Still Strong Steel

U. S. husbands do not send U. S:-wives steel ingots for birthday presents. U. S. consumers in general do not buy, use or see steel in its unmanufactured state. Yet every U. S. citizen has an interest in the earnings of steel corporations, should be pleased when steel is strong, concerned when steel is weak. The steel business is best index of U. S. prosperity. Steel enters into so many U. S. industries that booming steel means booming business. As steel goes, so goes the country.

Steel has lately been going at record pace. Best second quarter earnings since the war. . . . Unprecedented third quar ter generally predicted. . . . Industry operating at almost 95% of capacity. . . . Great Northern Railroad has bought 30,000 tons of steel rails. . . . Northern Pacific and Pennsylvania expected soon to place 15,000-ton orders each. . . . Rail roads will buy nearly twice as many freight cars in 1929 as they bought in 1928. . . . Two Chicago office buildings are using 14,-000 tons of structural steel. . . . General picking up in the building industry. . . . Automobiles expecting a 5,200,000 1929 production. . . . Production is expected to slacken during the next three months, but it can be 18% below 1929's second quarter and still be ahead of 1928's third quarter.

Thus the industry in general. As for individual companies, U. S. Steel Corp.'s earnings were last fortnight estimated at between $92,000,000 and $94,000,000, compared to first half 1928 earnings of $87,866,000 (TIME, July 22). Bethlehem Steel, second biggest, had up to last week made no report. Of other potent steel companies, the following have announced 1929 earnings to date: Republic Iron & Steel Co. This Ohio company, with both William G. Mather, big-Cleveland-iron-man and Cyrus S. Eaton, big-Cleveland-steel-man, on its di rectorate, has made extraordinary progress during the past year. After a somewhat in-and-out period from 1923 through 1927, the company acquired Trumbull Steel Co. in February 1928. In April 1928 it got able Elmer T. McCleary to leave the vice-presidency of Youngstown Sheet & Tube Co. and become its president. Soon earnings began a steady climb. The 1927 net had been about $3,000,000. The 1928 income (with eight months of Trumbull) was $4,642,000. The first six months of 1929 showed net profit of $6,140,435, almost four times the net for the first half of 1928. Able President McCleary is planning to spend $10,000,000 in plant improvements, has on hand unfilled orders for 356,845 tons of steel.

Youngstown Sheet & Tube Co. is third largest steel company, though far behind Bethlehem. After a good 1926, bad 1927, good 1928, it has broken all peacetime records in 1929. First six months of 1929 have almost equalled the entire year of 1928. Comparative figures: six months 1929, $10,537,373; six months 1928, $4,154,407.

Among other six-month steel income reports were the following:

1929 1928

Otis $2,798,398 $1,743,066

Midland $2,348,188 $1,523,364

Columbia $1,966,737* $ 679,761

* Net Profit.