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.
8317#
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