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Full text of "Evidence study"

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 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 


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 


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 


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 


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 


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- 

IR Q]:' 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 





0.2 


0.2 





2.3 





2.3 


2.9 





2.9 


1,0 





1.0 


1.5 





1.5 


3.2 





3.2 



0.6 

1.2 

5.0 

5.2 



2.1 



O.S 

39.5 








9.3 


7.5 


l.S 


0.1 


0.1 





0.1 


0.1 





0.1 


0.1 





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 LULL S. 

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 



S317 



-32- 



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. 



8317 



—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. 



8317 



-34- 

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. 



8317 



-35- 



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. Estahli shment 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 E ytrar. (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-gl e 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. 

S317 



«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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