10.5	i8,h

S, Coke. - I'lillions of Ket Tons

Total U. S. Production

Indicated U. S. Consump- tion

Consumption "by 3].ast Farnaces

Per Cent of Consumption ty Blast Farnaces

Average Sales Healization Per Ton of Furnace Coke

59.9	Us.o	33.5	21, g	27. S
5S,U	U6.1	31.7	22,2	27.7
^3,6	32.1	IS.U	S,6	13.0
7^^7	69. s	57.9	3?. 9	U7.O
$5.3S	$^.95	$^.59	$l+.22	$U.co

Sources: U. S. Bureau of Mines for Prodruction, B-ureau of

Foreign and Domestic Corx-ierce for Imports - Iron and Steel Institute for Consumption of Coke by Blast Furnace .

S317

-22-

I30H Aim STilEL

I^,^ PRODUCTION MD DISHIIBUTIOII

5'oj.rly representative statistics for volume are availalDle tut in- fornation as to value is inadeqiiate and often involves duplication,

Volune of production 07 states is shorm for pig iron, steel ingots and finished steel. Tiaese figui'es indicate a 75 per cent concentration in Pennsjlv.ania, Ohio, Indiana cmd Illinois. However, importajit contributions are made ty many other states.

llo adequate data are availahle on the intersta,te shiijnents of iron and steel products. A pioneer studjr of shipments from the Pittshurgh District (released as Supplement ITo. 1 of the IffiA report on the "Operation of the Basing Point Syste-m") furnishes a sample to indicate the wide distrihution of industry products. Fnile this area may have the widest distribution of ajiy district, similar figures, if available, would undoubtedly show extensive interstate shipments for other centers of production such as Buffalo, the Chicago district and Birminghan.

A large part of distribution is carried on directly oi' large companies maintaining sales offices in more than one state.

Both long time and recent trends show a geographic spread in the Indus- try. Ihe most notable recent trend is the movement of capacity toward automotive manufa,cturing arep.s.

8317

state

-24-

STCT'.T, rJORKS AMD ROLLIITG LULLS.

Value of Products "by States

(llillions of Dollars) 1931

lien York

Uevr Jersey

Pennsylvajiia

Ohio

TJest Virginia

Kentucliy

Indiojia

IllirLOis

Michi::;aja

Wisconsin

Hissoxu-i

Al all ana

California

Oregon

Washington

Other States

Total United States

74

35 1 6

177

$3,366 mill.

16 1 a

138 $1,403 mill.

193C

139	55	38
55	23	16
1,213	483	367
818	326	289
94	56	47
45	20	a
334	138	115
268	107	89
55	30	30
30	11	6
?.l	9	8

a

18 1 a

116

$1,141 mill,

Comnent: Talkie can te xised only to shovr very ro^igh relations, as there ai-e many duolications in total values as given.

a: Included in Other States.

Source: Census of Manufactures, 1929, 1931, 1933.

8317

-25-

IHOII HiD STEEL IlIDUSTHY

PiiS: Iron Production I.'illions of gross tons

1929 1930 1931 1932 1933 1934

A. Hdxj liaterials Used in Pig; Iron Production

Total Iron Ore Cinder-Scale-Scrap Line stone Col:e

73.1	53.7	29.7	12.8	21.6
7.4	6.3	3.8	2.2	2.8
15.6	11.1	6.2	3.0	4.6
42.4	31.2	17.7	8.3	12.5

B. Production Pig Iron r^d Ferro-Alloys

Perro-Alloys TOTAL

E:'- States

0, Pig Iron Delivered

in Ilolten Condition

41.8 0.9

31.0 0.7

42.7 31.7

18.0 0.5

18.5

3.6 0.2

13.(11 0.3

13.3 15.5

Pennsylvajiia	14.5	10.3	5.2	2.2	3.9
Ohio	9.8	6.8	4.2	2.4	4.C
Indisjia & Hicliigan	5.1	3.9	2.3	1.0	1.5
Illinois	4.4	3.3	2.0	0.9	1.0
Ala'brjna	2.7	2.4	1.7	0.7	0.9
11. Y. - IT. J. - Hass.	3.0	2.2	1.3	0.7	0.7
I,:d. - Va.	1.2	1.1	0.7	0.4	0.6
IT. Va. - Ey. - Tenn.	1.0	0,9	0.8	0.3	0.5
Lliixiesota	0.4	(	(	(	(
lona - Col. - Utali.	0.6	(0.8 31.7	(0.3 18.5	(0.2 8.8	(0.2
TOTAL	42.7	13.3

29.3 21.0

12.0

5.6

9.6

r. Pig Iron Production for Sale and for Use "by Maker

Por Sale Per Use

TOTAL PIG lEOH

9.0 32.8

5.C 4.0 24.4 14.0

1.7 2.1 6.9 10.9

41.8 31.0

13.0

8.6 13.0

Source: America,n Iron and Steel Institute - Annual Statistics

8317

-26-

IROlT MB STEEL IinDUSTRY

Production of St83l Ingots ar.d Castings Million Gross Tons

1929 1950 1931 1932 1933 1934

Total Production

Steel Ingots 54.9 39,6 25.4 13.5 22.9

Steel Castings 1.6 1.1 0.5 0.2 0.3

0.3	0.2	0.2	0.1	0.2
2,5	1.7	1.1	0.6	0.9
0.2	0.1	0.1	—	0.1
20.1	14.4	8.3	o . o	6.4
1.9	1.5	1.1	0.6	1.0
1.5	1.2	0.9	0.5	0.8
0,8	0.4	0.4	0,3	0.4
1.7	1.3	1.0	0.5	0.8
13.2	9.2	6.5	3.9	5.7
5.7	5.1	5.0	1.5	2.7
4,8	3.3	1.9	1.0	1.8
0.5	0.5	0.5	0.4	0.5
0.1	0.1	-	-	-
0.4	0,3	0.1	0.1	0.1
0.3	0.3	0.2	0.1	0.2
0,5	0.4	0,3	0.2	0.3
0,9	0.7	0.3	0.2	0.2

Capacit" - Steel Ingots and Castings

Open Hearth. Bessemer CxatciTDle Zlectric

TOTAL 55.2 69.0 70.3 70.2 71.4

55.3	53.5	50.9	60.9	62.0
8.6	3.1	8.1	7.9	7.9
0.03	0.03	0.02	0.02	0.02
1.3	1.3	1.3	1.3	1.4

TOTAL 56.5 40,7 25.9 13.7 23.2 25,2

Production iDy States - Steel Ingots and Castings

Heu England He^ York llew Jersey Pennsylvania Del.-xid.-D.C.-Va. 17est Virginia ICy. and Tenn. Ga.-Pla.-Ala. La. -Texas Ohio Indi^jia Illinois Ilicliigan TTisconsin Ilinnesota Ilissouri California Other V/estern States (Mostly Colorado)

Source: American Iron rnd Steel Institute - Annual Statistics.

TOTAL 56.5 40.7 25.3 13.7 23.2 25.2

8317

-27-

laOlI Alffi STEEL

PRODUCTIOII 0? ILL ZllTDS OF JIITISIED HOLI^BD

IZOII AIH) STEEL - 3Y STATES

L'lLLIONS OF GROSS TOHS

		1S29	1930	1931	1932	1933 1934
Nei7 Engleaid		0.3	0.2	0.1	0.1	0.2
Hew York		1.9	1,3	0.9	0.5	0.6
llevr Jersey		0.2	0.1	0.1	0.1	0.1
Pennsylvania		14.9	10.5	6.3	3.3	5.1
Del., lid., Va.		1.2	1.0	0.7	0.4	0.7
■West Virginia		1.3	1.0	0.8	0.4	0.8
Ky., Tenn., Ga	• , lex.	0.7	0.4	0.4	0.3	0.4
Alalaajna,		1.2	0.9	0.8	0.4	0.6
Ohio		8.8	5.1	4.1	2.3	4.0
Indiana		5.1	3.8	2.3	1.1	2.0
Illinois		0.2	2.2	1.4	0.7	1.2
Mich., TTis., II	inn.	0.8	0.8	0.6	0.5	0.7
LIo., Olia.		0.3	0.3	0.2	0.1	0.1
Col., Ut., ¥ash.	0.7	0.5	0.3	0.1	0.2
Calif., Cmial	Zone	0.4	0.3	0.2	0.1	0.2

Total

41.1 29.5 19.2 10.5 16.7 19.0

Som-ce: ATiericaii Iron aad Steel Institute - Year Books.

8317

-28-

IHTEESTATE DI5TRIBUTI01T OF ISOH JUID STEEL PRODUCTS ?aR AIL HILLS WITHIII A 50-MILE RADIUS OE PITTSBURGH, PA.

Sample Study (3 nontlis ending Jmie 30, 1334)

Total distribution for 1,531,000 net tons of code products representing approxiuately 20^^ of the national total.

SHIPMEHTS PROM THE PITTSBLUQH DISTRICT (In Thousands of Het Tons)

Pennsylvpjnia Hen England

Hen Yorl:

517 51

161

(ifeine 5, il. H. 4, Vt. 1, I lass. 24,

R.I. 4, Conn. 12) (Including adjacent parts of

ITen Jersey)

Ilaryland	41
Delanoj-e pjid D. C.	3
Virginia	24
West Virginia	10
Ohio	228
Llichigan	138
Indiana	23
Illinois	57
Kentucl~''	15
Wisconsin	4
South Eastern S tabes	11
north Central States	41
South Central States	137
Mountain States	8
Pacific States	43
TOTAL SHOWH	1,522

(II. C. 3, Ga. 3, Ela. 1, Ala. 1,

Miss. 3) (Minn. 3, N. D. & S. D. 1, lona 4,

lleb, 1, Kan. 8, Mo. 24) (Okla. 10, Ark. 34, La. 21,

Texas 72) (Mont. & Idalio 2, Colo. 1, Utali 2,

H. M. 3) (Calif. 24, Oregon 8, Washington 11)

Source: Supplement Ho, 1, H.R.A. Report - Operation of the Basing Point System, Hovemher 30, 1934,

8317

-.29-

IHOIT AITD SEEEL

IV . 4-5-6 TJholesale and Retail Distrioution.

The major Inclustr;;'' products for sale a,re heavy fiiiished. products of standard quality or semi-finished products for further processing. Conse- quentl3'-, direct sales to the consumer "by the producing company predominate .

Ail e:-amination of the 1935 Directory of the Iron and Steel Institute shoT7ed that 140 companies, out of 304 cotipanies listed, maintained sales offices in more than one state.

TJ, S. Tower, Secretary of the Code Authority, estimated tliat roughly 15 per cent of industry prodiicts v;ere hoaidled ty v/holesalers or jobbers, (This is "borne out "by the attached ta"ble e.s pu"blished in Iron Age for 1935 and 1954.) Furthermore, he stated that there nere about 900 recognized soles representatives vrho had signed the special sales agreement form for ob- servajice of Code selling practices.

Tliis evidence indicates the predominance of direct selling throxigh offices or sales agents. Ho detailed data of sales by states is available.

DISTPJEUTIOIT OF ROLLED STEEL III 1955 MP 1954 THROUGH JOBBERS AiTD WAREHOUSES ACCORDIIIG TO SEIH.'ESIITS OF COi.gAITIES PRODUCFja 7^0 OF THE YEAR'S OUTPUT

Products

Rails

Track Acops.qorj.e?; Plates

Strtictiu-al Shapes Merchant Bars Concrete Ears Strips, Bands, etc. Black Plate for

Tinning Galv. Sheets Other Sheets Pipes pjid Tubing Wire prodiicts Alloy Steel All Other Finished Steel

In Thousands of Gross Tons

1933 By Job- Percent bers a:id of Total fMiehpuses To ±§1

0.6 3.3 8.5 12.9 10.4 8.9 5.4

2.9 45.1

9.7 39.8 54.4

354	2
2.07	7
920	78
835	107
1,791	187
258	25
1,625	87
1,764	51
509	254
1,858	131
822	327
1,290	444

265

29

12,496 1,758

10.8

14.1

Total

294

1934 Bj'" Job- Percent bers and of Warehouses Total

804	6	0.8
322	9	2.9
1,090	66	6.1
1,162	101	8.6
2,035	151	7.4
519	45	14,5
1,809	70	5,9
1,582	55	2.5
531	523	51.1
2,297	236	10.5
1,145	437	58.1
1,324	334	25.2
589	7	1.8

26

15,013 1,845

12,5

Source: Iron Age, January, 1934,

8317

-50-

IV, - 7. Value md Yolui^ie of Iron and Steel Products E.roorted

(includes pig iron, semi-finished end finished steel nill products)

Lseaids of gross tons	1923	1931	1933	1934
Pig Iron	46	7	3
Senai-nriiufp,ct''U-es	1,284	449	291
Llpjiufactures -
Steel Liill Products	1.143	364	272

Total ShoTOi 2,478 820 555

E. Ililllons of Dollars

Pig Iron	0.8	0.2	0.1
Seni-nan-'ofactures	95.7	30.2	18.3
i-Iaji'dfactures -
Steel nill Products	93.0	29, S	19.3

•Total Sho\7n 192.5 50.2 37,7

SoTorce: U. S. Bureaix of Foreign and Domestic Coini.ierce,

IV. - 8. Advertising Media Used.

17. S. Toner, Secretary of the Aaerica:i Iron and Steel Institute, stated that, tecauae of the standard quality of many products, price and selling service are dominant factors in marketing. Tliis is "borne out oy the predominance of direct selling. The trade joxu-nal t;'pe of advertising is generally i\sed. Manj?" t:^es of minor speci3,lties are widely advertised under trade names.

8317

-si-

ller; Yorl:

Pemis^lvrJiia

Ohio

Sub Total

inilTED STATES

Trend of Fig Iron Frodiiction

Percentage "by- Groups of States

6.0

41.9 22.6

6.6 36.7 25.2 25.5

6.2 39.3

6.6 32.5 23.5

1914 1919 1923 1927 1929 193

6.4 34.2 25.5

^

5.4 28.5 30.0

70.5 6S.7 66.6 52.6 54.1 65.9

Michigan

Indiana

Illinois

SuT3 Total

Alal)ana Tennessee

Sxib Total

All Other States-'

TOTAL miTED STATUS

1.6

2/

7.9

7.9

0.7

8.5

1.4 2.0

7.5 7.5 8.3 9.6

17.2 19.1

5,9 0.5

7.5

7.0

0.6

7.6

2.1 9.5 9.9

7.7

0.3

8.0

1.9 10.0 10.2

5.4 0.3

6.7

2.3 9.2 7.7

22.1 19.2

6.9

6.9

11.4 6.6 6.7 7.9 7.5 10.0

100. of. 100. O^i 100. Ofo 100. of. 100. of 100. of

Source: Census of IJaiTuf act-ores.

!_/ ?-.nn i::.nerals Year Book; U. S. Eureau of Mines 2/ Included in "All Other States",

3/ i-c;rYl--.nd, West Virginia, Kentiicio/, Minnesota, Colorado and Ut0h are the nost importc-Jit ste

Colo

in recent years

tat as

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NEW SESEL HILL CAPACITY 1934-1935

Com-oletecl in 1934

Corapr-iy

Plant

Inn-ual Capacity Gross Tons

American Slieet & Tin Plate Co,

CruciTDle Steel Co. of America

Eastern Holling Hill Co,

Elliott Bros. Steel Co.

Globe Steel Tubes Co.

Greer Steel Co.

licCloutn Steel Corp,

Otis Steel Co.

Pittsb-orgli Steel Co.

Reeves lifg, Co.

yashourn ¥ire Co.

Weirton Steel Co.

West Leeclilj-urg Steel Co.

Uheelin^- Steel Corp.

YoujTgsto-nn Sheet & Tube Co.

Gary, Ina. Harrison, Yi, J. Baltimore, lid. lieu Castle, Pa. Ililuaulree, Wis. Dove r , Ohio Detroit, I.iich. Cleveland, Ohio Allenport, Pa. Dover, Ohio Fhillipsdale, R.I. Weirton, W. Va. Leech"burs, Pa. Yorlrville, Ohio Indiana Har'oor.Ind

100,000 6,000 40,000 12,000 30,000 20,000 50,000 75,000 30,000 10,000 45, 000

120,000 12,000

120,000

290,000

TOTAL

960,000

Under Construction 1955

Carnegie Steel Co.

Eord Ilotor Co.

Youn."Stoun Sheet & Tube Co.

ilcDonald, Ohio Detroit, liich. Campbell, Ohio

400,000 750,000 850,000

TOTAL

2,000,000

Soiu'ce: Iron Age. January 3, 1935.

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—53-*

IT. - 10-11. productive Capacity rjid Utilization Ilillions of gross tons.

a/ Pis Iron

Capacity, JaJi. 1 l/

production

per cent of Production to Capacity

1929 51.2 41.8

1931 52.7 13.0

1933 50.5 13.0

1934 51.1 15.5

Sl.efS 34. 2f. 25.7fo 30. 3f.

;b/ steel Ingots

Capacity, Jaji. 1 1/

Prod"o.ction

Per cent of Production to Capacity

51. 8 65.9 58.2 69.4

54.9 25.4 22.9 25.2 83.^. 38. (^i 33. 6f. SS.Sfo

1/ Does not include plants which liave iDeen long idle.

Som-ce: i-ie:.-ican Iron and Steel Institute - Annual Figures £..vi Code Sta.tistics.

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IHON AKD STEEL INDUSTRY

V. Trade Practices

The Secretary of the Code Authoritj'-, W. S. Toirer, stated that the Code provisions relating to unfair trade practices indicate those which prevailed orior to the Code and th?,t, due to the high degree of conpliance, the:/ had ceased to exist under Code operation. The unfair practices primarily relate to the discrepancy het-.veen puhlished prices orior to the Code and actual sell- ing prices. The rdde distrihution of Code products means that such practices fundamentally affect the national price structure. The price structure con- sists primarily of a delivered price made up of the producer's selling price filed at designated 'basing points plus the freight charges to consumers' plant.

Q-peration of the Price Filing Provisions

There is normally a considerable degree of stability in the prices of iron and steel products. The prices set by su.ch large companies as the United States Steel and Bethlehem tend to set a level to which other companies more or less conform. Prices are more stable for heavy standard products such as rails than for special products used hy the automobile industry. Prior to the code there was a;jparently an abnormal variation between quoted price and actual prices. Prices for Government purchases showed a much greater relative decrease than general price quotations. The bargaining power of large scale buyers, such as the autoj.iobile manufacturers, was strengthened.

Restoration of price stability was obviously an important industry ob- jective in writing the code. This program involved provisions relating to filing of prices such as extras, deductions, discounts, basing points, trans- •oortation charges, 10 day uniting period for price changes, length of con- tract and determination of jobbers' discounts.

Article VII briefly sets forth that no member of the code shall sell at prices or terms more favorable than those established in conformit^'- with the provisions of Schedule E. This schedule takes up about 8 pages of fine TDrint in the code and sets uo a very elaborate and detailed set of provisions dealing with prices and terms of pajnnent. The most significant and contro- versial provisions are briefly discussed in this section.

1. Ctaen Price Filing (Schedule E. Sections 2, 5)

Each member is required to file the lowest base "orice for all his prod- ucts with the Secretary of the Code Authority. All changes in price are effective ten days after filing, except that under the amended code producers are permitted to file a new price to meet a price reduction of a competitor as soon as such reduction becomes effective. Only one base price can be filed for a product, and any sales below this price require approval of a three-fourths vote of the Board of Directors. A fixrther amendment provided that, during a calendar quarter, a new schedule of lower prices could be filed. All base prices filed are open to inspection at all reasonable times by anyone.

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An examination of the records of prices filed indicates the tendency of the open price filing system tou?.rd a uniformity of quotations l)y cora- -oetitors, although this is not alv.vays the case. The same tendency has teen noted in the "bids submitted to -ouhlic purchasers. Some critics claim this indicates collusion in price-fir.ing. On the other side, it is pointed out that -orice publicity tends to reoxi.ce prices to a common competitive level of fair corn-petition and that filed price", open to puhlic inspection, serve as a protection to "Duyers of steel proc'ucts against secret rehates to their competitors.

2. Estahlishment of Me^ Basin.: Points

The estaMished policy of the Administration has heen to increase the ■nosn-bev of basing iDoints for filing -orices vjith the view of estaMishing a closer relation of such tjoints to -oroducing' centers. The basing points lor various T^roducts are listed in Schedule ?. In the amended code there are some 38 different commodity grouos for vrhich about 254 basing points a^re ^ named, including of course many duolications where the same city is specifiea for several iDroducts. Increases uiider the amended code sho^-ed 7 cases of either noT or enlarged commodity groupings and the addition of 29 new s-oecified T)oint3. Practically all complaints ha,ve related to the need for the establishment of new basing points. The major part of these cases have been adjusted either in the original or amended code. A comparatively xew cases remain for adjustment. The recent administration report on the opera- tion of the basing point system reconmends a considerable further increase in the number of basing points. (See Chapter YII for further discussion)

1. Fabrication-in-Transit Ba-tes (Schedule E. .SectionJi)

This oroblem is .primarily a result of existing railroad rate practices. It is practically a stop-over privilege by which semi-finished material such as -olates, shaoes and bars can stop in transit and be fabricatea ao the -ourchasers i^lant and then be reshipped to final destination, for use in an identified kructure, on an original through rate from prodacers mill to -ooint of final delivery, with only minor extra charges. Those benefitting by such rates argu.ed for it and those receiving no benefit were opposed to_ the practice. The expressed policy of the Iron and Steel Institute is against questionable railroad practices.

Regulation nrunber 9. effective October, 193^. required full payment of the entire freight charge at the time of original shipment by structural steel -oroducers,' with the rebate for fabrication-in-transit .o oe payable only on affadavit. This provision was a safeguard against purchaser m excess of requirements for an identified structure.

This remains an active protest subject and further adjustments will be necessary.

U. Allowances for Other Tha.n All P^il Freight Charges (Schedule E, Section U)

The original code provides that all prices shall be on a delivered ■ basis, that is not less than the sum of the actual all rail ireight aiarges from the basing point to the delivery point and the published oase P^ice quotation. If other transportation is used (water or motor truck) the seller

S317

I

~36~

may allow such decoictions as may have oeen previously approved "by the Board 0" Directors and filed with the Secretsjry. In the amended code, this provi- sion is amplified "by providing that the rates of reduction as approved hy the Board shall ^oe "equitahle and necessary in order that conpetitive op- portunity to producers and consmers shall "be maintained" and makes such action sulDject to review "by the Acl-ninistrator.

In the original complaints against the use of all rail rates it was contended that an integrated company could ship its semi-finished products ■between -olants "by the cheapest transiDortation possihle while it might sell such products to a competing faliricator and include the higher rail rates in the delivered price.

In a summary of active prolDlems -prepared iDy the Deputy Administrator (i'eTDruary 1?, 193^) it was stated tiiat over 75 complaints had l)een received urging that adjustments te made in all freight rates for water transporta- tion. The need for a strong Administration policy in urging that sucn further adjustments he made was indicated.

R. Standard Charges for Eytrar. (Schedule B. Section 6)

Any extras added to the base price of any product sold hy a memher of the code are to he uniform for all nenbers. The rates of such extras j.iust he ap-oroved hy the Board of Directors and lists showing srach rates shall "be filed with the Secretary and open to inspection "by anyone.

The failure to charge proper rates for extras, in relation to added costs of production, is a possiole y.ieo,ns of price catting and discrimina- . tion. Iron Age, for January, 1935, reports that as a result of a thorough revision under the code, the uniform extras hook effective for sales on and after October 1, I93U, had increased in size from a previous 2Zh pages to UOS pages,

l^Tumerous protests have been made on the enforcement of extra charges. Protests on the charges for plates and shapes were so great that the ef- fective date was -postponed twice, the last time to be effective on ship- mentG after April 1, 1935- Their re-consideration has been recommended by the Administration.

The Deputy /Administrator, in a summary statement of February 12, 1935. considers that the Board of DirectorsJ power over extras appears to contain important elements of price fixing and tliat a more democratic basis for the establishment of these mandatory extras is desirable.

6. Classification of Jobbers (Sched-gle E, Section U)

The Board of Directors is given the power to establish or change rules ard reflations by which the qualifications of a jobber shall be determined. Members selling to jobbers shall semxe an agreement, in the form approved by the Board of Directors, and to be filed with the Secretary, that such jobber will not sell to a third party at a lower price than the producer would char.-e to such party in a direct sale, without the approval of the Board of Directors. Any jobber violating such agreement shall be subject to a -penalty of $10 per ton for the product so sold.

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«37~

Agreements relating to re-sale have been hard to enforce and a numher of penalties have "been assessed for violations hy pipe jo'b'bers. The situa- tion is complicated by a number of non-code mills.

The Deputy Administrator has e::pressed the opinion that the definition of a jobber, as set forth in F.egalation number 3. is too narro\7.

7. Compliance and Assessment of Saiaages

In Article X of the code, dealing with penalties and damages, and in Schedule A, the Form of Letter of Assent to the Code, the ;orinciple of a legal contract to observe all the provisions of the code, as bet^jeen all members who sign the code, is established. A penalty of $10 per ton is fixed for all products sold in violation of provisions relating to prices and terms of payment. The Board of Directors is given power to fix the penalties for violations of other provisions v/here no specific penalty is provided. All penalty payments are turned over to the Treasurer who applies them pro-rata to reduce the regular assessments covering the cost of Code Administration. However, the Board of Directors maj'-, by a two-thirds vote, v:aive such damages if it shall decide that such violation was innocently made.

Records l/ covering the operation of the code to January ly, 1S35. indicate U6 cases in which penalties were assessed on members of the code, of which 2 were waived in view of later permissive regulations. Of the total cases, 32 were for cases related to public purchases and ik to private pur- chasers. The total net penalties assessed were $21,709 involving a tonnage of 2,171. Considering the total business involved, this is a negligible factor and shows a high degree of compliance with the complicated sales pro- visions. Of the UU cases involving penalties, 16 were for failure to make proper charge for extras, 10 related to improper transportation charges, 9 were for sales below minimum filed prices, 6 were for allowances to un- qualified jobbers, 2 were for inroroper cash discounts and 1 was for improper methods of price quotation.

No substantial complaints have been made recently by private customers of the industry although there is considerable opposition to some particular provisions by public purchasers.

The vigilance of the Code Authority in enforcing the price provisions as exemplified by commercial resolution A-3^ (December I3, 193^) making a member liable to liquidated damages on the full tonnage of a contract if he is in violation on any part of it.

1/ Compiled in the Deputy Aiiiinistrator' s office from Code Authority reports.

8317

R-P	-26				•>38.
, , . . : , ^ 1 1 ' ■ '' ■■ IROM AND STKF.L fflDUSTHT PRICES
VI-A Finished Steel (Dollars per gross ton) a/ 1926 1927 1928 1929 1930 1931 1932 1933	1934	1935
	JAN	54,41	52,96	49.62	51.21	49.97	45.52	43.39	43.23	45.43
FEB	54.03	51.43	50.87	51.21	49.55	45.63	43,14	43.08	45.43
MAR	54.12	51.56	50.92	51.21	49,62	45.52	43.43	43,08	46 43
APR	54.23	51.43	50.85	51,90	48.34	45.34	44.13	41.96	46 43
MAY	53.78	51.43	50.38	51.90	47.58	45.07	44.13	42.04	49,77
JUN	53.87	51.61	50.09	51.90	47.26	44.98	44.15	44.45	49,39
JUL	54.10	51.56	49.77	•51.90	46.57	45.34	44 26	44.20	48,07
AUG	54,10	51.56	50.22	51.68	46.19	45.11	44.15	44.31	47.58
SEP	53.54	51.36	50.22	51.54	45.99	45.11.	44.02	44.40	47,58
OCT	53.74	50.31	50.69	51.07	45.65	45.09	44.13	45.54	47,58
NOV	53.80	49.64	50.94	50.92	45.58	44.98	43.64	45.14	7.^8
DEC	53.80	49.66	51.09	50.92	45,27	44.31	43.64	45.43	47 58
ATora^ej	54.04	51.21	50.49	51.45	47.30	45.17	43.85	43.91	47.^4
VI-B Pig Iron (Dollars per gross ton) ^
1	JAN	22.29	20.1^	18,37	19.06	19.08	16.94	15.55	14,68	17.94	16.0 4
FEB	22.31 ■	19.73	18.45	19,07	18.99	16,82	15.36	14,68	17.94
MAR	22.27	19.79	18.40	19.11	18.77	16.72	15.26	14.66	17,94
APR	21,53	20.04	18.40	19,25	18.75	16.75	15.20	14.75	18.36
MAY	■21.15	19.89	18.18	19.27	18,66	16.64	15.05	15.45	18.94
JUN	20.62	IS. 79	17.97	19.35	18,55	16.40	14.93	16.02	18.94
JUL	20.23	19.31	17.79	19.27	18.22	16,38	14.85	16.70	18.94
AUG	20.19	19.00	17.78	19.18	17.99	16,38	14.81	17.16	18.94
SEP	20.18	18.89	18.04	19.00	17.79	16.32	14.74	17.87	18.94
OCT	20.39	18.79	18.40	19.03	17.30	16,23	14.73	17.84	18.94
NOV	20.83	18.42	18.96	19.10	17.14	16.02	14.71	17.84	18.94
DEC	20.77	18.37	19.06	19.10	17.01	15.86	14.69	17.94	18.94
ATflragfl	21.06	19. ?$	19.32	19. 1&	18.19	1&.4&	H.99	16.?Q	18.64
VI>C Heavy Melting Steel Scrap (Doll s per gross ton)	2/
< 1	JAN	16.97	15.17	13.70	17.02	14.65	11.30	8.41	6.77	11.73
FEB	15.50	14.58	13.71	16.96	14.92	1..15	8.27	6.83	12.25
MAI)	15.83	14.65	13.65	16.71	14.88	11.10	8.23	6.96	12.82
APR	15.27	14.71	13.81	17.18	14.30	j.0.83	8-12	7.73	12.54
MAY	14.35	13.95	13.90	16.54	13.71	9.94	7.48	9.70	11.57
JUN	14.40 113.60	13.52	16.39	13.31	9.39	6.89	9.97	10.65
JUL	15.42	13.48	13.13	16.60	13.08	9.25	6.46	11.27	10.53
AUG	15.88	13.80	13.75	16.86	13.29	9.25	6,93	12.08	10.15
SEP	16.25	13.92	14.75	16.60	13.70	9.1i	7.69	11.35	9.63
OCT	15.58	13.48	15.85	15.78	12.77	8.78	7.62	10.56	9.54
NOV	15.25	13.18	15.97	14.15	11.28	8.61	7.45	9.94	10.04
DEC	IP^^nfl ^	ia-4fl	15.97	14,-TfS	n -2R	fl-fil	fi-qp.	1 n - F,o	:i.42
	lfi.4fl	14-00	14-29	16.30	13.4&	9.79	7-54	9.47	11.07
a/ Iron «ge Composite. b/ American Metal Market Composite from Survey of Current Busin	8 88,

RESEARCH & PLANNING; N R.A .

Code Industry Analysis Hiit, FCR:bp, ll/2l/34

IROII MB STB3L IHSUSTHY

VI. General Information

1. History.

Mass production of iron and steel develoioed •mith the era of rail- road expaiision. The developnient of the great iron ore deposits in the Lake Superior district shifted the center of iron and steel production to the Fittsturgh district, where coking coal was available, "between 1880 aiid 1900, A further development has talcen place in other lake port areas, particularly in the lower Lake Michigan area near Chicago, Secentljr iron and steel production shows a further shift to automotile manufacturing centers. Relative consumption by railroads has declined while automotive, structural and canning uses have grown. Progress in the use of special alloy steels is notable. Consolidation and inte- gration of steel company operations has continued. The position of the U, S. Steel Corporation has relatively declined with the growth of a number of strong independents. With the growth of integration, numerous small obsolete and isolated blast furnaces operations have been dismantled,

VI. - 2. Description of Operations

The Code for the Iron and Steel Industry defines the "industry" as including the business of produciiag and selling pig iron, ferro- raanganese aiid srpiegeleisen; steel ingots; iron and steel blooms, billets and slabs; all classes of rolled or drawn iron and steel products; and some closely allied products which are processed after rolling or drawing such as V7ire fencing, nails and tin plate. Castings and the bulk of forgings are not included.

Pig iron production involves the assembly of iron ores and scrap, largel;'- in interstate comr.ierce, and their reduction in a blast furnace with the use of coke as a fuel aiid limestone as a flu:-:. In 1929, it took 139 million gross tons of these materials to produce 42 million tons of pig iron or almost 3y tons of materials to 1 ton of omtput. Approximately 70fo of the pig iron, in 1929, was delivered in molten condition to steel furnaces in the saiie plant.

The pig iron is reduced to steel either by the open hearth furnace or the Bessemer converter. The trend has been toward the open hearth furnace, in which additional amounts of scrap may be added as well as the most iniportant manganese alloys. The molten steel may be run into ingot molds for rolling or, to a relatively minor extent, may be made into direct castings. The hot ingot may be rolled into smaller sh^es, such as billets or slabs, for further processing or may be turned by continuous operations into such heavy final products as rails or structural shapes.

The trend has been toward large integrated operations which produce a great variety of finished and semi-finished products. The snaller non- integrated companies buy various semi-finished products which are rolled, drawn, forged or cast into final products. Tin or galvined sheets involve plating with other metals and a great variety of other alloys are used in making special steels.

8317

-40-

VI. - (3-4-5-6-) Organizations.

The Arnericpji Iron ajid Steel Institute is the najor trade association, and has Ijeen carrying on extensive statistical work for the past 22 years. Its membership is "both company and individual. The Board of Directors mas designa' ed as the Code Authority P.nd the Institute acted as the statistical agency to collect Code statistics.

The Secretary of the Code Authority states that there are no organization- of different competitive and regional groups.

The policy of the Industry has heen definitely in favor of the open shop. Labor organizations of national scope are of relatively small importance. The Amalgamated Association of Iron, Steel and Tin YJorkers is the principal union with an active membership of about 6,000, a,s shown at the last convention of the Araerican Federation of Labor, or only about ihfo of the total number of workers in the Industry.

VI. - 7, Financial Condition of the Indiistry

A compilation was made by the Research and Planning Division of the net earnings before dividends for 30 iron and steel companies. These 30 companies represented 74^ of the code voting strength of the members of Industi^r based c total annual sales in 1933. Total net earnings were as follows- In Millions of Dollars,

1929 1930 1931 1932 1933 1934

(d) - deficit.

The TDeriod of Code operation indicates a steady reduction in total deficii with actual net earnings for the smaller company groups in 1934,

VI. - 8, Effect of the Code on the Industry;-.

Examination of data in the ST. R. A. files indicates tha.t

(a) Average hourly earnings were restored to the 1929 level of 65 cents and even higher in 1935.

(b) A substantial amount of re-employiient due to the observance of a 40 hour week.

(c) The reduction of total deficits.

(d) The maintenance of sta.ble prices and their observance as filed,

(e) The prevention of rnaJiy failures that would have taken place otherwise (Statement of W. S. Tower, Secretary of the Code Authority)

Five	Twelve	Thirteen	Total
Larp-e Cos,	Medium Cos.	Small Cos,	30 Cos.
503	63	13	379
141	31	2	174
5 (d)	6 (d)	3 (d)	14 (d)
123 (d)	21 (d)	5 (d)	149 (d)
63 (d)	2 (d)	0,2 (d)	65 (d)
31 (d)	13	2	16 (d)

8317

-4i-

^I* - 9* Trade Marks.

¥.0 definite fi['z:ares as to percentaj^e of products trade nar^-ed is availaolf according: to a statement of T7. S. Torer, Secretary of the Code Authority, the major products of the Industr'r are of standard character and are sold on a price and selling service hasis. Many small specialties are trade-marked "but total volume is coraioaratively small,

VI. - 10, Effect of ImiJortE,

Imports of iron and steel are relatively small compared nith exports. Complaints as to pig iron imports were filed xrith the Administration and the following N,R.A. release (llo. 10941 - April 13, 1935) shows the action taken.

"The National Industrial Recovery Board announced today that the President has directed that no further action he taken at this time on a complaint under the provisions of Section 3(e) of the National Industrial Recovery Act filed by a tariff committee representing the eastern group of merchant pig iron with respect to imports of pig iron. This decision was made after an examination of the complaint and a report hy the Natioi al Industrial Recovery Board.

"Pig iron is imported into the United States chiefly from the Nether- lands and British India. The trend of imports, both in absolute amount and in ratio to domestic production of merchant pig iron, has been gen- erally downward from the second quarter of 1933 before the adoption of tl' Iron and Steel Code. Furthermore, competition from imports on a price basis was less severe during 1954 than during 1932 and 1933 prior to the depreciation of the dollar."

8317

-43- IROK MD STEEL Ii3DUSTEY

VI. - 11. Persons QuF-lified as E^-inerts.

1. Falter S. Tor?er - Executive Secretar3;-, A^ierican Iron and Steel In- stitute, 350 Fifth Avenue, Ne\7 York, V.evi York, Formerly econonist ft the Bethlehem Steel Conpanj'- and Professor of Geography, TTharton School of Commerce and Finance.

2. J. V. W. Re^oaders, 120 Broadway, ITerr York, Hew York. Suggested by Deputy Administrator Shannon as a practical en.';ineer familiar vith problems of the Industry.

3. Bradle;"- Stoughton, Head of HetrJ-lurgical Department of Lehigh Univer- sity, Bethlehem, Pennsylva.nia. an eminent authority on general in- dustry problems.

4. R. C. Allen, Lal<:e Superior Iron Ore Association, 3100 East 45th Stree Cleveland, Ohio. An authority on the production, ownership and inter- state movements of LaJce Superior iron ores.

5. C, K. Leith, Department of G-eology, University of Wisconsin, Madison, Wisconsin, and Vice-Chairman of the Committee om Ilineral Policy ap- pointed b;^ President Roosevelt, An authority on iron ore production and taxation.

6. W, A. Irvin,!/ president. United States Steel Corporation, 71 Broad- way, New York, New York,

7. Charles M. Schwab, i/ Chairman, Bethlehem Steel Corporation, 25 Broad- way, New York, New York,

8. E. T. Weir,i/chairm?Ji, National Steel Corporation, Grant Building, Pittsburgh, Pennsylvania.

ly Members of the Board of Directors of the American Iron and Steel In- stitute which acted as the Code Authoritj'' for the Iron and Steel In- dustry.

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