C 419,086 ASSOCIATION OF AMORIO NU RAILROADS Reilroad Committee for the Study of Trans- portation Report on the iron and steel industry PERANA Y ... MaN^ECS) Mah P ཆོ་ག་ IBUT Of о O ASSOCIATION OF AMERICAN RAILROADS Railroad Committee for the Study of Transportation R. V. Fletcher, Chairman THE IRON AND STEEL INJUSTRY APRIL 1947 Transportation Library HE 2321 .In ABA 12 $ Transportation Gift 3-30-55 This report was prepared by the Iron, Steel and Machinery Commodity Committee of the Traffic Subcommittee. The members of this committee were as follows: R. H. Miller, Freight Traffic Manager, Pennsylvania Railroad; Chairman of Iron, Steel and Machinery Commodity Committee. H. L. Sheffield, Freight Traffic Manager, New York, New Haven & Hartford Railroad. E. C. Hallberg, Freight Traffic Manager, Erie Railroad. C. D. Quinn, General Freight Agent, Louisville & Nashville Railroad. H. A Gunderson, Freight Traffic Manager, Chicago & North Western Railway Co. T. B. Duggan, Freight Traffic Manager, Missouri Pacific Railroad Co. J. G. Morrison, General Freight Traffic Manager, Northern Pacific Railway Co. The Traffic Subcommittee wishes to express appreciation for the loyal, constructive and able work performed by the Iron, Steel and Machinery Com- modity Committee. E. C. Nickerson, Director. Traffic Subcommittee F. J. Wall, Vice President, New York, New Haven & Hartford Railroad, Chairman, Traffic Subcommittee. L. R. Capron, Vice President, Chicago, Burlington & Quincy Railroad. A. F. Cleveland, Vice President, Association of American Railroads. J. Russel Coulter, President, Toledo, Peoria & Western Railroad. 7. S. Franklin, Vice President, Pennsylvania Railroad. W. W. Hale, Vice President, Southern Pacific Lines. W. McN. Knapp, Vice President, Central of Georgia Railway. J. E. Tilford, Vice President, Louisville & Nashville Railroad. H. W. Von Willer, Vice President, Erie Railroad. · I. II. III. IV. VI. VII. VIII. IX. LIST OF CHARTS AID MAPS LIST OF TABLES. FOREWORD. CONCLUSIONS TABLE OF CONTENTS HISTORY ND DEVELOPMENT OF TIE IANUFACTURE OF IRON AND STEEL. A. B. C. DEVELOPMENT OF HANUFACTURING METHODS IN THE UNITED STATES MAJOR CHARACTERISTICS OF THE IRON AND STEEL INDUSTRY. MATERIALS USED BY THE IRON AID STEEL INDUSTRY Iron Ore. Fuels V. PRODUCTION OF IRON AID SIEEL. A. Description of lianufacturing; Processes. Summary of Production B. Pig Iron. Production of Ingots and Steel for Castings Steel Products. · D• E. Alloying Elements and Coating laterials Fluxing and Refractory Materials. Iron and Steel Scrap. 1. 2. 3. C. Furnace Slag. LOCATION AND CAPACITIES OF IRON AND STEEL MANUFACTUR- ING AREAS IN THE UNITED STATES STEEL EXPANSION FOR WAR IRON AND STEEL CAPACITIES OF INDIVIDUAL PRODUCING COMPANIES IMPORTANT CHARACTERISTICS OF THE MARKETING, DISTRI- BUTION, AND CONSUMPTION OF IRON AND STIEL. Marketing and Distribution. A. B. Basing Point Method C. Consumption D. Exports and Imports • • X. TRANSPORTATION OF IROND STEEL PRODUCTS A. Volume of Traffic 1. Railway Revenue from Pig Iron ii T Page iv v-viii ix x-xii 1 न नं 19 19 30 37 42 49 ++ 57 57 72 72 31 92 97 103 112 119 126 126 127 129 133 While 245 7:ע 2. Railway Revenue from Scrap Iron and Steel 3. Shipments of Iron and Steel Products. B. Railroad Competition. C. D. E. F. G. 1. 2. 3. TABLE OF CONTENTS Pig Iron. Scrap Iron and Steel. Steel Products. Freight Rate Structures Classification of Iron and Steel Articles Fabrication-in-Transit of Iron and Stoel Articles Freight Car Equipment Packaging and Loading APPENDIX. BIBLIOGRAPHY. iii Page 154 150 176 176 182 187 190 222 223 225 226 229 244 Chart 1 2 3 4 5 6 ང་ CO Man 9 10 11 A B LIST OF CHARTS AID HAPS Iron and Steel Products, Steps in Hanufacture from Ingots. Pig Iron, Tonnage Produced for laker's Use and for Sale. Steel Ingots and Castings, United States Production by Leading States, 1910-1943. Hot-rolled Iron and Stool Products Production, by Leading States, 1910-1943 Iron and Steel Products, Changes in Steel Capacity by Districts and by Plants, 1938-1945, Millions of Tons.. Iron and Steel Products, Flow from Raw faterials to Consuming Industries, Tons, 1937 and 1943 Purchased Scrap, Railway Revenue Freight, Tonnage and Revenue, 1928-1942, inclusive Revenue per Ton, Scrap Iron and Scrap Steel. Iron and Steel Products, Originations and Per Cent of Originations of all Commodities on Class I Rail- roads, 1928-1943, inclusive Iron and Steel Products, Revenue and Revenue per Ton Originated, 1928-1943, inclusive. 1. Pig Iron, Tonnage Hauled by Railroads and Percentage Thereof to total Available for Transportation, 1928-1943, inclusive Distribution of Iron Ore Deposits in the United States Iron Ore Reserves of Lake Superior Region and Eastern States Page 59 78 85 9/1 122 1/11 157 157 161 175 181 28 29 iv LIST OF TABLES I. II. III. Pig Iron - Production by States, Tons, 1925-1943, inclusive IV. Pig Iron Pig Iron - Production for lakers Use and For Sale, United States, Tons, 191-1940, inclusive. VII. V. Pig Iron Production For Sale, By States, Tons, 1926-1913, inclusive.. VIII. VI. Pig Iron Pig Iron hade for Sale to Steel Companies and Iron Foundries, United States, Tons, 1920-1743, inclusive IX. X. The Iron and Steel Industry Capacity and Produc- tion, 1936-195, inclusive. XI. Pig Iron and Steel Ingot Production, United States, Tons, 1910-1943, inclusive. XII. XIV. Steel Ingots and Castings, United States Production, Tons, 5-year Intervals, 1880 to 1910, inclusive, and for 1943, 194, and 1945. Steel Ingots and Castings, Production, by States Tons, 1910-19:3, inclusive. Steel Ingots and Castings, Percentage Distribution of Production, by States, 5-year averages, 1910 to 1939, inclusive, and for 1940, 1941, 1912, and 1943 Stecl Ingots and Castings, United States Production, by Processes, and Percentage Distribution, Tons, 1900-1943, inclusive. Steel Ingots and Castings Capacity, Production, and Ratio of Production to Capacity, Tons, 1915- 1945, inclusive Bu Alloy Steel Ingots and Castings - United States Pro- duction, Tons, 1909-1943, inclusive XIII. Alloy Steel Ingots and Castings, United States Pro- duction, by Processes, Tons, 1929-1943, inclusive. Hot-rolled Products of Alloy Steel, United States Production compared with Total Hot-rolled Produc- tion, Tons, 1935-1942, inclusive. Page 73 74 75 76 79 80 31 83 86 87 89 90 91 95 V } XV. XVI. XVII. XVIII. XIX. XX. XXI. XXII. XXIII. XXIV. XXV. XXVI. 1 XXVII. LIST OF TABLES Blast Furnaces, Rated Annual Capacity, by States, Tons, January 1, 194 Location of Blast Furnaces in United States by Producing Districts shoring lumber of Stacks, Total Annual Capacity and Percent of United States Capacity Steel Ingots and Castings, United States Annual Capacity, by States, Tons, January 1, 1945.... Steel Ingots, Increase in Capacity, by States, Tons, January 1, 1940, to June 30, 1944 Location by Districts of Open-hearth, Bessemer, Electric and Crucible Furnaces in United States with Annual Capacities and Per Cent of United States Capacity . . Steel Ingots and Castings, Furnace Capacities of Leading Producers, United States, Tons, January 1, 1945. Blast Furnace Capacity (Capacities as of January 1, 1945) Steel Ingot Capacity (Capacities as of January 1, 1945). Hot-rolled Iron and Steel Products, United States Consumption by Lealing Users, Tons, 1923-1943, in- clusive Hot-rolled Iron and Steel Products, United States Consumption by Leading Users, Percentage Distri- bution, 1923-1943, inclusive. Hot-rolled Steel Products, United States Consump- tion and Percentage Distribution, by Industries, Tons, 1940-1943, inclusive. GRAN Percentage Distribution of Estimated Consumption by Products, and by Principal States, 1937.. Pig Iron, Class I Railway Revenue, by Districts, Dollars, 1928 to 192, inclusive. Page 107 108 109 110 111 121 123 124 134 136 138 139 148 vi LIST OF TABLES XXVIII. XXIX. XXX. XXXI. XXXIII. Scrap Iron and Scrap Steel, Railway Revenue by Districts, Dollars, 1928 to 1942, inclusive. XXXII. Origin of Railway Carload Tonnage by Regions, 1928-1942 Average. XXXIV. XXXV. XXXVI. XXXVIII. XXXIX. Pig Iron, Tonnage Originated and Terminated, Class I Railroads, Tons, 1928 to 1943, inclusive XL. Pig Iron, Originated and Terminated on Class I Railroads, Tons, 1910-1913, inclusive. XLI. Pig Iron Originated, Average Revenue per ton and Tons Per Car, Class I Railroads, 1928 to 1943, inclusive Average Revenue Per ton on Purchased Scrap Trans- ported by Rail, 1923-1935, inclusive XXXVII. Iron and Steel Products, Originations Compared with Total Originations, Class I Railroads, Tons, 1928-1943, inclusive Iron and Steel Scrap, Tons Per Car, 1928-1935, inclusive. Total Purchased Scrap Requiring Transportation and Carload Revenue Tonnage Hauled by Railroads, Tons, 1920-1943, inclusive Railroad Scrap Shipped by Railroads "As Company Material" in Relation to Total Purchased Scrap Transported, Tons, 1912 and 1943. Iron and Steel Products Originations on Class I Railroads, by Commodity Classifications, Tons, 1928-1943, inclusive Iron and Steel Products Origination on Class I Railroads, y Railroad Districts, Tons, 1929, 1940, and 1943. Iron and Steel Products Terminations on Class I Railroads, by Railroad Districts, Tons, 1929 1910 and 1943. Iron and Steel Products, Revenue Compared with Total Revenue, of Class I Railroads, 1928-1943, inclusive. vii Page 149 150 153 154 155 156 158 159 160 162 165 166 167 169 LIST OF TABLES R S XLII. XLIII. XLIV. XLV. XLVI. XLVII. XLIX. L. LI. LII. LIII. LIV. Page Iron and Steel Products, Revenue of Class I Railroads by Commodity Classifications, 1920-1943, inclusive 170 XLVIII. Pig Iron and Billets Transported on New York State Barge Canal Tons, 1925 to 1939, inclusive. Iron and Steel Products, Revenue of Class I Rail- roads, by Districts, Dollars, 1929, 1910, and 1943 Iron and Steel Products, Revenue per Ton Originated of Class I Railroads, Commodity Classification, Dollars, 1928-1943, inclusive. Iron and Steel Products, Tons per Car of Class I Railroads by Commodity classifications, 1928-1943, inclusive. Pig Iron, Transported from and to Principal Ports on the Great Lakes, Tons, 1935-1940, inclusive... Pig Iron, Water Movement on Kississippi River System, Tons, 1941, 1942, and 1943 Pig Iron Tonnage available for Transportation, and Tonnage Hauled by Railroads, Tons, 1928 to 19:3, inclusive. Furchased Scrap Transported by later on Great Lakes from and to Principal Ports, Tons, 1935-1940, inclusive. Iron and Steel Scrap Transported on New York State Barge Canal, Tens, 1934 to 1930, inclusive. Rolled and Finished Iron and Steel Products, Do- mestic Waterborne Traffic, United Statos, Tons, 1928-1940, inclusive Iron and Steel, Lakowise Shipments and Receipts, by Selected Lake Harbors, ans, 1939. . Iron and Steel Products, Shipments on the Mississ- ippi River and Tributarios, 19:1-190, inclusive. viii Sy 171 173 174 177 178 178 160 183 185 191 192 193 FOREWORD Some four years ago there became apparent the necessity on the part of the rail transportation carriers of the nation to project plans for mecting war and postwar conditions. Borne of this need there was formed, through the Association of American Railroads, a Committee for the Study of Transportation, composed of fifty or more officers from all departrents and branches of the railroad industry, under chairmanship of ir. k. V. Fletcher. The work of this Committee has been carried on by fifteen sub- committees, each assigned sore particular phase of transportation. These subcommittees are: Economic Study Motor Transport Air Transport Water Transport Pipeline Transport Traffic Public Relations Taxation Ingineering and Mechanical Research Operating Methods and Procedure Of these various phases of prime importance in rail transporta- tion is the Freight Traffic Committee. The ramifications of railroad carload freight traffic are so extensive that they dictated the form- ing of commodity committees, some twenty-five in number, embracing the principal commodities moving in freight transportation, including iron and steel, which are the third most important group of commodi- ties in point of tonnage, and second as to revenue. Trunk Line New England Territory. Labor and Personnel Consolidations Legislation Accounting and Statistics Finance In the preparation of this report on iron and steel, the Con- mittee has had the benefit of the studies covering the various phases of transportation, including the Economic Study. These studios have been used extensively in the objective of the Committee which, con- cretely, is to compile and present in usable form basic information for railroad men in their efforts to obtain the highest degree of usefulness under changing conditions. Iron and Steel Committee - of the Traffic Subcom ittee of the Association of American Railroads for the Study of Transportation. 2. H. Miller, Chairman H. L. Sheffield Central Freight Association Territory E. C. Hallberg Southern Territory. C. D. Quinn Western Trunk Line Territory Southwestern Territory Transcontinental Territory Secretary and Research S Gara H. H. Gundersen T. 3. Duggan J. G. Horrison V. H. clean G ix CONCLUSIONS The tonnage of raw materials, semifinished and finished products transported for the iron and stool industry, represent a major rove- nuc source for the railroads. In 1945 this revenue exceeded $800,000,000. Iron and steel provides the structural basis of modern industrial civilization. In the United States the steel industry cccupies a foremost place in the major industriel groups. The principal steel producing centers of the United States are concentrated in geographical areas where the raw materials for steel- making can be economically assembled. The companies producing the bulk of tonnage steel are large in size and relatively few in number. Over 90 per cent of iron and steel produced in the United States is made by nineteen integrated companies. Eastern territory on January 1, 1945 had 90.5 per cent of total United States ingot capacity; Southern territory had 4.1 per cent and ´estern territory 5.1 per cent. On January 1, 1940 the corres- ponding figures were 93.2, 4.1, and 2.7 per cent. . Ingot capacity during World War II increased 10,310,370 tons in Eastern territory; 8,995 tons in Southern territory; and 2,726,419 tons in Testern territory. United States annual iron and steel capacities in net tons on January 1, 1945 were: Pig Iron and Terrolloys Ingots and Steel for Castings 67,313,890 95,505,200 The United States is steadily disposing of the Government-ovmed steel projects built during World War II. There is no indication of Government competition with private industry in the production of iron and stecl. The marketing of iron and steel will continue principally through the established practice of direct solling by the manufac- turer to the industrial consumer. The jobber or warehouseman vill still be a factor where the product is standardized and where it is used over a wide area by small manufacturers or nonindustrial consumers. Host industries purchasing steel arc characterized by large individual companies. The demand for steel consists, to a greet de grec, of large sized orders placed by relatively few companies, > X ❤ 1 The demand for steel shows a marked concentration in the geog- raphical crea included in Eastern territory. Important marlets also exist outside this area, particularly for products required by the oil and canning industries. } Consumption of iron and steel products is resuming the peace- time pattern of 1939-1940 with the automotive, construction, rail- road, and container industries as the four largest consumers. سل glas There is no indication that the postwar demand for iron and steel will be more affected by competition from other durable ma- terials than before the war. Stool will continue to be the dominant construction metal. G Since 1900, from 75 to 85 per cent of iron ore consumed in the United States has come from the Lake Superior region. Exhaustion of these ores would seriously effect the economics of steel manufacture and the location of stel plants. This situation may be not by future developments in the science and cost of boncficiating or otherwise utilizing low-grade orcs. An alternative is increased use of imported iron ore with a probable resultant development of steel plants at tidewater locations. Competition for iron and stocl traffic between the railroads and other forms of transportation was diminished during World War II. This applied particularly to finished steel products which prior to the war moved in volume by water from the lorth Atlantic ports to Gulf and Pacific Coast ports. Inland water transportation on the rivers, canals, and Great Lakes was also lessened. Truck competition became less acute. The competitive picture is now rapidly changing. Both water and truck competition is increasing and these transportation agencies are seeking to attract the largest possible shore of traffic. In- creased pressure is also developing for additional canalization wich would take heavy tonnages of iron and steel traffic from the rail- roads. The freight rate practices of the railroads, with respect to row materials and semifinished products of the iron and stool industry, have been to give full consideration to comercial needs for econ- omical assembly costs and interplant movements. Freight rates on finished steel products have, in most cases, been prescribed by the Interstate Commerce Commission and reflect generally a mileage basis. This has resulted in severe competitive problems for steel producers marketing their products at certain important longhaul consuming points. xi f Consistent with railroad revenue needs, rates on materials and products used and produced by the iron and steel industry should be maintained on a level witch will encourage rail move- mont and not force the industry to seek other modes of transpor- tation or seek new: locations for plants. Existing types of railroad freight car equipment are gen- crally satisfactory to the steel industry. The principal need is for additional freight cars of the prosent type with increased dimensions and large carrying capacity. There is no immediate prospect of foreign competition in the United States market for iron and stool. War damage and rehabili- tation needs in Europe should provide an export market for United States producers. C Business prospects in the immediate future for the iron and steel industry are exceptionally good. Indications point to the greatest peacetime production on record given a substantial measure of management-labor peac.. Railroad prospects for heavy iron and steel traffic during 1947 are excellent. Indications we that the volume of business will equal the amount of railroad freight car equipment available for loading. · p Steel production in the years head will depend on broad economic factors which affect, favorably or unfavorably, the indus- trial life of the nation. The ion and steel industry has ably demonstrated its ability to meet widely varied requirements and conditions. * xii • \ I. HISTORY AND DEVELOPMENT OF THE MANUFACTURE OF IRON AND STEEL 1 Records of iron manufacture have been found in the Egyptian pyramids. Steel working and hardening, an advanced stage in the art which doubtless required centuries to reach, was common 3,000 years ago in Greece. The primitive methods of producing iron called for a mixture of charcoal and iron ore, which was heated intensely for several hours, with fuel additions made from time to time, and a vigorous blast of air fanning the fire. The iron ore became an incandescent sponge of metal. After sufficient heating the furnace was broken into and the glowing ball of iron pulled out. Immediately, while still white hot, the ball was hammered vigorously to expel as much of the slag as possible, and to weld the hot particles of metal into a coherent mass. Except for changes in furnace details and methods of produc- ing the air blast, the primitive method of producing iron lasted up to the fourteenth century. Steel was made sometimes as an ac- cidental product in the old forges, but was also made by the moun method of packing wrought iron bars with charcoal in clay boxes or jars, and heating for days during which the iron absorbed enough carbon to become steel and thus acquired the necessary hardness and strength. In the early fourteenth century larger furnaces were intro- duced which produced liquid pig iron. The pioneers in America manufactured iron under primitive con- ditions. The English practice, modified to meet New World condi- tions, governed operations, and the first furnace yields were low, averaging only seven or eight tons weckly. Charcoal made from na- tive timber was the fuel, and ore came from bogs, swamps, or low: ground. The initial discovery of iron ore in America was in 1585 at Roanoke Island, North Carolina. In 1619, an English concern, The Virginia Company, sent mo- chanics to America to construct iron vorks. They located on Fall- ing Creck, a tributary of the James River, about seven miles below Richmond, Virginia. Before the project could be completed, Indians in 1622 massacred the leader and all his workmen and destroyed the works, which were never rebuilt. The first successful iron works was established in the Pro-· vince of Massachusetts Bay, on the Saugus River, adjacent to Lynn, liassachusetts, where in the carly part of 1645, a small iron pot of one-quart capacity as cast from the first iron produced. The industry slowly spread to other colonies, reaching Penn- sylvania in 1692, and then moving south and west. } 1 Manufacture in the early days was confined to cast products, such as pots, spiders, kettles, and stoves. Later wrought iron was produced and the range in articles increased. 2 The story of the great "iron plantations" which flourished in Pennsylvania during the eighteenth century is one of the least known, but most interesting chapters in the history of the American iron and steel industry. Although those plantations produced iron rather than cotton, in many other respects they were like the plan- tations of the South. Dozens of iron plantations are known to have existed in the valleys of the Schuylkill, Susquehanna, and Juniata Rivers in Penn- sylvania. Those iron plantations were self-sustaining. Ore as mined on the property. There was an abundance of rood for charcoal and sufficient water supply to permit manufacturing of iron. Food to take care of all was produced on the plantation. By the middle of the eighteenth century Pennsylvania became the leading industrial colony in the production of iron, which was largely made on the plantations. The Revolutionary War greatly stimulated the production of iron. Even prior to the war and as carly as 1750, iron works were operating in eleven of the colonies. Their estinated output during that year was 10,000 tons of iron or about seven per cent of the world production. As the nineteenth century opened, iron works were located in every one of the original thirteen colonics. There were also works in liainc, Vermont, Tennessee, and Kentucky, as well as what is now Test Virginia but which then was a part of Virginia. In the iron producing states, production generally tended to concentrate itself in well defined districts, the location of which was most often determined by the availability of iron ore and other raw materials. The growth of the American iron industry during the period 1800-1850 was substantial. Liany ner plants were built during the period, but the basic character of industry remained virtually un- changed. Most of the revolutionary changes in production methods were to come in the years following 1850. As pioneers moved westward to conquer the wilderness that lay beyond the Allegheny Mountains, they erected new blast furnaces and forges in Chio, Indiana, Kentucky, Illinois, and even farther west. lost of the now plants were built to the pattern of the older plants in the cast, with only such changes as local condi- tions made necessary. } } Iron production in the United States in 1800 has been esti- mated at 50,000 net tons. By 1830, the production of iron had risen to about 185,000 tons and by 1850 production had risen to 900,000 tons. In Pennsylvania, around 1800, the iron industry was chiefly concentrated in the valleys of the Schuylkill, Susquehanna, and Juniata Rivers. Some furnaces also were operating in the western part of the state. 3 Soon after the start of the century however, the Lehigh Valley area of Pennsylvania became an iron center. Pennsylvania ranked as one of the earlier leading iron making states of the nation, as there were few failures in the state which nature had so richly endowed with the raw materials for making steel. The iron industry in Pittsburgh was born in 1792 when a small charcoal furnace was built at Two Mile Run, now known as Shadyside. The furnace was abandoned in 1794. The next blast furnace in Pittsburgh was not constructed until 1859. Pig iron in the early days was produced in nearby counties and transported to Pittsburgh for conversion into finished products. In 1805 an iron foundry was opened in Pittsburgh. Shortly af- ter numerous foundries and other iron works rere started. Following 1825 the Pittsburgh district experienced a phenom- enal expansion. Necessary raw materials were located in abundance in the surrounding territory and transportation facilities gave ready access to important markets. Pittsburgh was particularly well located with respect to the growing West, The Pittsburgh district became the largest producer of iron and steel in the United States within twenty-four years after the successful operation of the blast furnace in 1859. Pennsylvania is now the leader of the United States in the production of iron and steel. In the state, the Pittsburgh dis- trict has the greatest capacity. In addition, important producers are located in the eastern part of the state, in what is known as the Bethlehem-Philadelphia steel district. After the establishment at Lynn, lassachusetts, in 165 of the first successful iron enterprise in America, other furnaces and forges followed, for over a hundred years after its settlement in 1620, Lassachusetts was the leader in iron manufacture in America. Pig iron is now produced at Everett and steel at orcester. ג ASSOCIATION OF AMERICAN RAILROADS REPORT ON THE IRON AND STEEL INDUSTRY OF THE TRAFFIC SUBCOMMITTEE of the RAILROAD COMMITTEE for the STUDY OF TRANSPORTATION < ; ų At In 1658, an iron works started in New Haven, Connecticut. the present no pig iron is made in the state, but steel is produced at Bridgeport. In Rhode Island an iron forge was operating at Pawtucket in 1675, but was destroyed by Indians. Steel is now made at Phillips- dale.' The first iron works in New Jersey were established in lionmouth County about 1674. The deposits of magnetic iron ore in northern New Jersey were discovered early and by 1710 settlements were made nearby to make iron. For some years after 170 down to the Revolu- tion the iron industry in New Jersey was exceedingly active and con- tributed greatly to the war effort. Steel is now produced in New Jersey at Harrison and Roebling. In Maryland the first iron enterprise was a bloomery forge, erected at the head of Chesapeake Bay, in Cecil County, shortly be- fore 1716. This was known as Principio Furnace and was constructed in 1723 and 172. For many years the Principio Company as the leading iron company in America. However, in 1780 the general assembly of Maryland passed an act to seize and confiscate all British property within the state. This was the formal end of the Principio Company, after an existence of nearly sixty years. Mary- land continued to develop as an iron producing state and now has, at Sparrows Point, one of the largest steel plants in the country. Gang) After the destruction by the Indians of the Falling Creek Iron Works in Virginia in 1622, no successful effort was made to revive the iron industry for almost 100 years. About 1715, an iron furn- ace was constructed. Later this was followed by a great expansion of the charcoal iron industry in Virginia. Several of these enter- prises were within the limits of the present state of Test Virginia. Before the Civil War, Thoeling was the center of the rolling mill industry of Virginia where the first rolling mill was built in 1832, West Virginia now has at Teirton and Benwood important iron and steel producers, J In North Carolina iron was made as early as 1728. After a rather brief development most of the early iron concerns passed out of existence. South Carolina had much the same history, although the first iron in that state was not produced until 1773. In Georgia the first enterprises were established after 1790. Lator there was a development of charcoal iron in the state, but this gradually died out. Atlanta is now the most prominent producing point. Kentucky saw its first iron furnace in 1791. The well-known Hanging Rock region of Kentucky started its development about 1815. $ 5 in. Iany of the carly forges in Kentucky refined pig iron into blooms, a large portion of which moved by river transportation to rolling mills at Pittsburgh and Cincinnati. Subsequently Ashland and New- port became the leading centers. A bloomery was built in 1790 in Tennessee, the first iron en- terprise in that state. After 1800 there was a marked development of the iron industry, both furnaces and bloomeries multiplying rapid- ly. After the close of the Civil War, Chattanooga became the lead- ing iron center in Tennessee, followed by Knoxville. The first iron furnace in Alabama was built about 1818. Part of Alabama's iron producing facilities were destroyed during the Civil War. Later the discovery of bituminous coal in the vicinity of Birmingham led to its development as a major iron and steel pro- ducing center. The first rolling mill of Birmingham was built in 1830. Alabama is now the outstanding southern state in iron and steel production. The man- The first iron works in New York was built a short time rior to 1740 in Columbia County, about fourteen miles east of the Hudson River. It was built by Philip Livingston, the father of Philip Livingston, the signer of the Duclaration of Independence. The supply of ore was obtained mainly from nearby Connecticut. ufactured iron was taken to the Hudson River for shipment by water. In the early period of manufacture of iron in New York state it was customary to transport the charcoal on the backs of horses from the mountains where it was burned, there being no roads at the time. About 1800 the celebrated iron Champlain district was devol- oped. This, for a long time, as the most important iron district in the state, containing rolling mills, blast furnaces, and forgos. In 1883, there woro in the Champlain district 27 large forges, or bloomeries, for the manufacture of blooms. The Champlain district was also a large producer of iron orc. In 1807, a rolling mill was started in the vicinity of Troy, New York, here in the latter part of the nineteenth century the most extensive and important steel works in New York were located. The Buffalo district developed later then the Troy strict. The production at Buffalo was given docided impetus in 1901 - len the Lackawanna Steel Company moved from Scranton, Pennsylvania, to Buffalo, New York, and added to large modern blast furnaces. it the present time the great bulk of iron and steel produced in low York is made in the Buffalo district, although Troy is still an important producing point. The beginning of the iron industry of Ohio dates from 1802 at the time Ohio was admitted into the Union as one of the states. 6 ! Its first furnace, called Hopewell, was finished in 1804 in the township of Poland, in lahoning County. The beginning of the iron industry along Lake Erie probably dates from about 1825 when a furnace was built in what is now known as Lake County, Ohio. During the next ten years many furnaces were built near Lake Erie, in Ashtabula, Cuyahoga, Erie, Huron, and Lor- ain Counties. Iron was made from bog ore. In late years, the shortage of charcoal, resulting from the clearing of the land, led to the abandonment of these early furnaces. Soon after the beginning of the iron industry on the Western Reserve the manufacture of iron was started in some of the interior and southern counties of Ohio. Cne of the earliest forges and furn- aces was erected near Zanesville, Ohio. Part of the celebrated Hanging Rock region included producing points in Chio, as well as in Kentucky. In Ohio, Lawrence Jackson, Gallia, Vinton, and Scioto counties were included. Just north of the Ohio portion of this district was the Hocking Valley iron dis- trict, embracing Kocking County and several other counties. The first furnace in the Ohio part of the Hanging Rock district was Union furnace, built in 1826. From 1826 to 1080 there was a total of sixty furnaces built on the Ohio side of the district. All the early furnaces were built to use charcoal, but later then timber becare scarce coke was substituted at some while others were aban- doned, • The first rolling mill at Cincinnati was built about 1830 and was followed by a substantial development. Subsequent development in Ohio dates from the introduction in its blast furnaces of the bituminous coal of the liahoning Valley in its raw state. The first furnace to use the new fuel was built expressly for this purpose at Lowell, in liahoning County, in 1845 and 1846. Immediately after the successful use of uncoked coal in the furnace at Lowell, many other furnaces were built in the liahon- ing Valley to use the new fuel and it was also substituted for char- coal in some old furnaces. The beginning of the iron industry at Youngstown, which is now one of the leading producing districts of the county, dates from about 1835, when a charcoal furnace, called Mill Creek, was built. After the discovery at Lowell that the block coal of the liahoning Valley could be successfully used in the smelting of iron ore, there was a rapid development in the Youngstoum district. The development at Cleveland, Ohio, started with construction of a rolling mill which began operations in 185). The first furn- ace at Cleveland was built in 1864. -ง In In Indiana had a small charcoal iron industry before 1840. 1840 furnaces were located in Jefferson, Parke, Vigo, Vermillion, and Wayne counties. In 1860 there was only one furnace in blast in Indiana, at Richland. It was probably abandoned that year and from that time until 1367 no pig iron was made in the state. 1067 the manufacture of pig iron was revived, the development of the block coal district in the neighborhood of Brazil, in Clay County, making production possible. Eight furnaces were built in Indiana between 1867 and 1872 to use this coal, the ores for the furnaces being mainly obtained from Missouri and the Lake Superior district of Michigan. The first rolling rill in Indiana was probably the Indianapolis Mill put into operation in 1057. Later the discovery of natural gas in Indiana helped considerably in the development of the rolling mill industry. The northwestern portion of Indians, now included in the Chi- cago district, is one of the leading iron and steel producing sec- tions of the United States. In 1839 a small charcoal furnace was built in Hardin County, Illinois. Several other furnaces were later built Game Soon after the close of the Civil War, iron manufacturers were attracted to the Big luddy coal fields, in the southwestern part of Illinois which were in close proximity to the rich iron ores of Missouri. In 1868, two furnaces were built in Jackson County, Ill- inois. At East St. Louis two large coke furnaces were built between 1873 and 1075. } The iron industry at Chicago dates from 1857 when the first rolling mill was built on the bank of the Chicago River. Tis mill was built to reroll iron rails. There was no furnace in Chicago until 1868 when two were constructed. In 1873 two furnaces were built at Joliet. Since that time there has been a continuous de- velopment in the Chicago district. Other important Illinois iron and steel producers cre located at Granite City and other points. Prior to 1850 there was little iron produced in iichigan. From 1850 to 1850 a marked dovoloprent took place. Three new furnaces were built in the southern part of the state to use bog ore and in the northern peninsula and at Detroit and Wyandotte a start was made in smelting the rich ores which had been discovered in the no celebrated Lake Superior iron ore region. The existence of iron orc on the southern border of Lake Superior was known to white traders with the Indians as early as 1830. The first discov- ery by white men of the iron ore of this region was made in Septem- ber 18. In June 1845 a company was organized for the purpose of exploring the mineral districts of the southern shore of Lake Super- K } ior and in the summer of that year this company, with the help of some Indians, secured possession of the now celebrated Jackson iron mountain. 8 The first iron produced in the Lake Superior region was made in 1853. Two furnaces were built at or near Detroit to smelt Lake Superior ores, one in 1855 and one in 1956. The first shipment of iron ore from the Lake Superior region was made in 1850. The first use of Lake Superior ore in a blast furnace was in Pennsylvania, shipment being made to the Sharon Iron Company of liercer County. The shipment, consisting of seventy tons, was taken to Erie, Pennsylvania, and then shipped by canal to Sharps- ville furnace near Sharon. The early furnaces built in iichigan to use Lake Superior cre used charcoal as fuel. Gradually these were abandoned, as timber becare scarce. Michigan Loday has one of the very few charcoal blast furnaces in existence, located at leberry. The Detroit dis- trict is now one of the important producing iron and steel sections. Texas had one blast furnace, built in Cass County, prior to 1859. There was a development during the Civil War, mostly for use by the Confederate Goverment. The iron sinelted was used for gun barrels and other munitions. All of the early furnaces and bloom- eries in Texas were abandoned soon after the war. In 1869 a charcoal furnace was built in Irion County and was the only active furnace in Texas in 1880. It used brom hematite ore found in the neighborhood. In 1883 a furnace was built by the state of Texas in Cherokec County and the iron used in the produc- tion of water pipe. Texas now has blast furnaces at Daingerfield, Houston, and Rusk. Principal steel production is at Houston. In finnesota a charcoal furnace was started at Duluth in 1872, but was not finished until 1880. It obtained its supply of ore from the Lake Superior mines in Michigan. In 1889 a large coke furnace was started in Duluth and was blown in in 1891. Duluth at thé present time is an important producer of iron and stecl. The first iron in Colorado was produced at a charcoal furnace in Boulder County. It was put in blast in 186. Iron ore iras ob- tained in the vicinity and charcoal from the nearby forests. The furnace was abandoned because oxen furnished the only mode of transportation, which was too expensive. In 1877, a rolling mill was moved from Danville, Pennsylvania, to Pueblo, Colorado, and put into operation in 1878, the product ' # In being rerolled rails. The plant was then moved to Denver. 1880 the erection of a large coke furnace was started in Pueblo, Pueblo is now an Colorado, as well as a Bessemer Steel Works. important iron and steel producing center. It was reported in 1859 that iron ore was being smelted at a forge operation in Utah territory. In 1873 a charcoal furnace was constructed in Iron County. Shortly afterwards it was aban- doned. Another large furnace was started at Ogden City, Utah, in 1875, and was intended to use the hematite and magnetic ores found in the neighborhood. The furnace as put in blast in 1882, but operated only a short time. II. Utah had a marked iron and steel development during World Because of strategic considerations it as decided to locate a steel plant at Geneva, Utah, where nearby adequate supplies of suitable raw materials were available. In addition to the large iron and steel plant at Geneva there is also production of pig iron at Ironton and Provo. 9 -tal A rolling mill at San Francisco, California, was first put in- to operation in 1858. An open hearth steel plant was added in 1881, and the first steel on the Pacific Coast was inde during that year. In 1881 the Central Pacific Railroad Company built a rolling mill at Sacramento to roll bar iron and shaped iron. In 1803, a rolling mill was started at Oakland. The first blast furnace in California was started in 1880 in Placer County where iron ore had been discovered. It burned down in 1882 and tras rebuilt in 1883, but stormed operations in 1836. While steel has been produced in California for some cars, World War II led to a marked expansion in that state. The iron and steel plant at Fontana was built during the war and become the largest individual producer in the state. The Fontana plant is now the principal producer of pig iron in California, although there are several important stool producing points. In Oregon a charcoal furnace was built in 1066. It was aban- doned in 1888 then a new furnace was built. Sical is now produced at Portland. A furnace in Jefferson County, "ashington, was built in 1880 to make charcoal iron from Puget Sound bog ore mixed with Texada Island magnetic ore. Stool making facilities are now located at Seattle. This, in brief, reviews the history of the establishment of the iron and steel industry along geographical lines, from its in- coption in the carliest days in New England, cross the continent, 10 to California and the Northwest. It illustrates the importance of iron and steel production to the development of our nation from east to rest. It is well to note that the same economic factors which con- tributed to the establishment of the industry in the direction of the westward advance of population may well be taken into account in considering the further development of the industry in relation to the constantly westward sifft in the center of population. There are indications of this, as will be developed further in this report. 1 II. DEVELOPMENT OF MANUFACTURING 12THODS IN THE UNITED STATES 11 While research was progressing in Europe progress in the iron industry in America after the Revolutionary War consisted chiefly of the enlargement and gradual westward movement of the industry. Crucible steel was successfully produced about 1818 at the historic site of Valley Forge, Pennsylvania. England had been man- ufacturing crucible stecl for nearly a century, but its development in this country was very slor. During the first half of the nineteenth century certain inno- vations in iron making methods were made, which eventually brought about revolutionary changes in the character of the iron industry and its products. Chief among these were the substitution of hot air blast for cold air in the blast furnace, and the replacing of charcoal as a blast furnace fuel with mineral fuels such as coal and coke. These ner nothods increased blast furnace capacity and permitted the economic operation of furnaces in other than heavily wooded areas. gra Coal and coke for blast furnace fuel had been used in Europe since at least 1780, but it was not until 50 years later that the American iron masters generally switched from charcoal to mineral fuels. Charcoal was far more abundant here than abroad and further- more most American ore bodies were not adjacent to coal deposits, particularly those of bituminous type. When anthracite coal began to be used commercially in Lerican blast furnaces, in 1833, the Lehigh Valley area of castern Fennsyl- vania immediately became a major iron-making region. There both iron ore and anthracite were conveniently available. Until the Civil War anthracite exceeded soft coal and coke in importance as blast furnace fuel. GOLAR The use of anthracite in production of pig iron reached its peak in 1864 when 60.2 per cent of total pig iron was thus made. It then began to decline due to increased use of bituminous coal and coke. In 1923 pig iron made with anthracite was insignificant. The earliest experiments in meling iron with bituminous coal was in 1819, but success was not obtained until coke was tried about 1850. In 1849, there was not a coke furnace in blast in Pennsylvania, but in 1856 there were 21 and Haryland had 3, with a total output of 81 gross tons of pig iron. After 1056 the use of bituminous coal and cole expanded to other states and became acneral by 1865. In the next fifteen years a tremendous advance took place, and 2,128,000 tons of coke were consumed in 1830. 12 3 1 Coke was first made by a pit method. The center of a low circular pile of coal, stacked in orderly tiers on a flat compact surface, was ignited and the top sealed to repress the fire and confine combustion to the bottom of the pile where more air was present. The coal yielded 40 to 45 per cent coke. Later coking operations rere carried on in an oven or kiln. The kiln was a moderately large, circular brick structure with low vertical walls covered by a dome roof. An opening in the roof served both as a chimney and charging door. Coke was drawn out through opencings in the wall. The oven resembled a large bea- hive, hence the name. The beehive process expanded rapidly and batteries of ovens were built in many locations throughout coal mining areas where the coal was suitable. Bechive ovens in operation reached a poak of 10,000 in 1909, but by 1940 had declined to 15,000. The next major development in the industry, and a most econom- ical one, was the by-product coke oven. This oven gives a coke yield of about 70 per cent, as compared with 62 per cent for the beehive oven, and saves many valuable by-products of coal which are wasted into the air by bechive ovens. The first by-product coke as made at Siracuse, or York, in 1893 by the Senet-Solvay Company, in a battery of 12 ovens, but the process was not used in a steel plant until 1902, then the Lacka- Wanna Steel Company installed a battery at their Buffalo, New York plent. After that time its use became widespread and led to a grad- ual and almost complete abandonment of bechive ovens. ` Development of Steel Less than a century ago iron was the basic metal of the world and stoel was comparatively rare. Produced in small quantities by processes virtually unchanged for centuries it was generally used only for the finest and most expensive edged tools. The development first of Bessemer steel and shortly afterwards of the open-hearth process made steel available in thousands of tons instead of by the pound, The Bessemer process, so named for the English metallurgist and inventor, Sir Henry Bessemer, was first conceived by an American, William Kelly, according to one of the foremost historians of iron and stcel. William Kelly was born in Pittsburgh in 1811. His ex- periments with the production of steal took place at Eddyville, Ken- tucky, sometime after 1851. Ile was successful in producing a soft and malleable stoel but was unable to control the carbon content. ኣ 1 ; The English metallurgist, Henry Bessemer, in 1854, began to experiment in making iron for 2 new type of gun. In the course of his work he studied the possibilities of making cast iron mallea- ble by using air in much the same way that Kelly had. Besserer was granted patents in 1855 and 1056, although it was not until 1858 that his process was successful. In 1856 Bessemer applied for and obtained American patents. Kolly filed a claim of priority on the invention and in 1857 a patent was granted to him hich superseded that issued earlier to Lessemer. Ca Aut 13 The first attempt to use Kelly's process at a large iron works was made in 1857 and 1858 at the Cambria works in Johnstown, Penn- sylvania. The open-hearth furnace as born in Europe but matured in the United States. As early as 1720 a French physicist Reaumur, tried unsuccessfully to make steel by melting cast and wrought iron to- gether. In 1861, Karl Wilhelm Sichens, German born but a natural- ized citizen of Great Britain, had what was called a regenerative furnace. His patent described the furnace specifically for use in making glass but mentioned it as a possibility for steel manufac- suring. Siemens' original furnace was not wholly successful. Prob- ably the first commercial success was achieved at a steel works in France where a furnace onerating under a license from Siemens, started production sometime between 1064 and 1966. The first Siemens furnace in the United States was built at Troy, New York, in 1867, end was followed in 1868 by a Siemens- Martin furnace at Trenton, New Jersey. Due to the lower cost of operation of the Bessemer process, the open-hearth process did not come into general use until about 1897, following an urgent demand for better steel. B P Another major development was the clectric furnace for making steel. The Germans first exploited the idea in 1398, but no actual hoadway was made with it in the United States until 1907, hen the first successful furnace was placed in operation at Reading, Coli- fornia. The next one wes installed by the United States Steel Cor- poration, in its South Chicago works, in 1909. The electric furnace has displaced the slow and costly crucible process for making higher-quality steels and special alloys. Thile there have been changes in technique and i provement in the methods and the design, the basic developments in the iron and steel industry have been in the use of fuels and in the Bessemer, the open-hearth, and the clcctric furnace. } • III. MAJOR CHARACTERISTICS OF THE IRON AND STEEL INDUSTRY The steel industry primarily supplies a basic raw material for the production of other goods and services. It must contin- uously provide material meeting the exacting and changing demands of a great variety of industries, each of which has diversified requirements. Iron especially in the form of steel provides the structural basis of industrial civilization. The importance of iron lies in its abundance, its strength, and malleability and its any uses. Stcel itself is a durable commodity and is widely used in the production of durable producers and consumers goods. #. In addition to being the basis of other industries the iron and steel industry ranks among the leaders of the major indus- tries in all highly industrialized nations. In the United States, iron and steel and their products occupy a foremost place in the major industrial groups. If machinery and alloy products are in- cluded, the iron and steel industries are outstanding in the value of production. All industries are dependent on iron and steel, either for machinery or raw materials, or both. Since the introduction of firearms and ordnance, iron and steel has constituted the basis of military porer. The iron and steel industry in the United States started with the operation of small furnaces and forges, which spread with the gradual settlement of the nation. The adoption of the Bessemer process and the use of coke in smelting led to the beginning of integration and concentration in the industry, particularly by the Carnegic interests. The de- pression of 1893-1896 led to a series of mergers which gave rise to a relatively small number of large companies. These companies fell into two definite classes, those which made pig iron, steel billets, and other heavy products, and those manufacturing more highly finished materials. Technological and other changes in the iron and steel indus- try have been accompanied by increasing integration and concontra- tion of corporate control. The production of iron and steel has always required relatively large amounts of fixed capital. The concentration arising fra large investment of fixed capital and } } for 1 1 2 { integration of operations has been supplemented by vertical and horizontal combination, by the omership or control of sources of raw materials and of transportation, and by the diversification of output. Beginning in 1900 many important consolidations took place in the industry, culminating in 1901 in the formation of the United States Steel Corporation. This great combination united many of the leading heavy producers with the principal concerns manufacturing finished steel and comprised some twelve combina- tions, which, in turn, had been formed out of 200 or more inde- pendent enterprises. Later in 1907 the Tennessee Coal, Iron and Railroad Company was purchased. Beginning in 1915 the influences of World War I created a tre- mendous demand for iron and steel. Additional steel making facili- ties were rushed to completion and production soared to new peaks. 1916 saw two mergers of large stoel companies. Other concerns have also integrated and combined. Between 1919 and 1929 no fewer than 270 mergers achieved consolidations among 690 individual concerns engaged in the manufacture of iron and steel and its products. 15 This expansion has aimed at diversification of products, ac- cess to new markets, and control of production and sales. 1. 2. The iron and steel industry falls naturally into four general classes, i.e.: Integrated companies Semi-integrated companies Nonintegrated companies L. Merchant blast furnace companies Tar Companies in the integrated class perform all operations from mining raw materials to rolling the finished steel products. They orm, operate, or control ore and coal mines, limestone quarries, coke ovens, blast furnaces, steel works and rolling mills, forge shops, steel foundries, and in some cases fabricating shops. Some own railroads as well as lake and ocean carriers and barge compan- ies operating on inland waterways. Companies in the semi-integrated class nake no pig iron. They buy the basic metal and begin operations with the manufacture of stecl. They Nonintegrated companies make neither pig iron nor steel. purchase steel from other producers and begin with the rolling of steel products. 16 { } Merchant blast furnaces produce only pig iron which they sell normally to scni-integrated steel companies and to iron and steel foundries. The integrated companies therefore perforn all five main func- tions for the production of steel: 1. line or control the mining of the raw materials, i.e. orc, coal, and limestone Smelt iron from ore to produce pig iron Rofine iron into steel to produce steel ingots 2. 3. 4. Convert steel ingots into semifinished stool to produce billets, shect bars, skelp, etc. 5. Fihish steel to produce plates, sheets, bars, struc- tural, etc. Particularly the integrated plants have many ramifications following naturally the production of iron and stool. These col- lateral operations, usually carried on by subsidiary companies, embrace a ide field and include such productions as cemont and chemicals and the fabrication of steel structures, such as build- ings and bridges, ships, burges, and freight cars. In recent years there has been a trend on the part of the producers of stool to acquire fabrication or manufacturing plants as outlets for their steel production. St Going In the iron and steel industry products are divided into (1) tonnage products and (2) special stools. Tonnage products comprise the standard carbon steel produced in large quantities of a given chemical composition and quality; for example, concrete reinforc- ing bars and structural shapes. From a tonage standpoint, suchı steels are the most important products of the industry. There are, however, many grades and qualities even in the manufacture of ton- nage products which must be varied to meet customer requirements. Special steels include both alloy steels and high grade car- bon steels. Many of those stoels are practically custom-made to meet the specifications of individual customers. A factor of considerable importance in the iron and steel in- dustry is the extreme rigidity inherent in the production facili- ties. Blast furnaces, steel works and rolling mills represent hugo investments in large scale units of equipment. The magnitude of individual units makes it highly undesirable to incrcuse capac- ity by small additions or shifting of plants. Bare- The rigidity of capacity makes overhead costs of paramount importance in figuring total costs. The costs of producing iron and steel are particularly sensitive to changes in the rate at which capacity is utilized. Operating ratios fluctuate idcly with 7 I 17 Cr the extreme shifts that are characteristic of the demand for iron and steel products. Overhead costs make it important that there be a proper bal- ance of facilities at the successive production stages such as is reflected in the large integrated operations. Total investment (a) Total carnings before interest but after deprec- iation and depletion. Por cent earned on investment. The "Annual Statistical Report" of the American Iron and Steel Institute for the year 1944 gives the follo ing statistics covering investment, income, employes, payroll, dividends, etc. of the iron and steel industry: Net income (after interest charges, depreciation and depletion).. Number of employes (December) G • Federal. State and local TOTAL. • • • • Total wages and salaries for year. Average hours worked per reck (all employes) (b) Average carnings per hour (all employes) (b)...... Number of stockholders (December 31). Cash dividends paid. Taxes • Per cent of industry represented by the companies reporting blast furnace capacity. Steclmaking capacity. H 1944 34,471,761,987 208,625,053 4.67% 178,250,550 -869,493 2,640,954,365 116.3% 126.1 ¢ 4923509 118,952,893 90.9 88.8% 464,996,548 11641996,548 (a) Average as of beginning and end of year. (b) Covers only those employes which are directly engaged in the production and sale of iron and steel products. The general structure of the distribution of iron and steel capacity as well as related industries is summarized in the follow- ing excerpt from "Structure of American Economy, Part I, Basic Characteristics, National Resources Committee, 1939: "The iron and steel industry thus has a geographical structure which includes the exploitation or preliminary fabrication of bulky and heavy resources; successive stages in fabrication car- ricd on largely within the industrial area but moving toward the consumers in later stages of fabrication; and branches of the industry involving special fabrication located close to the con- San 18 sumers. In addition there are the major machine-producing indus- tries which use steel and largely constitute the industrial area, automobiles, electrical appliances, engines, and so forth, to- gether with the industrial service industries, notably machine tools. Finally, there is a series of industries fabricating steel in various stages which are mainly or partially located in the industrial area but which have been partly pulled out of that area by the fact that they serve agriculture, serve a par- ticular industry such as textiles, have advantages to gain by proximity to the consumer, or are dominated by some other special factor." Jang J 1 IV. MATERIALS USED BY THE IRON LID STEEL INDUSTRY A. Iron Ore 19 To the abundance of American iron ores of good quality is due the supremacy of the United States in steel production. Within this country are large areas underlaid with iron deposits of var- iable quality and quantity. A number of practical considerations are important in determining the value of a deposit, Ore must have metallurgical value to be useful, but the cost of handling the ore and the proximity of fuel and flux are factors which de- cide whether a deposit will be utilized. All raw materials of the iron and steel industry are bulky, and the cost of their transpor- tation to consuming areas is important. Types of Ore The principal iron ores in the United States may be classified into four general types, namely, magnetite, hematite, brown ore or limonite, and siderite. Magnetite in its pure state is the highest in percentage of iron. Hematite is found in the greatest quantity, and is next to magnetite in richness of iron content. Approximate- ly 9 per cent of all ore mined in 191 was hematite. Linonite is hematite combined with water. It constitutes only a small percent- age of all ore mined. Sidcrite is the lowest in iron content. It has other undesirable qualities, but where found in large enough quantities it has been used commercially. The geographical distri- bution of these ores in the United States is shown in Map A. Production Production of iron ore in the United States in 1913 totaled 113,500,000 tons, which was below the peak production of 118,200,000 tons in 1941. Largely antedating the var stimulus, production in 1910 was 82,500,000 tons, of which the Lake Superior region pro- duced 8 per cent, Alabama produced 10 per cent, New York, llew Jer- sey, and Pennsylvania, combined, produced 5 per cent, and the re- mainder was distributed among all other states. Except during war years (1915-18 and 1940 to date), the peak year of ore production in the United States was 81,800,000 tons in 1929, closely followed by 80,700,000 tons in 1937. Of the states in the Lake Superior region, Minnesota in 1940 produced 53,500,000 tons, or 78 per cent of the total production of that region. Michigan was next, ith 1,000,000 tons, or 20 per cent. The romainder, 1,00,000 tons, came from Wisconsin. Clas Between 1915 and 1943, the percentage of Lake Superior region to total production has fluctuated between a low of 83 per cent } * 20 and a high of 86 per cont, except in 1936, when it was 75 per cent, and in 1939, when it was C1 per cont. This illustrates the steady dependency of the industry as a hole upon the Lake Superior ores. The From 1939 through 1912, total ore production in the United States increased by 10 per cont. By regions, the increases were 110 per cent for Lake Superior, 8 per cent for Alabama, and .2 per cent for liew York, New Jersey, and Pennsylvania combined. explanation of the contrast between the increase in the Lake Super- ior region and increases in other regions lies in the type of min- ing. lost of the ore from the Lake Superior region is mined by the open-pit method, whereas other regions obtain their ore almost en- tirely from underground mines. The respective increases under the stimulus of the war demand indicate the flexibility of the open- pit method and the relative inclasticity of output of the under- ground mines. Beneficiation of Ore From many producing areas the crude ore before shipment is processed to improve its quality. This treatment is called Lone- ficiation. Dy means of one or more of numerous methods of treat- ment, impurities and foreign matter can be removed at a reasonable cost to produce a narkotable concentrate with a retallic content equal to and sometimes higher than the direct-shipping ore. Bene- ficiation has been in uso in parts of the United States for thirty years or longer. The ratio of beneficiated ore to total ore shipped has increased from 10 per cent in 1915 to 17 per cent in 190 and 21 per cent in 1941. The rate of increase has been approximately 2 per cent for cach five-year period since 1915. S Cont Among the more important states, How Iork, New Jersey, and Pennsylvania show the highest percentages of ore beneficiated to their total production, ranging from 72 to 100 per cent. Alabama bencficiates about 16 per cent and Minnesota about 24 per cent of their respective output, based on 1941 figures. Production in the Lake Superior Region G The ore deposits of the Lake Superior region are noteworthy for magnitude, quality, and convenient transportation. They are found over wide areas in the Vermilion, lesabi, Gunflint, and Cuyuna ranges in eastern mesota, the Gogobic and Lenominee ranges in northern Wisconsin and Upper Michigan, and the far- quette range in Upper Michigan, all adjacent to Lake liichigan or Lalo Superior. Map B shows the location of all these ranges, and the flow of ore therefrom, as well as the location of the more important deposits in the castorn states in relation to the loca- tion of blast furnaces. الي 1 21 Ore from the Lake Superior region is moved from the mines by rail. About 99 per cent of it goes to lake loading docks for shipment via the Great Lakes to lower lake ports, and the rost goes by rail to final destination. At open-pit mines and at stock: At un- piles, ore is loaded directly into cars by power shovels. derground minos, head frames and pockets at the mine shafts dis- charge directly into cars. At beneficiation plants the processed ore discharges by gravity fron storage bins into cars. The typical railway car used for hauling Lake Superior ores is a specially designed, open-top, steel car. It is divided into two longitudinal hoppers which have hinged, bottom-dump doors and discharge between the rails. The cars range from 21 to 22 foot in length, and are of forty to seventy-five tons capacity. At the lake shore, ore docks have been built by railroads to expedite unloading and loading operations. The typical dock is a long series of clevated storage bins or pockets in parallel rows, each ocket holding about five carloads of oro: Railway tracks run along the top, with boat slips alongside. Cars unload by grav- ity into the pockets, whence the ore falls by gravity through chutes or spouts into the holds of the ore boats. The docks vary in length from 920 to 2,30 feet and in height iron 70 to Ol feet. Lake Transportation of Ore 1. The first shipments of ore by lcke, in 1853, had to be por- taged around the falls at Sault Ste. Marie. In 1855, a canal a- round the falls was opened, and by 1866 lake tonnage had mounted to 312,000 tons. In 1856 a' twenty-foot lock was opened around the falls, and four hundred-foot boats a reared, carrying 5,200 tons. In 1900 boats were lengthened to 500 feet, and again in 1917 to 625 feet, the latter having a capacity of 13,000 tons. The ex- pense of operating the 625-foot boats tras about the same as for carlier 3,000-ton boats, and lake rates declined to 31.18 a ton, including the cost of unloading at lower lake ports. Rates in 1866 had ranged from 33 to $6 a ton, which fell to $1.35 by 1884. Modern boats are 639 feet long and carry 18,600 tons. During the 193 season, 323 boats were engaged in carrying ore to lower lako ports. The combined trip capacity was 3,370,000 tons, or an average of 10,400 tons per boat. The lake shipping season is usually about eight months long, from the middle of April to the middle of December. This curtailment of shippin“ during the winter months necessitates large stock piles of ore at lower lake ports, to assure uninterrupted deliveries to blast furnaces. 1 3 ***** > Unloading Facilities at Lower Lake Ports From the original method of unloading ore boats at the lower lake ports by wheelbarrow at a cost of 50 cents per ton, improve- ments in mechanical unloaders have been made which have brought costs as low as five cents per ton and have shortened the unloading time of boats to three to five hours. Facilities are provided for unloading from boats either to railway cars or to storage piles. There is ample loading capacity to permit inland movement of ore in entire trainloads. Carloads of ore have averaged 66.4 tons for the five years 1938-42, an increase of two tons above the preceding five-year period. Shipments or Lake Superior Ore Total annual shipments of ore from the Lake Superior mines averaged approximately 63,000,000 tons during the five years 1926- 1930, and 53,000,000 tons during the five years 1936-1940. In the three years 1941-1943, the annual average of total shipments was nearly 97,000,000 tons, with an all-time high of 10,000,000 tons in 1942. This record tonnage was not equalled in 1943, because of a late opening of navigation and heavy fogs during the shipping season. Destinations of Shipments During the eighteen years, 1925-1942, the average annual dis- tribution of Lake Superior shipments has been Shipped by rail from mines to destination Terminated at Lake Michigan and Lake Erie ports 49.2 Shipped inland by rail from lower lake ports 49.4% 22 ES E S Inland Destinations of Lake Ore 1.4 % Over the eighteen years 1925-1942, approximately 72 per cent of all ore shipped from the Lake Superior region was received at nine Lake Erie ports. About one-third of this tonnage terminated at the ports and the other two-thirds was reloaded for rail ship- ment inland. Among the Lake Michigan ports, South Chicago re- ceived about 11 per cent, Gary about 8 per cent, and Indiana Har- bor about 5 per cent of the total ore shipped from Lake Superior mines. All this ore terminated at the ports except for a very small quantity shipped inland from South Chicago. Receipts of ore at Detroit comprise about 2 to li per cent of the total shipments from Lake Superior ines. During the ten years 1933-1942, the Pennsylvania Railroad handled 31 per cent of all Lake Superior ores moved inland from Lake Erie ports. Following in order were the Bessemer & Lake Erie } 33 with 25 per cent, the New York Central with 18 per cent and the Baltimore & Ohio with 10 per cent. The remainder was handled by the Wheeling and Lake Erie, the Eric, the Nickel Plate, in that order of volume, and miscellaneous other railroads not segregated. Production in Alabama Alabama ranks second to the Lake Superior region in quantity of production. It has held that status since 1900, producing approximately 9 per cent of all ore mined in the United States. 23 Hematite ore, from underground mines, comprises 86 per cent of the total production in Alabama. Limonite or brown ore, from open pits, makes up the remainder. Jefferson County, where all the steel plants are located, provides 90 per cent of all the cre mined in the state. Franklin and Tuscaloosa counties, north.rest and southwest of Jefferson County, rank next in state production, but aggregate only 8 to 10 per cent of the total. · By decades, annual production in Alabama has steadily in- creased, from 2,100,000 tons in 1390 to 8,200,000 tons in 1910, to 9,900,000 tons in 1942, and to 9,100,000 tons in 1943. The Birmingham Lanufacturing Arca The Birmingham area combines an unusual number of natural ad- vantages as a steelmaking conter. The ore and limestone are mined a few miles east of the blast furnaces and steel mills at Ensley, Fairfield, Woodward, and Bessemer (all suburbs of Birmingham). Coal comes from a ridge a short distance northest of the plants. To transport the ore, limestone, and coal to the furnaces and mills, the Tennessee Coal, Iron and Railroad Company (a subsidiary of the United States Steel Corporation) operates the Birmingham Southern Railroad in Jefferson County. It has hauled in Jefferson County in the eight years 1935-1942, a yearly average of 4,600,000 tons of ore, or 65 per cent of all the ore consumed in Alabama. The remaining 35 per cent, varying between 2,500,000 and 3,500,000 tons annually, is handled by trunk line railroads to the Jefferson County plants and to Gadsden and Hold, where furnaces with an annual pig iron capacity of 602,000 tons are located. The Louisville & Nashville Railroad hauls between 60 and 90 per cent of the tonnage turned over to trunk line railroads. It s annual share varies with mining activity outside Jefferson County. The average for the eight years 1935-1942 amounts to 1,750,000 tons. Other lines handling ore, but in much less quantity, are the Seaboard, Alabama Great Southorn, Southern Railway, and Frisco. } } 24 Production in Other Regions Production in the three states of New York, New Jersey, and Pennsylvania has fluctuated little. By decades, it was 4,300,000 tons in 1880; 2,500,000 tons in 1930, and 4,000,000 tons in 1940. It was 4,400,000 tons in 1941 and 3,900,000 tons in 1943. These three states ordinarily produce between 3 and 4 per cent of the national total production. New York production is confined chiefly to the Adirondacks. Production statistics for New York and Pennsylvania have been combined after 1936. The two states together have produced between 3,200,000 and 3,700,000 tons annually from 1940 onward, probably divided approximately equally between the two states. New Jersey production varies from 150,000 to 750,000 tons annually. Production in other states is not of much commercial importance. The largest is Wyoming, with about 1,000,000 tons per year from and after 1940. Exports and Imports Our foreign trade in iron ore is relatively unimportant in vol- ume, in comparison with our domestic trade. Since 1910, exports have never reached 1,500,000 tons in any year. They average about 1.8 per cent of domestic production. Almost all of our exports go to Canada. Our imports of iron ore substantially exceed our exports, as a rule. For the five years 1936-1940, they have averaged 2,600,000 tons per year, which was 4.3 per cent of our domestic production. In recent years Chile has been by far the principal source of our imports. Cuba is the next largest source, and we have a snall, but steady, import movement of Swedish ore of high quality, for special purposes. Liost of our imports go to Baltimore for the Sparrow's Point plant of Bethlehem Steel Company. wo . Consumption of Iron Ore Our foreign trade in iron ore being relatively small, consump- tion corresponds closely with production from year to ear, allowing for the statistical offsets of fluctuations in stock piles. Our average annual consumption of iron ore during the five years, 1936-1940, was .3 per cent smaller than in 1921-1925. Com- paring two periods just before our cntry into war, the 1936-1940 average was only 5.4 per cent greater than the 1911-1915 average. Comparing 1926 and 1940, two years of approximately equal consumption of domestic iron ore, consumption of such ore had in- creased to greater extent in Indiana in 1940 than in any other important consuming state. Alabama had the second largest in- T 25 crease, among those states. New York had a nominal increase, while Pennsylvania, Illinois and Ohio had decreases. Among the less important states, Kentucky and Test Virginia doubled their consumption between 1926 and 1940, and Ichigan almost doubled. The sharp rise recently in consumption in Maryland also is note- worthy. Comparing the consumption of imported ores in 1926 and 1910, Pennsylvania declined in 1910 by 1,270,000 tons, while Maryland increased by 927,000 tons. The rise of Maryland reflects the con- sumption of imported ore at Bethlehem's Sparrow's Point plant, al- ready mentioned, In consumption of domestic and imported ore combined, Penn- sylvania and Ohio, in that order, load all other states by a wide margin. These two states together ordinarily account for about half our total national consumption. The seventeen-year (1925- 1941) average was 29 per cent for Pennsylvania and 22 per cent for Chio. Indiana as a rule cores net, in recent years, closely followed by Illinois and Alabama. Alabama led among the three states in 1930 and 1939, and was second in 1937 and 1940. Dach of these three states roughly approximates half the Ohio consump- tion. Other states, including laryland, West Virginia, Kentucky, Michigan, Ilassachusetts and New York, are far behind the preced- ing states. Total annual consumption in the United States is subject to mide fluctuations. It was 72,000,000 tons in 1925, fell to 40,000,000 tons in 1935, and rose to 80,000,000 tons in 1940. 1942 it reached nearly 10,000,000 tons. Consumption of Iron Ore in Steel Furnaces P 1 In Besides the use of iron ore in blast furnaces, a certain a- mount of selected high-grade lump or sintered ore is introduced directly into steel furnaces. This has the effect of dilution which lowers the carbon content of the motal. Open-hearth furn- aces consume about 99 per cent of the ore thus used in steel furn- aces. Such use of ore is on the increase. It amounted to 1,000,000 tons in 1940 and 5,000,000 tons in 1942, or about 6 per cent of our total ore consumption, and also about 6 per cent of the total production of steel ingots. Other Uses of Iron Ore A relatively small amount of iron ore is used for purposes other than iron and steel production, chiefly as pigment for ce- ment and paint. formal peace time consumption for such uses is about 60,000 tons, which rose to 138,000 tons in 1942. A R > + Evaluating and Pricing Iron Ores Lake Superior ores are bought and sold on the percentage of iron in the ore in its natural or moist condition, as unloaded from vessels at Lake Erie ports. However, relatively little ore is sold to concerns not affiliated with ore producers. Practically all ore deposits are owned or controlled by iron and steel pro- ducers. Eastern magnetites, as concentrates, and usually sintered, are sold at so much per unit of iron, delivered at furnaces. Railway Tonna e Statistics on Iron Ore Brown ores of the South are bought and sold on the "dry" basis, FOB blast furnaces, at so much per unit of iron, analyzed at 212 degrees Fahrenheit. In the few cases where red or hematite ores are bought and sold in Alabama the price is reached by agree- ment. } 26 By five year intervals from 1915, the tonnage of iron ore handled by the railroads has fluctuated between 35,000,000 tons in 1935 and 84,000,000 tons in 1920. It was 100,000,000 tons in 1941, increasing to 112,000,000 tons in 1942 and 104,000,000 tons in 1943. As would be expected, the great preponderance of this tonnage is reported by railroads included in the Northwestern Region. However, this is not true nearly to such extent as re- gards the distribution of revenue from iron ore. Slightly more than half the total revenue accrues to railroads in the Western District and somewhat less than half to railroads in the Eastern District, with about 2.5 per cent accruing to railroads in the Southern District. Revenue per ton from iron ore averages about 1.25 and has changed very little since 1930. Tax Conditions in the Lake Superior Region Certain conditions pertaining to state taxation of iron ore in the Lalo Superior Region bring about sharp increases in taxes on property as soon as the presence of underlying ore deposits becomes known. Ore Reserves C The heavy wartime draft upon the Lake Superior ore deposits has focused a good deal of attention upon problems having to do vath the depletion of this source of most of the country's con- sumption of ore. Plant locations are importantly affected by the relationships of the cost of assembling raw materials and the cost of marketing products. Pending the development of cheaper methods of utilizing low grade ores, the exhaustion of the Lake Superior } 27 T deposits would directly affect these relationships, with a correspond- ing effect upon the railway traffic interests involved. The conclusion is reached that under the estimated postwar demand, the Lake Superior deposits have a probable life of approxirately thirty years. Life expectancy of the deposits in New York, New Jersey and Pennsylvania ranges from thirty to sixty years, while the Alabama de- posits probably will last at least 250 years. / So far as is now know, deposits of suitable ore in other states are relatively small and unimportant. Canada has no importantly large deposits of high-grade ore, but there are believed to be large quanti- ties of suitable ore available in Cuba, Brazil and Chile. (+ 28 P ACIFIC O CE AN Wes во GON & :+': HYGTONK NEVAD A 4+ N4. I мо i A RIZONA M und T بہت MI X OX X с A G NEW MEXIC ADO с Map A UNITED STATES DEPARTMENT OF THE INTERIOR DA A SO O O A K GEOLOGICAL SURVEY RT-H O T H NEBRASKA T KAN N TEX OKLAHOM A MYNNES A my A Missp NS d LAKE SUPERIOR WISCONSIN RKAN MISISUS GULF D Yo? MISSISSIP INOIS voi LOUISIANA GA LAKE MICHI DI I xx G P A Z KENTUC TENNESS хо F AKE HURO LAKE ERIE LONTARIO GEORGIA OF MEXICO NORTH CAROLINA SAU TR CAROLINA MAP SHOWING DISTRIBUTION OF IRON ORE DEPOSITS IN THE UNITED STATES Prepared by E.F. Burchard 100 200 300 400 500 MILES 1938. NW • D A RK سهلى VT./N.H!! .x Z ATLANTIC ASS. CONN.; Souvera ОСЕА N EXPLANATION ▲ Hematite x Brown ore • Magnetite • Siderite 29 VERMILION RANGE MESABI RANGE CUYUNA RANGE MINNESOTA IOWA MISSOURI DULUTH Map B IRON ORE RESERVES OF LAKE SUPERIOR REGION AND EASTERN STATES GUNFLINT DISTRICT GOGEBIC RANGE WISCONSIN BARBOO RANGE MARQUETTE RANGE LAKE SUPERIOR: MENOMINEE RANGE ILLINOIS MAYVILLE RANGE CHICAGO INDIANA HARBORÍ JOLIET LAKE SUPERIOR IRON RANGES EASTERN IRON ORE DISTRICTS BLAST FURNACE LOCATIONS SOURCE: THE LAKE SUPERIOR IRON ORE ASSOCIATION LAKE MICHIGAN WELLS ARY NEWBERRY INDIANA MICHIPICOTEN DISTRICT SAULT. STE, MARIE MANCELONA MICHIGAN DETROIT TOLEDO OHIO @HAMILTON KENTUCKY - LAKE HURON LORAIN MOOSE MOUNTAIN DISTRICT PORTSMOUTH ግ ASHLAND VALLEYS DISTRICT LAKE ERIE JACKSON HAMILITON ● PORT COLBORNE STEUBENVILLE DISTRICT FAIRPORT CLEVELAN WHEELING DISTRICT ERIE CONNEAUT ASHTABULA WEST VIRGINIA ۔۔ CANADA LAKE ONTARIO • NORTH TONAWANDA BUFFALO LACKAWAN PENNSYLVANIA PITTSBURGH DISTRICT JOHNSTOWN • REUSENS VIRGINIA CORNWALL. EASTERN PENNSYLVANIA NEW YORK & MARYLAND DISTRICT CLINTON LYON MT. VT. STANDISH MINEVILLE TROY MIDVALE ST. PETERS FT. MONTGOMERY ( • WHARTON PORT IMPORTS f IMPORTS ST. LAWRENCE RIVER STERLINGTON: N. H. MASS. IMPORTS EVERETT ME. ATLANTIC OCEAN < } I IV. MATERIALS USED BY THE TRON AND STEEL INDUSTRY 30 B. Fuels Fuels used in blast furnaces and for generating heat in steel- plant operations are charcoal (wood), anthracite and bituminous coal, fuel oil (petroleum), natural gas, and electricity. Charcoal Charcoal is used only in small furnaces. It is not strong enough to withstand crushing and choking by heavy charges of ore and flux. In early days the use of charcoal was widespread, but consumption in the iron and steel industry began to decline when mineral fuels were introduced. From about 1910, electric furnaces gradually replaced charcoal for making high-quality iron and steel. Charcoal is now a by-product of hardwood-distillation plants, primarily operated for chemical by-products or wood. In some 10- calities the charcoal output could not be sold, and charcoal blast furnaces were erected and are operated by owners of wood-distilla- tion plants. B * In 1919 total United States production of charcoal was 410,000 tons and the iron and steel industry consumed 276,000 tons, 67 per cent. In 1939 production amounted to 212,000 tons and the indus- try consumed 39,000 tons, or 16 per cent. Production of charcoal · pig iron declined from 444,000 tons in 1910 to 66,000 tons in 1940, and increased to 101,000 tons in 1941, due to war demand for iron. The quantity of charcoal required per ton of pig iron produced has remained fairly uniform, at about 1,500 pounds. In 1943, four charcoal blast furnaces, with combined annual pig iron capacity of 107,200 tons, were in operation. were in operation. At the close of 1913 only two charcoal blast furnaces, with combined annual charcoal pig iron capacity of 56,190 tons, ere in operation. Charcoal shipments are generally made by rail in carload lots, minimum weight 24,000 pounds. Less than carload shipments are made in bags, barrels, or boxes, and are generally consigned for uses other than for ironmaking. Anthracite Coal Anthracite coal was introduced into metallurgical use in Pennsylvania in 1840, and immediately became the foremost fuel for pig iron manufacture. Use of anthracite in production of pig iron reached its peak in 1864, when 60.2 per cent of total pig iron was thus made. It then began to decline, due to use of bituminous coal ✓ } 31 and coke. In 1923 pig iron made with anthracite was insignificant, amounting to 1,000 tons. Since 1923, anthracite has been used for adding carbon to steel in open-hearth furnaces, but its main use in steel plants has been for general power, heating, and stand- by purposes. Bituminous Coal The earliest experiment in making iron with bituminous coal was in 1019, but success was not attained until coke was tried, about 1850. The iron and stcel industry now ranks about third a- mong consumers of bituminous coal, averaging 18 per cent of totalɩ Consumption by the industry increased 17 per cent between 1910 and 1943, from 72 million to 106 million tons. Coke The most extensive use of bituminous coal by the industry is for conversion into coke, both beehive and by-product. Such use consumes from 80 to 90 per cent of all coal used by the industry. In addition, a large amount of bituminous coal is used for gencral purposes such as boiler fuel, gas manufacture, general heating pur- poses, etc. • Coke is the residue after volatile matter in bituminous coal has been driven off by exposing coal to temperatures between 2,200 and 2,500 degrees Fahrenheit. Coke was first made by a pit method in which the coal yielded 40 to 45 per cent coke. Later coking operations were carried on in an oven or kiln, resembling a large beehive, hence the name "beehive process" Beehive ovens in operation reached a peak of 10,000 in 1909 and then declined to 15,000 in 1940. The yield of coal into coke by this process varied from 51 to 67 per cent by weight, according to quality of coal. The United States average is 64 per cent. The by-product process has now largely superseded the beehive process, but many beehive ovens are maintained for standby purposes hen coke demand is high. A A In the by-product process conl is not burned, but is distilled or carbonized by applying heat without contact with air. Distil- lation removes volatile matter as gas and vapor, leaving coke. Many valuable by-products are recovered from the gas and vapor; hence the name "by-product process". Average yield of by-product coke from bituminous coal is about 71 per cent by weight. The by- product process was introduced in 1893, but the iron and steel in- dustry did not adopt it until 1902. By-product ovens in operation increased from 1,085 in 1900 to 10,881 in 1920 and to 14,253 in 1943. 32 C H The majority of by-product coke ovens now operate with blends of high and low volatile coals. Yields of by-products is decreased by blending but the decrease is more than compensated for by in- creased output of blast furnaces when using better cokc. Furnace Plants and Merchant Plants The major steel companies on and operate by-product coke ovens with capacities ample to meet normal coke requirements. These coking plants are termed "furnace" plants. In addition there are many by-product coke plants affiliated with chemical, alkali, artificial gas, and other industrial enterprises, operated prim- arily to obtain the by-products. They are termed "merchant" plants. ¡erchant plants sell all by-product coke they produce, the iron and steel industry taking from 35 to 40 per cent of it. This is equivalent to about 10.7 per cent of total by-product coke con- sumed by the iron and steel industry. Sources of Coking Coal In 1942, Pennsylvania, West Virginia, Kentucky and Alabama, in that order, furnished 95 per cent of all coking coal produced. The remaining 5 per cent came from Virginia, Colorado, Utah, Hew Mexico, Illinois, and Indiana. Coke Production and Consumption Total United States coke production increased from 41,581,000 tons in 1915 to 57,072,000 tons in 1940 and 71,676,000 tons in 1943. Consumption in the iron and steel industry increased from 33,650,000 tons in 1915 to 45,474,000 tons in 1940 and 61,585,000 tons in 1943. · Annual consumption of coke in the iron and steel industry averaged 77 per cent of total production in the United States from 1915 to 1940, inclusive, and 83 per cent from 1940 to 1943, inclu- sive. Between 1910 and 1940 total production of coke and consump- tion in the iron and steel industry increased 37 and 62 per cent, respectively. Between 1940 and 1943, effect of war demand for iron and steel is apparent in a 10.3 per cent greater increase in consumption by the industry than in total United States production for the same period. Percentage distribution of consumption by industry, by states, was approximately the same in 1942-43 as the 1925-42 average. Pennsylvania consumed 37 and 36 per cent, re- spectively, in 1942 and 1943. Ohio ranked second with about 15 per cent in both years, and Indiana was third. Coke required per ton of pig iron and ferro-alloys was approximately the same in 1910 and 1943, about nine-tenths ton. 33 Consumption of Beehive and By-product Coke Beehive coke consumption was between two million and seven million tons in the four years, 1940-1943. Bechive coke has always been of minor importance in all states except Pennsylvania. Of average annual United States consumption in 1935-1939 of 778,000 tons, Pennsylvania accounted for 610,000 tons. Prior to 190 Pennsylvania consumed about 80 per cent of total, but under war demand in 1940-1943 this increased to more than 90 per cent. By-product coke consumption increased from 17.1 per cent to 99.5 per cent (1,800,000 to 22,467,000 tons) or total coke consumed in the industry between 1910 and 1935 and declined to 87.9 per cent in 1942. Volume of consumption increased from 22,167,000 tons in 1935 to 51,842,000 tons in 1942. · Bituminous coal required for by-product coke consumed in the iron and steel industry increased irom 27 million tons in 1930- 1934 to 77 million tons in 1943. Major consumption of by-product coke is in Pennsylvania. 1935-1939 by-product coke consumption in blast furnaces averaged 29,218,000 tons and consumption in Pennsylvania was 9,548,000 tons Since 1920, more than 29 per cent of all consumption of by-product coke in the industry has been in Pennsylvania. Sales and Shipments of Coke In the manufacture of by-product coko a sizeable quantity is rejected on account of size, quality, and other causes. All of this coke that cannot be used around steel plants is sold to other industries. The 1935-1940 average of coke sold by furnace plants to outside industries is 2,568,000 tons, 8.3 per cent of total by- product coke produced. In Smaller blast furnace plants without coke ovens obtain coke supplies from larger companies. The 1935-1942 average of 2,686,000 tons of by-product coke furnished smaller plants, is 7.4 per cent of total by-product coke consumed in the iron and steel industry. Quantities of coke also are purchased from merchant plants for blast furnace and other uses. An average of 3,876,000 tons or 10.7 per cent of all by-product coke consumed by the industry, was obtained from merchant plants during the eight-year period 1935-42. By-product coke ovens are located at blast furnaces and steel mills and coal is hauled from the mines to the ovens. Beehive coke is made at or adjacent to coal mines and is transported to blast furnaces. > ; Coke Breeze Coke breeze (made up of dust and fine particles) is a waste pr oduct at beehive plants. At by-product plants it is used for boiler fuel, producer gas, sintering, etc. Production in the industry amounted in 1935 to 1,817,000 tons and in 193 to 3,759,000 tons, and has declined from 8 to 6 per cent of coke consumed. This decline is due to greater care in handling furn- ace coke. From 1935 to 1942 more than 86 per cent of total breeze produced in furnace plants was used by producers. By-Products of Bituminous Coal All volatile matter from by-product coke ovens passes through condensers and successively separates into coke-oven tar, light oil, ammonium compounds, and coke-oven gas. With the exception of coke-oven gas, practically all of which is consumed as fuel, the other primary by-products can be cracked and broken down into many derivatives in demand by other industries. . Coke-Oven Tar Total value of all by-products of bituminous coal sold in the United States in recent years has increased from about 164 million in 1929 to $182 million in 1943. 34 Crude tar yields road tars, creosote oil and pitch, and these yield many derivatives. Total tar production increased from 360,664,000 gallons in 1920 to 738,167,000 gallons in 1943. Furn- ace plants accounted for 70 per cent or more of production. Ef- forts to diminish use of tar for heating open-hearth furnaces have resulted in a steady decline in consumption by the industry from 68.3 to 16.1 per cent (233,293,000 to $1,620,000 gallons) of pro- duction between 1925 and 1943. Hore than 60 per cent of total sales of tar now come from furnace plants. New York ranked first in total by-product coke-oven tar sales from 1930 to 1910, inclu- sive. Ohio was in the lead from 1941 to 1943, followed by New York. Ammonia Ú Crude tar and creosote oil are shipped in tank cars, minimum weight 30,000 pounds. Pitch is shipped in both tank: cars and drums, 40,000 pounds being the carload minimum. Ammonia, a gaseous compound, is readily absorbed by water, forming ammonia liquor, or combined with sulphuric acid, forming ammonium sulphate. Armonia liuor from coal distillation is not much in demand now. Ammonium sulphate is greatly in demand as a fertilizer. S 35 Between 1930 and 1943, furnace plants produced from 78 to 85 per cent of total ammonium sulphate and between 23 and 40 per cent of ammonia liquor produced at all plants. Pennsylvania is the leading producer of ammonium sulphate, with 34 per cent, 518 million pounds, of total production of 1.5 billion pounds in 1943. Then followed Ohio, 1.3 per cent, Indiana, 10.4 per cent, and Alabama, 9.5 per cent. Michigan and Ohio are by far the leading producers of ammonia liquor, together accounting almost equally for 41 per cent of total production of 68 million pounds in 1943. Ammonium sulphate is ordinarily shipped in burlap and paper bags, in 100 and 200-pound sizes. However, under War Production Board control, major quantity is shipped in bulk, in paper lined cars, minimum carload 10,000 pounds. There is some barge movement out of Chicago and Pittsburgh districts, but the bulk of shipments is by rail. Ammonia-liquor shipments are in tank car lots, with a carload minimum of 30,000 pounds. Light Oils Production of light oils in all plants declined from 200,594,000 gallons in 1929 to 73,763,000 gallons in 1932 and increased to 250,511,000 gallons in 1943. Production in furnace plants has ranged between 70 and 87 per cent of total production. About 165 million gallons of derivatives (benzol, toluol, xylol, etc.) were produced annually in furnace plants in 1941-1943, more than double 1934 production and about 10 per cent above 1939. All derivatives are sold to consumers outside the iron and steel industry. Rail shipments of light oil, benzol, toluol, and xylol are in tank cars, 30,000 pounds minimum carload weight. Coke Oven Gas Gas generated in by-product coke ovens is a useful by-product. In the iron and steel industry about 50 per cent is consumed in steel plants, 36 per cent in heating coke ovens, 5 per cent in firing boilers, 8 per cent sold, and 1 per cent lost or wasted. Fuels for Miscellaneous Uses Gases from blast furnaces and coke ovens are not sufficient to furnish all the heat needed by the iron and steel industry. Large quantities of fuel oil, gas and electricity are also con- suncd. Consumption of fuel oil in steel plants increased from 130 million gallons in 1914 to more than two billion gallons in 1943. Available data on consumption of coke-oven, water, producer, and natural gas in steel plants makes no distinction among them. 36 B Coke-oven gas totals more than 50 per cent of consumption. Nat- ural gas approximated 6 per cent of total in 1929 and 10 per cent in 1939. Total consumption in steel plants in 1939 was 1,133,674 cubic fect, more than thirteen tir's as great is in 191 and 16 per cent greater than in 202 a About 1929 electrification of steel plants was actively be- gun. Some plants purchase electricity from outside sources t› meet peak demands. Electricity purchased increased from 3,546,617,000 kilowatt hours in 1929 to 11,212,000,000 kilowatt hours in 1943. Consumption in 1943 was six billion kilowatt hours greater than 1939. Consumption of bituminous coal for miscellaneous purposes in the industry (excluding blast furnaces) has declined steadily since 1914. Porcentage of total heat value contributed by bi- tuminous coal was 86.1 per cent in 1914 and 20.2 per cent in 1939. The percentages for gas and fuel oil were 7.5 and 2.8, respectively, in 1914 and 55.1 and 13.2, respectively, in 1939. The trend to gas is due to expansion of the by-product coking process within the industry, which affords huge quantities of coke-oven gas. J MATERIALS USED BY THE IRON AND STEEL INDUSTRY C. Fluxing and Refractory laterials Need for Fluxing and Refractory Materials Certain mineral substances, called fluxes, are necessary in smelting and refining iron and steel. Their purpose is to remove or reduce undesirable impurities by chemically combining with the impurities. Other minoral substances with refractory or heat resisting qualities are needed to repair and maintain furnace linings against wear occasioned by the high temperatures at which blast and steel furnaces are operated. Fluxing and Refractory Materials Limestone is the fluxing material most widely used in both blast and steel furnaces. Other fluxes are dolomite, metallurgi- cal lime and fluorspar, the latter two being confined largely to steel furnaces. Silica has fluxing qualities under some condi- tions but is rarely used for that purpose. - Dolomite, a form of limestone with high magnesium content, has wide use as a refractory, in both crude and deadburned, or calcined, form. 37 Use of Fluxing and Refractory laterials The chemical character of the impurities to be removed large- ly governs the kind and quantity of flux employed. The most com- mon impurities dealt with in smelting iron and steel are sulphur, silica, phosphorus and alumina. They are acidic and require the basic fluxes, limestone and dolomite. As the impurities in the ore or metal combine with the flux a slag is formed which floats on top of the molten metal and is easily removed. A small amount of dolomite is used by some blast furnace operators specializing in hard slag for road building, railroad ballast and construction purposes, because dolomito produces a much harder, wear-resisting slag. Air-cooled slag sold in 1941 totaled 13,169,000 net tons. To repair or maintain furnace linings, crushed or broken dolomite is charged into open-hearth furnaces. For repairing linings in vertical or inclined positions, dead-burned dolomite mixed with tar or other binder is applicd directly at any point desired. The dolomite quickly fuses into the damaged surface. T . Character of Materials 1 Limestone is a calcium rock, and dolomite is a form of lime- stone. When the magnesium content of limestone approaches 45 per cent it is called dolomite. Both are quarried. Limestone for fluxing purposes is selected for high calcium content and is sup- plied in crushed or broken form. Crude dolomite is selected for high magnesium content and is also supplied in crushed or broken form. Dead-burned dolomite is in granular form and is made by calcining crude dolomite cither at the quarry or at the steel plant, but ordinarily at. the quarry. Production and Consumption 38 Metallurgical lime is in dehydrated form and is made by cal- cining limestone at the quarry. Fluorspar is a non-metallic mineral either in transparent or translucent form of varying color. It is a mined product. Comparative Values of Fluxing Materials A favorable price differential usually controls the choice be- tween limestone and dolomite as a flux. On this basis limestone is the favorite except at Bethlehem, Pennsylvania, and Birmingham, Alabama, where nearby dolomite deposits give dolomite a cost ad- vantage. ping . SPAR G Fluxing Limestone Of the total of 142,025,000 tons of crushed and broken lime- stone sold or used in 1942 by producers, 21.3 per cent, or 30,259,000 tons, was fluxing limestone. Of this product, 97 per cent, or 29,508,000 tons, was consumed by the iron and steel in- dustry. Of the fluxing stone consumed in the six years, 1938- 1943, by the industry, an average of 17,307,000 ions; or 77.2 per cent, were used annually in blast furnaces and 5,090,000 tons, or 22.7 per cent, were used in open-hearth furnaces. An average of 748 pounds of fluxing stone is required per ton of pig iron pro- duced and 166 pounds per ton of ingot steel. Limestone is widely distributed throughout the United States, but four states, Pennsylvania, Michigan, Ohio, and Alabama, now supply about 88 per cent of the limestone used for fluxing. In the seven years, 1935-191, Michigan recorded the greatest in- crease in output. Since limestone is a cheap, bulky product, the selection of a source of supply is largely governed by nearness to place of use. { 1 • letallurgical Lime Lime produced in 1942 totalled 6,104,000 tons and of this 1,577,000 tons, or 25.8 per cent, were metallurgical lime. The percentage of metallurgical to total lime has nearly trebled since 1920 while the quantity sold or used in 1942 was nearly five times as great as in 1920. About 75 per cent, or 1,100,000 tons, was used in the iron and steel industry. letallurgical lime is a low-priced product, containing a high percentage of underburned and overburned particles. Per ton of ingot steel produced in open-hearth furnaces, about twenty-seven pounds of lime are consumed, and in electric furnaces, about thirty-six pounds. About 62 per cent of metallurgical lime comes from Pennsyl- vania, Alabama, West Virginia, and Missouri. Dolomite as a Flux In 1939, figures gathered by Census of Manufactures, United States Department of Commerce, covering limestone and dolomite consumed as flux in blast furnaces showed that 15.3 per cent of total fluxing stone was dolomite. Io separation has appeared since 1939. Using 15.3 per cent as representing dolomite, the quantity consumed in blast furnaces in 1942 was 3,621,000 net tons. Dolomite is used as a flux principally at Birmingham, Ala- bama, and Bethlehem, Pennsylvania. Dolomite as a Refractory Material The quantity of dolomite used for refractory purposes by the iron and steel industry is estimated for 1942 at approximately 2,600,000 tons. Consumption per ton of open-hearth ingot steel produced averaged fifty-two pounds for the eight years 1935-1912, but increased to sixty pounds or more in the war years. Dolomite deposits are widely distributed throughout the United States, but not as extensively as limestone deposits. The four states of Ohio, Pennsylvania, West Virginia, and Missouri furnish 76 per cent of the dolomite used for refractory purposes. 1 39 Fluorspar In 1942, the domestic production of fluorspar was 350,000 tons. Of this total 247,000 tons, or 68.6 per cent, was consumed by the iron and steel industry. Most of it was used as a flux in steel furnaces for removing sulphur. The lower commercial grade, containing not more than 97 per cent calcium fluoride, is used in steel plants. Most of the fluorspar consumed is domestic ore, mines in } • 40 Illinois and Kentucky furnishing 92 per cent of the amount used. Some is imported but for the seven years 1935-1941, imports rep- resented less than 10 per cent of the total consumption. liarketing Average prices per ton of fluxing stone in 1941, FOB points of production, were as follows: limestone 30.73, dolomite $0.73, dead-burned dolomite 8.52, and metallurgical lime $5.90. De- mand varies with the volume and rate of production of iron and steel. líany steel companies own and operate mines, quarries, and kilns, supplying much of their requirements. Operating economy requires that such bulky supplies be obtained from nearby sources, and fluxing and refractory materials are near at hand. Transportation The approximate railway revenue derived from transporting the principal material, limestone, is estimated at $0.85 per ton. The estimate is based on the average railway revenue on crushed, broken and ground stone for the years 1930-35-10-41-112. Available statistics do not permit an accurate breakdown of how limestone for use in the iron and steel industry was trans- ported, either as to tonnage or mediums employed. Truck, water, and rail are used separately and combined. Statistics on lime - stone transported by water are not listed separately but of all stone produced in the United States 16 per cent is shipped by wa- tor. Of the fluxing limestone consumed in blast furnaces, 66 per cent was used in Pennsylvania, Ohio, and Indiana, and 31 per cent more in six other states. Lost of the dolomite and metallurgical lime production is shipped by rail. Of domestic fluorspar, 75 to 85 per cent is shipped by rail and much of the balance by Ohio River barges. There is some trans- shipment around Pittsburgh from barges to rail for short hauls. There are no statistics on inland movement of fluorspar from the seaboard. Rates on fluting stone are slightly less than for crushed stone. The product has a steady, year-round movement from well- established sources to well-established destinations. Try Statistics on railroad freight revenue on fluxing stone aro not availablc, but a rough estimato shows the average for the years 1940-1942 as $3,541,000. Limestone and dolomite are handled in open cars, but metal- Pa G 41 وا lurgical lime, which is dehydrated and requires protection from Crushed stone the weather, must be transported in covered cars. carloads average fifty-six tons in weight. Fluorspar generally moves in carload quantities, minimum weight 40,000 pounds. It is generally shipped in bulk but occasionally may be sacked. * IV. MATERIALS USED BY THE IRON AND STEEL INDUSTRY D. Iron and Steel Scrap After iron has been extracted from its ore, it has almost perpetual value. By recirculation, as scrap, through some of the metallurgical and manufacturing processes by which it originally became a merchantable product, it can be made to serve again and again. Scrap is any ferrous material, alloyed or unalloyed, hav- ing iron or steel as the principal component. Scrap is discarded from industrial operations or is originated from obsolescence, failure, or replacemont. Iron and steel scrap is not waste, but a valuable material. Its use as a source of metal through substitution for pig iron creates value from the standpoint of conservation of national re- sources that will grow in importance with the growing depletion of domestic ore reserves. Iron and steel scrap is of two types, termed "home scrap" and "purchased scrap". "Home"! "Purchased" and "Battlefield" Scrap Home scrap is important to the iron and steel industry, but seldom enters trade channels. Large volumes of home scrap are produced in the industry from unavoidable causes in the production of iron and stoel. Purchased scrap, which originates in fields outside of the Onc- iron and steel industry, is a valued article of commerce. half is contributed by manufacturers and railroads and one-half by scrap dealers who collect it from varied sources. Only pur- chased scrap is marketed and transported. 42 1 Battlefield scrap returned from the battle fronts has been of importance, but it is problematical just how long such scrap will continue to be brought back after the termination of the war Scrap as a Pig Iron Substitute As a source of metal by substitution for pig iron in the production of steel, scrap replaces the following raw materials per ton of pig iron made: Iron Ore Bituminous Coal Fluxing Stone S 1.7 tons 1.3 tons 730 pounds * Scrap also saves smelting time. Thus it conserves both natural and industrial resources. Used in place of pig iron, the 21 million tons of purchased scrap consumed in 1943 by the iron and steel industry saved more than 70 million tons of iron ore, bi- tuminous coal and fluxing stone. Scrap provides practically 100 per cent metallic content per ton while iron ore, per ton, yields approximately 50 per cent of pig iron. Consumption of Scrap The use of scrap in steel plants began about 1897 when the open-hearth furnace became popular. From 1900 to 1942 consumption of scrap increased 960 per cent whereas iron ore consumption in- creased only 236 per cent in the same period. In 1943 more than 61 million tons of iron and stecl scrap, including both home and purchased scrap, were consumed, 83.5 per cent by the iron and stecl industry. The ratio of home scrap to purchased scrap consumed by all users has changed from 44.1 and 55.9 per cent, respectively, in 1910 to 56.8 and 13.2 in 1943. Blast and Steel Furnace Consumption Consumption of scrap (home and purchased) in blast furnaces is not large, averaging .036 ton per ton of pig iron produced. Only 7 per cent of the total purchased scrap consumed by the iron and stoel industry from 1935 to 1942 was used in blast furnaces. 43 Steel furnaces consume the bulk of purchased scrap, averag- ing 93 per cent of the scrap consumed in the iron and steel in- dustry for the nine years 1935-1943. Percentage used by types of furnace was as follows: Open-hearth Furnace Electric Furnace Bessemer Converters Per Cont 83.0 9.5 0.2 p The reason for the wide difference in consumption in blast furnaces and steel furnaces is that iron and steel scrap is al- ready a refined metal and has greater value in steel conversion, where refining is carried on, than in blast furnaces where the melted scrap would absorb carbon and impurities and be of no better quality than pig iron. The metal used in the production of steel ingots from 1935 to 1942 was derived as follows: 44 1 from pig iron 51.7 per cent from scrap (home and purchased) 48.3 per cent Production of Home Scrap Home scrap is not regarded by the iron and steel industry as a raw material but as that portion of metal "lost" in processing which is "recovered" and reused. The total metal so recovered in iron and steel industry dur- ing the four years 1940-1943 averaged annually 23,976,000 tons from steel operations and 2,701,000 tons from the production of pig iron. Metal Lost and Recovered in Processing Metal losses in the manufacture of iron and steel are con- siderable, but much is recovered and reused. In blast furnaces there is a net loss of about 2.5 per cent of total metal charged. In steel furnaces there is a gross loss of 11 per cent in the manufacture of ingots, of which about half is recovered and re- used, making the net loss about 6 per cent. In hot working of steel, from ingots to cold rolling, the gross loss in metal av- erages 27 per cent. luch of the metal is recovered in the form of cinders, scale, and scrap, but no figures of the amount are available. In cold rolling and fabricating there are also losses, but figures are not available. Consumption by Foundries and Other Users In the nine years 1935-1943, foundries and other users con- sumed an annual average of 4,455,000 tons of purchased scrap and 3,828,000 tons of home scrap. T PRO Froduction of Purchased Scrap In the war year 1943 when collection conditions were in- fluenced by covernment drives, manufacturers originated about 36 per cent, railroads about 1 per cent and dealers about 50 per cent of the purchased scrap. In prewar years, industrial scrap constituted about 80 per cent of all purchased scrap originated. Production consists principally in the collecting and sort- ing of waste materials and processing them for shipment. Mių For statistical purposes in past years shipments to consum- ers have been considered equivalent to production, but much of the quantity recorded in the folloring table, shipped by dealers to consumers, was originated by manufacturers, railroads and auto wreckers. These producers sold some of their scrap to dealers for 45 " processing and shipped direct to consumers the balance as noted in this table. From Scrap dealers Manufacturers Railroads Auto wreckers Total State 1942 Tons Per (000 omitted) Cent Pennsylvania Ohio Hichigan Indiana New York Illinois 23,924 2.947 919 428 28,218 Per Cent 85.1 10.5 3.3 1.1 Distribution of Production 22 12 7 100.0 תוס- ·1943 Tons (000 omitted) The state by state origin of purchased scrap shown by Inter- state Commerce Commission statistics on freight shipments was ap- proximately as follows in 1943: 19; 716 38115 1,672 111 State } 25,344 Per Cent New Jersey California Wisconsin Texas Maryland est Virginia 77.8 15.2 6.6 0.4 100.0 Per Cent NIJ~~~ 5 4 4 2 2 2 S Other States 24 Per Cent Grading Purchased Scrap The greatest activity in the purchased scrap market centers around scrap dealers. Their province is chiefly that of collect- ing from sundry sources and sorting scrap into kinds and grades according to needs of consumers. Scrap grading by dealers and yards is in conformity with standard specifications originated by the United States Bureau of Standards and the Association of American Railroads. In connection with price control, these specifications were combined by the Office of Price Administration into one specification which estab- lished thirty-three grades for steel scrap, forty-two grades for railroad scrap and seven grades for cast iron scrap. Consumption of Home and Purchased Scrap by All Users In 1943 the total consumption of both home and purchased scrap, by all users, totaled 61,699,000 tons, an all-time peak. The aver- 46 age for the four years 1940-1943 was 56,127,000 tons. In 1943 the total consumption of purchased scrap by all us- ers was 26,653,000 tons. The average for the four years 1940- 1943 was 24,645,000 tons. State Distribution of Total Purchased Scrap Consumption G Consumption of purchased scrap is a little more widely dis- tributed over the United States than consumption of iron ore, be- cause no pretreatment in blast furnaces is required. Being a re- fined metal, scrap is ideal for use in electric furnaces. Its use facilitates steelmaking in electric furnaces in areas where no blast furnaces are located. During the nine years 1935-1943, about 22 per cent of the total was consumed by foundries and other users. $ Pennsylvania Some of the leading states in purchased scrap consumption by all users, according to 1942 rank, are as follows: State Per Cent State Ohio Illinois Indiana 23 19 ୨ 8 Michigan-Wisconsin New York Kentucky-aryland California Gang 7 5 4 Per Cent Consumption of Purchased Scrap by Users Of the total of 26,653,000 tons of purchased scrap consumed in 1943, the iron and steel industry consumed 20,936,000 tons or 78.6 per cent. The remainder, 5,717,000 tons, was consumed by foundries and other users. For the nine years 1935-1943, the av erage annual consumption was 15,657,000 tons by the iron and stecl industry and 4,455,000 tons by foundries and other users. Consumption of Purchased Scrap by the Iron and Steel Industry Of the average of 15,657,000 tons of purchased scrap consumed annually in the nine years 1935-1943, by the iron and steel indus- try, 1,135,000 tons were used in blast furnaces, 12,999,000 tons in open-hearth furnaces, 38,000 tons in Bessemer converters, and 1,485,000 tons in electric furnaces. Statistics are available showing consumption by states or state groups, by types of furnace. In the nine-year period 1935-1943, the amount of purchased scrap consumed per ton of production was: for pig iron .027 tons; for ingot steel .234 tons. J Į 1 47 Foreign Trade in Scrap Foreign trade in iron and steel scrap was of considerable volume from 1934 until 1940 when the United States was the great- est scrap exporter among all countries. In relation to domestic consumption of purchased scrap, cxports varied betrem 11 and 30 per cont. The largest United States exports have gone to Japan, which purchased a total of 10,793,000 tons during the seven years 1934-1940, the peak being reached in 1939 at 2,279,000 tons. The Atlantic Coast and Gulf customs areas cleared from 71 to 86 per cent of United States exports between 1935 and 1940. Scrap imports have been small and insignificant in relation to domestic consumption. Maximum imports in 1917 were 251,000 tons, or approximately 1.8 per cent or domestic purchased scrap consumption. From 1930 to 1940 imports averaged about 50,000 tons annually, or .35 per cent of domestic consumption of purchased scrap. Imports from Canada, always our largest source of imports, have varied. The minimum was 23,000 in 1930 and the maximum 116,000 in 1920. . Marketing of Scrap As stated, scrap dealers are the principal factor in the col- lection, grading and shipping of scrap. Their numbers var from 10,000 to 15,000 or more if the small junk dealer is included. The 1942 sales volume exceeded $485,000,000. Prices of scrap since 1942 have risen and fallen generally as pig iron prices rose or fell but not always proportionately. The top price between 1913 and 1942 was in 1917 then it rose to 626.06 from a level of 9.25 in 1914. The low price in recent years was 6.74 in 1932 and the top price $17.41 in 1941; the ceiling price of 17.12 was fixed by OPA on April 3, 19!:1. Tonnage Available for Transportation The average amount of purchased scrap available for transpor- tation annually for the sixteen years 1928-1943 was 19,293,000 Lons. Railway Revenue from Scrap Railway scrap freight revenue averaged $24,118,000 annually between 1928 and 1942. It increased 126 per cent between those years. The Eastern District provided 64 per cent, Western 25 per cent and Southern 11 per cent. Revenue per ton averaged $2.24. Total revenue from scrap averaged .7 per cent of total United · I States railway carload freight revenue from all sources in this period. 1 1 Iron and Steel Scrap Handled by Railroads Annually, in the sixteen years, 1928-1943, the railroads car- ried as revenue carload freight en average of 11,300,000 tons or 58.6 per cent of the iron and stel scrap transported. In addi- tion, the railroads shipped to consumers in the years 1942-1943 an average of approximately 1,300,000 tons of railroad scrap on a non-revenue basis as company material. This was 4.6 per cent of purchased scrap shipped. It is estimated that an additional 2.7 per cent of all purchased scrap was company material shipped to dealers and others for which no records are available. Total railway shipments are thus estimated to be 64.5 per cont. Tonnage per car averages about forty-two tons. Scrap Shipped 3y Kotor Truck It is estimated that between 20 and 25 per cent of total scrap requiring transportation is hauled to consumers by motor truck from local dealers, manufacturers, and other sources. Shipments by All odes of Transportation The following tabulation, based on recorded statistics and estimates, shows the approximate division of traffic among the different transportation facilities during the six years 1935- 1910. Railroads Iron and Stool Scrap Shipped by Water Routes Approximately 6.4 per cent of all scrap transported is re- corded as shipped by inland and coastwise water routes during the six years 1935-1940. It is estimated that additional unrecorded shipments by water will bring total water shipments to 0.5 por cent. Mode of Transportation Revenue Freight Company laterial (Estimated) Tater (Estimated) Hotor Trucks (Estimated) Unaccounted for Per Cont Por Cent 57.0 7.5 621.5 3.5 20.0 to 25.0 W 48 2.0 to 7.0 100.0 Mo = IV. MATERIALS USED BY THE IRON AND STEEL INDUSTRY E. Alloying Elements and Coating laterials Alloying elements are metals or non-metals possessing chemi- cal affinity for iron and steel. They are added, singly or com- bined, to molten iron or steel for some specific metallurgical effect or to gain some physical or chemical quality not present in the basic metal. Ferro-alloys are fused compounds of iron and alloying elements, in which the quantity of each element present is measured and precisely known. This is the form in which the greatest tonnage of alloying materials is produced and consumed. Metallic coating materials are metallic elements with which surfaces of iron and steel products are coated or covered to af- ford protection against oxidation or che.ical attack. grand S 49 Production of Ferro-alloys The United States Jureau of lines and the American Iron and Steel Institute publish statistics covering production of ferro- alloys, but they are not in accord. Differences between American Iron and Steel Institute and United States Burcau of ines figures are insignificant in most years, but in 1935 and the three years 1938-1940 they were substantial. In 1935 production of ferro- alloys amounted to 663,000 tons, as compiled by the American Iron and Steel Institute and 611,000 tons, as compiled by the United States Bureau of Ines. Corresponding figures for 1940 vere 1,327,000 and 1,221,000 tons. Quality Production statistics for ferro-alloys, by states, are com- piled by the American Iron and Steel Institute. The United States Bureau of lines publishes no state distribution of production. Pennsylvania has the largest production because of steelmaking capacity centered in that state. In 1911 Pennsylvania produced 39.1 per cent (620,000 tons) or total ferro-alloys. In 1942 and 1943 Pennsylvania's percentage of United States production de- creased to 4.3 and 30.7 per cent, although its volume of produc- tion was 627,000 tons and 602,000 tons. Production in Virginia, Test Virginia, Alabar, and Tennessee, combined, increased in both tons and percentage in 1942 and 1943 over 1941. In 1941 those four states produced 160,000 tons of ferro-alloys which was 10.1 per cent of United States total produc- tion. In 1942 and 1913 they produced 16.9 per cent (300,000 tons) and 21.5 per cont (422,000 tons) of United States production. In 1943 New York and New Jersey, combined, produced 27.8 per cent and Ohio, Indiana, Illinois, Colorado and Tashington, combined, produced 20 per cent of total production. These percentages were about the same as in previous years. J 50 From 1925 to 1939, inclusive, production of ferro-alloys tended to fluctuate fairly closely with steel production. From 1939 to 1943, ferro-alloy production increased 126 per cent and ingot steel production 68 per cent. The marked increase in ferro- alloy production "as due to mr demand for greater quantities and varieties of alloy steels. Production of Ferro-alloys, By Kinds Ferromanganese and spicgeleisen (low-grade ferromanganese) combined rank first in quantity produced, ferrosilicon second and ferrophosphorus third. Percentage relationship of ferromanganese and spiegeleisen, combined, to all other ferro-alloys has de- creased from 63 per cent for the five years 1910-1914, and 50 per cent for the five years 1935-1939, to 41 per cent in 1943. Other alloying materials are growing in popularity because of many special types of alloy steel now being used. From 1921 to 1939, inclusive, production of ferromanganese increased about 160 per cent, spicgeleisen 62 per cent, and other ferro-alloys 213 per cent. From 1939 through 1941, the increase in ferromanganese was 92 per cent, from 303,000 to 581,000 tons; spicgeleisen 7 per cont, from 102,000 to 178,000 tons; and other ferro-alloys 10 per cont Gues No comprehensive figures are published showing total consump- tion of ferromanganese and spiegeleisen by the iron and steel in- dustry. For all practical purposes, production may be considered as equivalent also to consumption. - Production of ferrosilicon amounted to 10,000 tons in 1940. Total production, as published by the United States Bureau of Hines, plus imports, was 4,56,000 tons from 1925 to 1940 and ship- ments for this period totaled 1,547,000 tons. Ferrophosphorus is a by-product of the phosphorus industry. No statistics are available on the quantity of ferrophosphorus consumed by the iron and steel industry, but total production from 1936 to 1940 was 100,000 tons. Production and shipments of ferrotungsten have fluctuated up and down with steel production. Production in 1940 was 3,60!! Production and shipments are approximately the sane, indi- cating that ferrotungsten is shipped as produced. tons. Imports and Exports of Ferro-alloys Imports of ferromanganose and spiegoloisen from 1935 to 1939, inclusive, averaged 71,000 tons yearly, or 17 per cent of average yearly production for this period of 107,000 tons. } 1 1 7 From From 1935 to 1940 United States imports of ferromanganese came principally from Norway. In 1941 and 1942 all imports came from the United Kingdon and Canada and in 1943 from India, 53 to 79 per cent of imports entered through the liaryland customs district between 1935 and 191. United States imports of spieg- eleisen from 1935 to 1943 were almost entirely from Canada. 51 Some ferrosilicon is imported, mostly from Canada, but in- ports are insignificant compared ith domestic production. Total domestic production from 1935 to 1939 was 1,552,000 tons, and imports for this period totaled 39,000 tons. Imports of other ferro-alloys are insignificant. They were 2,000 tons in 1935, 4,000 tons in 1937 and 2,000 tons in 1938. Exports of all ferro-alloys from 1931 to 1941, inclusive, averaged 8,000 tons per year. They were 12,000 tons in 1940, the peak year, and in 1941 fell to 22,000 tons. In 1939 exports of ferro-alloys were 9/10-per cent of domestic production and in 1940 they were 3 per cent. Principal customs districts for exports of all ferro-alloys in 1939 were How York and New Orleans. In that year, principal countries of destination for ferromanganesc and spiegeleison were Italy, Spain and Belgium and for other ferro- alloys, Canada, lexico, Australia, and China. Manganese Manganese is mostly made by the iron and ste:1 industry into ferromanganese. ilanganese content of ferromanganese varies from a low of 19 per cent to a high of 33 per cent. The low grade is called spiegeleisen. Kanganese ores are divided into three classes: 1. Metallurgical ore, having not less than 35 per cent manganese 2. Ferruginous ore, with less than 35 per cent manganese content 3. Manganiferous ore, containing 5 to 10 per cent manganese. While substantial amounts of these ores are produced in the United States, the domestic supply is not sufficient to meet do- mestic demand, and large quantities of high-grade manganese ore are imported. Production of domestic ores has increased from 95,000 tons in 1921 to 1,960,000 tons in 192. Imports ere 680,000 tons in 1920, and 1,160,000 tons in 1940. In all but four years of the period 1920-1942, Montana vos the leading domestic producer of metallurgical manganese ore, Montana produced 63 per cent (55,000 tons) or total in 1941 and 67 per cent (129,000 and 138,000 tons) in 142 and 1943. Ship- ments of domestic ferruginous grades of manganese ore have fluc- tuated widely from 1920 to 193. They reached an all-time high 1 + 52 of 512,000 tons in 1941. In that year Minnesota produced 80 per cent of total and New Mexico 13 per cent. Minnesota is the lead- ing producer of manganiferous ores in every year between 1920 and 193 except 1932. Since 1910 Minnesota has shipped virtually all the manganiferous ore. Shipments were highest in 1942, when they totaled 1,500,000 tons. Another grade of manganese used chiefly in making spiegeleisen is a zinc residuum. Host of it is produced in Now Jersey zinc mines as Franllinite. Shipments of zinc residuur have ranged from 1,000 tons in 1921 to 282,000 tons in 1911, the peak year. Practically all manganese ores produced are consumed in the iron and steel industry. In the manufacture of ferromanganese there are large losses of manganese metal by volatilisation and other causes. This loss averages 1.6 per cent, or 292 pounds of manganese per ton of ferromanganese made. It is gencrally re- ported that manganese utilized in steelmaking approximates four- teen pounds per gross ton of steel, or 12.7 pounds per net ton. Geographical distribution of consumption of manganese pro- ducts conforms in general to steel production capacity. ↓ Haryland and Pittsburgh are the principal customs districts for imports of manganese ore, all grades. In 1940 the liaryland and Pittsburgh custons districts combined accounted for 80 per cent of manganese imports. From 1925 to 1940 Russia was our largest shipper of manganese ores of 35 per cent or more mangan- ese content, averaging about 35 per cent during 1935-1939. Be- tween 1915 and 1924 Brazil ranked first, but fell off thereafter. The Gold Coast of Africa has core to the front since 1930 as a major source of imports. Countries of origin are not shown for imports of ferruginous manganese ore, but it may be assumed with- out great error that they are about the same as for high-grade manganese ore. Other Alloying Elements Primary or virgin aluminum is ordinarily too costly for gen- eral use in steel refining. Secondary aluminum and higher grades of aluminum scrap are generally used. There are no regularly published statistics on aluminum consumption by the iron and steel industry. The only data obtained show that less than one pound of aluminum is consumed per ton of steel produced. In Octobor 1941, 1,979 tons of aluminum were consumed and 7,236,000 tons of ingot stecl were produced, according to American Iron and Steel Institute figures, Due to shortage of alloying naterials during World War II, boron has had wider use than in prewar days. There are no pub- lished statistics covering use of boron or any of its compounds 53 The af in the iron and steel industry, nor are there any figures availa- ble from which an estimate can be made. Due to the small quanti- ty used in alloy steel, it is probable that total annual tonnage consumed to date is insignificant. Chromium is one of the most ridely used alloying elements in alloy steel. The greatest value of chromium as an alloy is in combination with nickel or vanadium. Chromium is extracted from the ore chromite. JURN About the only valuable domestic deposits of chromite are in California, where production fluctuates with supply and demand. Host of our supplies are obtained from foreign sources. In the twenty-one years 1920-1910, shipments of domestic chromite ore did not exceed 4,000 tons In 1941 they were 15,000 tons. Im- ports increased from 92,000 tons in 1921 to 620,000 tons in 1937 and to 1,115,000 tons in 191. Imports during peacetime years came principally from South Africa, New Caledonia, Cuba, and the Philippines. Principal ports of entry were Philadelphia, lary- land, and New York. Practically our entire supply of columbium, which runs less than 1,000 tons annually, is imported from Nigeria (Africa). No statistics are available of quantity used in steel alloys. No statistics are available of the amount of cobalt consumed in alloy steel, but it is small. Total yearly world production of cobalt metal is probably under 5,000 tons. Domestic produc- tion is insignificant. In 1940 imports of ore, oxides and ne tal combined totaled 5,692 tons. Copper consumed in copper-bearing steel increased from 1,000 tons in 1932 to 5,000 tons in 191. No records are available of total quantity of copper-bearing steel manufactured annually. On the basis of 5,000 tons of copper consumed and 25-40/100 per cent copper content, it would be between 1,250,000 and 2,000,000 tons. There is ample domestic production of copper to supply the needs of the iron and stecl industry. 05:00 The United States produces about 22 per cent of world output of molybdenum. United States production in 1942 was 20,470 tons. Production of concentrates from 1928 to 1940, inclusive, multi- plied eleven times in volume, from 3,000 tons to 33,000 tons, and metal content eight and one-half times, from 2,000 tons to 17,000 tons. From 1910 through 1943, increases vere 35 per cent for con- centrates and 82 per cent for metal content. Shipments of concen- trates reached a peak in 1942 of 65,000 tons, but declined in 1943 to 53,000 tons. No statistics are available covering ferro- molybdenum produced or consumed in the iron and steel industry, but it may be assumed that it is relatively small. // 1 1 54 In 1939 about 67 per cent and in 1940 about 19 per cent of United States production was exported. In 1939 Russia took 42 per cent of our exports and Japan took 21 per cent. Largest 1940 exports, 42 per cent, went to France and 31 per cent to the United Kingdom. Practically our entire supply of nickel is imported from Can- ada. Domestic production reached a peak of 116 tons in 1930. Secondary metal, recovered from scrap and other nickel products, amounts annually to as much as 5,000 tons. Nickel is imported as crude ore and matte, as nickel oxide, and as metal and alloy pigs. From 1920 to 1936, inclusive, im- ports of nickel in all forms increased from 21,000 tons to 53,000 tons, or 120 per cent, and from 1936 to 1940 about 72 per cent. From 1936 to 1940, inclusive, imports from Canada averaged an- nually 96 per cent of total. No records are available as to the quantity of nickel con- sumed by the iron and stecl indstry. No statistics on geograph- ical areas of consumption are available, but it may be assumed that consuming areas correspond with those for ferro-alloys in general. Selenium is derived principally as a by-product in copper refining. Statistics pertaining to selenium are few, with none relating to production of ferroselenium. From 1935 to 1940, do- mestic production has ranged between 113 tons in 1938 and 218 tons in 1937, and imports between 46 tons in 1937 and 90 tons in 1935. Tellurium is an elementary metal recovered mostly as a by- product of lead and copper refineries. The quantity used in iron and steel alloys is not large. In 1940 there were 43 tons of tellurium produced and 45 tons sold in the United States. Titanium is found in a great variety of orcs, chicf conner- cial ones being rutile and ilmenite. There is some domestic pro- duction of ilmenite and ratile, but the bulk of our sup_ly is im- ported from British India, Norway and Brazil. From 1920 to 1920, largest annual quantity of domestic concentrates was 6,270 tons of ilmenite in 1923 and 524 tons of rutile in 1927. The United States Bureau or lines has been restricted from publishing records of domestic production, since publication would reveal activities of individual companies. Between 1930 and 1939 imports of ilmen- ite increased each year, from 22,000 tons to 287,000 tons. 1940 they were 221,000 tons. New York, Maryland, and Philadelphia customs districts, combined, had CO per cent or more of total im- ports of ilmenite in each year from 1936 to 1940. In 1939 and 1940 New York ranked first. Imports of rutile have never cxceeded 1,000 tons. In 2 55 Wand 1 No statistics are available for consumption of titanium by the iron and steel industry. In United States production of tungsten orcs is confined to about nine states, with California and Hovada leading all others. Statistics of production are reported as concentrates reduced to 60 per cent metallic content. Some states produce richer ores than others, so that the basis of reducing all ores to 60 per cent metallic content does not always reflect actual tonnacos handled. Novada led all other states in production from 1932 to 1939. 1940 and 1941 California ranked first, followed by Nevada. United States production was 702 tons in 1930, compared rith 4,207 tons in 1939 and 6,567 tons in 1941. The United States Bureau of lines reported in 1941 that 75 per cont of ore and concentrates as con- verted into ferrotungsten and metallic tungsten, 20 per cent was added directly to furnaces in manufacture of steel alloys, and 5 per cent was used in various tungsten chemicals. From 1933 to 1941 the largest percentage of imports of tung- sten ore and concentrates have come from China in each year, but China's share has decreased from 20 per cent in 1933 (553 tons) to 54 per cent in 1941 (6,402 tons). Total imports in 1941 vere 11,925 tons, more than twice the 1940 total. Principal customs districts for tungsten imports from 1933 to 191 ore New York, Pittsburgh, and Buffalo. In prewar years, domestic sorcos furnished about one-half of United States vanadium requirements. Vanadium ores are con- verted into metal and ferrovanadium. Production of ferrovanadium from 1925 to 1935, inclusive, did not reach 2,300 tons in any year. From 1936 to 191, total metal from domestic and imported ores ranged botwcen 241 and 2,332 tons. J { No domestic production of zirconium ores has been reported by the United States Bureau of lines since 1927, all ore suplies used being imported from Australia, Dracil and India, and notal and alloys from Norway. Lports of ores, metal and ferro-alloys in 1940 totaled 17,111 tons. Imports in 1940 were almost twice as great as the highest previous year, 1937, and more than four times as much as 1939. No records are available of the quantity of zirconium and alloys consumed in the iron and steel industry. Hoever, tho quantity is quite s.all. Coating Materials The iron and steel industry consumed approximately 1 por cent (or less) of the total 190 consumption of lead in the United States. Its consumption of load for torne plate reached a peak of 9,000 tons in 1941. 3 + 56 In the iron and steel industry tin is used in coating soft stcel plates, a large proportion of which cre used in manufacture of food containers. Weight of coating varies from 1.5 to 1.7 per cent of total weight of the plate. Fin is also used in co:bina- tion with lead for coating terne plates. There is no domestic tin production worthy of notc. The largest quantity in recent years totaled 189 tons, in 1937. Host of this came from South Dakota. From 1933 to 1941 imports of tin metal and ore concentratos have ranged between 15,000 and 190,000 tons. In orts of tin and ore concentrates have increased considerably in 1940 and 1991 over previous years. Practically all imports were metal up to 1941. In 1941 they were 83 per cent retal and 17 per cent con- centrates. An average of about 30 por cent of the available sup- ply from 1935 to 1941, inclusive, was consumed by the iron and steel industry. From 1935 to 1941, an average of 10.5 pounds of tin were consumed per ton or terno plato produced and 32.4 pounds per ton of tin plate produced. Ho geographical distribution of tin consumed by the iron and steel industry is available. W gabady Principal use of zinc in the iron and steel industry is for coating or galvanizing iron and steel plates and sheets to protect against corrosion. From 1933 to 191 domestic mine production of zinc has been between 30,000 and 79,000 tons and imports between 4,000 and 230,000 tons. From 1933 to 1933 iports were less than 10 por cent of domestic ine production. In 1939 they were 11 per cent, in 1940 over 29 per cont, and in 1941 about 31 per cent of domestic mine production. The iron and steel industry consumed about 40 per cent of the available supply of zinc in the eleven years 1933 to 1940, inclusive. Transportation No statistical data aro published concerning transportation of alloying elements and coming materials, except ferro-alloys. The United States Durcau of Mines reports shi vents of ferro- alloys averaged annually about 17,000 tons from 1930 to 1934 and 834,000 tons from 1935 to 1939, inclusive. For the ten poors, shipments approximated 98 per cent of production. A I f V. PRODUCTION OF IRON AND STEJL A. Description of Hanufacturing Processes The main products of the iron and steel industry are pig iron, tonnage steels, and special or alloy steels. Tonnage steels may be divided into semifinished stecls and finished steels. The former are subject to further processing in the steel plant while the latter are ready to be marketed for manufacture into the final products in which they are used. Special steels ray be divided into high-grade carbon, low-quality alloy, high-quality alloy, tool, and stainless (rustless) steels. Iron is classified chemically by the amount of carbon it con- tains. Then nearly free from carbon, it is called trought iron. Then the carbon content is above 1.7 per cent it is classified by the industry as pig iron. M 57 Steel is an alloy of carbon and iron. It is an intermediate material between pig iron and rought iron. Various other ele- ments may be added to steel because of their effect on its physi- cal properties. Carbon steel is the heavy tonnage or standard product of the industry. The principal processes of making iron and stecl, together with the production of semifinished and finished steel products are described in the following sections: Chart 1 shows the various steps in the manufacture of steel products from ingots. 1. The Blast Furnace The blast furnace is the me ting place of the raw mater- ials, iron.ore, coke, and limestone from which pig iron is pro- duced. The process of converting iron ore into metallic iron, i.e., pig iron, consists of charging layers of coke, i'on ore, and linestone into the blast furnace and blowing a blast or air, heat- ed to about 1250 degrees Fahrenheit, up through the mass. Gang The coke burns in the air, thus generating heat and gases which melt the charge and promote certain chemical reactions. The gases formed by the combustion of the coke combine with and remove the oxygen of the ore, while the molten limestone combinesith the earthly mattor of the ore, causing it to become fluid and sep- arate as a scum or slag, leaving molten iron. 58 The blast furnace is a huge steel shell, is as much as 100 feet high and lined throughout with heat resisting brick, in- to the top of which the raw materials are loaded. Since the hot blast enters the furnace from the bottom, the furnace is hottest there, and as the raw materials relt and decrease in volume the entire mass of the charge descends. As the charge descends through the increasing heat, some of the oxygen in the ore reacts with the hot gases of the rising blast and is removed. Further do n he furnace the coke acts to take out still more of the oxygen in the ore, and the lirestone bugins to crumble and reacts with impurities in the ore and coke to form a molten slag. In the production of one ton of pig iron, almost two tons of iron ore, almost one tone of cole and a little less than half a ton of limestone are consumed. In addition, about 10,000 cubic fect of air, weighing nearly four tons, are blowm through the furnace for each ton of iron produced. Every four or five hours the pool of iron and slag is tapped by burning out a plug in the bottom of the furnace with an oxygen blowpipe. The slag, being lighter than pig iron, floats on top, and is easily removed. A large modern blast furnace can produce as much as 1,000 tons in trenty-four hours. If the pig iron is to be used for stocinaking purposes, it runs down a trench and into great ladlos, and is hauled in the molten state directly to the steel department. The refining effects of the blast furnace are limited. All of the phosphorous and ruch of the silicon, manganese, and sulphur originally prosent in the ore remain in the pig iron. addition, the iron picks up about 4 per cent of carbon from the coke. In Pig iron has littlc use other than as a row neterial for steel or cast iron, largely because of the amount of carbon and other impurities which it convains. Some pig iron is cast into "pigs", mostly for sale to foundries or steel mills which do not produce their own iron. Open-hearth Process Open-hearth furnaces are charged with cither pig iron, scrap iron, or a combination of both. The iron is part of the raw materials which will be refined into steel. The refining operation consists first of removing excess 2. • • A ALL 1 Ingots D Sol doop goooo Dob Soaking Pit Blooming or Slabbing Mill Blooms Billets Slabs Iron and Steel Products Steps in Manufacture from Ingots Oo Oo Oo Oo 00 10 oo Chart 1 00 Oo Sheet Bars இ 2 Skelp Yoye Tube Rounds Plates & Skelp Bars Hot Rolled Strip Rods 8 SUINTA Rails Hot Rolled Sheets Wheels Structural Sections Axles What Forgings Block Plate Galvanized Pipe & Tubes Wire Tin Plate Cold Reduced Sheets O B Cold Rolled Strip Cold Rolled Strip Plates Wire Products Terne Plate Black Plate Source: Office of War Information, "Victory Bulletin", Vol. 3, No. 52, p. 8, 1942. Hot Rolled Bars :D Concrete Bars Alloy Bars 1 Tin Plate Terne Plate Cold Finished Bars Tool Steel Bars :: :: Splice Bars & Tie Plotes Im 60 impurities from the pig iron, and then of controlling the quantity of those clements other than iron which are an essential part of stool. Although the term "alloy steel" is applied to certain stecls, all stools are alloyed to some extent. Open-hearth furnaces, in which more than 90 per cent of the steel is made, are rectangular, brick structures not unlike a kitchen oven, but built to operate at 3000 degrees Fahrenheit rather than at 550 degrees, which is about the maximum for a house- hold oven. They are called "open-hearth" because the hearth or floor of the furnace is open to the sweep of the flames which melt the metal. Gas Gras, coal, oil, or tar may be used as fuel, which is ac mitted through the ends of the furnace. To aid combustion previous- ly heated air is blorn in along with the fuel. The front side of the furnace contains the door through which the raw materials are charged, the refined steel being dram off from the recr. The floor level or tapping side is lower than on the charging side so that the molten stool can low by gravily into the waiting ladlo. Steel can be made in an open-hearth furnace from a charge consisting of either 100 per cert pig iron, 100 per cent scrap iron, or any combination of both. ¿ The most widely used practices is to use both pig iron and scrap in the charge. A frequently used formula is 55 per cent scrap and 45 per cent pig iron. As much as 100 tons of steel may be melted at one time in an open-hearth furnace, although a 125-ton furnace is the most com on size. About twelve hours are required to produce a heat of open- hearth steel. During the first five hours the raw materials will be charged and melted, then for about six more hours the heat is allowed to "ork" while the refining action takes place. Semplos of the molten metal are taken from the furnace from time to tiro and sent to the laboratory for a check on the chemical analysis. The requirements of the countless users of steel are so varied that stool must be truly tailor-made, and the last hour in the furnace is the climax of the meltcr's efforts to insure that the composition of the heat moots the particular specifications. When the heat is finally completed and up to specifica- tions, the furnace is "tapped" by knocking out a plug at the back G } } . * 61 of the furnace, allowing the molten metal to flow into a ladle. The slag, which is much lighter than the steel, floats on top and overflows into a smaller ladle. 3. Bessemer Process In the Bessemer process steel is made by blowing air through molten pig iron. Oxygen in the air combines with and burns away most of the impurities in the pig iron, thus refining it into steel. No fuel other than the oxygen in the air is needed, be- cause the chemical reactions give off so much heat that the temp- erature of the molten metal is actually raised durin; the process. Bessemer stecl is made in a converter, a pear-shaped tilt- ing vessel made of steel plates lined with heat resisting bricks and clay. A common size will hold fifteen tons of molten pig iron. The converter has a double botton, the lower portion of which is an air chamber. Above this is the bottom of the vessel itsel, per- forated with several hundred holes through thich about 20,000 cubic feet of air per minute is blown up through the molten metal in the vessol. In charging the converter is tilted on its side and pis iron is poured through the open top. It is then returned to a ver- tical position as the blast is turned on. Brilliant sparks burst forth, followed by dense fues and flames which means the silicon and manganese are being burned out. After five minutos or more the flame becomes brilliantly luminous as the carbon burns out. After about fifteen minutes the flane dies indicating the impurities have becn removed. The furnace is then tilted and molten alloys of iron with some manganese and other elcncnts are added to remove any gases and bring the stcel to the specified composition. About 7 per cent of the steel made today is produced by this process. Bessemer steel has many uses but the more rigid con- trol of chemical composition afforded by other processos cannot be easily attained in the Besserer process. 4. The Electric Furnace Process Steels of the highest quality including stainless steels and many alloy steels are generally produced in electric furnacest where melting and refining can be most closely controlled. Electric furnaces of the type most widely used are steel shells, lined with heat resisting brick. Large sticks of carbon, called electrodes, extended dorm through the roof of the furnace to within a few inches of the metal in the furnace. When the cur- rent is turned on, electric arcs, similar to those in arc lights 62 1 used for strect lighting or in home "sun lamps", are struck be- tween the clectrodes and the charge of metal, producing the nec- essary heat for melting. Electric furnaces may use a charge of scrap iron and steel, although sometimes molten open-hearth or Besserer stool is still further refined in the clectric furnace. Then alloy steels are to be made, the alloying rotals such as nickel, chromium, tungsten, etc., are added cither as pure metals or as "ferro-alloys" A heat of twenty-five tons of steel can be produced in an electric furnace in about four hours if the charge is molten metal, or in about six hours if the charge is cold scrap. When the heat is completed the furnace is tilted and the steel allowed to run out the spout into a ladle from which it will be poured into ingot molds. About 1 per cent of the steel produced today is made in electric furnaces. 5. Ingots That all steel begins in the ingot is a traditional say- ing in the steel industry. Whether tin plate, wire, or a heavy girder, it was at one time a part of one ingot -the first solid form which steel takes. The steel produced by any one of the processcs described is liquid, and unless it is to be cast while molten into molds to nake some special form of steel casting, it is poured into an in- got mold to solidify. Ingots can be of many sizes and shapes, but in general they are large rectangular blocks. A typical open-hearth inget may weigh five tons, but Dessemer and electric furnace steels are usu- ally cast into smaller ingots. The operation of casting molten steel in ingot molds is called "teering"} Si Ingot molds are generally made of cast iron and are open at both ends. When they are ready to be filled they rest on heavy, cast iron plates called stocls. Usually about seventy ingots can be cast in one mold before the mold must be scrapped, and used it- self as part of the charge of an open-hearth furnace. Ladles used for teeming are built to pour from the bottom in order that the slag floating on top of the stoel in the ladlo will not enter the mold. Records are kept of each heat so that it is possible to toll at any time from which furnace the steel in a particular ingot came. Some finished products even have the heat number rolled into them in raised lotiors when they are shipped # 63: from the steel mill. Railroad rails bear not only the name of the stecl company which produced them, but also the date, and a number identifying the heat of steel from which each rail was made. Other heavy steel products like structural shapes may be similarly marked. As soon as the steel in the ingot molds has solidified sufficiently, the molds are stripped off by powerful machines. The plunger between two jaws of the machine holds dom the ingot while the jaws, which grasp the lugs on the top of the molds, pull the mold from the ingot. Before the ingot can be rolled it must be "soaked" in heat. To accomplish this the ingots are placed vertically in furn- aces called soaking pits,here they remain until they are brought to a uniform temperature of about 2200 degrees throughout. When in- gots are put into the soaking pits -hile still red hot, they vill be thoroughly soaked after an hour or so. Six to eight hours in the pit is needed to bring cold ingots up to rolling temperature. When a uniform temperature suitable for rolling is attained the ingots are lifted from the pit by huge, crab-like tongs. In- purities which may be in stel have a tendency to segregate in the top of ingots, and therefore, as a first step in assuring that only sound steel is sold, the top part of the ingot is cut off by great shears before rolling. Sometimes as much as 1,000 pounds of steel may be thus "cropped" from a single ingot perhaps ten per cent of its vei hú. Still more steel is similarly discarded from the products rolled from ingots so that on an average an ingot will yield only about 70 per cent of its weight in finished product. The rest is scrap, which goes back into the open hearth for another round. 6. Semifinished Steel Products K An ingot is a special kind of steel casting of a form and size suitable for mechanical worling. As a preliminary step to- ward forming steel into the various sections which its many uses require, the heery ingots are roughly reduced in size, by forging or, more commonly, by rolling in mills especially designed for the purpose, to much lighter but still very simple sections such as the round, square, or rectangle. After the ends of the elongated form obtained from rolling the ingot have been cut off and the remainder cut to specified weights or longths, the product may be designated as bloons, bil- lets, or slabs. Blooms are products of blooming mills and have a cross- sectional area greater than 36 square inchos, usual forms boing S I X 4 5 { 4:4 square or rectangular in cross-section, and special forms being designated as round or shape bloons. 64 Billets may be the product of a blooming or a billct mill, ono square or rectangular in section, and have a maximum cross- sectional area of 36 square inches and a minimum cross-sectional area of 1 inchos. Slabs may be the product of a blooming mill or a slabbing mill, are rectangular in coction, have a rinimum thickness of 1 inches, and generally a cross-sectional area of 16 square inches or more. Shoot bars are rolled on various types of rills and to specified weights per lincar foot. Blooms, billets, slabs, and shoot bars are semifinished stocl products which are further rolled or forged into finished steel products. Among the more important products of bloons or billets are bars, structural shapes, rails, skoly, shoot, and pipe. and tubing. The more important products of slabs are plate, strip, and sheet. Sheet bars are further rolled into shout. 7. Finished Stecl Products a) Flat-rolled Products Classified in this group are sheet and strip stecl, plates, and tin and terno plate. Of these, at present, sheet and strip steel are recognized as the most important products of the stool industry from the standpoint of tonnage produced. Shects are rolled from a semifinished product morn as a sheet bar. A jet of steam emanating from the machine serves to re- move the scale which forms on the steel during hot-rolling. At one time rills of this type rolled all the sheets produced, but not the bulk of these products is produced on continuous mills which will lover be described. ghing Shect bars are partially rolled out individually, then the artly finished shoels are placed one on the other and passed to- gether between the rolls until they cool and lose the plasticity of hot steal. They are then reparatod, and after being rehoated in a furnace are rolled finally to size. In rolling shoots less than about one sixty-fourth of an inch thick, tro or four of the partially rolled shects are placed in a pack and folded over longth- wiso. After rolling, the folded end of the pack is sheared off, the shoots separated and finished individually. Sheot steel is further rocessed in various ways. The 65 thinner sheets are usually "annealed" or baked in ovens to make them softer and more ductilo. Many annealed sheets are cold- rolled by passing them while cold through a pair of rolls to ob- tain accurate thickness and a smooth surface. Che Plates are produced from slabs, which are semifinished products like blooms except that they are wider than they are thick. The mills on which plates are rolled may be either "two- high" or "three-high", and may have an extra pair or two of smaller rolls set vertically. The vertical rolls produce a plate ith even edges, and if the mill docs not have vertical rolls, the edges of plates must be sheared after rolling to make them straight and even. Before the slabs are rolled they are put into furnaces and heated to a uniform temperature of about 2,200 degrees Fahrenheit throughout, after which they are ready for rolling. The slab is passed back and forth between the rolls until it has been rolled out to the proper thickness, after which the plate is flattened on a machine consisting of two rows, one above the other, of small rolls which iron out the plate. The ends are then trimmed accurately by powerful shears and the sides, too, un- less the plate was rolled on a mill having vortical rolls for roll- ing true edges. Tin plate is a thin sheet of steel coated on both sides with pure tin to guard the steal from corrosion and protect the materials which will be placed in the containers made from it. The shects arc rolled out by the methods previously explained in order to give them a snooth, glass-like finish. ! Gall Bofore the tin coating is applied the shoots are inspected for surface defects and those which pass inspection are then cleaned to remove any dirt, groase or other stains. The shoots are next immersed in a bath of molten tin and then removed and passed through a set of rolls which distribute the tin evenly on the surface. The tin plate is then cleaned and polished in a machine consisting of several pairs of rolls built up by mounting thousands of discs of Canton flannel on a shaft. Tin coatings nade of commercially pure in are of two kinds: one applied by the hot-dip processos and one by the electroplating methods. The hot-dip process ras mentioned above. Development of the electrolytic tin plate started about 192). This process had a markod development during World War II because of the tin shortare and the fact that the electrolytic process uses less tin for the coating which consists of a single layer or fila of tin hold upon the surface of the steel shout by forces of cohesion and kind of + + 5 } $ 66 mechanical attachment, commonly known as "rooting", Terne plate is prepared in the same manner except an al- loy of lead and tin is used instead of pure tin for coating the sheets. Galvanized shets are prepared by coating the sheets with zinc. Continuous mills, developed only a little more than ten years ago, have revolutionized the art of producing flat-rolled stecl. A mill approximately one-fourth mile long processes a white hot bulky slab, hich enters one end of the mill and passes through ten stands of rolls set in a straight line energing as a thin sheet or strip hundreds of feet long before it has a chance to cool. Continuous mills of the largest size will roll up to 80,000 tons of steel per year, and the total capacity of all the continu- ous mills now operating cr under construction is over 15,000,000 tons a year. The Continuous mills are four-high mills, each set or stand of rolls consisting of two small rolls between two much larger rolls. The steel passes between the two small ones or voring rolls. arrangement of four rolls, one above the other, permits rolling steel to a more nearly uniform thickness than is generally possible with fewer rolls because the pressure of the big rolls, "backing" the others, keeps the smaller ones in closer contact with the stecl. Furthermore, because the rolls which actually come into con- tact with the hot steel are small in diameter; they stretch and knead the metal more than a larger roll would, which makes for bet- ter steel. Each stand of the continuous mill rust operato faster than the one before it in order to take up the slack which would other- wise result as the steel is reduced in thickness and corresponding- ly lengthened. The speed of the mills is so accurately regulated that the strip is actually passing through several stands at the same time, yet normally no kinks occur, even though the strip e- merging from the final stand may be traveling as fast as twenty miles per hour. Strip hich is to be cold-rolled or otherwise fur- ther rocessed after hot-rolling is rolled in big coils. As much as 1,200 feet may be wound in a single coil. Strip which is not to be further processed is run out on long tables and cut to de- sired size. Strips as wide as 96 inches can be produced by continuous rolling, and most continuous mills regularly roll strip five fest wide. One of the most important uses for wide strip steal is in the construction of one-piece steel cutomobile tops, fenders, and body panels. 67 A large part of the hot-rolled sheet and strip stecl pro- duced on continuous mills is cold-rolled on similar mills, espec- ially in the case of steel which is to be used for automobile bodies. Before cold-rolling, however, the steel is first heated to relieve certain stresses set up during hot-rolling, although these stresses do not affect the usefulness of hot-rolled steel for many purposes. The healing also makes the stecl soft and due- tile. After the heat treatment, the steel is cleaned by "pickling", immersion in a dilute acid solution, to remove the scale which forms during hot-rolling and heat treatment. In the continuous cold-rolling mill, the strip is coiled as it emerges. The completed coil will contain as much as 1,250 feet of strip steel, perhaps five hundredths of one inch thick, produced from a single slab not more than twelve feet long and about six inches thick. Cold-rolling flattens and stiffens strip steel and gives it a better finish, qualities which are essential in strip steel used for automobile bodies and other products of fine appearance which are made by forming strip steel into intricate shapes. b) Steel Bers Steel bars are among the most widely used products of the steel industry. The automobile industry is at present the largest consumer of bars, but there is hardly any branch of industry which does not use bars, if not as raw materials, at any rate in machin- ery and equipment. Furthermore, large tonnages of bars are con- sumed every year in reinforcing concrete construction. Bars are rolled from billeus, a semifinished product usu- ally not over six inches square in cross-section. Bars vary great- ly in shape: square, round, half-round, oval, half-oval, hexagon, octagon, flat. All are standard bar sections. Serving Bars are rolled on several types of rolling mills, but usually there are several sets or stands of rolls through which the billet must pass before it becomes a bar. The rolls knead and shape the hot stecl in the same way as do the previously described mills for rolling other steel products. A substantial tommage of bars is "cold-drawm" in order to improve the finish of the pars and to make them accurate in size, after they have been rolled to finished form while hot. In this operation the hot-rolled bar is allowed to cool and is then pulled through a die. The die is a block of very hard steel through which has been cut a hole of the same shape as the bar, but very slightly smaller in dimension. The smooth walls of the hole burn- ish the surface of the bar, and at the same time bring the bar ↓ I F to the exact size required. } 68 c) Structural Shapes and Rails Classified in this group are structural shapes and rails, both of which are rolled from blooms. Structural shapes are produced by the steel industry in several hundred different sizes and shapes to meet the requirements of their many uses. In cross-section sone look like the capital letter I and others more like a capital H. Still others are simple angles like an L while some resemble T's and other Z's. Another important structural shape is the channel, a trough-like shape with a flat bottom and two short sides like an I split longthwise. Structural shapes are rolled from blooms on rolling mills consisting of several sets or stands of rolls, which may be either two-high or three-high. To roll a bloom into an I-beam, for in- stance, may require ten or more passes through the rolls. J The steel is brought gradually to the desired shape by means of grooves cut into the rolls and by collars projecting from them. The hot plastic metal is squeezed into the grooves and shaped by the projections, and is thus kneaded and molded into shape. The first operation in making a rail from a bloom is to "rough the bloom" by passing it as many as nine times through a set of rolls which reduces its cross-section and begin to molù it in the familiar T-form of a rail. The kneading action of the rolls helps male the steel sound and strong. After roughing, the steel goes five times through another set of rolls, growing longer and more rail-shaped after each trip through. A finel set of rolls puts on the finishing touches and brings the rail, which is now rolled out to as much as 120 feet in length, to the required size and shape. Jots of steam are blown on the hot steel to remove the scale which forms during hot-roll- ing. Circular saws of special steel cut the rail while it is still hot into the lengths ordered by the railroads, usually 33 or 37 fect. Rails are very carefully inspected at every stage of man- ufacture and exacting tests are made upon the finished "roduct to assure soundness. Such scrupulous care is taken during their an- ufacture that the average life of rails in service is about fifteen years, and there are still some rails in use today that were laid over fifty years ago. d) Tire Rods - Tire ہے ؟ ន 3 TATT The steel industry has the facilities to produce 163,600,000 miles of wire a year: enough to go around the earth 6,5 times, with some left over. Side by side at the equator the strands would form a band 35 feet wide, although each strand would be only half as thick as the lead in an ordinary pencil. 69 About 160,000 different uses for wire have been recorded, ranging from paper clasps and coat hangers up to farm fencing and down to watch hairsprings only three thousandths of an inch in thickness. The aristocrat of all wires is piano wire, used as strings for pianos, banjos, and other instruments were extreme strength and toughness are essential. A pull of more than one. third of a million pounds is needed to break an inch thick bundle of piano wires, while a square inch of the steel used to build a skyscraper can be broken by a pull only one-fifth as great. All steel wire is made from wire rods, a hot-rolled pro- duct usually round in shapo and wound in coils. The rods are thoroughly cleaned in acid and rinsed with water. Then follows an apparently contradictory stop. The rods are made to rust in order to keep them clean and to lubricate them during the wire drawing operation. For as long as fifteen hours they may be sprayed with water to promote rusting and then, after dipping in line and dry- ing in ovens, they are ready to be made into wire. The rire making process consists of drawing or pulling a rod through a series of dies, the hole in each successive die bo- ing smaller than the rod or wire passing through. After each trip through a die the rod or wire loses some of its thickness, but lengthons in proportion. After one trip through a dio a rod be- comes a irc. Dios must resist not only friction from the ire but also the tremendous force needed to pull steel through a hole smallor than itself. Hard cast iron, alloy steel and even real diamonds are used as die materials. The die hole is wider at the cntering side then at the exit side, and is carefully polished. The diamond dics, which are usually used in drawing the finer sizes of wire, are so hard that twenty miles of wire can be rawn through them without apreciable wear on the die walls. lost wire is round, but for some uses square, rectangular, oval, triangular, hexagonal, or octagonal wire is produced. . c) Steel Pipe There are two broad classifications of steel pipe. Welded pipo has a tight seam along its length while scanless pipe, as its name implies, has no seans or vold. To make trolded pipe, long, flat pieces of steel called "skelp" are first heated to about 2,640 degrees Fahrenheit, at which temperature pieces of steel can 70 The be permanently joined or welded together under pressure. skelp is then pulled through a hollow, bell-shaped iron die which curves the skelp passing through and welds a tight seam by but- ting one edge of the skelp against the other. S Another type of welded pipe is produced by passing white- hot skelp between a pair of rolls which curl it into the shape of a tube split lengthise. This unwelded tube is then reheated and drawn between a pair of grooved rolls and over a bullet-shaped anvil. Pressure of the rolls compresses the overlapping edges of the pipe which were previously beveled, against the anvil, thus producing a permanent welded seam along the pipe. Electric welding processes are also used to produce welded pipe. Skelp for making electrically welded pipe does not need to be preheated, since the heat for making the weld is generated elec- trically in the welding process. Seamless pipe is produced from a solid block of steel and has no weld or scam. The first operation is to soften the steel by heating it to about 2200 degrees Fahrenheit, after which a hole is pierced through it. Piercing is accomplished by two barrel-shaped rolls, sot at an angle. Both rotate in the same direction, rather than in opposite directions as in a rolling mill. The rolls squeeze the steel from two sides, causing the other two sides to bulge. They also rotate the steel so that each point on its surface is alternately squeezed and bulged. This alternating action severely strains the center of the block of steel, and soon causes it to break apart along its axis, much as soft rubber can be split by squeezing its surface repeatedly. At the same time the rolls are pushing the outside of the steel over a long bar or mandrel, the same way that a tight glove is pushed over a finger, the mandrel serving principally to guide the steel and to make the hole fairly uniform in diameter. Other sets of rolls then smooth the exterior of the pierced steel, and at the same time make the innor walls smooth by pressing the steel down on a bar inserted through the center. Vory fine seamless tubing such as is used for hypodermic need- les is produced by drawing the steel through a series of round dies, cach smaller than the one before. Since the opening in each die is smaller than the diameter of the tubing passing through, the state of the tubing is reduced. The hole in the tubing remains per- fectly centered, although it too is reduced so that the opening in the finished needle may be only four to five thousandths of an inch in diameter - about the thickness of just two human hairs. S } 71 } f) Stainless Steel This is a name which is broadly applied to a whole fami- ly of alloy steels possessing the ability to resist corrosion vithout the aid of a surface coating. Besides this advantage, some stainless steels are much harder than ordinary steel, and other types are very much stronger. Some will resist strong acids. Others are valuable because they retain their strength at very high temperatures. Others will not tarnish under the most corrosive atmospheric conditions. SONG One important type of stainless steel contains 18 per cent chromium and 8 per cent nickel. This stoel has been used vido- ly in building streamlined trains, in beautifying buildings, in the construction of food handling equipment, kitchenware, and in count- less other applications requiring great strength and resistance to corrosion, heat, or tarnish. Stainless steels containing chromium as the only principal alloying element shows different properties, depending on the amount of chromium and carbon thoroin. Some are hard and are used for cutlery and surgical instruments, while the strength and rust resistance of others make them use:ul for ball bearings, and parts of laundry and milk bottling machinery where sanitation demands rust-free materials. Others are fabricated by various methods, and are used for molding and trim on automobiles, for kitchen pots and pans and for trays and many other items of household equipment. P 啤 ​V. PRODUCTION OF IRON AND STEEL 72 3. Summary of Production A summary of production in the United States iron and steel industry for the years 1936 to 1945 is shown in Table I. Tonnage figures are shown for pig iron and ferro-alloys, ingots and steel for castings, and hot-rolled iron and stecl products. Production is also compared to capacity. 1. Pig Iron United States Production of Pig Iron The output of pig iron was greater than that of steel ingots and castings prior to 1911. In that year, steel production sur- passed pig iron and has continued to do so. This chan e in re- lationship was due to the development of the open-hearth and e- lectric furnace methods of steelmaking, which utilize large cuan- tities of scrap iron and steel as component raw materials in par- tial substitution for pig iron. Table II shows pig iron and steel ingot production from 1910 to 1943. G Although pig iron production in 1943 increased 101.6 per cent over 1910, steel ingot production increased 20.0 per cent. In volume terms, pig iron production increased 30.6 million tons, against an increase of 59.6 million tons in production of steel ingots, In 1910, roughly one ton of pig iron was produced for each ton of steel ingots, but in recent years only about 2/3 ton of pig iron was produced per ton of steel ingots. Host pig iron is produced by integrated iron and steel com- panies. The large companies operate their own iron and coal mines, coke ovens, and blast furnaces. Pig Iron Production by States Table III shows production of pig iron, by states, from 1925 to 1943, the 1925-1939 figures being 5-year annual averages. figures are from the United States Bureau of lines. These Pennsylvania, Ohio, Indiana, Illinois, low York, and Alabama, in that order are the leading producers of pig iron. From 1925 to 1943, these six statos combined have accounted for more than 65 per cent of production. The same states also produce the bulk of stoel ingots and castings. While there was considerable expansion in capacity during the war period, these increased capacities have not greatly changed • Years 1945 1944 1943 1942 1941 19':0 1939 1938 1937 1936 ? Capacity Het Tons ་་ TABLE I TIE IRON AID STEL INDUSTRY Capacity and Production 1936-1945, inclusive Pig Iron and Ferro-Alloys (a) Per Production Cont Capacity Hot Tons Capacity let Tons 67,313,890 (c)67;921;110 (c)61,188,220 (c)60,605,850 (c) 57; 774, 6410 55,723,610 56,325,030 56,782, 208 55,557,305 55,854,200 54,166,482 80.5 62,072,683 91.4 61,920,314 96.5 60;115,387 99.2 56,070,506 97.1 46,979,091 84.3 35,396,478 62.8 21,182,569 41; 171;187 34,176,170 Steel (b) Ingots and Stocl for Castings 37.3 7/17 61.7 95,505,280 (c)93;854,1120 (c)90,589,190 (c)88,086,550 (c) 85;158;150 81;619,496 81,820,958 80;185;630 78, 1, 0,374 78,161,300 (a) Includes capacity and production of blast furnaces only. duction of ferro-alloys made in electric furnaces. Production Net Tons Per Cont Capacity 79,701,6!18 83.5 89,641,600 95.5 88,836,512 98.1 86,031,931 96.8 82,839,259 97.3 66,982,686 82.1 52;790,714 611.5 31,751,090 39.6 56,636,945 53,499,999 72.5 68.4 Hot-rolled Iron and Stoel Products Produced let Tons 59,811,669 65,803,979 63,292,673 62,145,914 62,321,187 48,660,369 39,067,553 23,568,951 41,170,356 37,857,514 Does not include capacity and pro- (3) Includes only that portion of the capacity and production of steel for castings used by foundries which were operated by companies manufacturing stecl ingots. (c) Average annual capacity as of January 1 and July 1. Source: Imerican Iron and Steel Institute, Animal Statistical Roport, 1945. 73 A 1 74 D the relative geographic distribution of pig iron output. However, new plants in operation at Geneva, Utah, and Fontana, California, now help to supply consumers west of the Rocky Mountains. Blast furnaces also were erected in Houston and Daingerfield, Texas, as part of the war program. The Houston Furnace began operating in April 1944. The Daingerfield Furnace was completed in May 1944, but has not operated. Year 1910 1915 1920 1925 1930 1935 19/10 1941 1942 1943 In Percentare distribution by states, the outstanding ud- vances since 1925-1929 are in Maryland, Hichigan, 7 st Virginia and Kontucky. These four states combined produced 6.2 per cent of total pic iron production in the ve years 1925-1929, and rose to 9.9 per cent in 1913. Tonnage out out in laryland and Test Vir- ginia more than doubled in this period, and in Kentucky it moro than trebled. Indiana also evidenced a forward trend. Other states among the leaders in volume either were approximately sta- tionary or slipped back somewhat in relative position between 1925- 192, and 1943. 1910-1913 Increase TABLE II PIG ILOK LND STEEL INGOT PRODUCTION UNITED STATES TONS (COO omitted) 3743 22,274 46,072 55,101 59,078 60,811 1910-1943 Pis Iron Production 30,163 33,068 40;593 40,450 C Dog Tr Steel Ingot Production 29,226 36,009 117,189 50,841 45,583 30,648 tons 101.65 38,184 66,983 82,839 66,031 88.837 Source: American L'on and Stool Instituto. 1.033 .918 .800 •796 .762 .610 .688 .665 .687 .685 59,611 tons Ratio of rig Iron Production to Stecl Ingot Production 204.03 KAR S Pig Iron Production for Home Uce and For Sale Tablo IV shows, in volume and percentage, by years, from 191 ? * 1. + State Ohio Indiana Illinois New York Alabama Maryland Michigan "est Virginia Kentucky Others State Pennsylvania 14;114 5,621 8,853 14,294 16,857 18,065 18,571 10;119 43777 7,210 10,094 12,787 13,140 13,725 4165 43305 2,668 3,077 991 5,330 6,374 6,431 6,713 4,047 5,355 5,850 5,950 3,010 3,575 4,041 3,947 3,423 3,697 4,082 3,780 2,343 2;353 23491 2,525 1,350 1,350 1,683 1,480 922 1,019 1,400 1,331 329 4157 706 1,369 1,429 2,037 42,544 19,321 30,662 46,204 55,085 59,078 60,765 - 291 1,092 TOTAL Ohio Indiana Illinois New York Alabama Maryland Michigan West Virginia Kentucky Others Pennsylvania 33.2 23.8 TOTAL 1925-2911930-3411935-39 Average Average Average 1940 1941 1942 1943 753 845 535 601 546 · 201 1,458 10.1 6.3 PIC IPON Production by States Tons (000 omitted) 1925-43 7.2 2.3 2.0 1.4 TABLE III O 1,923 1,907 1,179 1,512 125 443 1925-29 1930-34|1935-391 1940 1941 1942 1943 29.1 28.9 30.9 30.6 30.6 30.6 241.7 23.5 21.8 23.2 22.3 22.6 9.8 10.0 10. 11.6 11.6 10.9 11.0 9.7 9.9 9.8 8.8 6.5 6.5 6.8 6.6 7.4 6.7 6.9 6.2 5.1 4.3 4.2 4.1 2.9 2.5 2.8 2.11 2.0 2.2 2.4 .8 .6 1.2 2.4 2.5 2.1 3.3 100.0 100.0 100.0 100.0 3,187 2,837 2,18 2,357 1,183 936 733 233 6119 Percentage of Total 9.9 6.1 7.6 3.9 2.8 2.8 .6 2.3 9.3 7.1 7.7 1.8 3.0 2.1 .8 2.1 .5 3.4 100.0 100.0 100.0 1.8 9* .75 N N Source: Minerals Yearbooks, United States Bureau of lines. 76 } Year 191 1915 1916 1917 1918 1919 1920 1921 1922 1923 1924 1925 1926 1927 1928 1929 1930 1931 1937 1938 PIC TRON Production for laler's Use and For Sale Tons (000 omitted) 193-13 United States Total 25,758 33,068 43,15 42,446 42,673 34,208 40,593 18,367 30,044 44-488 Production For lak- er's Use 34,580 40,450 43,342 40;161 41,890 46,768 34,744 20;113 1932 99576 1933 14,561 1934 17,558 1935 23,275 1936 33,843 40,465 20,772 1939 34,809 301154 1940 1941 46072 40,122 55,101 47,547 1942 59,076 50,806 1943 60,811 51,672 17,733 23,744 Percentage Increase 1914-1943 136.1 31,303 29,954 31.322 2h, 815 29;121 14,369 23,064 33,169 25,555 30,833 32,939 30;106 33,239 36;671 27,387 15,633 7,557 12,245 1575 19,21 28.091 33,179 17,461 TABLE TV GOO ΓΟΥ Sale 8,025 9,324 12,112 12,492 11,351 9,393 11;472 35998 6,980 11;319 9,025 9617 10,403 10,055 8:61 10,097 7;357 4,480 1,919 2;316 2,983 4034 5,752 7,285 3;311 4,355 5,950 7.5.34 8,270 9,139 13.9 Percentage For liak- er's Use 68.8 71.8 72.1 70.6 73.4 72.5 71.7 78.2 76.7 74.6 73.9 76.2 76.0 74.9 79.3 78.4 78.8 77.7 80.0 81.1 83.0 82.7 03.0 82.0 84.1 87.5 87.1 86.3 86.0 85.0 For Sale } 31.2 28.2 27.9 29.4 26.6 27.5 28.3 21.8 23.3 25.41 26.1 23.8 21.0 25.1 20.7 21.6 21.2 22.3 20.0 15.9 17.0 17.3 17.0 18.0 15.9 12.5 12.9 13.7 14.0 15.0 191.4 Source: Annual Statistical Reports, American Iron and Stecl Institute. ↑ 77 to 1943, the distribution of pic iron production between that made for home use and that made for sale to others. Chart 2 shows the trends of production for maker's use and for sale, by years, from 1914 to 194з. Close to seven-eighths of total production in recent years has been for the maker's own use, and there is noticeable a long term upward trend in this figuro. For example, production for salo to foundries and stoul companies without blast furnaces was more than one-fourth of total prior to 1920 but now is down to about one-eighth of total. Pig Iron Production for Sale, by States Table V shows production of pig iron for sale, by states or groups of states, by years, irom 1926 to 1943. The average annual tonnage of such pig iron dropped from 9.3 million tons in the five years, 1926-1930, to 7.0 million tons in the five years, 1939-1943. Pennsylvania, Ohio, Indiana, and Illinois are the leading suppliers of pig iron for sale. There has been little change be- tween 1926-1930 and 1939-1943 in the relative positions of the leading states in percentage distribution of total sales. In the five years, 1939-1913, Pennsylvania produced for sale slightly more and Ohio slightly less than 7.5 million tons of pig iron. The two states combined accounted for about 42 per cent of total production for sale. Pennsylvania's production for sale was 8.9 per cent of its total production in 1940 and 12.0 per cent in 1943. The corres- ponding figures for Ohio were 12.1 per cent and 14.4 per cent, re- spectively. Table VI gives the quantities and percentages of pic iron made for sale to steel companies and to foundries, by five-year intervals from 1920 to 1935 and annually thereafter to 1943. During the middle 1930's, about one-third of the pig iron made for sale went to stool companies. The remaining two-thirds went to foundries, principally for the production of gray iron and mallcable iron castings. In 1943 the respective proportions were 54 per cent and 16 per cent. Compared with the 1920's, there has boon a sharp decline in both the absolute amounts and the percent- ages sold to foundries. A large part of the total pig iron made for sale is produced by independent merchant plants which manufacture pig iron solely for sale. Since World War I some of the large steel companies have entered this market. In 1943 when 9,139,000 net tons of pig iron were made for sale, integrated steel companies supplied 78 Tons Millicus 60 50 40 30 20 10 O 1914 For Maker's Use. For Sale 16 18 Pig Iron Tonnage Produced for Maker's Use & for Sale 1914 - 43 20 22 24 Chart 2 26 28 30 32 34 1 1 36 38 1 40 42 43 Source: Table V. 79 \ Pennsyl- Year vania 633 1931 1932 270 1933 · 553 1934 502 1935 699 1936 1,227 1937 1,673 1938 1939 1940 Ohio 1,691 1926 2,127 2,125 1;512 1,623 1927 2,024 2,189 1,534 1928 1,869 1,939 1,315 1929 2,226 2,312 1,564 1930 1,232 1,528 1,250 474 · 803 1,271 1941 1:555 1942 1,705 1943 2,230 PIG ION Production For Sale, By States Tons (000 omitted) 1926-43 999 930 415 461 567 16 · 811 1,155 1,153 1,440 526 -817 1,220 TABLE V Indiana New Kentucky Illinois York (1) Tennessee (2) Others 313 415 Kassa- TestVirginia chu- Maryland setts Alabama -771 1,261 630 663 838 1,219 1,572 1,219 732 335 368 600 752 Ilılı CREATE OR RE 1,202 436 · 348 1,079 1,755 1,783 1,596 1; 711 1,653 1,086 407 606 691 852 1,247 1,1170 1,166 1,129 1,351 1,465 1484 1,354 1,615 1,972 1,612 1,454 1,429 1,560 1,350 1,704 1,386 961 829 713 712 466 100 31 58 66 131 209 240 80 96 190 269 376 442 Total United States 10,403 10,055 8,651 10,097 7.356 1480 1,919 2,316 2,983 49034 5,751 7,286 3;310 4,356 5,949 7,553 83270 9.139 (1) Excludes Massachusetts, 1932 through 1935, and in 1938; in- cludes Maryland 1926 through 1933. (2) Includes Virginia, 1926 through 1930, and in 193), and 1935; excludes "est Virginia, 1932, and 1941 through 1943; excludes Kentucky 1926, 1930, 1932, 1933, and 1939 through 1941. Source: Annual Statistical Reports, American Iron and Steel Insti- tute. * 1 Year 4,639,000 net tons, or 50.8 per cent of the total. Pig Iron Production by Fuels Lore than 99 per cent or pig iron produced in the United States is made with coke as fuel. A small amount is made in blast furnaces using charcoal. The use of charcoal is limited to small furnaces because it does not lave sufficient strength to with- stand the weight and downward rovement of the heavy charge of ore and limestone in larger furnaces. 1920 1925 1930 1935 1936 1937 1938 1939 1940 1941 19:2 194:3 Source: PIG IRON Made for Sale to Steel Companies and Iron Foundries United States Tons (000 omitted) Pig Iron- Produced For Sale To Steel To Companies Total 11,4172 9617 7,356 4,034 5751 7,286 3;310 +;356 55949 7:553 8,270 3;633 2,811 TABLE VI 2;152 1,271 2,009 2,424 026 1,301 2,000 2,809 3,601 9,139 4,919 Foundries 7,839 6,806 5,201 2,763 33742 4862 2,11814 3,055 3,869 49744 4669 4,220 Percentage To Steel Corpanics Foundries 31.7 29.2 29.3 31.5 314.9 33.3 25.0 29.8 341.9 37.2 43.5 53.8 To 1 68.3 70.8 70.7 68.5 65.1 66.7 75.0 70.2 65.1 62.8 80 56.5 116.2 Annual Statistical Report, American Iron and Steel Insti- tute. } F ť 2. Production of Ingots and Steel for Castings United States Production of Steel Year 1880 1885 1890 1895 1900 Table VII shows annual production of ingots and steel for castings in the United States, by five-year intervals from 1880 to 1940, and for 1943, 1944, and 1945. 1905 1910 1915 1920 1925 TABLE VII STEEL INGOTS AND CASTINGS United States Production Tons (000 omitted) Tons 1397 1;917 4.790 6,849 11,411 22;427 29,226 36,009 47;189 50,841 45,583 38,184 (1) 66,983 3 81 Source: American Iron and Steel Institute, Annual Statistical Reports. 1930 1935 1940 1943 88,837 1944 89,641 1945 79,701 (1) Figures for 1935 to 1945 include only that portion of steel- casting production which was produced in foundries operated by companies producing steel ingots. United States production of ingots and steel for castings rose from 1.4 million tons in 1880 to 11.4 million tons in 1900, an increase of 717 per cent. By 1905 production had risen to 22.4 million tons, nearly double the 1900 production. A continued ris- ing trend brought production to 50.8 million tons in 1925, more than double 1905. There was a decline in 1930 to 45.6 million tons 1 P > } k 82 → and a further decline in 1935 to 38.2 million tons. Production in 1940 of steel ingots and castings increased 75 per cent over 1935, totaling 67.0 million tons. Wartime expansion brought the 1943 figure to 88.8 million tons and in 1944 to 19.6 million tons, Production of Steel, by States Table VIII gives production of ingots and steel for castings, by leading states or groups of states, by selected years, from 1910 to 1943. Chart 3, based on Table VIII, gives production of ingots and steel for castings for the United States and the four leading states Pennsylvania, Ohio, Indiana, and Illinois, by years from 1910 to 1913. Pennsylvania led in output of steel ingots and castings from 1910 to 1943, followed by Ohio, except that in 1932, 1933, and 1935 Ohio ranked ahead of Pennsylvania. Indiana was third and Illinois fourth in 1915 and fron 1918 to 1943. In other years, Illinois was third and Indiana fourth. In 1940 (taken as the last normal prewar year) Pennsylvania produced 20.3 million tons, Chio 13.8 million tons, Indiana 8.7 These four states ac- million tons, and Illinois. million tons. counted for 72 per cert of total 1940 production. In 1943 Pennsylvania, with 27.7 million tons, was the leading producing state and Ohio, with 18.9 million tons, was second. Indiana and Illinois followed, with 11.1 and 7.3 million tons, re- spectively. These four states accounted in 1943 for 73 per cont of total United States production, compared with 72 per cent in 1940 and 85 per cent in 1910. Thile geographical distribution of steel furnaces is wider than that of blast furnaces, production of steel by leading states follows the same general pattern as pig iron production. The bulk of steel production is made by integrated companies who own and operate blast furnaces to produce pig iron. Table IX gives percentage distribution by states or groups of states of production of ingots and steel for castings, in five- year averages from 1910 to 1937 and by years from 1940 to 1943. } Data Pennsylvania in 1910-14 had 50 per cent of total production. Thence it steadily declined until in 1935-39 its production was less than 29 per cent of total. From 1940 to 1943 it fluctuated around 30 to 31 per cent. Ohio, which had 21 per cent of production in 1910-1, gained → 83 ; 1910 1911 1912 1913 191 1915 1916 1917 1918 Tennessee Massachusetts Delaware Michigan Test Georgia Maryland linnesota Virginia Alabama Year Connecticut New Jersey Virginia Missouri Kentucky Texas Rhode Island New York 1919 1920 1921 1922 1923 1924 1925 1926 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941 19412 1943 280 236 246 225 159 220 319 381 382 333 339 12 238 313 295 346 336 301 328 379 253 203 147 260 235 279 337 309 183 287 323 463 472 488 STEEL INGOTS AND CASTINGS Production, by States (1) 1910-13 Tons (000 omitted) 1;667 1,198 1;510 1,576 ´988 1,626 2,292 2,567 2,735 13635 2,458 758 1,903 2;376 1,718 2,087 2,450 2;342 2;744 3,006 2;061 1,336 ·690 TABLE VIII 1,064 1,259 1,486 2436 3210 1,548 2,698 3,758 4447 4683 4,799 457 340 382 449 241 365 637 692 501 479 818 189 670 913 · 939 1,341 14163 1,461 · 1;797 23073 1,689 1.223 ·672 1,169 1;270 1,560 2,184 2,604 230441 3;116 105 79 127 128 80 Tho 687 ·957 1,008 515 709 260 500 852 488 661 845 ·940 1;245 1470 1,298 1,050 761 ·862 1,517 1,936 2.441 544 548 667 657 434 562 ·975 1,040 1,013 680 1,111 711 1,105 1,538 1,384 1,652 1,570 1,747 2;287 2,498 1,774 1,454 616 1,362 1,628 2,292 2.499 2,395 1,519 2,345 Sheet 1 of 2 2;752 1,729 2,998 3,858 4166 3,502 2,716 3,883 3,033 4430 3,870 3,128 4,554 3,953 3,299 664! 561 865 925 642 -885 1,331 1,450 1,293 1,244 1,378 823 1;303 1;593 1:569 1,848 1;971 1,815 1,677 1949 1,464 1,159 567 913 1.048 1,168 1,786 2,132 1,613 2,372 2,967 3,257 33678 3,821 (1) Includes only that portion of steel casting production which was produced in foundries operated by companies producing steel ingots (1934-13). 84 1910 1911 1912 1913 191 1915 1916 United Cali- States Year Pennsylvania Ohio Indiana Illinois Washington fornia Total 1917 1918 1919 1920 1921 1922 1923 1924 1925 1926 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941 1942 Source: 14792 13;431 17,510 17,420 13,355 17,732 21,950 22,398 # 21,356 17,558 19,749 9,094 15,834 19,791 16;311 18,509 20;371 17,857 19,841 22,551 16,086 9,255 4,249 7,198 8,003 9,812 TABLE VIII STEEL INGOTS AND CASTINGS Production, by States (1) 1910-13 Tons (000 omitted) 15,749 17,489 8 462 5,657 1,466 5,594 1,563 7,679 2; 2!13 7,566 2,444 6,113 1,826 8,349 2,808 10,959 3,635 11;618 4,173 12,006 4,385 9,248 3,507 11,292 41,247 5,282 2,626 10,281 4,209 12,040 5,116 10,941 669 13,327 5,863 13,221 6,305 12;198 6,189 14;531 7,082 14,001 7,462 10,279 5702 3, OLIL 2,400 3,113 3,090 1,994 2,763 4,286 • 4247 45093 2943 4,086 1,836 3,162 4746 3,177 4,069 4,281 4,105 11837 5;358 3,705 2,153 7,239 3;336 4,327 1,641 1,089 7,480 3,053 2,044 7,647 3,601 2,211 Oklahoma Colorado 3,302 4.654 547 5641 607 535 4168 492 712 752 712 499 730 338 £60 606 665 419 29,182 10,414 5,02 13,087 6;883 501 38,184 680 53,500 672 56,637 12,404 6,878 43961 7,401 3,972 11,685 6,703 14997 2,452 4,115 486 31,752 659 52,799 775 66,983 911 82,839 20,277 13,790 8,708 5,384 25,776 18,112 10,739 6;745 20;617 18,564 10,921 7;226 1,041 86,032 1943 27,695 18,922 11,093 7,331 1,494 1,368 88,837 (1) Includes only that portion of steel castings production which was produced in foundries operated by companies producing steel ingots (1934-43). 755 864 984 -081 1,043 797 371 196 24 341 392 759 831 Sheet 2 of 2 343 824 925 1,307 1,382 3 29,226 3 26,517 22 35,001 32 35,057 35 26;335 59 36,009 124 47,907 193 50,468 224 49,798 191 38,832 272 47;189 117 22,158 210 39,875 253 50,337 327 42,4CL 300 50,341 109 54,089 388 50,327 479 57;729 611 63;205 475 45583 277 29,059 168 15,323 371 26,020 American Iron and Steel Institute, Annual Statistical Reports. } J Chart 3 85 Tons (Millions) 100 90 80 70 60 50 40 30 20. 10 yr 11 0. 1910 Steel Ingots and Castings U.S. Production by Leading States 1910-43 1915 ari "On! 1920 Source: Table VIII. ལ་ 1925 1930 U.S. Total 1935 K Pennsylvania MACHA KAIU ***** 1940 Ohio Indiana Illinois Tons (Millions) 100 90 80 280 70 60 50 40 30 20 10 Q { State Massachusetts, Rhode Island and Connecticut New York and. Now Jersey Delaware, Maryland and Virginia Pennsylvania Tennessee, Test Virginia and Kentucky STEEL INGOTS AND CASTINGS Percentage Distribution of Production, by States Georgia, Alabama and Texas Ohio Indiana Illinois Michigan, Minnesota and Hissouri Oklahoma, Colorado and Washington California . TOTAL UNITED STATES Source: Computed from Table VIII 5-Year Averages 1910- 1915- 1920- 1925- 1930- 1935- 1914 1919 1924 1929 .6 41.6 ..7 .7 .6 4.6 4.9 11.6 1.2 1.2 1.7 2.9 50.31 45.3 40.0 35.9 40.0 35.9 1.9 1.9 2.9 3.5 2.4 TABLE IX 21 6.3 9.0 .3 1.8 .1 1:1 1.11 .44. .61 1934 1939 1940 1941 1942 1943 .û 2.11 11.2 .6 .44 .5 51 4.9 5.6 11.91 5.8 5.0 30.9 28.6| 30.31 31.1 4.81 4.7 4.1 3.7 13.0 8.0 5.2 2.8 2.3 3+4+ 3.5 3.9 4.1! 23.4 25.1 21.7 25.5 23.6 20.6 8.3 10.3 11.9 11.9 12.7 8.2 8.1 8.2 7.7 8.4 1.5 1.4 1.9 3.8 5.1 Annual .6 5.1 5.4 5.1 5.1 30.9 30.9 31.2 3.6 3.7 3.9 41.3 21,9 21.6 13.0 12.7 1 4.3 21. 21.3 12.5 छ 8.11 8.11 41.7 4.5 14.51 1.6 1.3 1.3 1.4 1.6 1.6 1.7 .81 1.2 1.3 1.2 1.1 1.3 1.5 100.0 100 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 86 1 87 Year STEEL INGOTS AND CASTINGS United States Production, by Processes, and Percentage Distribution Tons (000 omitted) 1900 1905 1910 1915 1920 1925 1930 1935 1936 1937 1938 1939 19410 1941 1942 1943 1900 1905 1910 1915 1920 1925 1930 1935 1936 1937 1938 1939 1940 1941 1942 1943 Open Hearth 3,806 10,048 18,485 26,521 36,593 42;599 39;255 34,401 48,760 51,825 29,080 48,470 61;573 74390 76,502 78,622 33.4 44.8 63.2 TABLE X 73.7 77.5 83.8 86.1 90.1 91.1 91.5 91.6 91.7 91.9 89.8 88.9 88.5 (1) Less than 500 tons. (2) Less than .05 per cent. Bessemer Crucible 7,487 12; 254 10,542 9,282 93949 7:531 5,640 3;175 35674 3:864 2,106 35359 3;709 5578 5:553 5,626 65:6 54.6 36:1 25.8 21.1 1.8 12.4 8.3 1 7.2 6.8 6.6 6:4 5.6 6.7 6.5 6.3 1 113 115 137 127 81 NNNHA 22 2 1 1 1 1 Percentage Distribution HA~~J 1 1 2 2 1,029 1,700 2,869 33975 - (1) 4,589 1.0 NW VI VI :3 2 (1) 11 | | | 1| 1| 1 Electric and all Others (2) (2) (2) 5 10 62 79 566 689 686 607 855 947 566 (2) .1 •2 .2 1.2 NETINO 1.4 1:5 1.6 (2) 1.7 (2) 1.7 (2) 1.8 (2) 1.9 (2) 265 (2) 3.5 (2) 4:6 (2) 5.2 Total 11;411 22,427 29,226 36,009 47;189 50,841 45,583 38,184 53,500 56,637 31,752 52;799 66,983 82,839 86,032 88,837 } 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Source: American Iron and Steel Institute, Annual Statistical Re- ports. ܚ { 88 to more than 25 per cent in 1935-39. 1943, it had fluctuated around 21 per cent. During the four years, 1940- Indiana gained from 6 per cent in 1910-1 to around 13 per cent of total during 1940-43. Illinois has fluctuated since 1910 in a range of about 8 to 9 per cent of total. Comparing the five years 1910-1 with 1943, the largest gains in percentage of total among the secondary states wore in the Delaware Maryland-Virginia group and the Michigan-linnesota- Iissouri group. California gained from .1 per cent in 1910-14 to 1.5 per cent of total in 1943. The Tennessee-West Virginia- Kentucky group almost doubled its percentage of total. These comparisons illustrate the dispersion of steelmaking which has taken place during the last three decades. Production by Processes United States production of ingot steel and castings, by type of process and percentage distribution, by five-year intervals from 1900 to 1935, and by years from 1936 to 1943, is shom in Table X. Sixty-six per cent of production in 1900 was by the Bessemer process, 33 per cent by the open-hearth process, and 1 per cent by crucible and miscellaneous processes. Electric furnace production did not bogin until approximately 1907. In 1908, open-hearth steel production exceeded Bessemer for the first time and led thereafter. In 1940 open-hearth furnaces produced 61.6 million tons, or 92 per cent of total, Bessemer had 3.7 million tons, or 6 per cent, and electric furnaces produced 1.7 million tons, or about 2 per cent. Demand for better stculs, continued improvement of the open-hearth process, and the advan- tage of utilizing scrap iron and stel in conjunction with pig iron were responsible for the trend toward increased use of the open-hearth process. Electric furnace production of steel gradually increased in recent years due to the demand for alloy stools. In 1943, 5 per cent of total production was by electric furnaces, the most by this process in the years shown. Steel Capacity Steel furnace capacities have been built up over the years to meet short peak demands, although yearly demands for steel have not required continuous full capacity except in the war emergen- су. h 89 Table XI shows United States annual capacity for production of steel ingots and castings, actual production to capacity for selected years from 1915 to 194 and capacity for 1945. TABLE XI Year 1915 1920 1925 1929 1930 1932 1935 1940 1941 1942 1943 1944 1945 STEEL INGOTS AND CASTINGS Capacity, Production, and Ratio of Production to Capacity Tons (000 omitted) Capacity January 1 46,249 62,314 68 473 71,438 72,985 78,781 78,452 81,619 84-152 88,570 90,293 933652 95,505 ▸ Production 36,009 47189 50,841 63,205 45,583 15,323 38,184 ļ 66,983 82,839 86,032 88,837 89,576 79,701 Source: American Iron and Steel Institute, Annual Statistical Reports. Ratio of Production to Capacity 77.9 75.7 74.2 88.5 62.5 19.5 48.7 82.1 98.4 97.1 98. 95.6 83.5 The United States production of steel ingots and castings in 1915 was 73 per cent of annual capacity of January 1 of that year. peacetime peak was 89 per cent in 1929. In 1930 the ratio de- clined to 62 per cent, and in 1932 it was only 20 per cent, the lowest ratio of production to capacity in all the years showm. It recovered to 49 per cent in 1935. In 1940, the last normal orewar year, production was 67.0 million tons and capacity was 81.6 mil- lion tons, with the ratio 82 per cont. The World War II peak was 98.4 per cent in 1943. United States Production of Alloy Steel Table XII shows United States production of alloy steel in- gots and castings, compared with total production of steel ingots and castings in 1909, by 5-year intervals from 1910 to 1925, and by years from 1929 to 1943. United States production of alloy steel ingots and castings has grown rapidly since 1909, when it totaled 20,000 tons. By 1929 it was 4.4 million tons. A decline followed which ended in S SC Year 1909 1910 1915 1920 1925 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941 1942 1943 ALLOY STEEL INGOTS AND CASTINGS United States production Tons (000 omitted) Alloy Production 204 -636 1;144 1,860 2,725 43432 23737 1,631 -894 1733 1,806 23374 3,230 3,397 13654 3,212 43965 8,206 11,526 13,150 TABLE XII Total Steel Production 26,830 29,226 - 36,009 47,189 50,841 63,205 45,583 29,059 15,323 26,020 29,182 38,184 53,500. 56,537 31,752 52,799 66,983 82,839 56,032 88,837 Percentage Alloy of Total :8 2.2 3.2 3.9 5.3 7.0 6.0 5.6 5.8 6.7 6.2 6.2 6.0 6.0 5.2 6.1 7.4 9.9 13.4 11.8 Source: American Iron and Steel Institute, Annual Statistical Reports. 1932 with 894,000 tons, the lowest in the years shown after 1910. From 1933 to 1937, production of alloy steel ingots and castings again had annual increases, reaching 3.4 million tons in 1937. After a brief decline in 1938 to 1.7 million tons, it increased to a peak of 13.2 million tons in 1943. In 1940, the last normal prewar year, production was only about 12 per cent above 1929, but during the wartime years 1941-1943 it expanded rapidly. The increase was 3.3 million tons in both 1941 and 1942. Alloy steel ingots and castings rose from about 1 per cent of total steel production in 1909 to 7 per cent in 1929. It averaged about 6 per cent from 1930 to 1939, rising to 7 per cent in 1940, to 10 per cent in 1941 and to nearly 15 per cent in 1943. SL 蒼 ​1 Production of Alloy Steel Ingots and Castings, by Processes Table XIII shows United States production of alloy steel ingots and castings, by open-hearth and electric processes, and percentage of total by these processes, by years from 1929 to 1943. TABLE XIII Year 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941 1942 1943 ALLOY STELL INGCTS AND CASTINGS United States Production, by Processes 1929-1943 Tons (000 omitted) Source: Open- hearth (1) 3,861 2,400 1,371 ·736 1,401 1471 1,912 2,639 2,724 1,281 2,463 33679 5744 8,134 9,217 Per cent of Total 87.1 87.7 84.1 82.3 80.8 81.5 80.5 81.7 80.2 77.4 76.7 74.1 70.0 70.6 70.1 Electric 571 337 260 158 332 335 462 591 673 373 749 1,287 23462 35392 3,933 Per cent of Total 12.9 12.3 15.9 17.7 19.2 18.5 19.5 18.3 12.8 22.6 23.3 25.9 30.0 29.4 29.9 TOTAL 4432 23737 1,631 ·894 1;733 1;806 2,374 3;230 35397 1;654 3,212 4966 8,206 11,526 13,150 (1) Includes 100,000 tons of Bessemer in 1929; 57,000 tons in 1930; 38,000 tons in 1931; 15,000 tons in 1932; 27,000 tons in 1933; and small amounts of crucible in all years. American Iron and Steel Institute, Annual Statistical Reports. In Production of alloy steel ingots and castings in open-hearth furnaces from 1929 to 1943 was 70 per cent or more of total produc- tion. This process has since steadily declined, while the share produced in electric furnaces has been gradually increasing. 1929 the open-hearth process accounted for 87 per cent of total al- loy steel production and electric furnaces accounted for 13 per cent. In 1940, the last normal prower year, the open-hearth had 74 per cent of total and the electric had 26 per cent. From 1941 to 1943 electric furnaces produced an annual average of 30 per cent of total production of alloy steel ingots and castings. } 3. Steel Products Production of Hot-rolled Steel, by States Chart 4 gives United States production of hot-rolled iron and steel products by leading states, by years, 1910-1943. 92 United Steel production of hot-rolled steel products totaled 24.2 million tons in 1910. Production gradually increased to 37.4 million tons in 1925 and 1.6.0 million tons in 1929. A sharp de- cline beginning in 1930 dropped production to 11.7 million tons in 1932, the lowest in the years shom. From 1933 to 1937 the trend vas upward to 1.2 million tons in 1937. There was another sharp decline in 1938 to 23.6 million tons. From 1939 to 1943 production of hot-rolled steel products rose to 63.3 million tons in 1943, the peak year to that time. Production in 1943 was 30 per cent above 1940 production and 38 per cent above production in 1929. In general, production of hot-rolled iron and steel products, by leading states, has followed the pattern of ingot production. From 1910 to 1943 Pennsylvania led all other states in production of hot-rolled iron and steel products. In 1910 it produced 12.1 million tons, or 50 per cent of United States total. It produced 16.6 million tons, or 36 per cent in 1929; 1.6 million tons, or 30 per cent in 1940; and 19.3 million tons, or 30 per cent in 19!:3. In all the years shown it was followed by Ohio. Illinois was third from 1910 to 1913 dropping to fourth place in 191 and re- maining there through 1913. Indiana, which was fourth from 1910 to 1913, was third from 1914 to 1943. Pennsylvania's proportion of total production of hot-rolled steel products fell steadily from 50 per cent in 1910-1914 to 29 per cent in 1935-1939. During the four years 1940-1943 it was in the neighborhood of 30-31 per cent. Ohio steadily increased its proportion, from 17 per cent in 1910-1914 to 22 per cent in 1933-1939. From 1940 to 1943 it was close to 21 per cent, Indiana nearly doubled its proportion, from somewhat more than 7 per cent in 1910-191 to 13 per cent in 1935-1939, followed by further fractional increases from 1940 to 1943. Illinois had somewhat less than 10 per cent of total production in 1910-191 and fell to a little more than 7 per cent in 1935-1939, remaining at or near 7 per cent from 1940 to 1943. 7 $ Comparing 1910-191 with 1943, the greatest relative increases among the secondary producing areas were in Delaware-aryland- Virginia (1), Michigan-isconsin-linnesota, and Alabama. 93 Iron and steel production is highly concentrated by counties, as well as by states. Four counties Allegheny (Pennsylvania), Mahoning (Ohio), Lake (Indiana), and Cook (Illinois) - usually con- tribute about 40 per cent of United States output. Four other counties Baltimore (Maryland), Erie (ew York), Beaver (Pennsyl- vania), and Cuyahoga (Ohio) produce about 20 per cent. Gary Some In 1940, taken as the last normal prewar year, the leading hot- rolled steel commoditics produced were sheets, with 11.7 million tons; merchant bars, with 6.5 million tons; wire rods, with 4.4 mil- lion tons; plates, with 4.3 million tons; and structural shapes, with 4.2 million tons. These five commodities also led in 1929 and 1943. The greatest volume increase in 1940 over 1929 was in produc- tion of sheets, which increased 5.8 million tons. Blooms, billets, etc. for export was second in volume increase, with 1.6 million tons: more produced in 1940 than in 1929. They were followed by wire rods, and pierced billets for seamless tubes, in that order. S The greatest volume decrease in 1940 balor 1929 (classification changes excepted) was in production of rails, with a decrease of 1.4 million tons; plates, 1.3 million tons; skelp, 1.2 million tons; and structural shapes, 1.1 million tons. In 1929, the largest share of production of hot-rolled steel products was of merchant bars, which were 16 per cent of total. Sheets, with 13 per cent, plates with 12 per cent, and structural shapes, with slightly less than 12 per cent, followed. In 1940 sheets accounted for 24 per cent, nearly double their 1929 share, followed by merchant bars with 12 per cem Plates, wire rods, and structural shapes each accounted for about 9 per cent of total. In 1943 plates led all other products, with 21 per cent of total. They were followed by merchant bars, rith 18 per cent, and sheets, with 1 per cent of total. The greatest gain in share of total production in 1940 over 1929 was for shoots, with an increase of 11 percentage points. This gain reflects the expanded use of sheets in manufacturing automobiles, refrigerators, metal furniture, and kitchen ranges. The greatest gain in share of total production 1913 over 1940 was in plates, rith an increase of 12 percentage points, due to war demand for ship construction. They were followed by merchant bars, (1) The increase was duc principally to the construction and devel- opment of the Sparrows Point plant in Maryland. 60 Tons (Millions 50% 40 30- 20 10 V O 1910 Source: A.I.S.I.: LXX yu FO Chart H.R. Iron and Steel Products Production, by Leading States 1910-43 1920 XXX ENKE 1930 U.S. Total a IL 75 Pennsylvania FAYET J 1940 田 ​VETERAN Tons (Millions XXX Ohio Illinois 60 -50 -40 1121 Indiana -30 8 20 10 O 95 with an increase of 5 percentage points, and rolled forging billets, with an increase of 4 percentage points in those years. Plates, skelp, rails, and structural shapes, all had declines of about 3 percentage points in 190 under 1929. From 1940 to 1913 sheets, with a loss of 9 rercentage points, had the greatest de- crease in share of production. Tire rods, concrete bars, and bloors, billets, etc. for export had losses of from 2 to 3 percentage points in 1943 under 1940. Production of Hot-rolled Alloy Steel Products Production of hot-rolled alloy steel products has increased steadily in recent years, particularly with the war demand for spe- cial steels for armor plate, tubes, bars for machinery and machine parts, and alloy forgings for shells and armor-piercing projectiles. Table XIV shows United States production of hot-rolled products of alloy steel, total hot-rolled production, and percentage of alloy to total hot-rolled by years, from 1935 to 1943. Also shown are al- loy ingot production and percentage yield of hot-rolled from ingots. TABLE XIV HOT-ROLIED PRODUCTS OF ALLOY STEEL United States Production Compared with Total Hot-rolled Production Year 1935 1936 1937 1938 - 1939 1940 1941 1942 1943 Hot-rolled Alloy Steel Products 1,255 1,699 1,875 ·860 1;673 2,696 43666 6416 7,408 1935-1943 Tons (000 omitted) Total Hot-rolled Production 26,840 37,858 41178 23,569 39;068 48,660 62;324 62,446 63,293 Per Cent Alloy of Total 4.7 4.5 4.6 3.6 4.3 5.5 Sin 7.5 10.3 11.7 Alloy Ingot Production 2,338 3;123 35333 1,607 3;121 1855 8.088 · 11;380 13,031 Source: American Iron and Steel Institute, Annual Statistical Reports. Production of hot-rolled alloy steel products rose from 1.3 million tons in 1935 to 1.9 million tons in 1937. There was a sharp decline in 1938 to 660,000 tons, but a quick recovery to 1.7 million tons in 1939. Wartime demand increased production - 1 96 from 2.7 million tons in 1940 (more than double 1935) to 7.4 million tons in 1943, an increase in the 4-year period of 4.7 million tons, or 175 per cent. Production of hot-rolled alloy steel products rose from less than 5 per cent of production of all hot-rolled steel products in 1935 to almost 12 per cent of total in 1943. From 1935 to 1943 bars accounted for 49 per cent or more of hot- rolled steel products! Production of bars from 1935 to 1943 ranged from 430,000 tons in 1938 to 3.7 million tons in 1943. In 1935 they accounted for 61 per cent of total production of hot-rolled products made of alloy steel. Their share declined steadily. Their 19:3 production was 50 per cent of total. Other products varied consider- ably in percentage of total production in different years. had the greatest relative increase. Every product, except strip, in- creased greatly in volume produced in 1940 compared with 1935. Plates Stainless Steel Products Production of stainless steel products has maintained a fairly even proportion of the alloy hot-rolled products. For the 9-year period 1935-1943, annual production averaged 150,000 tons, or 5 per cent of the total. Steel Products Advanced Beyond Hot-rolling Production of iron and steel products requiring further pro- cessing than hot-rolling totaled 1.0 million tons in 1928. In 1929 they increased to 15.8 million tons. A decline in their pro- duction beginning 1930 brought the total to 7.1 million tons in 1932, the low point from 1928 to 1943. A rising trend beginning 1933 interrupted only by the 1938 slump, carried the level of total production to 1.9 million tons in 1941. Tartine conditions brought drops from this level to 26.2 million tons in 1942 and 20.1 million tons in 1943. Production in 1940 was 55 per cent over 1929. In 1943 production was 15 per cent over 1940. Pipe and tubes (black) led other miscellaneous finished pro- ducts in all the years 1928-1943. In 1940 they were followed by cold-rolled sheets, plain wire, tin, and terne plate, and galvan- ized sheets, in that order. In 1943, pipe and tubes (black) were followed, in order, by plain wire, cold-finished bars, tin and torne plate, cold-rolled shoots, and cold-rolled strip. Production of Finished Products from Old Material In addition to rolling finished products from Blooms, Billets, and Slabs, some rolling mills convert discarded rails, railroad car M Į 96 from 2.7 million tons in 1940 (more than double 1935) to 7.4 million tons in 1943, an increase in the -year period of 4.7 million tons, or 175 per cent. Production of hot-rolled alloy steel products rose from less than 5 per cent of production of all hot-rolled steel products in 1935 to almost 12 per cent of total in 193. From 1935 to 1943 bars accounted for 49 per cent or more of hot- rolled steel products. Production of bars from 1935 to 1943 ranged from 430,000 tons in 1938 to 3.7 million tons in 1943. In 1935 they accounted for 61 per cent of total production of hot-rolled products made of alloy steel. Their share declined steadily. Their 19:3 production was 50 per cent of total. Cther products varied consider- ably in percentage of total production in different years. Plates had the greatest relative increase. Every product, except strip, in- creased greatly in volume produced in 1940 compared with 1935. Stainless Steel Products Production of stainless steel products has maintained a fairly even proportion of the alloy hot-rolled products. For the 9-year period 1935-1943, annual production averaged 150,000 tons, or 5 per cent of the total. Steel Products Advanced Beyond Hot-rolling Production of iron and steel products requiring further pro- cessing than hot-rolling totaled 1.0 million tons in 1928. In 1929 they increased to 15.8 million tons. A decline in their pro- duction beginning 1930 brought the total to 7.1 million tons in 1932, the low point from 1928 to 1943. A rising trend beginning 1933 interrupted only by the 1938 slump, carried the level of total production to 1.9 million tons in 1941. Wartime conditions brought drops from this level to 26.2 million tons in 1942 and 20.1 million tons in 1943. Production in 1940 was 55 per cent over 1929. In 1943 production was 15 per cent over 1940. Pipe and tubes (black) led other miscellaneous finished pro- ducts in all the years 1928-1943. In 1940 they were followed by cold-rolled sheets, plain wire, tin,´and torne plate, and galvan- ized sheets, in that order. In 1943, pipe and tubes (black) were followed, in order, by plain wire, cold-finished bars, tin and terne plate, cold-rolled sheets,.and cold-rolled strip. Production of Finished Products from Old Material S In addition to rolling finished products from Blooms, Billets, and Slabs, some rolling mills convert discarded rails, railroad car J K 3 1 A 97 exles, structural shapes, etc., into smaller rails, bars, light structural shapes, and other finished products. Statistics on total production of hot-rolled products include quantities pro- duced from rerolling old material. Most rerolled products origi- nate from discorded rails. There were 481,000 tons purchased for rerolling purposes in 1942 and 323,000 tons purchased in 1943. ↑ For the 12-year period, 1932-19:3, an average of 50,000 tons, or a little over 1 per cent of total production of hot-rolled pro- ducts, were rerolled annually from old material. of this amount, 327,000 tons, or 65 per cent, were rerolled into merchant bars or concrete bars. C. Furnace Slag Furnace slag is refuse or dross from smelting ores and metals. It is for: cd in blast and steel furnaces by cherical union between fluxes and impurities in ores and unrefined metals, Practically all the comercial output of slag is produced cast: of the Mississippi River, chiefly at stecl centers in Ohio, Alabama, Pennsylvania,, and Illinois-Indiana. Shipments are made into 11 states east of the Mississippi River except some of the llet: England States. Commercial blast furnace slag is classified as air-cooled, granulated, and lightweight. All types of comercial slag are crushed, ground, or screened to size as required by consumers. Weight of air-cooled slag varies according to size and moisture con- tent. Compacted, dry, aggre ate sized slag averages 60 pounds per cubic foot. In ballast size, loose and dry, the voi¸ht vill run 65 to 70 pounds por cubic foot. Granulated slag averages around 55 pounds per cubic foot, and lightweight slag will average around 45 to 50 pounds per cubic foot. Slag Produced For Ton of Pig Iron The amount of sleg produced in blast furnaces per ton of pig iron approximates 1,100 pounds, or about one-half ton. The quantity from any furnace depends upon the quality of oro smelted. Slag produced in open-hearth furnaces is reported as 20 pounds per ton of ingot stool produced. No records are available of the amount of slag produced in Bessemer or clectric furnaces, but, the quantity is relatively less than in blast and open-hearth furnaces. Slag from blast furnaces averages about 77 per cent and from steel furnaces about 23 per cent of all slag produced. During the six years, 1938-1943, blast furnace slag increased by 193 per cent, from 10. million to 30. million tons, and steal } 98 furnace slag by 180 per cent, from 3.2 million to 8.9 million tons. Production in Alabama of phosphate slag, usod as fertilizer, has varied between 28,000 tons and 55,000 tons. Handling Commercial Slag Handling of commercial slag at furnaces is by three methods: pit system, bank system, and modified pit systen. Under war doriand, magnetic separators were installed adjacent to slag crushing and screening plants. The crushed slag passes over separators which remove metallic iron from the moving mass. In 191 the total iron recovered amounted to 128,000 tons or 20 pounds of iron per ton of slag. By 1943 total recovery equaled 154,000 tons of iron, or 24 pounds per ton of slag. Commercial Use Compared with Production Juerg Slag from blast furnaces comprises practically all of that dealt in commercially, averaging 99.5 per cent of total sold or used. Production of blast furnace slag has increased at a greater rate than consumption. on 1938 to 1942, inclusive, total increase in production was 19,152,000 tons, or 10 per cent, with a corres- ponding increase in consumption of 11,155,000 tons, or 10 per cent. Air-cooled slag has the largest use, the 6-year 1938-13 ava erage being 88 per cent of total blast furnace slag sold or used. Granulated slag accounted for nearly 12 per cent. Figures for lightweight slag were reported only in 1943, and the quantity was nominal. Total slag sold or used has varied between 7,270,000 tons in 1938 and 19,123,000 tons in 1942. The normal increase in slag con- sumption appears to be about 1 per cent annually. Production of Air-Cooled Slag, by States Ohio ranks first in air-cooled slag sold or used, its 6-year average 1930-1943 being 30 per cent of the total. labama is noxt, with 27 per cent, and Pennsylvania third, with 15 per cent, These three statos combined account for nearly three-quarters of the to- tal. Other states, which include Illinois, Indiana, ew York, Maryland, Michigan, West Virginia, Colorado, Tennessee, and Massa- chusetts, averaged 23 per cent of total during the six years 1938- 1943. The largest sale and use of air-cooled slag, during the 6-year period was in 1942, when Ohio sold and usod 1.5 million tons, Ala- bama 2.9 million tons, Pennsylvania 2.5 million tons, and other states .7 million tons. 1 Use for Construction 99 During the six years 1930-1943 about 77 per cent of the total slag sold or used was consumed by the construction industry, which includes roads, pavements, concrete for buildings and bridges, and railroad ballast: The greatest use of slag is for construction and maintenance of roads other than concrete. Such use in the period 1938-1943 averaged 44 per cent of the total sold or used. Railroad ballast accounted for the next largest quantity, which varied be- tween 17 to 21 per cent of total. Construction of concrete pave- ments and structures required from 11 to 19 per cent. Giga Air field runways in 1943 consumed 1,505,000 tons, or 9 per cent of total. Next largest consumption for this purpose was 995,000 tons, or 5.2 per cent in 1942. The increase was due to war demand for additional flying fields. Slag Use and Construction Expenditures Expenditures for new construction in the United States rose from $5,254 million in 1926 to $6,991 million in 1940. Wartime in- fluences brought a sharp jump, to $10,496 million in 1941 and $13,283 million in 1942, followed by a drop to $7,675 million in 1943. liaintenance expenditures rose slowly and steadily from $2,816 million in 1938 to $3,752 million in 1943. The ratio figures show between 1938 and 1942 a close correla- tion between new construction and slag use. The maximum 1938-1942 variation in slag tonnage per $1 million of such expenditure was between 1,398 tons in 1941 and 1,518 tons in 1938, or less than 9 per cent. The figures indicate that somewhat more slag is used in relation to dollars expended for maintenance than for new construc- tion, and that around 900 to 1,100 tons of slag are used per 1 million of total construction expenditures of all kinds. However, the 5-year period from 1938 to 1942 is too short for precise conclu- sions and three of the five years were affected by wartino influ- ences. Rail terminations (the only available indication of the geog- raphical distribution of use) account for 55 per cent or more of total slag sold or used by producers. Tonnage of furnace slag terminated by Class I railroads was between 5.7 million tons in 1940 and 10.5 million tons in 1942 and 1943. Illinois was far ahead of all other states in 1940, with 26 per cent of total terminations, but in 1943 had dropped back to third place, with 14 per cent of total. Its tonnage was about the same (1.5 million) in both years, Pennsylvania and Indiana each terminated about 800,000 tons, or 1 per cent of total, in 1940. After a rise to 2.2 million tons in 1942, Pennsylvania in 1943 100 J terminated 1.6 million tons, or 16 per cent of total. Indiana in that year terminated 1.3 million tons, or 12 per cent of total. In the years 1940-193, the four states of Ohio, Pennsylvania, Illinois, and Indiana accounted for about two-thirds of all rail terminations of slag. With Alabama, these states also are the leaders in commercial output of slag. Alabama, Florida, Maryland, and Tennessee had considerable in- creases over 1940 in 1941 and the next two years. Foreign Trade There is no record of any appreciable foreign trace in slag. Harketing of Slag Blast furnace slag (open-hearth slag in the Birmingham steel district) as a rule is sold to a processor, who has a crusher plant in close proximity to the furnaces and alongside the railroad track. Grades or sizes range from dust to four inches or larger for fill- ing purposes. There is also a slag sand for concrete-production purposes, which compares favorably with silica sand. lost (about 68 per cent) of the slag sold is air-cooled, and of this latter a- bout 89 per cent is screened to size. The value of air-cooled slag sold or used at the plant is a- bout twice as great for the screened as for the unscrcencd. Granu- lated slag runs in value from about one-half to one-fourth of un- screened air-cooled slag. Lightweight is the most expensive tyne. Although the average value of screened slag at the plant is only about 86 cents per ton, the price to the consumer runs from $1.75 to $2.00 per ton in large cities. Bu The 143 value of air-cooled slag (12.3 million) was double the 1938 value. Granulated slag rose in value from $79,000 in 1938 to $587,000 in 1942 and $319,000 in 1943. The only sales re- corded for lightweight slag wore in 1943 and amounted to $113,000. Transportation of Slag Furnace slag is a heavy, bulky product, sold mostly for con- struction purposes in competition with stone, gravel, and sand. 1943, the United States Bureau of lines reported the average ship- ping range of slag as 57 miles by rail, 1 miles by truck, and 157 miles by water. G In Crushed slag movement in general is in open cars, the tariff minimum carload weight being 90 per cent of the marked capacity of 101 * the car, unless car is loaded to full cubical or visible capacity. Some forms of prepared slag, such as pulverized, slag wool, etc., are packaged in bags, boxes, or barrels, and move in closed cars on excepted weights and ratings. Rail Tonnage and Revenue Rail tonnage, the larger of originated and terminated, rose from 8.8 million in 1928 to a high of 11.0 million in 1930, then fell steeply to 2.0 million in 1933. The drop from 1930 to 1931 was 6.6 million tons. During the four years 1932-1935 the rail movement was near or below 2.5 million tons: It then climbed fair- ly steadily, except for a recession in 1938, to 8.9 million tons in 1941 and 10.5 million tons in 1942 and 1943. Revenue of Class I railroads followed much the same trends as tonnage. It was 3.6 million in each of the three years 1928-1930, and fell to a low of 1.7 million in 1923. During the four years 1932-1935 it was between $1.7 million and $1.9 million. From the 1933 low, revenue trended upward, with a recession in 1938, to $6.1 million in 191, and to $7.6 million in 1942, dropping slightly to $7.4 million in 1943. Revenue per ton dropped from 75 cents in 1923 to 60 cents in 1930, then climbed to 88 cents in 1932. From that point the trend was downward, to 73 cents in 1936-1937. The average then jumped to 86 cents in 1938, followed by a decline to 69 cents in 11. The level was 72 cents in 1942 and 71 cents in 1941. It is noteworthy that the highest levels of average rovere per ton, in 1932 and 1938, coincide with very low levels of tonnage, gencrally speaking, the trends of revenue per ton and of tonnage between 1928 and 123 are opposite. One explanation may be that the first traffic to disap- pear from the rails in poor years is the shorter hauls. Slag loads heavy, and the averare load per car has not varied a great deal during the 16 years, 1920-1943. The low was 52.9 tons in 1928, and the peacetime high was 58.1 tons, in 1941. The aver- age climbed to 58.5 tons in 1942 and to 58.6 tons in 1943. In 1942, tons carried (including duplications) as reported for Class I railroads by the Interstate Commerce Commission was 1.32 times tons originated and 1.25 times tons terminated, indicating that only about one-quarter to one-third of the slag movement is interchanged between Class I railroads. About 78 per cent of the total slag movement originates and a slightly lower percentage terminates (1941-1943) on railroads in the Eastern district. Southern district roads originate about 21 per cent and torminate around 25 per cent of the total. Origina- SE 102 tons and terminations in the Western district are in the neighbor- hood of 1 per cent of total. Since the three years, 1923-1930, railroads of the Eastern district have lost ground to those in the Southern district in originations and even more in terminations of furnace slag. The average annual revenue of Class I railroads from slag dur- ing the 16 years, 1928-1943, was $1,205,000. Revenue for railroads in the Eastern district during the 16 years averaged 62 per cent of total, which is considerably less than their percentages of tomago (81 per cent for originated) and 79 per cent for terminated. Ey con- trast, Southern district roads received 35 per cent of the revenue, although they originated 18 per cent and terminated 20 per cent of the tonnage. The share of the estern district railroads in the rev- enue from slag was approximately double their percentage of the ton- nage. Ohio, Illinois, Alabama, and Pennsylvania (in 1943 order) were far in the lead of all other states in rail terminations of slag. These four states together account for about 90 per cent of all rail terminations. Those also are the leading states in rail originations taking Illinois and Indiana together, the Chicago-Gary mills being practically one district. Alabana during cach of the four years, 1940-1943, has terminated from 480,000 to 800,000 tons of slag more than it originated. Indi- cations are that this slag is shipped in from the nearby states of Tennessee, Georgia, and Florida. Batoen 1910 and 1943 tonnage ter- minated in Ohio more than trebled, and in Alabama and Pennsylvania it approximately doubled. Torrinations in Illinois, however, failed to keep pace with the general trend after 1940. The state dropped from 41 per cent of total in 1910 to around 27 per cent of total tor- minetions in 1940-194;3. In considering figuros on rail movenant of furnace slag it is important to recall that these figures cover only revenue movement, There is an additional and substantial movement of slag hauled by railroads as company material or nonrevenue freight for their owm use as ballast. Bo Use of slag for railroad ballast was 1.5 million tons in 1938- 1939 and almost 1.9 million tons in 1910. During 1941-1943 it was between 3.0 and 3.3 million tons. During the six years 1938-1943 it averaged almost 19 per cent of all slag sold or used by producers. How much of this slag was hauled on a nonrevenue basis cannot be determined. Statistics of Nonrail lo vement Lacking Reports of the Chief of Engineers, United States Army, on water movement of commodities do not assemble figures for slag and exam- ination of the 192 report shows no slag listed as moving to or from Chicago, Indiana Harbor, or Gary. There is a like dearth of statis- tics on trucking of slag. -- 2 ▸ VI. LOCATION AND CAPACITIES OF IRON D STEEL HANUFACTURING AREAS IN THE UNITED STATES because: The most economical source of steel is that location where raw materials can be assembled, the steel produced, and delivery to the market effected at the, lowest possible total cost. In determining plant location, assembly costs are most important as more than four tons of raw materials must be assembled for every ton of stecl pro- duced. 1 ? The approximate amount of principal raw materials required per ton of pig iron are: 1. 2. Another 1,500 pounds of coal may be consumed for power and heating before a ton of finished steel product has left the mills. Integrated steel works have developed from blast furnace plants $ 103 4,075 pounds of iron ore, 2,700 pounds of coking coal, 900 pounds of limestone. As steel aproaches the finished stage the cost of shipment becomes a smaller ercentage of the cost of the product to the buyer. Integration assures more constant utilization of blast furnaces and open-earths. 3. Economies of converting molten iron into steal and other heat conservation factors are important in the economical production of steel. The necessity for the most favorable combination of assembly, production, and delivering costs have confined steel production to a few geographical areas in the United States. The favorable combination of the factors mentioned is well il- lustrated by the steel producing centers along Lake Erie and Lake Michigan, in the Tahoning and Ohio Valloys, and in the Pittsburgh district. These locations were primarily determined by the availa- bility of Lake Superior ores and the metallurgical coling coals found in vestern Pennsylvania, Test Virginia, and Lentucky. Lire- stone is well distributed and is the least important of the major raw raterials. St Although plant location is based upon availability of raw ma- terials, great producing centers also have close at hand important 104 outlets for steel products. All of these producing points coin-- cide with, or are adjacent to, major centers of steel demand. As population increases and in a westerly direction, creating new and expanded markets, there is a trend toward increased pro- duction west of the old established producing points. im- The close proximity of iron ore, coal, and flu: has given in- petus to the Birmingham, Alabama, district. hile this district is rather remote from major consuming markets it does have favorable transportation costs using water routes to the Pacific Coast. Sparrows Point, Maryland, has the advantage of a tidewater 10- cation enabling the use of highgrade imported iron ores; also fav- orable location with respect to major consuming markets along the Atlantic Seaboard and the availability of direct water transporta- tion to the Pacific Coast, Gulf ports, and other domestic as well as export markets. These factors make economical distribution a major factor in the operation of the plant. { ANJE The steel mills in eastern Pennsylvania are well located with respect to the large Atlantic Coast market and have relatively short hauls to ilorth Atlantic ports where water transportation to foreign and domestic markets is available. Generally, the raw ma-- terials are more remote than in the case of plants in western Penn- sylvania and Ohio. ܝ GE Colorado and Utah both possess iron ore, coal and linestone in sufficient quantities and within reasonable assembly distance of each other to permit integrated steel production on a comercial basis. Geneva Geneva, Utah, where a steel plant was built during orld War II, has the advantage of an economical assembly of raw materials. The West Coast is the major market area. The West Coast, although an important steel consuming area, had only a limited steel producing capacity due to high assembly costs and competition from other producing districts, principally through water transports. Production capacity was markedly in- creased during the war through the construction of the Government- financed mill at Fontana, California. Brand SALAR has The principal steel producing centers of the United States have been shown to be confined to particular geographical areas where the raw materials for steel making can be economically assembled. Hany small nonintegrated mills are located outside the major producing areas where they may use local scrap, merchant pig iron or semi- finished steel to produce stel for consumption in the local area or may specialize in particular products to distribute in more wide- spread markets. 105 Blast furnaces producing pig iron and ferro-alloys are lo- cated in eighteen states in the United States. Table XV gives data on the location of these furnaces by states. The location of blast furnaces by steel producing districts as defined by the magazine "Iron Age" is shown in Table XVI. In addition to showing the number of stacks and annual capacity, the per cent of total United States capacity is shown for each dis- trict. These figures show clearly the predominant position of Official Territory producers. Steel producing furnaces are located in twenty-seven states in the United States. Table XVII gives data on the location of open-hearth, Bessemer, electric, and crucible furnaces by states. Increase in steel ingot capacity by states, January 1, 1940, to June 30, 1944, is shown in Table XVIII, The location of steel producing furnaces by districts as de- fined by the magazine "Iron Age is shown in Table XIX, which shows the number of furnaces, total annual capacity, and per cent of United States capacity. Producing points included in the various pig iron, ferro- alloys, and steel ingot production districts listed in Tables XVI and XIX are shown in Appendix A. F The location of steel ingot producing points, together with the name of the company and annual ingot capacity is shown in Ap- pendix B. The location of blast furnaces producing pig iron and ferro- alloys, together with the name of the company and annual capacity is shown in Appendix C. VIE The The groat preponderance of plants producing pig iron, steel ingots, and finished steel products are located in the Dast. six states leading in the production of iron and steel are all in Official Territory. The next ranking state, Alabama, is in South- ern Territory. Utah, in Festern Territory, ranked eighth during 1945 in pig iron capacity, while California ranked tenth in ingot capacity. 1 ! 61.67 per cent of United States blast furnace capacity is lo- cated in the Pittsburgh, Chicago, Youngstown, and Philadelphia dis- tricts. These 'same districts account for 68.25 per cent of steel ingot capacity in this country. 40 Southern Territory has 6.32 per cent of blast furnace capacity and 3.68 per cent of steel ingot capacity. 20,30 T Ꭸ 106 Western Territory has 5.21 per cent of blast furnace capacity and 5.73 per cent of steel ingot capacity. In finished steel products, plants located in Official Terri- tory are the cutstanding producers. In the heavier products such as structural shapes, plates, and rails, Pennsylvania and Indiana dominate production. Ohio leads in production of bars, skelp and rounds for seamless tubes, and sheets and strip. Pipe and tube production is largely centered in Pennsylvania and Ohio with is- consin, also an important producer. Illinois and Pennsylvania lead in wire rods and plain and galvanized wire. In production of black plate, tin plate, and terne plate, Indiana, Chio, and West Virginia are the leading states. Alabama is an important producer of plates, rails, wire rods, plain and galvanized wire, and black plate, tin plate, and terne plate. In the est, California is a producer of heavy structural shapes and hot-rolled bars. Utah has a large plate capacity while Colorado is a leading producer of rails. Locations of Blast Furnaces A summary by states of rated annual blast furnace capacity is shon in Table XV. Pennsylvania, Ohio, Indiana, and Illinois to- gether account for more than 70 per cent of the total. PALMƏ W • State Pennsylvania Ohio Indiana Illinois New York Alabama Maryland Michigan West Virginia Utah Kentucky Colorado Minnesota Texas California Massachusetts Tennessee Virginia TOTAL SIAST FULCES Rated Annual Capacity, by States January 1, 1944 Tons (000 omitted) 20.197 14;239 Coke Pig Iron Ferro-lloys Charcoal 7,021 5,986 4747 11;155 2;712 156041 1,402 1,351; 77 630 569 400 389 176 TABLE XV 66,345 573 174 136 71 36 990 32 24 1 56 Source: American Iron and Steel Institute. Total 20,760 14413 7,021 5,986 43747 4,291 2;712 1;636 14:02 1,354 774 630 569 400 339 176 95 36 67,391 107 Per Cent 30.8 21.h 10.! 8.9 7.0 6.4 4.0 2.4 2.1 2.0 1.2 C .9 .8 .6 .6 .3 .1 .1 100.0 3 på 3 District Pittsburgh Chicago Youngstown Philadelphia Cleveland Buffalo Theeling South Detroit LOCATION OF BLAST FURNACES IN UNITED STATES BY PRODUCING DISTRICTS SHOWING NUMBER OF STACKS, TOTAL NULL CA ACITY AND PER CENT OF UNITED STATES CAPACITY Test Ohio River St. Louis East TOTAL Source: Number of Stacks 1 541 43 27 7/1 18 7 25 8 12 .00 INNOI TABLE XVI 243 Total Annual Capacity (Net Ton) 15,795,100 13,605,510 7,811, 110 6,311,090 41 433, 4:00 4,824,480 2,190,000 4,250,820 2,156,100 3,509,850 1,779,000 165,000 176,400 67,313,890 Per Cent of United States Capacity 23.47 20.21 11.61 9.38 6.59 7.17 3.25 6.32 108 3.20 5.21 2.64 0.69 0.25 100.00 "Directory of Iron and Steel Works of the United States and Canada" - American Iron and Steel Institute, 1915. ጌ State Pennsylvania Ohio Indiana Illinois New York Maryland Alabama Michigan W. Virginia California Utah Colorado Kentucky Minnesota Texas New Jersey Delaware Missouri Washington Massachusetts Connecticut Georgia Oklahoma Rhode Island Oregon Tennessee Virginia Total U. S. STEEL INGOTS AND CASTINGS U. S. Annual Capacity, by States January 1, 1945 Tons (000 omitted) 26,218 15,351 10,599 7,195 4,188 Open Hearth Bessemer 3,835 3,429 2,820 1,850 1,744 1,283 1,272 1,196 610 466 283 460 426 210 280 188 154 54 60 11 1 TABLE XVII 2,150 2,318 330 500 240 1 1 336 11 11 1 84,171 5,874 Electric & Crucible 1,313 1,728 182 848 162 114 80 370 198 111 34 180 136 1 1 1 1 9 60 38 8 5,460 Total 29,681 19,397 11,111 8,543 4,350 4,189 3,509 3,190 2,186 1,942 1,283 1,272 1,196 610 500 463 460 426 346 280 188 154 63 60 60 38 8 95,505 f Per Cent of U. S. Total 31.1 20.3 11.6 8.9 406 4.4 3.7 3.3 2.3 2.0 1.3 1.3 1.3 .6 .5 .5 .5 .4 .4 .3 .2 .2 .1 .1 .1 100.0 109 Source: American Iron and Steel Institute Statistical Reports V \ 110 State Alabama California Delaware Illinois Indiana Kentucky Maryland Massachusetts Michigan Minnesota Missouri New Jersey New York Ohio Oregon Pennsylvania Texas Utah Washington West Virginia Total TABLE XVIII STEEL INGOTS Increase in Capacity, by States January 1, 1940 to June 30, 1944 Tons (000 omitted) Industry Financed Government Financed 545 896 67 936 637 579 67 216 274 60 32 64 1,104 75 2,157 222 54 349 8,384 120 110 1,180 205 190 30 68 878 2,498 305 1,283 72 6,939 Total 665 1,006 67 2,166 842 190 609 67 216 274 50 100 64 1,982 75 4,655 527 1,283 126 349 15,323 Source: Steel Division of War Production Board, "Steel Expan- sion for War," by W. A. Hauck, June 16, 1945. འ A District LOCATION BY DISTRICTS OF OPEN-HEARTH, BESSEMER, ELECTRIC, AND CRUCIBLE FURNACES IN UNITED STATES WITH ANNUAL CAPACITIES AND PERCENT OF UNITED STATES CAPACITY Pittsburgh... Chicago... Youngstown. Philadelphia.. Cleveland.. Buffalo. Wheeling. South... Detroit. West.... Ohio River... St. Louis.. East... Total... started .. .. .. 00 00 : Furnaces : .. .. .. ·D .. .. OD .. .. .. TABLE XIX .. .. Number of Total Annual : Percent of Capacity : United States (N.T.) Capacity : 343 22,521,490 23.58 201 : 18,932,300 : 19.82 150 13,208,100 13.83 156 10,523,330 : 44 4,540,900 ; 62 4,481,050 : : 3,320,000 3,708,900 : 3,190,420 0 : 5,466,790 2,760,100 : 1,757,620 : : 1,094,280 31 44 64 88 37 25 48 DO 1,293 : .. OD 00 .. .. J .. .. 95,505,280 .. : .. : .. : : .. 11.02 4.75 4.69 3.48 3.88 3.34 5.73 2.89 1.84 1.15 100.00 Source: "Directory of Iron and Steel Works of the United States and Canada" American Iron and Steel Institute, 1945 177 112 1 VII. STEEL EXPANSION FOR VAR A complete picture of steel expansion projects between January 1, 1940 and June 30, 194, is included in a report of W. A. Hauck, Steel Division, War Production Board, entitled "Steel Expansion for War", dated June 1, 1945. The report gives the following summaries: Summary of Steel Expansion: Capacity Basic Capacity Ingot Capacity Integrated Steel Companies Semi-integrated Steel Companies Integrated Forging Companies TOTAL Blast Furnace Capacity Integrated Steel Companies Independent Blast Furnace Companies TOTAL Sinter Capacity Integrated Steel Companios Independent Blast Furnace Companies TOTAL Coke Capacity Integrated Steel Companies Independent Blast Furnace Companies Industry Government Financed Financed Total Net Tons Net Tons Net Tons 7,160,648 5,737,420 12,898,068 1,046,885 905, OLO 176,529 297,000 8,384,062 6,939,460 1,951,925 473529 15,323,522 7,955,984 5,886,000 13,841,984 50,080 1,066,000 1;570;080 8,460,064 6,252,000 15,412,064 6,123,200 4,637,400 10,760,600 390,000 350,000 740,000 6,513,200 4,987,400 11,500,600 Independent Coke and Coal Companies 1,018,006 Ferro-alloy Companies TOTAL 7,298,700 4,109:100 11,407,800 91,440 690,000 781,40 75,000 1,093,006 128,00 128 400 8,408,116 5,002,500 13,410,646 1 f SUMMARY OF STEEL EXPANSION: COST Industry 1. Integrated Steel Companies.... 2. Semiintegrated Steel Companies.... 3. Non-integrated Steel Companies.. 4. Independent Ore Companies. 5. Independent Ore Water Transportation Co.. 6. Independent Blast Furnace Companies.. 7. Independent Steel Warehouse Companies TOTAL STEEL INDUSTRY……. 8. Independent Coal-Coke Companies.. 9. Refractory and Flux Companies.... 10. Independent Ingot Mould Companies... 11. Iron and Steel Scrap Companies. TOTAL STEEL AUXILIARY INDUSTRY. 15. Integrated Forging Companies.. 16. Non-integrated Forg- 12. Independent Steel Casting Companies.. $ 13. Independent Gray Iron Casting Companies.. 14. Independent Malleable Iron Casting Co.... TOTAL FOUNDRY INDUSTRY ing Companies.. TOTAL FORGING INDUSTRY 17. Ferro-Alloy Companies 18. Miscellaneous Com- panies. GRAND TOTAL. $ Industry Financed $ 876,694,256 $ 792,632,305 $1,669,326,561 58,158,742 84,216,176 29,768,143 8,686,575 29,004,034 3,382,000 24,510,012 11,544,287 1,239,379 1,030,918,853 12,011,282 $ 11,961,206 2,329,034 880,708 27,182,230 Government Financed 37,045,148 293,927 .925,962,204 Total 1,336,007 5,137,107 113 1,405,579 $ 13,416,861 2,395,521 14,356,727 2,329,034 2,216,715 32,319,337 142,374,918 38,454,718 32,386,034 24,510,012 48,589,435 1,239,379 1,956,881,057 48,329,268 $ 141,077,403 $ 189,406,671 15,218,829 5,737,792 20,956,621 26,185,437 12,544,173 76,092,270 13,641,264 160,456,459 236,548,729 211,552 20,199,073 $ 67,165,251 $ 87,364,324 28,692,552 48,891,625 74,594,433 103,286,985 141,759,684 190,651,309 78,215,646 168,038,107 89,822,461 505,479 $1,273,201,366 $1,311,742,652 $2,584,944,018 דיר Districts Eastern. Pittsburgh. Cleveland. Chicago... Total.. Southern. Western. Total.... GRAND TOTAL... Summary of Steel Expansion: Location Ingot Capacity- Steel Production Districts Districts Eastern.. Pittsburgh. Cleveland.. Chicago.. Total. Southern.. Western... Summary Expansion Costs, Steel Industry-- Steel Production Districts • Total... 1 Industry Financed • Net Tons 1,492,350 2,726,924 415,300 1,957,338 6,591,912 766,850 1,025,300 • 1,792,150 8,384,062 Total $179,582,321 $105,809,314 $ 285,391,635 329,237,537 272,397,609 601,635,146 45,287,049 39,961,003 176,874,467 189,288,538 85,248,052 366,163,005 730,981,374 607,456,464 1,338,437,838 $ 78,871,091 $ 83,455,100 $ 162,326,191 126,316,957 235,050,640 361,367,597 Total........... 205,188,048 318,505,740 $ 523,693,788 Total for Districts.. $936,169,422 $925,962,204 $1,862,131,626 All Other States... Lake Ore Boats. Foreign.. Industry Financed Government Financed Net Tons 516,000 3,028,240 120,000 1,385,000 5,049,240 424,820 1,465,400 1,890,220 6,939,460 CA Government Financed Total 6,913,104 58,027,935 29,808,392 6,913,104 58,027,935 29,803,392 $94,749,431 $ 94,749,431 GRAND TOTAL... .$1,030,918,853 $925,962,204 $1,956,881,057 11 Net Tons 2,008,350 5,755,164 535,300 3,342,338 11,641,152 1,191,670 2,490,700 3,682,370 15,323,522 > RELATIVE CAPACITY POSITION OF STEEL COMPANIES (Before and After Steel Expansion for War) (A) LARGE COMPANIES (Over 1,000,000 Tons Capacity) The following comparison shows, as a result of the steel expan- sion program (and interim adjustments for old facilities dismantled), that the large companies in the Steel Industry, taking into account Government facilities which they operate as lessees, decreased their relative position from 87.7% to 85.2%, or a decrease of 2.5%, and that the small companies increased their relative position from 12.3% to 13.5%, or an increase of 1.2%. The new Geneva Steel Plant in Utah is not included in the above determinations as it is Government financed and operated. United States Steel Corporation..27,795,000 Bethlehem Steel Company.. Republic Steel Corporation. Jones & Laughlin Steel Corp.. Youngstown Sheet & Tube Company National Steel Corporation.. Inland Steel Company... American Rolling Mill Company.. Wheeling Steel Corporation Crucible Steel Co. of America.. Colorado Fuel & Iron Corp.. Pittsburgh Steel Company..... Ford Motor Company. (C) GENEVA STEEL PLANT Government Financed and Operated January 1, 1940 Ingot Capacity Net Tons %% Total.... (B) SMALL COMPANIES (Under 1,000,000 Tons Capacity) 10,079,469 GRAND TOTAL. 34.1 11,468,800 14.1 7,840,000 9.6 4,920,384 6.0 3,494,400 4.3 3,808,000 4.7 3,091,200 3.8 3,030,182 1.1 1,960,000 933,408 1,108,800 1.4 1,072,557 1.3 1,017,296 1.2 71,540,027 ', 115 January 1, 1945 Ingot Capacity Net Tons % 32,307,000 33.8 12,900,000 13.5 9,791,000 10.2 5,024,400 5.3 4,002,000 4.2 3,900,000 4.1 3,400,000 3.6 3,268,000 3.4 1,960,000 2.1 1,507,680 1.6 -1,272,000 1.3 1,072,000 1.1 967,420 1.0 87.7 81,371,500 85.2 3.7 2.4 12.3 12,850,380 13.5 1,283,400 1.3 81,619,496 100.0 95,505,280 100.0 Source: American Iron and Steel Institute Detailed Ingot Capacity Tables 116 Steel January 1, 1940 Production Ingot % of Districts Capacity Total TABLE I - GEOGRAPHICAL SHIFTS OF STEEL INDUSTRY Effected by Steel Expansion Program Eastern 16,160,322 19.8 18,023,060 42.2 39,885,290 9.7 7,731,320 21.5 20,743,920 Pittsburgh 34,458,309 Cleveland 7,900,888 Chicago 17,553,701 Total 76,073,220 93.2 86,383,590 Southern Western January 1, 1945 Ingot Capacity % of Total Total 4.4 3,360,225 4.1 4,209,220 2,186,051 2.7 4,912,470 5.1 5,546,276 6.8 9,121,690 9.5 GRAND TOTAL 81,619,496 100.0 95,505,280 100.0 18.9 41.8 8.1 21.7 90.5 Geographical Shifts Decrease & Increase Total Tons 1,862,738 5,426,981 -169,568 3,190,219 10,310,370 848,995 2,726,419 3,575,414 13,885,784* (a) Loss of 2.7% in capacity standing for the combined Eastern, Pittsburgh, Cleveland, and Chicago produc- tion districts. (b) Gain of 2.7% in capacity standing for the combined Southern and Western districts. 1 1 el 0.9 0.4 · 1.6 0.2 2.7 0.3 2.4 치히​에 ​2.7 *Net increase after capacity dismantled and downward adjustments of capacity. The above table shows a geographical shift resulting from the steel expansion program as follows: 0.0 The table also shows a distribution of additional capacity in- cluded in the steel expansion program favoring the South and West, as follows: (a) The combined Eastern, Pittsburgh, Cleveland, and Chicago districts accounted for 93.2% of the total steel capa- city as of January 1, 1940, and received 10,310,370 tons, or only 74.3% of the additional capacity in the steel ex- pansion program. (b) The combined Southern and Western districts accounted for only 6.8% of the total steel capacity as of January 1, 1940 but received 3,575,414 tons, or 25.7% of the addi- tional capacity in the steel expansion program. 117 Steel Production District Eastern Pittsburgh Cleveland Chicago Total Southern Western All Other States Lake Ore Boats Foreign STR TABLE II - EXPENDITURES BY DISTRICTS (Steel Expansion Program) 15.3 601,635,146 3213 $ 179,582,321 $105,809,314 $ 285,391,635 329,237,537 45,287,049 176,874,467 272,397,609 39,961,003 189,288,538 85,248,052 366,163,005 466 19.7 730,981,374 607,456,464 1,338,437,838 71.9 8.7 78,871,091 $ 83,455,100 $162,326,191 126,316,957 235,050,640 361,367,597 19.4 Total 205,188,048 318,505,740 523,693,788 28.1 Total for Districts $ 936,169,422 $925,962,204 $1,862,131,626 100.0 6,913,104 58,027,935 29,808,392 GRAND TOTAL Industry Financed $ Government Financed Total Expenditures IT 6,913,104 58,027,935 29,808,392 $1,030,918,853 $925,962,204 $1,956,881,057 The above table shows a distribution of expenditures made for the steel expansion program favoring the South and West as follows: (a). The combined Eastern, Pittsburgh, Cleveland, and Chicago districts accounted for 93.2% of the total steel capacity as of December 31, 1939 (see TABLE 1). However, expendi- tures made in these districts for the steel expansion pro- gram were $1,343,637,838, or-only 72% of the total cost of the applicable parts of this program as above shown. Rel Sing (b) The combined Southern and Western Districts accounted for only 6.8% of the total steel capacity as of December 31, 1939 (see TABLE I). However, expenditures made in these districts for the steel expansion program were $523,693,788, or 28% of the total cost of the applicable part of this program as above shown. 118 } SUMMARY OF COMPANIES REPORTING PROJECTS 1. Integrated Steel Companies 2. Semi-integrated Steel Companies 3. Non-integrated Steel Companies 4. Independent Ore Companies 5. Independent Ore Water Transportation Companies 6. Independent Blast Furnace Companies 7. Independent Steel Warehouse Companies 8. Independent Coal and Coke Companies 9. Refractory and Flux Companies 10. Independent Ingot Mould Companies 11. Iron and Steel Scrap Companies 12. Independent Steel Casting Companies 13. Independent Gray Iron Casting Companies 14. Independent Malleable Iron Casting Companies 15. Integrated Forging Companies 16. Non-integrated Forging Companies 17. Ferro-Alloy and Metal Companies 18. Miscellaneous Companies Total Reported Projects 19 41 94 15 9 14 7 12 38 3 17 147 67 34 17 76 40 2 652 ** VIII. IRON AND STEEL CAPACITIES OF INDIVIDUAL COMPANIES 7.19 About 92 per cent of blast furnace capacity and 90 per cent of steel capacity in the United States are combined in nineteen inte- grated companies. Semi-integrated companies have slightly less than 11 per cent of steel capacity. Horchant plants, producing pig iron for sale, have & per cent of blast furnace capacity. Th Table XX shows annual steel and blast furnace capacities of leading producers in the United States, and percentage distribution of these capacities as of January 1, 1945. Chart shows changes in by-product coke oven, blast furnace, and steel furnace capacities by companies and districts between 1938 and 1945. The United States Steel Corporation, with annual steel capacity of 32,307,000 net tons, had 33.8 per cent of United States total steel capacity on January 1, 1945. Its blast furnace capacity of 24,600,000 tons was 36.5 per cent of the United States total. Beth- lehem Steel Company ranked second with 12,900,000 tons or 13.5 per cent of steel capacity and 9,654,000 tons or 1.3 per cent of blast furnace capacity. Republic Steel Corporation was third with 9,791,000 tons or 10.3 per cent of steel capacity and 6,324,000 tons or 9.4 per cent of blast furnace capacity. Jones and Laughlin Steel Corporation, Youngstown Sheet and Tube Company, and National Steel Corporation ranked fourth, fifth, and sixth, respectively. Pig iron producers in the United States emerged from World War II with the largest capacity and most modern facilities in history. As of January 1, 1945 there were thirty-nine companies with 243 blast furnaces capable of producing 66,321,290 net tons of pig iron and 992,600 tons of ferro-alloys or a combined total of 67,313,890 tons. This represents an increase of 36 per cent over the January 1, 1930 capacity of 56,782,208 tons when the industry had 243 stacks ovmed by fifty-two companies. Thirteen companies disappeared be- tween 1938 and 1945 partly through mergers, but mostly because of disposal of furnaces that could not be operated profitably. Blast furnace capacities of individual producing companies are shom in Table XXI. Steel ingot capacity in the United States on January 1, 1945 was 95,505,280 net Lons. There were eighty-three roducing compa- nies with 990 open-hearts, 262 electric and crucible furnaces, and • 1 Bessemers. Steel ingot capacity, as of January 1, 1945, as more than 15,000,000 tons in excess of 1938 capacity. The 7-year period saw increases of approximately 265 per cent in electric furnace ca- pacity and 18 per cent in open-hearth capacity. Bessemer and cru- cible steel capacities showed a decrease. * } 120 Steel ingot capacities of individual producing companies are shown in Table XXII. In finished steel the leading tonnage products are hot-rolled bars, hot-rolled sheets, and structural shapes. In practically every finished steel product the United States Steel Corporation is the leading producer rith Bethlehem second. Republic is promi- nent in production of bars, plates, rire rods, pipe, sheets, and strip. Jones and Laughlin are heavy producers of bars, plates, wire rods, pipe, sheets, and strip. Youngstown Sheet and Tube Com- pany has large capacity for bars, pipe, sheets, and tin plate. National Steel Corporation have heavy capacity for producing bars, plates, sheets, strips, and tin plate. Other companies having large bar producing capacities are Inland Steel Company, Crucible Steel Company of Alorica, American Rolling Mill Company, and International Harvester Company. Important structural producers in addition to those mentioned are Inland Steel Company, Phoenix Iron Company, and Kaiser Company, Incorporated. In plate capacity other important companies are American Roll- ing Mill Company, Central Iron and Steel Company, Inland Steal Com-- pany, Kaiser Company, Incorporated, Lukens Steel Company, Worth Steel Company, and heeling Steel Corporation. Other leading companies in shect capacities are American Roll- ing Mill Company, Continental Steel Corporation, Ford Motor Company, Granite City Steel Company, Inland Steel Company, and hooling Steel Corporation. * As Pa A 3 } Company United States Steel Cor- poration Bethlehem Steel Company STEEL INGOTS AND CASTINGS Furnace Capacities of Leading Producers United States January 1, 19445 Tons (000 omitted) Republic Steel Corporation Jones & Laughlin Stecl Corporation TOTAL TABLE XX Youngstown Sheet & Tube Company National Steel Corporation Inland Steel Company American Rolling lill Company Wheeling Steel Corporation Crucible Steel Company of America Geneva Steel Company Colorado Fuel & Iron Cor- poration Pittsburgh Steel Company Wisconsin Steel Company Ford Motor Company Kaiser Company, Incorporated Sharon Steel Corporation Alan Wood Steel Company Wiclarire Spencer Steel Company Others Annual Per Capacity Cent of Steel Total 32,307 12,900 9,791 5,024 4,002 3,900 3,400 3,268 1,960 1;508 1,283 1,272 1,072 900 770 750 636 550 · 180 10,032 95,505 33.8 13.5 10.3 5.3 4.2 1.1 3.5 3.4 2.1 1.6 1.3 1.3 1.1 .9 8 .8 .7 .6 2 10.5 100.0 Annual Ca- pacity Blast Furnace 24,600 93654 6,324 4,080 3,4:56 3,0111 2,236 1;594 1,275 ·532 1,450 798 55!! 720 504 339 174 455 390 5,115 67,314 S Source: American Iron and Steel Institute, Annual Statistical Reports. 121 Per Cent of Total 36.5 14.3 9.11 6.1 5.1 4.5 - 3.3 2.4 109 .8 2.2 1.2 .8 1.1 .7 •6 .2 .7 •ó 7.6 100.0 Chart 5 122 UNITED STATES STEEL BETHLEHEM STEEL CO. REPUBLIC STEEL CORP. JONES AND LAUGHLIN NATIONAL YOUNGSTOWN INLAND AMERICAN ROLLING MILL WHEELING COLORADO FUEL AND IRON PITTSBURGH STEEL CO. CRUCIBLE STEEL CO. UNITED STATES STEEL BETHLEHEM STEEL CO. REPUBLIC STEEL CORP. JONES AND LAUGHLIN. NATIONAL YOUNGSTOWN INLAND AMERICAN ROLLING MILL WHEELING COLORADO FUEL AND IRON PITTSBURGH STEEL CO. CRUCIBLE STEEL CO PITTSBURGH CHICAGO LAKE ERIE BETHLEHEM BIRMINGHAM SOUTHEASTERN COLORADO, TEXAS, OKLA. PACIFIC PITTSBURGH CHICAGO LAKE ERIE BETHLEHEM BIRMINGHAM SOUTHEASTERN COLORADO, TEXAS, OKLA. PACIFIC O NEW ENGLAND KARA ROBN ..... 10 BY-PRODUCT COKE OVEN CAPACITY MUIDE 10 Iron and Steel Products Changes in Steel Capacity by Districts and by Plants 1938-1945 Millions of Tons ||||| 10 |…………. 10 20 BY-PRODUCT COKE OVENS OPEN HEARTH FURNACES 15 OPEN HEARTH FURNACE CAPACITY 20 Plants 15 20 20 Districts .... CAPACITY AS OF JUNE 30, 1938 INCREASE FROM JUNE 30, 1938 TO APRIL 1, 1945. 1938 BAR FLAGGED TO SHOW SUBSEQUENT DECREASE 30 30 25 5 [JJJJD] Pola meva BLAST FURNACE CAPACITY 15 10 BESSEMER FURNACE CAPACITY 5 .... BESSEMER FURNACES 10 10 1938 CAPACITY 1945 CAPACITY 1938 BAR FLAGGED TO SHOW SUBSEQUENT DECREASE Source: U.S. D. C., Bureau of Foreign and Domestic Commerce. 10 BLAST FURNACES 20 20 10 ELECTRIC FURNACE CAPACITY 5 TU ELECTRIC FURNACES 30 30 10 - BLAST FURNACE CAPACITY (Capacities as of Jan 1, 1945) 00 Companies (coke furnaces): Alan Wood Steel Co. American Rolling Mill: Sheffield Steel-Texas: Total... No. of :stacks: Bethlehem Steel Co. Brooke Iron Co. (E & G): Colorado Fuel & Iron Crucible Steel-- Amer.: Eastern Gas & Fuel Ford Motor Company Geneva Steel Company Globe Iron Company Inland Steel Company Interlake Iron Corp. Intern'l Harvester Co.: Jackson Iron & Steel Jones & Laughlin Steel: Kaiser Company, Inc. Koppers Company, Inc. Lavino & Co., E. J. Lone Star Steel Co. National Steel Corp. Great Lakes Steel Hanna Furnace Corp. Weirton Steel Company: 00 ·· 06 4. GO ·· Table XXI •D ·· BLAST FURNACES Pig Iron : Carnegie-Illinois Columbia Steel Co. : National Tube Company: Tenn. Coal, Iron &RR Co: Total.. L~A~+ 2 454.800 5: 1,320,000: 1: 1 274,000: 6: 1,594,000: 29: 9,474,000: 137,890: 798,000: 532,000: 176,400: 504,000: 1,450,000: 4 2 1 2 4 ward IMAN .... 1 ** ** ** ** 6 : 2,236,000: : 1,332,500 719,710: OD .... .. 0044 13 : 4,080,000 2 : Total... New Jersey Zinc Co. Pgh Coke & Chemical Co: Pgh Ferromanganese Co.: Pgh Steel Company Republic Steel Corp. Sharon Steel Corp. Shenango Furnace Co. Sloss-Sheffield I & S: Struthers Iron & Steel: Tennessee Products Corp: Tonawanda Iron Corp. 008 United States Steel Corporation ~~~~ .. 1 : …………………… 100 3 3: 1,100,000 594,180: 3: 1,2 1.200,000: 9: 2,894,180: .. 1 : 1 .. .. 2: 3: : Ferro-Alloys Total Annual annual capacity No. of: capacity: capacity (N.T.) stacks: (N.T.): (N.T.) 2: 21: 6,324,000: 1 .. 388.800: 465,000: , 399,850: .. 0 .. 291,600: 127,000: 554,000: 1 : 171,000: .. 1,429,400 53 17,342,700: 1 : 199,200: 9: 3,042,400: 9: 2,332,400: 78:24,346,100: 5: 1,275,000: 2: 390,000: 3: 526,170: 12: 3,456,000: 225 :06,256,810: I I 1 HI .. 1 પ ·· 2: 180,000: 00 ៖ •• TO ... .. .. .. ·· .. 2 : 173.600: 417,300: 386,470: 1 : 181,440: .. .. 3: : .. .... ** .. : 1 : 120,000: : I : 120,000: 2 : 134,400: 84,000: .. 90,000: OD 72,000: .. : ·· •• 36,800: 21,900: 121 454,800 1,320,000 274,000 .. 1,594,000 9,654,000 137,890 798,000 532,000 176,400 504,000 1,450,000 84,000 2,236,000 1,332,500 .. 719,710 90,000 1,429,400 3 : 221,900: 17,564,600 .. Wheeling Steel Corp Wickwire Spencer Steel: Woodward Iron Company : Y. S. & T. Company Total (coke furnaces)..: Companies (charcoal furnaces McCrossin Engineering : 1 Newberry Lmbr & Chem. : 32,000: Tenn. Products Corp. 32,480: Total (char. furnaces) : 64,480: : 227 :66,321,290: 27,000: I 1 : 2: 32,000 32,480 64,480 Grand Total 16: 992,600: 67,313,890 Source American Iron and Steel Institute Annual Statistical Reports 4,030,000 388,800 465,000 199,200 3,042,400 31,600: 2,364,000 3: 253,500: 24,599,600 3 72,000 399,850 1,100,000 714 180 1,200,000 3,014,180 134,400 291,600 127,000 554,000 6,324,000 773,600 417,300 423,270 181,440 J 1,275,000 390,000 526,170 3,456,000 : 16 : 992,600: 67,249,410 : 21,900 171,000 Table XXII } Bessemer Electric Crucible : Kinds: Open hearth, basic Open hearth, acid : 11 STEEL (Ingots and Steel for Castings) .. ·· .. - Texas : : 00 : : 940:82,611,730: : Borg-Warner Corp. Braeburn Alloy Steel: Byers Co., A. M. Cabot Shops, Inc. Carpenter Steel Co. : Central Iron & Steel: Colonial Steel Co. Colorado Fuel& Iron : Columbia Tool Steel : Connors Steel Co. Continental Steel Copperweld Steel Co.:. 0 .. Ford Motor Co. Geneva Steel Co. Granite City Steel Harrisburg Steel Heppenstall Co. Hinderliter Tool Co.: Total.... Steel for castings included above Companies Alan Wood Steel Co. : Allegheny Ludlum Steel: American Locomotive : American Roll.Mill Sheffield Steel || Total.. Andrews Steel Co. Atlantic Steel Co. Babcock& Wilcox Tube: Baldwin Locomotive Barium Steel Corp. Bethlehem Steel Co.: 133:12,242,000: : C • .. STEEL INGOT CAPACITY (Capacities as of Jan 1, 1945) • No.: Open Hearth • lotrov • 50: 1,559,860: : Annual : capacity: 990:84,171,590: • ·· · .. 7: 6: .... 36: 3,214,000: : 3: 5: 3: • 2: ·· •Jom • .. ९० 364,000 Crucible Steel-Amer.: 17: 980,400 Defense Plant Corp. Disston & Sons, H. Edgewater Steel Co. Empire Steel Corp. Erie-Forge Co. Erie Forge & Steel Firth-Sterling Steel: Follansbee Steel .. 5: .. 336,000: 16: 1,272,000 • o Bessemer : ៖ Annual : : capacity : (N.T.) : No. (N.T.) : No. : .. 6: 3: 2: 0. 4: 336,130:.. 550,000: 090 260,160: 181,000: 2,268,000: 480,000:. 466,000: 6. 413,100: 154,000: 169,910: 50,000: 75,000: Co •• } •• ·· •• ·· .. QO 0. ·· 140,170: 348,540 80,000: 128,950: > OD 126,000: 770,100: 10: 9: 1,283,400: 13: 703,200: 3: 100, 750: 39,880 2: • • • D • • • • • • O • • • • Q • O • • • • C • • • · • • O • • · 41: 5,874,000: • • • • · • • • · · • 1: 5,874,000 • • · • • · • • • •• • .. 6: · .. • 10 · ·· .. .. .. #O • O ·· ·· ·· .. ❤. .. .. ·· ·· • · .. ·· .. 00 ·· ·· • .. 40 • .. • .. • • • • • • • • • • • • • • • • • • • • • · • • • · • • • · 500,000 • • • • • • • • · • • • • B · • · • • · O • · · · • • • • • : Electric and : Crucible : Total annual : Annual : : capacity: capacity : (N.T.) : (N.T.) • .. .. .. .. ·· .. .. •• .. • .. DO • ·· .. • • • • · • 82,611,730 1,559,860 5,874,000 259:5,455,890 5,455,890 3: 3,800 • 3,800: 262:5,459,690:95,505,280- ៖ 222,030: • • 24: •~~ Co • · .. ·· .. .. .. .. • a 2: 22 .. 1: 3: • ………… …… 2: 2: 6: 1: .. 2: 3: 2: .. Sheet 1 124 ·· HNO .. 7,020: 5,600: 2: 60,000: .. 7,020 1,272,000 6,600 60,000 364,000 9: 321,360: 321,360 32:b)527,280: 1,507,680 2: 1: • · • 200,200: 54,000: 2,322,000 480,000 466,000 : .. 54,000:73,268,000 413,100 154,000 50,400 20: 169,930 50,000 158,000:12,900,000 .. 50,400: • · 24,000: 24,000 20,730: 75,000: 12.000 74,880: • ·· • 5: 17,540: 31: 197,320: 558,210 550,000 460,360 181,000 200,000: 200,000 25,000: 25,000 140,170 348,540 80,000 128,950 17,540 126,000 967,420 1,283,400 703,200 100, 750 42,560 9,450 .. 20,730 150,000 2,680: 9,450: 12,000 74.880 336,000 Sheet 2 3 STEEL (Ingots and Steel for Castings) (Continued) : : Electric and Crucible : : Open Hearth Annual Inland Steel Co. International Harvester: 11: Isaacson Iron Works Jessop Steel Co. Jones& Laughlin Steel: 40: 4,098,000: Joslyn Mfg. & Supply Judson Steel Corp. Kaiser Co., Inc. :No.: : 36: 3,400,000: 900,000 6: Keystone Steel& Wire : 3: Kilby Steel Co. 2: Knoxville Iron Co. Laclede Steel Co. Latrobe Elec.Steel Co:. Sharon Steel Corp. Simonds Saw & Steel Stanley Works Texas Steel Co. ·· ". ·· Lukens Steel Co. Mesta Machine Co. Midvale Co. Nat'l Forge& Ordnance: Nat'l Steel Corp.: Great Lakes Steel Weirton Steel Co. Total.... Total. Universal-Cyclops ·· ·D ·· : 13 .. National Supply Co. Newport News Ship- building& Dry Dock N.W.Steel Roll'g Mill: N.W-ern Steel & Wire •Oregon Steel Mills Pacific States Steel : Phoenix Iron Co. : .. ·· ·· .. Timken Roller Bearing: Union Elec. Steel • •• • 04 • • Vanadium-Alloys Steel: Vulcan Crucible Steel: • : capacity: • • : L: 16: 2,050,000 : 12: 1,850,000: : 28: 3,900,000: • ·· • • OD : 6: .. .. .. .. • .. • .. • · 5 10 3: .. 3: 00 .. • C .. • • .. • • · **5***231,400 Pittsburgh Steel Co.: 12: 1,072,000 Republic Steel Corp. : 81: 7,956,000: 9: 253,000 Roeblings Sons Co,JA: Rotary Elec.Steel Co.: Rustless Iron& Steel (N.T.) : No. : (N.T. • D 76,500: 720,000: 302,400 54,000: 326,020: · 9 624,000: 85.000 430,830: • • • • • • • • •. . 20 .. 600,000 188,280 201,600 ·· 2 00 DD OO Je •. ·· .. •• .. ·· U.S.Steel Corp. 259:21,738,700: Amer.Steel & Wire Co: 26: 1,732,400 Carnegie-Illinois Columbia Steel Co. : 13: 594,900 National Tube Co. : 15: 2,250,000 Tenn.Coal Iron &R.R.: 20: 2,660,000 333:28,976,000: ** .. •• ·· ·· DO 00 •. ·· .. • · • • • • • • • • • • · • · · • · • • · • • • • • • • • • • • · Bessemer • · • • • • · • • • · • 5: • • Annual : capacity: .. • • Oo ·· .. • .. ·· .. Do .. 00 QO 2: 2: .. ·· .. .. •. .. DO 2: .. 00 00 .. .. · A 0. .. .. •. .. .. ·· 2: .. • ·· • .. · · · • • • • • · • • • • • · • • O • • • • • • • • • • • · · 。 • • • • • • • • · • • • 918,000: · • · • • • • • • • • · • • • • • • · • • O • • • • • • • • 700,000: • • • • • • • • • • 12: 1,956,000: 894,000 5 3: 20: 2,850,000: • • · • • : No. ·· • •• .. ·· .. ♡• 336,000 04 ·· .. .. DO •D ·· .. ·· • ·· · • · · • • · · • • · • • • ~~~3 .... 2: •~ •~~ 7: 2: 3: 3 • • : : Total : Annual : annual capacity: (N.T.) : capacity (N.T.) 3,400,000 900,000 104.400 50.000 .. 2: 22 MOL. 00 2: 4: 1 6: 3 .... .. .. .. ~a~• 2 14 .... 2: .. 2: 3: 2: • .. ·· .. 5: • · 00 .. .. .. · 2: 6: 3: 17 .... 1: ·· .. ** ** ** 6: 2: .. •. : 1,072,000 20:1,135,000: 9,791,000 oal oo ❤❤ Washburn Wire Co. 3: 60.000: Wheeling Steel Corp.: 21: 1,624,000: Wickwire Bros., Inc. : 3: 38,000: 4: 180,000: Wickwire Spencer Stl.: Worth Steel Co. Youngstown Sheet &Tube 33: 3,432,000: 7: 460,000: 570,000: GRAND TOTAL 990:84,171,590: 41: 5,874,000: Source: American Iron & Steel Institute Annual Statistical Report .. .. 4: .. 2: .. .. ·· .. · .. .. • • • • • 104,400: 50,000: > • • 30,000 20,400: 38,000: 12,000: 20,000: 38,540 25,000 • 8,400: 5,024,400 37,500: · 45,900: 7,500: 32,400: 321,000: 60,000: 9 88,820 • 125 170,000 114,000: 35,000: 21,600: · · 22.320: 345,600: 25,200: · · a. • .. - .. • •. 54,120: 11,910: 131; 9,600: • · .. : 1,732,400 448,300:24,143,000 • .. 32,700: 627,600 : 3,144,000 : 2,660,000 481,000:32,307,000 • 2,050,000 : 1,850,000 : 3,900,000 45,900 •• 12 J ·· 37,500 76,500 750,000 302,400 74 400 38,000 326,020 12,000 .. 624,000 105,000 519,370 25,000 and the 7,500 32,400 321,000 60,000 88,820 231,400 253,000 170,000 114,000 636,000 21,600 188,280 22,320 547,200 25,200 1313: 54,120 11.910 9,600 60,000 1,960,000 38,000 180,000 460,000 4,002,000 262:5,459,690:95,505,280 120 IX. IMPORTANT CHARACTERISTICS OF THE IRRKETING, DISTRIBUTION AND CONSUMPTION OF TRON AID, STEEL A. Marketing and Distribution Steel reaches the consumer only as a part of the finished automobile, refrigerator, typewriter, apartment house, tin can, or safety pin, as the case may be, or as part of the machinery and equipment used in making consumer goods. Rails are exceptions and some products need only simple additional processing. The great bulk of finished steel products however, are predominately a raw material for other basic consuming industries. The United States is not only the greatest producer of iron and steel products in the world, but is also the largest market. Some 95 per cent of all iron and steel produced in the United States is absorbed by the domestic market. In the distribution of iron and steel, products vary from bulky, low value materials sold on a tonnage basis to highly fin- ished, expensive products, cold by the pound. Crders may range from hundreds of pounds to thousands of tons and customers run from the giant industry for Thich rolled steel is a raw material, to the farmer who buys a coil of wire or a length of pipe. Pig iron, the product of the blast furnace and the basic rar material for steel, is usually used in the molten state in adjoin- ing steelworks. Herchant pig, however Herchant pig, however, is widely distributed to foundries and other ironworking shops. Herchant pig usually moves direct from the blast furnace to the consumer and is generally sold through an arent or broker. For purposes of distribution steel products can be broadly classified as (1) semifinished steel (ingots, billets, slabs, sheet bars, etc.), which is a raw material for other mills; (2) rolled steel, such as skelp, wire rods, etc., which moves to drawing or forming mills; and (3) manufactured iron and stecl articles which move to other industries for further processing or final use. The heavier tonnage itens generally move direct from the mill to the processor. Semifinished steel products are normally pur -- chased in large amounts under contract, from a very fer sources and are shipped direct to the consuming mill. Automobile sheet and tin plate is an example of heavy tonnage items shipped direct. The jobber or warehouseman is a factor in distribution of steel products usually where the product is standardized and where it is used over a wide area by small manufacturers or nonindustrial con- sumers. 227 1 The steel industry, especially the large integrated companies, generally follow a selling practice of dealing direct with indus- trial consumers. Manufacturer's sales branches and sales forcos definitely dominate the sale of iron and steel products. The per- centage of finished steel products sold by jobbers and warehouses averages less than 15 per cent of total sales. To supplement their general sales organizations, some of the large companies have entered the warehouse fiold. Tarehouses are operated at important distributing centers. In addition, inventory depots are maintained in some areas distant from the mills to serve jobbers and large industrial consumers. They are a means of serv- ing areas in which there is little or no productive capacity and generally carry large and colete stocks. Most industries purchasing steel are characterized by large individual companies. In the automotive, container, agricultural implements, household durable goods, and shipbuilding industries, a relatively few large companies comprise a substantial percentage of the total production of their respective industries. In purchas- ing their steel requirements these large companies usually come into the market with orders of considerable magnitude. The demand for steel consists, to a great degree, in large sized orders placed by relatively few companies. Geographic Distribution The demand for steel shows a marked concentration in the geos- raphical area extending east of the Mississippi and north of the Ohio Rivers. Iportant markets also exist outside this area, par- ticularly for products required by the oil and canning industries. Although major markets for particular steel products vary both as to location and degree of inportance, the principal centers of the composite demand for steel, as shown in order of importance in a study made in 1937 by the United States Steel Corporation, were as follows: 1. Detroit 2. 3. 4. 5. 6. 7. 8. Chicago-Gary Pittsbu’gh Cleveland Los Angeles Youngstown 1lwaukee 9. 10. 11. 12. 13. lli. San Francisco 15. Newark New York Cincinnati Houston Buffalo St. Louis Toledo S B. Basing Point Method The basing point method of quoting delivered prices in the steel industry has developed over a long period of years. Steel S 128 is generally sold on a delivered price basis. Delivered prices are now usually calculated on the basis of the price announced at the steel basing point nearest freightwise to the buyer's destination, plus the rail freight rate from the basing point to destination. Under the so-called "Pittsburgh Plus" practice, used generally by the steel industry until the 1920's, delivered prices were cal- culated on the basis of the quoted f.o.b. Pittsburgh price, plus rail freight charges from Pittsburgh to the buyer's destination. This applied regardless of where the steel was produced. The prac- tice of using basing points other than Pittsburgh did not become generally prevalent until about 1924. James Points at which steel prices are quoted are generally called "basing points" and are usually places of steel production, al- though base prices for some steel products are quoted f.o.b. certain ports on the Gulf of Mexico and on the Pacific Coast where there are no production facilities. Basing points do not include all iron and steel producing points. The basing points vary for the various products of the in- dustry. Pig Iron basing points include the heavy producing centers and some of the points, such as Buffalo, New York, Erie, Pennsylvania, Everett, liassachusetts, and Toledo, Ohio, there merchant blast furn- aces are located. Semifinished steel basing points are fairly limited on ingots, billets, blooms, slabs, shect bars, and wire rods. Finished steel basing points vary widely, depending on the product. For some products like sheets and bars, there are numer- our basing points. On tin plate, where the number of producing points is small, the basing points are limited. B Gundag The more important basing points are Pittsburgh, Chicago, Gary, Cleveland, Birmingham,´ Buffalo, Youngston, Sparrows Point, Granite City, Middleton, Ohio, and the Gulf and Pacific ports. Other points are important for individual products such as Worcester, Massachusetts, for wire and wire products; Lorain, Ohio, for pipe; and Bethlehem, Pennsylvania, for structural shapes. The lowest sum of base price and freight determines the deliv- ered price. When shipments are made from a mill which has a higher freight rate to destination than the rate from the basing point, the shipping mill generally absorbs the difference in the freight rate. In some cases the shipping mill will have a freight rate advan- tage in that its rate to destination will be lower than the rate K } 129 from the basing point. If a base price is quoted at a basing point, higher than the price at other basing points, the difference is called a "basing point price differential", or a "differential". Generally rail rates are the only freight rates considered in calculating delivered prices, though shipments are some times made by water or trucks at rate lower than rail rate. A practice generally exists in the steel industry of including in the delivered price to a buyer, who accepts delivery by sending his own truck to the mill, the rail freight from applicable basing point to destination, and making an allowance to the buyer. C. Consumption Factors determining demand for steel as a raw material by lead- ing consuming industries: Automobile Industry The quantity of steel consumed as a raw material by the auto- mobile manufacturing industry depends directly upon (1) the number of cars produced; (2) the quantity of steel used per car; ard (3) the production of replacement parts and related equipment. In addition to steel for new cars, large quantities are also bought for the production of automobile accessories and parts for replacement. Steel is also bought for the production of tools and dies, for repairs and maintenance and for capital investment in plant and equipment of the automobile industry. Indirectly the au- tomobile industry is also responsible for a great deal of steel consumption in the building of highways, bridges, filling stations, and plant and equipment in the petroleum and rubber tire industries. The automotive industry was the largest single consumer of steel from 1933 to 1937, when the construction industry took the lead. Consumption in 1939, 1940, and 11 was 5.9 million, 8.0 million, and 6.8 million tons, respectively, or about one-sixth of total consumption. 1940 was the peak consuming year by the automotive industry, when 8 million tons of steel were used. Its highest proportion was reached in 1935, with 25 per cent. ( S About 125 kinds of steel are used in modern automobiles, with sheets being the most important. The automobile industry in 1927 took about 45 per cent of total production of sheets, 53 per cent of strip, and about 45 per cent of bars. During the period 1923-1938 { $ 130 the tendency was toward greater consumption of steel per automobile. More recently this has been offset by greater use of glass and plastics. Railroad Industry Railroads use a variety of steel products for many different purposes. Their purchases range from rails, plates and structural shapes to bolts, nuts, washers and rivets. In general, steel is consumed by railroads in the form of new locomotives and cars and as material for the maintenance of way, structure and equipment. T The demand for steel by the railroads is derived from the de- mand for freight and passenger transportation services, which ex- hibit marked cyclical fluctuations. It is this fact which accounts for the great fluctuations in the purchase of steel by railroads. These fluctuations are further intensified by the durability of the steel products used by the railroads, and by the limitations of impaired financial condition and the reduced revenues experienced in periods of depression. Purchasing power of the railroads is al- so seriously affected by heavy increases in labor, taxes, and mə- terials costs coupled with inadequate rate levels. C Aga Railroads are among the leading customers of the steel indus- try, ranking first from 1923 to 1926, but exceeded thereafter by the automotive, construction, and sometimes other industries. In 1923 the railroads consumed 9. million tons, or 25 per cent of United States consumption of finished stool. In 1932 the consumed 1.2 million tons or 10 per cent. Their lovost share of consumption for the period 1923-1943 tas in 1930, with 6 per cent of the total. For the period 1939-1943 the shore consumed by the railroads was approximately 8 per cent. S Container Industry Roughly three-quarters or more of the steel taken by the Con- tainer Industry is consumed in the production of tin cans. PRO upon: (1) The output and consumption of all goods that are put in con- tainers (2) The proportion of this output packed in tin cans and not in containers made of other materials: and (3) The amount of steel used in the individual container. Steel, usually in the form of tin plate, is the principal raw material in the production of tin cans, which are used mainly to pack consumers goods, such as food, oil, beer, and paints and var- nishes. The consumption of steel by the tin container industry depends * 131 I Consumption of steel in manufacturing tin cans and light con- tainers has shom a substantial upward trend since 1923. In the period 1923-1929 the industry consumed an annual average of 1.6 million tons of steel while in the period 1932-1938 consumption averaged 2.2 million tons, an increase of close to 37 per cent. Average consumption from 1939 to 1943 was 3.8 million tons. The industry's relative position as a steel consumer has also risen. In 1923 it took less than 4 per cent of steel output, but in 1932 it took 10 per cent and was close to that percentage through 1938. Average for 1939 to 1943 was almost 7 per cent o total con- swotion of steel. Construction Industry The construction industry has been one of the most important consumers of steel products. From 1923 to 1943 it ranked among the three largest consumers of steel, being first in 1927-1932, 1930- 1939, and 1941-1942. Haximum tonnage consumption was during the war year of 1942 when 10.7 million tons were used. The peacetine peak was in 1929 ith 8.6 million tons. For the period 1923-1943 the share of consumption by the con- struction industry ranged from a high of 23 per cent in 1932 to a low of 10 per cent in 1945. Shipbuilding Industry World War II saw a tronendous increase in the tonnage of steal used by the shipbuilding industry. This industry was the leading consumer in 1943 and ranked second in 1942. In 1943, 13.3 million tons or 21 per cent of total steel was consured, and in 1942, 10.4 million tons or 17 per cent of the total. In peacetime years this industry averaged scarcely 1 per cent of consumption. Other important consuring industries of steel are agriculture, machinery, tools, oil, gas and water, and pressing, forming, and stamping. Concentration of Industrial Use Consumption of steel-mill products is concentrated industrially as well as geographically. A number of steel-mill products are sold chiefly to only one or a few industries, although they account for a substantial portion of domestic production of steel. Tin plate is used primarily by manufacturers of containers; pipes and tubes by oil, gas, and water companies; rail and accessories by railroads ; and structural shapes by the construction industry. Sleets and strips are consumed extensively in the automobile industry, but are also used by many other industries. Steel bars, plates, wire and wire products have many outlets, no consuming industry being out- standing. GREE 132 • Geographical Consumption of Iron and Steel Nine states consumed 78 per cent of United States total esti- mated consumption of steel products in 1937. The nine states, in order were: Fennsylvania, Michigan, Ohio, Illinois, New York, California, Indiana, Texas, and Wisconsin. Pennsylvania was the leading consuming state, with 6,8 million tons, or 17 per cent of total. It ranked first in consumption of skelp, with 78 per cent; plates, with 30 per cent; heavy structural shapes, with 22 per cent; wire rods and bars, with 17 per cent; and semifinished steel products, with 32 per cent. Lichigan was the second largest consuming state, with 6.4 mil- lion tons, or 16 per cent of the total. It ranked first in con- sumption of products used in the automobile industry, taking 25 per cent of the hot-rolled sheets, 60 per cent of the cold-rolled sheets, 43 per cent of hot-rolled strip, and 37 per cent of cold- rolled strip. Ohio consumed 4.8 million tons, or 12 per cent of the total, ranking first in the consumption of galvanized sheets, with 1 per cent; and plain drawn wire with 22 per cent. It was the second largest consumer of wire rods and bars, sheets, and strip. cent Illinois consumed 4.5 million tons, or 11 per cent of total consumption. It ranked first in rails over 60 pounds, with 17 per and tin plate, with 19 per cent. It was second largest in consumption of sheet piling, plates, structural shapes, galvanized sheets, and plain drawn vire, 2 New York, with 6 per cent of total, was the leading consumer of steel-sheet piling, with 1 per cent. California consumed 5 per cent of total. It ranked second in the consumption of tin plate, with 1 per cent. Toxas, with 4 per cent of total 1937 con- sumption, ranked first in pipes and tubes, with 19 per cent. The report "Steel Products", prepared by the A.A.R. Subcom- mittee on Economic Study, dated Jebruary 9, 1946, gives detailed data on consumption of steel roducts in the United States for the years 1923 to 1943, inclusive. The data includes actual consump- tion and percentage of total consumption by leading users for the years 1923-1913 and consumption and percentage of distribution by regions and states for the year 1937. Information on the distri- bution of steel to consuming industries as compiled by the American Iron and Steel Institute for the years 1940 to 193, inclusive, is also included in the report. Sp - Table XXIII shows United States consumption of hot-rolled iron and steel products, by loading users, by years from 1923 to 1943. } " 133 Table XXIV, computed from Table XXIII, shows percentage dis- tribution of United States consumption of hot-rolled iron and steel products, by leading users, by years from 1923 to 1943. Table XXV contains figures on distribution of steel to con- suming industries in the United States, as compiled by the American Iron and Steel Institute, by years from 1940 to 1943. Table XXVI shows percentage distribution of estimated consump- tion by products and by principal states for the year 1937. Chart 6 shows the flow of iron and steel products from raw materials to consuming industries for 1937 and 1943. D. Exports and Imports Foreign Trade in Pig Iron United States exports of pig iron between the years 1910 and 1936 averaged only a small proportion of production. During .orld War I pig iron exports were active reaching a peak of 735,000 tons in 1917. The low point was reached in 1932 when only 3,000 tons were exported. Exports again became heavy in 1937 when 876,000 tons were shipped. In 1960 exports totaled 620,000 tons. tle dependence can be placed on this as marking a trend. Very lit- There has been considerable variation in the destination of United States exports of pig iron. Canada, Italy, and the United Kingdom, in that order, were the leading purchasers during the per- iod 1910 to 1919, During the next decade, Canada, Japan, and the United Kingdom were the most important. In 1937, Japan took 52 per cont (50,000 tons) and the United Kingdom 30 per cent (261,000 tons) of the total exported. In 1940 the United Kingdom took 515,000 tons, or 63 per cent of total exported. The bulk of exported pig iron moved through North Atlantic ports, but lobile, Alabana handled a substantial tonnage. Imports of nig iron into the United States during the period 1910-1940 averaged five-tenths of one per cent of United States production. Between 1921-1926 imports exceeded exports. Imports in 1910 were 266,000 tons and in 1940 were 11,000 tons. The peak year was 1926 when 199,000 tons were imported. The United Kingdom was the loading source of imported pig iron between 1910-1929, averaging 100,000 tons annually. From 1930 to 1940 British India and the Netherlands supplied most of the imported pig iron. · } · Consuming Industry Agriculture Automotive Construction Containers Furniture and Furnishings (2) Machinery, Tools Oil, Gas, Tater Mining (3) Pressing, Forming and Stamping (4) Railroads TABLE XXIII HOT-ROLLED IRON AND STEEL PRODUCTS United States Consumption by Leading Users 1923-1943 Tons (000 omitted) 1923 1924 1,506 ·988 4,684 3,338 5,527 5;375 6,201 1,349 1,355 1,597 1 1925 1926 1927 1928 1;261 5,471 2,020 1,987 2,979 6,143 5,482 7,799 7,026 7,908 1,510 1,813 564 1,805 2,925 267 1,168 1;127 1;514 3,923 2,880 3,192 9,435 8,060 8,745 -326 - 259 9,352 8,074 1,273 3,650 323 -342 2,064 8,575 ·3411+ 8,891 7,700 1,577 1,170 2,913 343 1929 3,062 7:354 8,643 1,914 700 2,028 3,795 323 6,980 6,853 8,163 -445 -346 9,670 8,148 · 202 9,067 1930 1931 1932 1,709 1,350 ·605 11,936 3,526 2,087 7,356 4,588 2,692 1,870 1,585 1,162 643 411 187 1141 636 82 Shipbuilding Miscellancous (5) TOTAL 37,270 31,456 37,393 39,755 36,825 42,182 45,998 33,055 21,477 11,705 (1) Includes aircraft industry, which in other ears is included under Miscellaneous. Aircraft, separately, was 51,000 in 1940 and 561,000 tons in 1941. (2) Included in Miscellaneous from 1923 to 1927, in Pressing, Forming, and Stamping from 1940 to 1943. ZTV 1,342 ´790 3,040 1,602 200 121 5,241 3,034 1,177 ❤ -371 · 224 · 102 6,347 4,246 2,534 Sheet 1 134 、 < Consuming Industry Agriculture Automotive Construction Containers Furniture and Furnishings (2) Machinery, Tools Oil, Gas, Water Kining (3) Pressing, Forming, and Stamping (4) Railroads TABLE XXIII Continued W HOT-ROLLED IRON ID STEEL PRODUCTS United States Consumption, by Leading Users 1923-1943 Tons (000 omitted) 1933 1934 1935 1936 1937 1938 1939 1940 1941 1942 1943 1,109 1,234 1,976 2,238 2,334 1,110 1,421 1,630 1,683 1,668 1,462 3,954 4,594 6,738 7:517 7,011 4,053 5,906 7,965 6,847 3,598 (13,460 (1) 2,961 3,556 4,315 6,468 6,038 4,398 6,100 6,936 10,221 10,715 6,640 1,970 1,714 2,284 2,750 3,219 2,137 2,978 3,063 4,612 4,070 4,310 adu 580 667 1,267 1,582 1,494 - 781 ·826 1,091 1;680 1;804 1,024 1,291 1,431 118 147 124 868 1,182 831 1,460 2;330 3;366 2,852 3,275 2,508 2,854 1,820 1,842 1,900 2,929 1,586 1,903 176 180 ·660 2,296 3,677 2,783 2,839 1,474 2,544 1,961 4,082 4,686 1,444 3,250 4,019 5,983 4,400 5,172 · 115 518 1,000 2,929 10;370 13,318 -232 · 207 · 288 ·391 -390 14,657 4,411 5,393 8,569 10,364 6,510 13,751 17,516 17,077 20,904 20,914 18,743 21,246 26,340 37,858 41,178 23,569 39,068 48,660 62,324 62,446 63,293 Shipbuilding Miscellaneous (5) TOTAL (3) Included in Oil, Gas, Water from 1923-1925 and 1938-1943. (4) Included in fiscellaneous from 1923 to 1938. ) Includes Exports. * Source: Distribution 1923 to 1938 based on data from Iron Age; 1939 to 1943 from Iron Age, var- ious Government reports, and American Iron and Steel Institute estimates. 1 Sheet 2 135 Sheet 1 136 Consuming Industry Agriculture Automotive Construction Containers Furniture and Furnishings (2) liachinery, Tools Oil, Gas, Tater Lining (3) Prossing, Iorning, Stamping (4) Railroads Shipbuilding Miscellanous (5) TOTAL HOT-ROLLED IRON AID STEEL PRODUCTS United States Consumption by Loading Users 1923-1943 1923 1924 3.1 4.0 12.6 10.6 111.9 17.1 3.6 11.3 3.1 10.5 1 Percentage Distribution 1925 1926 1927 3+4+ 5+ 11.9 5.1 11.6. 15.), 21.1 17.7 38 21.3 3.6 9.2 TABLE XXIV } 25.3 25.6 .9 25.1 .8 25.7 100.0 100.0 16.7 4.3 } Ou !!.0 8.5 } 1 1 23.4 3.2 9.2 .8 1 3.2 7.9 .9 21.6 .9 24.2 .8 22.11 100.0 100.0 100.0 1928 7.1 18.5 18.8 4.3 1.3 11.3 6.9 .6 16.2 1929 6.7 16.0 18.8 4.2 1.5 44.44 8.3 .7 17.7 .7 21.0 100.0 18.9 1.2 21.5 22.2 100.0 1930 5.2 14:9 22.3 5.7 1.9 4.1 9.2 .6 15.9 1.1 19.1 100.0 1931 1932 1933 6.3 5.2 5.9 17.8 21.1 23.0 15.8 9.9 10.5 1.6 3.8 5.11 .7 16.4 21. 7.1% 1.9 3.7 7.5 9° 3.1 4.2 (1) Includes aircraft industry, which in other years is included under Miscellaneous separately, was .1 in 1940 and .9 in 1941. Aircraft, (2) Included in iiscellaneous from 1923 to 1927, in Pressing, Forming, and Stamping from 1940 to 1943. Jin 2 .6 14.1 10.0 7.9 ú 1.0 .9 19.7 21.7 2.8 100.0 100.0 100.0 } £ Consuming Industry Agriculturc Automotive Construction Containers Furniture and Furnishings (2) Machinery, Tools Oil, Gas, Tater Mining (3) Pressing, Forging, Stamping (4) Railroads 3.1 3.9 6.1 .7 HOT-ROLLED IRON AND STEEL PRODUCTS United States Consumption, by Leading Users 1923-1943 Percentage Distribution 1934 1935 1936 1937 1938 5.8 7.4 5.9 5.7 21.6 25.1 19.9 18.9 16.7 16.1 17.1 14.7 18.7 8.2 8.5 7.8 7.3 9.1 4.7 4.2 3.6 3.7 4.1 4.4 4.4 3.5 5.5 TABLE XXIV 12.0 عالی 6.6 7.4 5 10.8 11.4 .9 25.2 7.3 1.1 .7 Shipbuilding .8 Miscellaneous (5) 20.8 20.0 22.6 4.7 3.6 17.2 15.1 15.6 7.6 3.0 3.7 4.7 7.7 100.0 100.0 100.0 100.0 1939 1940 -1 1.7 8.3 3.3 16.4 14.3 6.3 TOTAL (3) Included in Oil, Gas, Water from 1923 to 1925 and 1938-1942. (4) Included in Miscellaneous from 1923 to 1938. (5) Includes Exports. Source: Computed from Table XXIII. 4.8 3.9 4.7 8.3 6.1 2.1 1.7 1.3 27.6 35.4 35.9 1941 1942 1943 2.7 15.8 16.4 7.lt 5.4 407 5.9 9.6 100.0 100.0 100.0 100.0 100.0 4.7 27.4 1.9 2.3 5.8(1 5.5(1) 17.3 10.5 6.4+ 6.8 ~~~ 4.6 2.5 } 104 27 7.1 minin∞o I ON I 5.2 3.0 4.5 8.2 16.6 21.0 33.4 33.4 33.0 100.0 100.0 100.0 Sheet 2 137 ( Industries Steel Converting and Processing Jobbers, Dealers and Distributors Construction Shipbuilding Pressing, Forming and Stamping Container Agricultural, Including Implements and Equipment Manufacturers Machinery and Tools Automotive and Aircraft Railroad Oil, Natural Gas Miscellaneous Industries Exports TOTAL HOT-ROLLED STEEL PRODUCTS United States Consumption and Percentage Distribution By Industries Tons (000 omitted) 1940-1943 Scurce: TABLE XXV (a) Included with Exports. Per Per 1940 Cent 1941 Cent > 2,929 6.1 4,798 7.7 4,293 6,887 14.6 9,200 14.7 5,962 4,968 10.8 8:128 13.0 8,660 2.0 · 940 2,733 4.4 91440 2,160 4.7 6,322 10.1 2,717 2,985 7.2 3,666 6.5 4,489 - 920 1,885 7,233 3;777 and läning Industry 1,132 2.0 4.1 15.8 0.2 VIN 1;154 2,871 6,392 -570 2,540 5,681 1,985 2.5 2;122 4,318 7.1 1,320 2.2 (a) 8.731 14.0 1.848 24.6 14,191 23.7 2,136 407 8,099 17.7 (a) 45,851 100.0 62,484 100.0 60,464 100.0 59,907 100.0 Per 19412 Cent 1.8 4.6 10.2 9.1 3.2 Per 19113 Cent American Iron and Steel Institute, Annual Statistical Reports. 8.6 7.1 9.9 7.5 5;170 6,821 11.lt 11.3 4,485 15.6 11;50? 1.1.5 2,4814 6.1 3,574 19.2 4.1 6.0 .2 ·713 11.2 2;531 3.5 2,519 1.2 4.2 4.2 43527 7.6 1,380 2.3 (a) 138 { Sheet 1 139 State California Indiana Texas Wisconsin All Others Total United States 5.3 Pennsylvania 77.7 8.1 10.3 30.2 22.1 Michigan Ohio Illinois 1:05 1.8 3.6 9.0 301 12.6 16.5 8.5 8.7 10.4 12.0 New York 14.4 7.9 7.0 7.0 Percentage Distribution of Estimated Consumption by Products, and by Principal States 1937 Per Cent Rails Steel Over Sheet Sixty Skelp Piling Pounds Plates Shapes .2 7.2 4.5 2 3.6 Tonnage (000 omitted) 596 1.5 TABLE XXVI یا میں کیا۔ 5.9 3.5 2.7 .9 2.0 2.7 3.7 7.7 2.7 3.14 .5 42.4 45.5 241.4 29.0 NUIF 4.8 ©Hin * 5.1 2.5 1.6 3.5 100.0 100.0 100.0 100.0 100.0 100.0 Heavy Structural 11.0 1.8 100.0 111 1,336 2,969 2,656 •3 3.4 7.5 6.7 Wire Rods Merchant Bars Concrete Dars 17.2 12.2 13.! 12.2 7.0 4.5 7.3 1.8 3.8 20.6 100.0 5,620 11.1 Sheets Strip Hot -- Hot Rolled and Hot- Rolled Annealed i.olled TOTAL • La 11.2 25.4 17.9 8.6 4.9 लगतल 3.9 5.8 1.8 3.9 16.6 100.0 3,957 9.9 9.3 1.7.0 42.7 16.2 16.0 12.1 6.1 2.8 1.1 3.6 1.6 11.5 .1 3.5 11.3 5.7 8.7 9.6 nm 3.3 21.8 · 100.0 100.0 2,293 39,774 5.8 100.0 ་ State Permsylvania Michigan Ohio Illinois New York California Indiana Texas Wisconsin All Others Total United States Tonnage Percentage Distribution of Estimated Steel Products Consumption by Products and by Principal States 1937 (000 omitted) Source: Sheets Galvanized 6.9 3.8 14.4 9.3 4.9 8.5 3.3 5.9 3.2 39.8 .1,240 Per Cent 3.1 (1) Less than .05 per cent. 100.0 Sheets Cold- Rolled BLAND 707 59.8 15.0 3.8 3.7 .6 2.3 .1 1.8 5.2 100.0 TABLE XXVI 2,143 Strip Cold- Rolled 3.7 37.4 18.1 6.1 10.2 1.5 4.5 1.9 16.6 Pipes and Tubes 9.2 2.3 -(1) 18.8 .7 3707 807 5.4 2.0 10.7 21.lt 5.5 5.7 5.0 100.0 100.0 Tin Plate 8.9 .6 3.7 18.7 8.9 14.2 4.3 2.5 3.11. 34.8 100.0 3,535 2,324 8.9 5.8 Plain Drawn Semi- Wire # 6.6 12.1 22.1 21.0 7.1 5.2 4.0 .7 3.5 17.7 100.0 1,285 3.2 gu finished 32.3 18.6 15.9 18.4 2.8 •5 3.3 1. 100.0 3,857 9.7 All Others 17.0 16.2 12.1 11.3 5.7 406 4.5 3.5 3.3 21.8 100.0 5,045 12.7 TOTAL 17.0 16.2 12.1 11.3 5.7 4.5 4.5 3.5 3.3 21.8 100.0 39,774 100.0 Staff Report of Industrial Section, National Resources Planning Board, "Postwar Problems of the Steel Industry" by Marion W. Worthing, June 1943. Sheet 2 110 COKE OVENS BITUM INOUS COAL 54.5 JRON MINING BITUM INOUS COAL 76.4 COKE OVENS COKE 36.5 IRON ORE? 69 67 IRON MINING PRODUCTS SCRAP IRON 2.0 BLAST FURNACES IRON IN ORE: ARON ORE 2105 OXYGEN IN IRON OXIDE 17.0 ■ IMPURITIES IN ORE LIMESTONE 14.6 COKE 54 6 BY-PRODUCTS SCRAP IRON 2 7 IRON IN ORE BLAST FURNACES OXYGEN IN IRON OXIDE 259 IMPURITIES IN ORE 195 FLUE GAS LIMESTONE 235 SLAG 27.2 PIG IRON AND FERRO-ALLOYS 41.5 PURCHASED SCRAP 14.9 FLUE GAS SLAG 43.0 Chart 6 Iron and Steel Products flow from Raw Materials to Consuming Industries 1937 and 1943 Millions of Tons PIG IRON NOT USED IN STEEL MAKING STEEL FURNACES PURCHASED SCRAP 18.4 TOTAL HOME SCRAP 16.8 PIG IRON NOT USED IN STEEL MAKING PIG IRON AND FERRO-ALLOYS 628 TOTAL HOME SCRAP 20.1 1937 STEEL FOR CASTING 0.3 STEEL FURNACES STEEL. INGOTS 56.3| 1943 LOSSES ROLLING MILLS · STEEL FOR CASTING 04 STEEL INGOTS 88 4 ROLLING MILLS 'ROLLING MILL PRODUCTS 41.2 LOSSES 1 : ROLLING MILL PRODUCTS 63.3 SHEETS PLATES 13 1 WIRE ROOS 4 7 SHAPES 4 5 STRAP EX RAILS 2.1 OTHER 18 4 IMPORTS 0.3 Th Source: U.S.D.C., Bureau of Foreign and Domestic Commerce. لبلد DOMESTIC CONSUMPTION 38.6 IMPORTS .03 DISTRIBUTION EXPORTS 10 DOMESTIC CONSUMPTION 54.5 AUTOMOBILES 28 EXPORTS 8.8 RAILROADS 4.T CONTAINERS 3.2 CONSTRUCTION 8.0 DISTRIBUTION Shvide ETC. ተዝ OTHER 13.8 AUTOMOBILES 3.5 RAILROADS 42 CONTAINERS 4.3 CONSTRUCTION 6.6 MINING ETC 1.9 SHIPBUILDING 13.3 MACHINERY TOOLS PRESSING FORMING STAMPING 28 OTHER 13.6 1 1412 iron. The North Atlantic ports have handled most of the imported pig A relatively small tonnage has been handled at Los Angeles and San Francisco. Foreign Trade in Scrap Iron and Steel The largest exporting country of scrap prior to World War II was the United States, In 1937, the peak year, the United States exported 4,600,000 tons of scrap valued at $80,000,000. During 1935, 1936, and 1937 the United States supplied from 60 to 75 per cont of the "orld's total exports. In the nine years, 1932-1940, Japan took from 3.2 to 72.1 per cent of Unite! States scrap exports. 2,279,000 tons were taken in 1939. After Japan the leading importing countries were United Kingdom, Italy, on' Canada. ד North Atlantic ports handled the largest percentage of the exported scrap. Gulf Coast ports were not in importance. source. Irmorts of scrap into the United States for the ten years end- ing 19h0 averaged 50,000 tons anually, representing .35 per cent of domestic consumption of purchased scrap. Canada was the main Foreign Trade in Iron and Stoel Products United States exports of semifinished and finished iron and steel products during the period 1929-19,0 ranged from a low of 409,000 tons in 1932 to 8,056,000 tons in 1910. The 1932 exports were 3.5 per cent of United States production and the 1940 exports 16.6 per cent. In 1937 when exports were 3,007,000 tons the leading products were steel platos, vin and torne plate, blooms, billets, slabs, sheet bars, and stool shoots. During 190 loading oroits are blooms, billets, slabs, sheet bars, steel bars, steel platos, steel sheets, structural shapes, tin and terno plato, and pipe and tubos. Japan, Canada, Maico, United Kingdom, Brazil, China, the Phil- ippinc Islands end du Soviet Union were the principal receiving countries in 1977. In 1940 the loading countries were United King- don, Argentina, Brazil, and the Union of South Africa. North..tlantic ports redominated in he export of iron and steel products. Buffalo, New York is i portant on the Canadian tonnac. bile and ler Orleans were the loading Gulf ports. * 143 1 Imports of iron and steel products into the United States dur- ing the years 1929-1940 averaged less than one per cent of domestic production. 1929 was the peak year with 80,000 tons and 1940 the low year with 21,000 tons. Structural shapes, steel bars, and pipes and tubes were the main iron and steel products imported. Belgium, Germany, Sweden, and France were the leading countries of origin. Hew York was the principal port of entry. No attempt has been made to analyze exports and imports during the World War II period, starting with 1941. Military needs became paramount and ordinary commercial considerations had to be forgotten. In the immediate postwar period war damage and rehabilitation needs are providing an export market for United States iron and steel products. The war has changed the world competitive picture on iron and stecl, particularly with respect to Germany and Japan. A factor which will exert future influence is the increasing industrializa- tion and expansion of steel-making capacity in countries such as Brazil, Canada, and lexico. 144 1 The tonnages of raw materials, semifinished, and finished products transported for the iron and steel industry represent a major revenue source for the railroads. The Interstate Commerce Commission in Ex Parte 1o. 162 stated "Collectively the iron and steel commodities are the third most important group of commodities in point of tonnage, and second as to revenue. In 1945 they furn- ished about 99,000,000 tons of traffic and 467,000,000 in revenue. The Interstate Commerce Commission figure of cludes the 1945 railroad revenues derived from the and steel commodity classes: X. TRANSPORTATION O IRON AND STEEL PRODUCTS I.C.C. Commod- ity Class No. Commodity 190 491 500 510 511 512 513 583 693 Source: Iron, pig. Iron and steel, rated 6th Class in Official Classification, N.0.S. Rails, fastenings, frogs, and switchies... Cast iron pipe and fittings Iron and steel pipe and fittings 9 N.C.S. Iron and stecl: nails and wire, not woven Iron and steel, rated 5th Class in Official Classification (also tin and terno plate) Railway car wheels, axles, and trucks Scrap iron and scrap ste›l.. TCTAL... TOTAL... 67,000,000 in- following iron • Interstate Commerce Commission Freight Commodity Statis- tics, 1945. 1945 Railroad Revenue (Dollars) 15,599,107 18,875,946 11,389,618 6,668,727 71,506,597 17,310,450 278,760,394 3,455,584 43,244,218 465,810,641 The railroads also derive large freight revenues from raw materials used by the steel industry. 1945 revenue figures were: Bituminous Coal. Coke Iron Ore.. Stone. S fl $157,298,871(1) 33,522,189(2) 124,896,997(3) 3,007,823 (4) $318,725,830 Samara 1,5 (1) This figure represents 18 per cent of 1945 total railroad revenue of $873,832,618 from bituminous coal. The United States Bureau of ines Minerals Yearbooks show that about 18 per cent of total United States production of bituminous coal is consumed by the iron and steel industry. (2) This figure represents 75 per cent of 195 total railroad revenue of 4,696,252 from coke. This is based on produc- tion and consumption figures shown in the United States Bur- eau of fines Iinerals Yearbooks. T SANG (3) Interstate Commerce Commission Freight Commodity Statistics, 1945. (4) This figure is based on 15 per cent of 1945 total railroad revenue of 20,052,155 from stone, broken, ground, or crushed. It is estimated, based on relationship of fluxing stone, to total crushed and broken stone produced. Furnace slag, a product of the iron and steel industry, pro- duced railroad revenues of $7,181,105 in 19h5. In Large quantities of fuel oil, tar and pitch, refractories, alloys, and, other materials are also used by steel companies. addition to iron and steel products, ship, od by the industry, the railroads derive substantial revenues from coal by-products. It is estimated that the railroads in 195 secured freight revenue in excess of $800,000,000 from the transportation of ma— terials used or roduced by the iron and steel industry. Follow- ing is a summary of revenue figures previously quoted: Raw materials.. Iron and steel products. Furnace slag... TOTAL.. The grand total of carload freight traffic revenue received by the railroads in 1945 was $6,563,299,959. $318,725,880 466,810,611 7,184,105 792,720,626 Stag A. Volume of Iron and Steel Traffic The volume of iron and steel traffic handled by the railroads, other than switching and terminal carriers, is shown in reports of freight traffic statistics compiled by the railroads and reported at regular intervals to the Interstate Commerce Commission. The Interstate Commerce Commission in its original order of 1 16 November 22, 1927 required the submittal of frcihi commodity sta- tistics by the railroads beginning on January 1, 1928. A now order of the Interstate Comerce Commission was issued on September 2, 1946 (as amended October 16, 1946) to become effective January 1, 1947. This increases the number of commodities to be reported. The requirements of the Interstate Commerce Commission are out- lined in "R.A.0.1. Commodity Classification, 1928 Edition" and "A.A.R. Freight Corodity Classification, 1947 Edition". Prior to January 1, 1947, iron and steel articles were in- cluded in the following commodity classes as described in "R.A.0.A. Commodity Classification, 1928 Edition" 190. Iron, pig 491. Iron or steel, rated 6th Class in Official Classifica- tion, H.O.S. 500. Rails, fastenings, frogs, and switches 510. Cast-iron pipe and fittings 511. Iron and steel pipe and fittings, H.C.S. 512. Iron and steel: Mails and wire, not woven 513. Iron and steel, rated 5th Class in Official Classifica- bion, 1.0.S. (also tin and torne plate) 583. Railway car wheels, axles, and trucks 693. Scras iron and scrap steel Effective amery 1, 1947 iron and stecl articles are included in the following commodity classes as described in "...R. Freight Comodity Classification, 17 Edition". Dach commodity class lists the individual articles assigned to thoi class. ܢ܆ ' 573. Iron, pic 575. Iron and steel: billet, bloom, and ingot 577. Tron and steel: bar, rod, and slab 579. Iron and stoel, 1.0.0. 581. Iron an steel nils and wire (woven and not roven), 1.0.5. 583. Hanufactured iron and stoel 585. Cast iron pire a..cittings ać 587. Iron and stel pie and fittings, I.C.S. 609. Rails or roilway track material, iron and steel 789. Scrap on and seran el 701. Iron and steel bor'n_s, turnings, etc. g Class I rail carriers are re vired to report freight commodity statistics cuarterly and annually showing number of carloads and net tons originating, terninating, carried overhead, and total rov- enue freight carried. In addition the number ? net tons originated and terminated on line are reported quarterly and annually for geog- raphic areas which, oxcost for Now ngland, are divided into the various states and the District of Columbia. 147 $ A summary of statistics for pig iron, scrap iron and steel, and semifinished and finished steel products follows (1) Railway Revenue from Pig Iron During the sixteen years 1928-1943, Class I railroads derived an average revenue of $10,654,000 annually from pig iron. Aver- aging the sixteen-year period, Eastern District roads received annually $7,207,000, or 67.6 per cent, of average pig iron revenue; Southern District figures were 31,874,000, or 17.6 per cent; West- ern District, $1,573,000, or 1.8 per cent. Table XXVII shows revenue of Class I railroads from pig iron, by railroad districts, by years, from 1928 to 1943, with percentage distribution. S Railway Tonnage Originated and Terinated Table XXVIII shows the tonnage of pig iron originated and ter- minated by Class I railroads, for the United States and various railroad districts, by years, for the sixteen years, 1928-1943. From 3.0 million tons in 1928-1929, total originations of pig iron on Class I railroads fell to a low of 1. million tons in 1932. There was a slow but almost steady recovery to 5.8 million tons originated in 1937, followed by a drop in 1938 back to 2.5 million tons. Subsequent recovery was to 5.4 million tons in 1940 and around 7.6 million tons in the three years 1941-1943. Termina- tions on all Class I railroads followed similar trends. As a rule the Eastern District railroads terminate slightly more tonnage of pig iron than they originate. By contrast, the Southern District railroads have had in every year larger origina- tions than terminations of pig iron. Railroads of the Western Dis- trict in every year have terminated more pig iron than they origi- nated, but the margin of terminations over originations is much smaller in recent years than in 1928-1930. +4 In 1928, Eastern District railroads originated 74.5 per cent and terminated 72.6 per cent of the total pig iron traffic; in 1943, the proportions had shifted to 71.3 per cent of originations and 74.5 per cent of terminations. Southern District railroads in 1928 had 16.7 per cent and 1.' per cent of the tonnage originated and terminated, respectively; by 1943, the percentages had changed only slightly to 16.6 per cent of originations and 13.4 per cent of terrinations. In the Western District the tonnage originated rose from 8.7 per cent in 1928 to 12.1 per cent in 1943 while tonnage terminated fell from 12.8 per cent to 12.1 per cent. + Big Table XIX shows tonnage of pig iron ori jinated and terminated 148 Year Total 1928 1,111! 1929 15,272 1930 9,703 5,602 23837 1933 4,992 1934 4943 1935 7,721 1931 1932 1936 10,162 1937 11,829 1938 5,639 1939 1940 19/11 1942 93771 12,176 16-Year Average FIG IRON, Class I Railway Revenue, by Districts Dollars (000 omitted) Eastern 3 10,422 10,647 6,025 TABLE XXVII 6,797 73770 South- ern 3,495 1,367 1,845 645 3,316 ·995 3;216 1,023 5,152 1,494 Per Cent Increase 1928-13 26.7 1,624 2;414 2,083 1,595 2,068 2,211 18;579 13,073 2,835 2,807 1943 17,823 12,73 2,569 18,990 12;449 3,098 1,593 6076 2,110 8,455 2,367 1;909 1,456 2;125 1,934 10,65 7,207 1,874 Percentage of Total Western Eastern Southern Western 3 19.7 59. 740 347 681 · 70+ 1,078 9443 1,535 1,654 73.8 69.7 62.1 62.4 65.0 66.1 65.1 56.7 33.5 65.9 65.7 55.0 62.2 67.8 2,671 70.4 25734 70.8 2,751 70.0 1,573 67.6 11.5 15.8 21.5 24.4 22.7 19.9 20.7 19.3 18.8 16.0 23.3 21.6 19.0 15.2 1.8 11.5 17.6 14.7 14.5 16.4 13.2 12.3 13.7 14.2 11.0 11.3 16:3 16.7 16.2 13.2 1/1.4 7/1.4 15.5 1.8 Source: Interstate Commerce Commission Freiht Commodity Statistics. 675 Year 1928 1969 1930 1021 1932 1933 1931 19,5 193~ 1937 1932 1939 10 1947 1 2 19 3 16- Total Umted State. Originaced Term nated 01 8,034 8.000 10 3,130 1,124 2,689 2016 3,171 Source: 0? 833 2,521 1,368 5,410 7,6/2 7,07 7,551 ive age 2,611 Tons Pei Cent of Toual 7,830 8,11,1 5,212 3,292 1,499 2,81 2,637 3,725 5,150 دا روڈ 2,578 4,357 دورود دودوح 7,524 7,700 TABL VILT PIC I¿O! Tonnage Or gina ed and Teim nated Cla s I Pailroads Tons (000 omit ed) 090 ود Castern Originalea Cirina ea 5,9/3 5,690 2016 926 ود 3, 83 973 ورو 1,890 1973c 2+77 3, 150 4,152 1,532 2,791 3,52) 5-19 5,3 0 5,382 3, 89 2,205 1,0 +1 2,0 7 1,800 2,07? C 4,21 ? 1,587 2,923 2,800 2,56 5,92 737 ور CC 3,679 71.1 Sout en In led el 1,339 1,432 기 ​و 1,21 207 368 505 501 699 098 1,004 680 1,008 2 1, 1,379 1,371 1,252 3,508 70.0 Tnte va e Cor el ce Commission licht Corod tv Suauistics. 1,015 20.? lutea ( 7,130 1,1)+ 1.000 राए 307 52 1174 >5? U 9 820 640 877 1,003 1,209 1,074 1,029 841 16.5 eston uca jer i n ted 700 541 508 कृत 117 213 2418 د22 164 90 307 486 5 8 774 793 917 191 9.8 7,007 1,131 75, 375° 1,1 292 323 500 628 722 3 567 585 860 زده 934 630 12.4 Sheet 1 150 States Ohio New York Alabama Illinois PIG IRON Originated and Terminated on Class I Railroads Tons (000 omitted) 1940-1943 Utah Kentucky New England Indiana Iowa Pennsylvania 1;159 21. 1,669 21.7 21.4 1,669 21.7 1,703 22.7 1,803 23.9 1,186 2119 1,742 22.7 1,656 22.7 1,656 22.1 1,799 23.8 609 11.3 994 12.9 12.9 1,256 16.7 1112 14.7 1,217 22.5 1,362 17.7 1,311 17.5 1,050 13.9 508 9.4 768 10.0 581 7.7 621 8.2 Minnesota Michigan California Others TOTAL 1940 Per Tons Cent 163 3.0 .4 23 68 121 57 241 115 1.3 2.2 1.1 713 TABLE XXIX ORIGINATIONS 1941 1942 1943 Per Per Per Tons Cent Tons Cent Tons Cent ا. 山 ​2.1 3.0 21 .3 227 171 2.2 267 3.5 05 · 1.2 161 2.2 63 .8 156 2.1 11 1.9 106 1.4 100 1.3 126 1.6 11 1.5 104 1.4 75 1.0 72 .1 17 .3 6 .1 1.8 2.7 97 1.3 5,410 100.0 7,692 100.0 7,507 100.0 7,551 100.0 Til 115 1.5 2.1 155 3 तल 238 3.1 164 2.2 158 125 116 2.1 1.6 1.5 Fur Sheet 2 151 States Ohio Alabama Illinois Michigan PIG IRON Originated and Terminated on Class I Railroads Tons (000 omitted) 1940 - 1943 TERTIATIONS 1941 New England Indiana New York Tisconsin West Virginia New Jersey California Delaware Kentucky Georgia Tennessee Virginia Others TOTAL Pennsylvania 1,282 23.8 2,050 27.0 2,443 760 1.1 1.000 1.2 1,191 633 11.7 756 10.0 Source: 1940 TABLE XXIX (Continued) 300 369 Per Per Per Per Tons Cent Tons Cent Tons Cent Tons Cent 150 5.6 6.8 286 5.3 263 1.9 256 4.7 195 3.6 21 .4 3.0 92 1.7 86 1.6 58 1.1 71 1.3 148 5.9 5Ch 5.6 409 384 382 304 92 226 1113 135 66 79 1942 โกโกโภ 360 1.9 1.8 .9 1.0 32.5 32.5 15:8 679 9.0 5.4 5.0 372 4.9 299 4.0 5.0 296 3.9 41.0 247 3.3 1.2 71 .9 101 5.3 333 4:4 • 297 4:0 138 1:8 164 2.2 1.3 1.2 99 85 1943 2,480 32.2 1,177 15.3 6.9 535 462 381 375 348 283 240 237 6.0 4.9 190 135 11! 91 十二 ​.৩ 4.9 4.5 3.7 3.1 3.1 210 2.7 2.5 1.8 1.5 1.2 119 1.6 88 1.2 1.2 108 2.0 57 1.0 LOO 7.4 83 1.1 89 72 232 3.1 276 89 1.2 .9 335 4.4 3.6 5,397 100.0 7,595 100.0 7,524 100.0 7,700 100.0 Interstate Commerce Commission Freight Commodity Statis- tics. b 152 on Class I railroads, by states, with percentage distribution, for each of the four years, 1940–1943. Of nearly 61,000,000 tons of pig iron manufactured in 1943, only 9,139,000 tons, or 15 per cent, was produced for sale, and 7,700,000 tons, or 13 per cent, was terminated on Class I railroads. About three-fourths of railroad tonnage of pig iron originates in the four states of Pennsylvania, New York, Ohio, and Alabama. Between 1940 and 1943, the first three of these states showed an upward trend in percentage of total, while Alabama had a sharp de- cline. Among the secondary origins, Kentucky, linnesota, and Cal- ifornia had relatively sharp increases, and Illinois had a sub- stantial relative decrease between 1940 and 1943. Fluctuations in other states were inconsiderable. Categ Tutaj Pennsylvania is far in the lead of other states in rail term- inations of pig iron; in 1942 and 1943 it terminated almost one- third of the total. Ohio is next, with about half the Ponnsylvania tonnago. Alabama and Illinois follow, far below. These figures highlight the gains of California and the losses of Alabama from wartime developments. Between 1940 and 1943, Pennsylvania incrcased its share of total rail terminations from 23.8 per cent to 32.2 per cent, while Ohio went from 1.1 per cent to 15.3 per cent. Alabama dropped sharply, from 11.7 per cent in 1940 to 6.9 per cent in 1943. Michigan declined beteen 1910 and 1943 from 6.3 per cent to 4.9 per cent of total and He: Yo k from 4.7 per cent to 3.7 per cent of total. By contrast, cst Virginia rose from .4 per cent in 1940 to 3.1 per cent in 1943 and California fron 1.7 per cent to 2.5 per cent. Fluctuations in other states rere inconsiderable. Pennsylvania and Ohio torminated 17.5 per cent of the rail tonnage of pig iron, compared with 7.7 per cent of originated traffic in 1943. These adjacent states together appear to have a closely balanced distribution with an excess production in Ohio matching the deficit in Pennsylvania. In contrast, llew York and Alabama originate substantially more tonnage than they terminate. Unit Average Revenue and Loading Table XXX shows average revenue per ton originated and avor- age tons per carload originated of pig iron for Class I railroads, by years, from 1928 to 193. Average revenue per ton originated has followed an almost steady upward trend, from $1.76 in 1928 to $2.53 in 1942, with a drop to $2.36 in 1940. For the sixteen years, 1928-1943, average { " Year Lverage Revenue per Ton and Tons per Car Class I Railroads 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 TABLE XXX PIG IRON CRIGINATED 1941 1942 1943 16-Year Average Revenue Per Ton $1.76 1.91 1.89 1.78 1.99 1.86 1.91 2.29 2.07 2.03 242 2.2 2.32 2.42 2.53 2.36 2.12 Tons Per Car 52.9 53.3 55.3 55.1 54.8 54.44 54.2 55.1 55.7 55.0 56.0 56.7 56.4 53.8 511.0 57.6 54.9 Source: Interstate Commerce Commission Freight Commodity Statistics. 153 ? ધ . } revenue per ton of railroads in the Eastern district was $2.05. This compares with 1.85 for the Southern district railroads and $3.20 in the Western district. Since 1930 average loading per car has been fairly close to fifty-five tons, with a peacetime peak of 56.7 tons in 1939 and a record high of 57.6 in 1943. 2. Railway Revenue from Scrap Iron and Steel During the years 1928-1942 the railroads derived an average revenue of $211,118,000 annually from hauling carload iron and steel scrap. This was .7 per cent of total railway freight revenue which averaged $3,416,681,000 during the same period. Between 1928 and 1942 total scrap revenue increased 125.6 per cent. Eastern district roads received 15,364,000 or 63.7 per cent of average scrap revenue; Testern district figures were $6,082,000 and 25.2 per cent; Southern district $2,672,000 and 11.1 per cent. Table XXXI gives a break- down by years for the United States and the three districts. Year 1928 1929 1930 1931 1932 1933 193!! 1935 Total Per Revenue Eastern Cent Cent 324,863 $16,225 73.3 29,429 21,311 72.4 20,550 11,705 6,648 11, 788 13944 14,799 72.0 9.170 70. 5.510 80.5 8,716 73.9 9,569 69.4 13:372 68.3 17;873 63.5 19,868 1936 28,1115 34,007 18;570 51.6 8.787 63.3 1937 1938 13,691 23,991 27;641 Per Cent Increase 1928-1942 125.6 TABLE XXXI Scrap Iron and Scrap Steel Railway Revenue by Districts Dollars (000 omitted) (Revenue by Districts) 1939 1940 14,024 58.5 16,239 58.S 1941 39,008 23,282 59.7 1942 56,086 30,702 54.7 15-year Average 24,118 15,364 63.7 Per Western Western Cent 34,561 18.3 5,523 18.8 3,944 19.2 1,619 13.8 -675 9.9 1,563 13.3 2,565 18.5 3,293 20.1 7,113 25.3 11,385 33.5 3,486 25.1 7,440 31.0 8,277 29.9 11;364 29.1 17,704 31.6 6,082 25.2 I P 154 Per Southern Cent $2,077 8.4 2,595 8.8 1,007 8.8 916 7.8 ·663 9.6 1.509 12.8 1,690 12.1 2,298 11.6 3,159 11.2 4,052 11.9 1;618 11.6 2,517 10.5 3,125 11.3 4,362 11.2 7,680 13.7 2,672 11.1 68.5 288.2 269.8 Source: Interstate Commerce Commission Freight Commodity Sta- tistics, Classification No. 693. P ! ار · Increases in tonnage by districts, between 1928 and 1942, were as follows: Eastern District Western District Southern District Entire United States District and Region Eastern District Source: Western District ORIGINATED 15-Year Increase Per Cent TOTAL 26.8 175.5 155.9 58.6 Central Eastern Region Great Lakes Region New England Region TOTAL Southern District Northwestern Region Central Western Region Southwestern Region TABLE XXXII Origin of Railway Carload Tonnage by Regions 1928-1942 Average Per Cent of United States Southern Region Pocahontas Region 69.7 20.6 9.7 Origin of Railway Carload Tonnage by Regions Table XXXII shows for the fifteen years 1928-1942 the average scrap tonnage originated annually by the railroads of the various regions: TOTAL TOTAL UNITED STATES 100.0 Region Per Cent 55.1 37.5 7.4 100.0 TERMINATED 40.8 38.8 20.4 100.0 15-Year Increase Per Cent 72.2 27.8 100.0 41.3 159.5 95.8 60.5 Per Cent of United States 74.5 16.7 8.8 100.0 155 District Per Cent of United States 69.7 20.6 9.7 100.0 Interstate Commerce Commission Freight Commodity Statis- tics. 156 Origin of Railway Carload Tonnage by States Revenue shipments of scrap by rail originate principally in the states of greatest industrial activity. Chart 7 shows that railway revenue from iron and steel scrap increases out of proportion to increases in tonnage when the volume of scrap traffic is at the peak. The spread between revenue and tonnage was wider than normal in 1929 and again in 1937 and 1941- 1942. One explanation given is that in peak years for the produc- tion of iron and steel, wider areas must be drawn upon for an ade- quate supply of scrap, while in normal periods consumers obtain all they require from shorthaul areas. TABLE XXXIII Average Revenue Por Ton on Purchased Scrap Transported by Rail Year 1928 1929 1930 1931 1932 1933 1934 1935 Railway Scrap Revenue Per Ton The average revenue per ton from scrap iron and steel hauled by railways, based on tonnage originated, for the fifteen years, 1928-1942, was 2.2. The peak year was 1942, with $3.01, and the low years 1931 and 1934 with $1.94. Revenue per ton by years and district averages are shown in Table XXXIII, and annual fluctua- tions are shown graphically in Chart 8. Per Ton $2.12 2.18 2.08 1.94 1.99 1.97 1.94 2.09 Eastern District Testern District Southern District Year 1936 1937 1938 Entire United States 1939 1940 1941 1942 Por Ton $2.19 2.21 Fifteen year, 1928-1942, Averages $2.05 per net ton 2.74 per not ton 2.57 per net ton 2.24 per net ton 2.00 2.15 2.17 20110 3.01 Tonnage Por Car Average scrap loading per car for the fifteen years, 1928- 1942, was 41.3 tons. Minimum average loading was 38.7 tons in 1929 and maximum average loading 4.1 tons in 1938-1939. Gandh A 157 60 56 52 48 44 40 36 32 28 24 20 16 12 8 3.00 TRANS 1928 2.50 2.35 Tons Millions 2.00 1929 Dollars Chart 7 Purchased Scrap Railway Revenue Freight Tonnage and Revenue 1928-1942 Source: I.C.C. Freight Commodity Statistics Dollars Tons Chart 8 Revenue Per Ton Scrap Iron and Scrap Steel 1 †▬▬▬▬▬▬▬▬▬|||||||▬▬▬▬▬▬▬ Source: I.C.C. Freight Commodity Statistics Dollars Millions 60 $8 56 52 48 44 2 2 2 2 2 2 2 2 8 0 ? Source: Year 1928 1929 1930 1931 1932 1933 1934 1935 TABLE XXXTV TRON AND STEEL SCRAP Tons Per Car Tons Year 39.1 1936 38.7 1937 39.6 1938 40.5 1939 42.3 1940 41.9 1941 1.2.5 1942 42.5 Tons 42.1 41.7 43.1 43.1 42.8 42.2 110.3 158 15-Year Average 41.3 tons Interstate Commerce Commission Freight Commodity Statis- tics. Tonnage Available for Transportation Purchased scrap requiring transportation includes domestic consumption, inports and exports. Table XXXV indicates the approx- imate, potential tonnages available for movement by all forms of transportation for the sixteen years, 1928-1943. It also shows the quantities of revenue scrap freight hauled by the railroads during this period. Railroad revenue scrap freight constituted an average of 58.6 per cent of the purchased scrap shipped during the sixteen years, 1928-1943. The peak par was 1942 with 70 per cent and the low year 1938 with 48 per cent. The percentage for the six years, 1935-1940, was 57 per cent and for the three war years, 1941-1943, it was 67 per cent. Railroad Scrap Shipped as Company laterial In addition to the iron and steel scrap transported as revenue freight and reported in Interstate Commerce Comission Freight Com- modity Statistics, the railroads also criginate quantities of their own scrap which they haul on a non-revenue basis as company material. Gagan This tonnage is not included in Interstate Commerce Commission Freight Commodit, Statistics. Is indicated in Table XXVI, of the average of 2,925,000 tons produced by the railroads in 1942-1943, about 4 per cent or 1,296,000 tons, was shipped direct to consumers by the railroads. This amounts to about 4.8 per cent of the total scrap requiring transportation annually. 159 The railroad scrap sold to dealers for processing is also shipped as company material in those cases where the dealer is lo- cated on the shipper's railroad. There are no available statistics on this type of shipment. It is estimated that an average of 7.5 per cent of all purchased scrap is railroad scrap hauled on a non- revenue basis as company material. Adding this non-revenue freight to the revenue freight cited, the proportion of total scrap requiring transportation which was carried by rail during the years 1935-1943 rises by 7.5 per cent, from 57 to 64.5 per cent. 1928 1929 1930 Domestic Consump- Year tion TOTAL PURCHASED SCRAP REQUIRING TRANS.ORTATION AND CARLOAD REVENUE TOMAGE HAULED BY RAILROADS Tons (000 omitted) 16-Year Average Exports 22,400 23,900 16,800 1931 12.300 1932 6,700 1933 9,500 1934 10,600 2,055 14,637 2,356 1935 1936 19,552 2.168 1937 20;311 4,594 1938 11,226 3,358 1939 16,705 4,015 3,159 888 1940 19,82 1941 25,311 1942 27,136 1943 26,653 Sources: 89 624 102 152 255 866 II TABLE XXXV 17,701 (1) Railroad tons originated. 1,592 Total Pur- chased Scrap Requiring Transportation 22,978 2524 17,202 12,452 6,955 10,366 12,655 16,993 21,720 24,905 15811 20,720 22,647. 26,199 27,136 26,653 19,293 Game Total Por Cent Hauled by Hauled by Railroads Railroads GRAD 11,847 13,527(1) 9,972 6,108 3,540 6,2410 7,338 9,641 12,978 15.378 7,009 11,221 12;751(1) 16,458 19,013 17,781 11,300 51.6 55.2 56.0 49.1 50.9 60.2 58.0 56.7 59.8 61.7 18.1 54.4 56.3 62.8 70.1 66.7 58.6 Interstate Commerce Commission Freight Commodity Sta- tistics; lfinerals Yearbooks United States Bureau of Mines. 160 } Year 1942 194.3 RAILROAD SCRAP SHIPPED BY RAILROADS "AS COMPANY MATERIAL" IN RELATION TO TOTAL PURCHASED SCRAP TRANSPORTED Tons (000 omitted) 2-Year Average Sources: TABLE XXXVI 27,136 26,653 3,312 2,538 Per Cent Railroad Scrap Shipped "as Company Total Scrap Total Per Cent Railroad Scrap Requiring Railroad Produced Shipped by Rail-Material" is Transporta- Scrap by Rail- roads "as Com- of Total Scrap tion Produced roads pany liaterial" Transported 9.4 12.4 · 919 1,672 3.3 6.2 26,894 2,925 10.8 1,296 4.8 Interstate Commerce Commission Freight Commodity Statistics; Mineral Yearbooks. C. Shipments of Iron and Steel Products Table XXXVII gives tonnage of iron and steel products and of all commodities originated on Class I railroads and percentage relation- ship, by years, from 1928 to 1943. Chart shows tonnage originated of iron and steel products and its percentage relationship to that of all commodities on Class I railroads, by years, 1928-1943, and in 16-Year (1928-1943) average. Originations of iron and steel products on Class I railroads rose from 48 million tons in 1928 to 54 million tons in 1929. Thoy declined thereafter to 13 million tons in 1932, the low point from 1928 to 1943. Beginning in 1933, originations of these products rose steadily, except for a slump in 1930, to 16 million tons in 1940. In 1941 they jumped to 63 million tons. The rising trend continued to 1943, when they almost reached 73 million tons, the peak in the sixteen-year period. Originations of iron and steel products in 1913 were almost 81 per cent greater than their average for the sixteen-year period, which was 40 million tons. In comparison, all commodities had only a 46 per cent increase in 1943 over their average for the period. During the sixteen-year period, 1928-1943, originations of iron and steel products averaged per cent of originations of all com- 161 Million Tons 80 70 60 50 40 30 20 10 0 1928 Tonnage Chart 9 Iron and Steel Products Originations and Per Cent of Originations of All Commodities on Class I Railroads 1928-43 1930 TIL Per Ceas TIPR Source: Table XXI 1932 1934 T + لحد 1900 1938 # 1940 Per Cent 1942 8 7 6 5 4 3 2 1 162 1 modities. From 1941 to 1943 their average was around 5 per cent. Year 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941 1942 1943 16-Year Average IRON AND STEEL PRODUCTS Originations Compared with Total Originations Class I Railroads 1928-1943 Tons (000 omitted) Source: + Iron and Steel (1) Products 48,180 54,182 38,969 242411 13,250 19,043 22,543 28576 39;507 44:377 23,073 35,945 46,025 TABLE XXXVII 63,350 688/11 72,574 All Commodities 1,248,989 1,303,048 1,123,530 871,412 630,989 684,592 750,951 775,588 942;538 998;398 757,470 886, 794 994 728 1,209,559 1,403,612 1,462,31 Percentage, Iron and Steel of Total 3.9 4.2 3.5 2.8 2.1 2.8 3.0 3.7 11.2 41.11 3.0 4.1 4.6 5.2 41.9 5.0 40,167 1,002,782 4.0 (1) Iron and steel. Includes Classification Nos. 491,500,511,512, 513, and 583, but not No. 490, Pig Iron, and No. 585, Cast Iron Pipe and Fittings, 1.0.S. Interstate Commerce Commission Freight Commodity Statis- tics. Rail Originations by Commodity Classes Table XXXVIII shows originations of iron and steel products on Class I railroads by commodity classifications, by years, from 1928 to 1943, in sixteen-year (1928-1943) average, and percentage dis- tribution of sixteen-year average. • عر { 163 Classification No. 513 (Iron and steel rated 5th Class, also tin and terne plate) accounted for 27 million tons, or 67.5 per cent of total, in average for the period 1928-1943. Classification No. 491, semifinished products usually sold to nonintegrated com- panies, was second in average of the sixteen years, with 5.6 mil- lion tons, or 14.1 per cent of total. No. 511, Iron and steel pipe and fittings, !.0.S., was third with 3.9 million tons, or 9.8 per cent of total. Originations and Terminations, by Districts Table XXIX gives tonnage originated of iron and steel pro- ducts on Class I railroads, by railroad districts, by commodity classifications, in 1929, 1940, and 1943, and percentage distri- bution of annual totals, by districts. C Table AL gives tonnage of iron and steel products terminated on Class I railroads, by railroad districts, by commodity classi- fications, in 1929, 1940, and 1943, and percentage distribution of annual totals, by districts. Originations of iron and steel products on Class I railroads are preponderantly on Jastern District railroads. In 1929 Eastern District roads accounted for 48 million tons, or 60.5 per cent of 40 total rail originations. Their share increased in 1940 to 90.1 per cent of total and declined in 1943 to 86.9 per cent. Western District railroads originated 1 million tons in 1929, or 8 per cent of total rail originations. Their share declined to 6.6 per cent of total in 1910, but rose to 9.2 per cent in 1943. Southern District railroads accounted for about 2 million tons, or 3.5 per cent of total rail originations of iron and steel products in 1929. They accounted for 3.3 per cent in 1940 and 3.9 per cent in 1943. In all the years showm and in all railroad districts, Classi- fication No. 513 (Iron and steel rated 5th Class, also tin and terne plate) far outweighed all other classifications. PRIN Terminations on Class I railroads of iron and steel products were heaviest on Eastern District railroads. In 1929 and 1940 Eastern District roads accounted for 78.5 and 78.6 per cent of total, declining in 1943 to 67.9 per cent. Testern District rail- roads terminated 16.6 per cent in 1929. They accounted for 1.8 per cent of total in 1940, and sharply increased to 24.2 per cent in 1943, due to wartine shipments westward. Southern District railroads, although accounting for a small portion of total term- inations of these products, showed a rising trend through the years shown. They had 4.9 per cent of total in 1929, 6.6 er cent in 1940, and 7.9 per cent in 1943. 164 f Rail Originations, by States Rail originations of iron and steel products from 1940 to 1943 were largely in the Middle Atlantic Region (chiefly Penn- sylvania) and the East North Central Region (mostly in Ohio, Indiana, and Illinois). Together these two regions accounted for 83 to 86 per cent of total originations. They were followed by the South Atlantic and East South Central Regions, in that order. Maryland, West Virginia, Kentucky, and Alabama are the chief pro- ducers in those latter regions. States leading in originations were Pennsylvania, Ohio, Illi - nois, and Indiana, in that order. Together these four states originated between 75 and 79 per cent of total rail originations annually from 1940 to 1943. In 1940 Pennsylvania, with about 38 per cent of rail origina- tions of 46 million tons, led all others. It was followed by Ohio, with 20 per cent; Illinois, with 11 per cent; and Indiana, with 10 per cent. In 1943 Pennsylvania had 35 per cent; Chio 21 per cent; Illinois 10 per cent; and Indiana 9 per cent of total orig- inations of 72.6 million tons. Rail Terminations, by States Terminations were heaviest in the East Nort: Central Region from 1940 to 1913, except in 1942, when it was second. The Middle Atlantic Region was a close second in all those years, except that in 1942 it led. The South Atlantic Region was third in 1940-1941 and fourth in 1942-1943. The Pacific Region rose from fourth in 1940-1941 to third place in 1942-1943, largely in consequence of wartime shipbuilding and other activities in the West. The Middle Atlantic and East North Central Regions together annually termi- nated 65 to 73 per cent of total. In 1940 the states leading in terminations were Pennsylvania, with 21 per cent; Ohio, with 11 per cent; New York with 10 per cent; Illinois and Indiana, with 6 per cent each; Maryland, with 6 per cent; and New Jersey, with 5 per cent of the total of 46 million tons. In 1943 the order was Ponnsylvania with 20 per cent; Ohio, with 12 per cent; California and Indiana, with 8 per cent cach; Illinois and New York with 7 per cent each; Michigan, with per cent; and New Jersey, Tisconsin, and Texas with 3 per cent cach of the total of 71.8 million tons. Revenue of Class I Railroads Table XLI shows for Class I railroads revenue from iron and steel products, total freight revenue and percentage relationship, by years, from 1928 to 1943 and by sixteen-year averages (1928-3). } 1 ¿ Year 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941 1942 1943 16-Year Average Per Cent of Total Steel Source: IRON AND STEEL PRODUCTS Originations on Class I Railroads, by Commodity Classifications TABLE XXXVIII 1928-1943 Tons (OCO omitted) Interstate Commerce Commission Classification Numbers 513 583 Total 48;180 54,182 38,969 491 500 511 5130 2;551 5,045 1;667 33,386 401 5746 2,658 5,906 1873 37428 571 4,931 26,745 463 3,680 1,778 1,372 2;081 1,298 2,313 2;597 3,666 1,063 419 -521 14.1 1,032 891 1,422 1,539 2,902 1,328 1,533 2;116 2,305 10;573 2,364 6;046 12,194 2,913 5327 13,508 2,770 6,223 5,633 1,535 3,932 3.9 5517 3,815 1,503 6,092 2,916 4,518 1,591 · 700 2,794 1;112 1,264 3,736 1,612 7,967 1,477 4.223 1,680 4,850 512 9.8 1,015 669 1;04:0 13,475 1,024 15,526 1,307 16,878 9,387 2;364 2;358 2,466 225 149 161 2118 20,117 210 3.8 165 26,825 345 30,213 424 15,342 209 24,186 297 30,286 384 241 244 13,250 19,043 22,543 28,576 39;507 44,377 23,073 35,945 46,025 41,!141 562 45;503 546 47,034 573 1,546 27,111 360 40,167 63,350 68.841 72,574 67.5 .9 100.0 Interstate Commerce Commission Freight Commodity Statis- tics. 166 } I.C.C. Classification Humbers 491 500 511 512 513 583 Total Per Cont of Total 1191 500 511 512 513 563 Total Per Cent of Total 191 500 511 IRON AND STELL PRODUCTS Origination on Class I Railroads, by Railroad Districts · 1929, 1940, 1943 Tons (000 omitted) 512 513 583 Total Per Cent of Total Source: TABLE XXXIX Eastern 5,480 2,056 4742 1463 33,819 417 47,977 80.5 7;792 1,2419 3,584 1;269 27,256 307 41,457 90.1 12;546 1,857 5415 1,815 40,847 468 1929 63,048 85.9 1940 1943 Western 197 -353 1,062 -307 2,325 99 4,343 8.0 110 136 591 -307 1,825 49 3,048 6.6 687 773 706 ·519 3,945 68 6,698 9.2 Southern 69 249 102 103 1,2841 55 1,862 3.5 35 92 48 · 112 1,205 28. 1,520 3.3 175 140 102 132 2,242 37 2,828 3.9 Total 5;746 2,658 5,906 1873 37,428 571 54,182 100.0 7,967 1477 49223 1,683 30,286 384 46,025 100.0 13,508 2;770 65223 2466 47,034 573 72,574 100.0 Interstate Commerce Commission Freight Commodity Statis- tics. 167 ' I.C.C. Classification Ilumbers 421 500 511 512 513 583 Total Per Cent of Total 1191 500 511 512 513 583 Total Per Cent of Total 491 500 511 512 513 583 IRON AND STEEL PRODUCTS Terminations on Class I Railroads, by Railroad Districis 1929, 1940, 1943 Tons (000 omitted) Total Per Cent of Total Source: 2 TABLE XL Eastern 5,157 1,351 3;322 1;165 30,770 313 42,081 78.5 7,137 ·835 2,663 1,024 24,399 2311 36,292 78.6 12,019 1292 23998 1,258 30,ELO 355 1929 48,762 67.9 Western 1940 1943 226 -428 2,266 -467 5,390 103 8,074 16.6 347 220 1,189 419 4,580 51 6,835 11.8 698 · 1:54 2,543 855 12,706 90 17,256 24.2 Southern 277 297 352 97 1,5114 57 2,624 4.9 179 108 295 185 2,228 35 3,030 6.6 452 206 506 283 4,152 57 5,656 7.9 Total 5,660 2,079 5940 1;723 37,704 473 53,579 100.0 7;663 1;163 41,147 1,658 31,207 320 46,158 100.0 13;169 1,962 6047 23396 47,698 502 71,774 100.0 Interstate Commerce Commission Frei ht Commodity Statis- tics. 168 · Class I railroads derived during the sixteen years, 1928-1943, average annual revenue of $207.6 million from iron and steel pro- ducts (1). This was 5.7 per cent of their total freight revenue, which averaged $3.6 billion annually during the period. Between 1928 and 1943, revenue from the steel group increased 15 per cent, compared with an increase of 56 per cent in total revenue from all freight. In 1940 (taken as the last normal prewar year) revenue from iron and steel products was $218.1 million. Total freight revenue in 1940 was 33.4 billion. Except during the four years, 1932-1935, Class I rail revenue from iron and steel products was more than 4 per cent of total freight revenue. In 1942 it was 8.1 per cent, of total freight revenue. Pail Revenue, by Commodities Table XLII shows revenue of Class I railroads from iron and steel products, by commodity classifications, by years, from 1928 to 1943, with sixteen-year (1928-193) averages and percentage dis- tribution of average. In all the years from 1928 to 193, Class 513 yielded much the greatest revenue ranging from 342.4 million in 1932 to $380.9 mil- lion in 1943. It was followed by Classes 511, 491,512,500, and in that order during nearly all those years. From 1940 to 1943 Class 191 was ahead of 512. Over the sixteen years, 1928-1943, Class 513 produced 69.6 per cent of average annual revenue of Class I railroads from iron and steel products. It was followed by Class 511, with 17 per cent; 491 with 5 per cent; 512 with 4.9 per cent; 500 with 2.7 per cent; and 583 with .8 per cent. Rail Revenue, by Districts Table XLIII gives revenue of Class I railroads from iron and steel products, by railroad districts, and percentage distribution, for 1929, 1940, 1943, and in sixteen-year (1928-1943), average for each commodity class. Eastern District railroads led all others in revenue from iron and steel products. Western District roads were second. In 1929 Eastern District roads had 69.7 per cent of total Class I rail rev- enue from these products. Ius share was 70.3 in 1910, but dropped to 9 per cent of total in 1943. For the sixteen-year period, Eastern District roads annually averaged 130 million or 62.6 per cent of total revenic. (1) Includes I.C.C. Commodity Classification Nos. 491, 500, 511, 512, 513, and 583. 169 Year 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 19110 19):1 1942 1943 16-Year Average Source: IRON AND STEEL PRODUCTS Revenue Compared with Total Revenue, of Class I Railroads 1928-1943 (COO omitted) Iron and Steel Products $ 213,766 240,500 177;392 110,546 60,971 TABLE XLI 82;570 97,454 126,053 180,662 198,330 11859 174293 218,071 329,801 473,877 523,053 207,638 C Total All Freight $4;317;698 4,451,890 3,777,145 3,019,039 2,280,897 2;350;138 2,506,068 2,662,13 3,171,234 3,251,215 2,733,635 3;123,589 3;430,486 4;317;978 5,857,061 6,748,421 3,624,915 Per Cent of Total 5.0 5.4 4.7 55J 3.7 2.7 3.5 3.9 4.7 5.7 6.1 4.2 5.6 6.4 7.6 8.1 7.8 5.7 Interstate Commerce Commission Freight Commodity Statis- tics. → 170 Year 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 Percent of 16-Year Average Source: IRON AND STEEL PRODUCTS Revenue of Class I Railroads By Commodity Classifications 491 $ 8,802 9,515 5,50 3,214 1,860 Interstate Commerce Commission Classification Numbers 500 511 512 513 583 Total 8,328 343,941 $9;146 $141,716 $1,833 $213,766 8,699 51,410 10,191 158,208 2,477 240,500 111,230 1,841 177;392 71;507 919 110,546 42,433 610 60,971 3,018 3,364 5,033 7;747 8,276 1938 1939 1940 1941 19412 1913 16-Year Average 10,446 TABLE XLIT 21,972 28,642 34,159 1928-1943 (000 omitted) 5.0 5,839 45,337 7,605 3,772 25,275 5,779 1,500 10,439 41,079 33491 2,592 22,767 7,262 4,054 30;371 10,679 16,095 5;159 33,350 10,895 6,404 8,253 54,426 15,436 13,608 58,756 20,704 11,877 72,029 20,868 1,657 12;221 3,085 16;526 2,716 18,868 4,081 31,994 4,553 38,560 6,108 5783 75736 9,007 9,330 5,611 35,396 10,088 2.7 17.0 11.9 58,914 652 82;570 67,726 970 97,454 90,820 880 126,053 125,479 1,554 180,662 135,733 1,878 198,330 · 77,804 · 923 114,859 121,405 1,380 174,293 150,928 1,644 218,071 226,866 2,828 329,801 349,144 3,023 473,877 380,850 3,270 523,053 69.6 14,429 1,668 207,638 .8 100.0 Interstate Commerce Commission Freight Commodity Statistics. 171 I.C.C. Commodity Class 491 500 511 512 513 583 Total 491 500 511 512 513 583 Total 491 500 511 512 513 583 Total 491 500 511 512 513 583 Total IRON AID STEEL PRODUCTS Revenue of Class I Railroads, by Districts 1929, 1940, and 1943 Dollars (000 omitted) Por Cent Eastern of Total 85623 4,474 24, 253 6,311 122,573 1,382 167,619 11266 23979 19,208 6,257 109,458 1,119 153,317 26,013 5,259 30,831 9,116 183,208 1,964 91.0 51.4 47.2 62.0 77.5 55.8 69.7 TABLE XLIII 76.2 44.3 42.9 Per Cent Western of Total 1929 43.7 48.1 60.1 -569 6.0 2,861 32.9 24,469 47.6 3,166 31.0 25,836 16.3 29.7 735 24.0 ܢ ܀ 88.6 57.7 57.6 57.4 72.5 69.9 70.3 45,557 1943 6,191 57,639 1940 1;151 1,532 12,031 3,264 27,266 313 7.2 29.7 36.1 30.0 18.1 19.0 20.9 45.4 42.6 29.4 Per Cent Southern of Total TOTAL -323 1,361 2,688 711 9,799 360 15,242 678 6118 2,111 1;374 14,204 182 19,197 1,955 1,519 4,488 18.1 5,099 42.9 36,660 51.0 9,479 162,105 963 256,441 49.0 220,497 42.2 16-Year Average (1928-1943) 9,253 80.5 810 7.7 2;772 49.4 2,014 35.9 16,051 45.3 17;307 48.9 53.9 5435 94,226 3,584 35.5 65.3 38,042 26.3 .988 59.2 463 27.8 129,981 29.3 62.6 60,964 Source: Interstate Commerce Commission Freight Commodity Statistics. 2,273 35,537 343 46,115 383 -825 2,038 1,068 12,161 . 217 16,692 3.0 15.6 9,515 8,699 5.2 51,410 7.0 10,191 6.2 158,208 11.5 2,477 6.3 240,500 4.2 12.6 16,095 5,159 6.3 33,350 12.6 10,895 9.4 150,928 11.1 1,644 8.8 218,071 5.7 34,159 12.8 11,877 6.1 72,029 10.9 20,868 9.3 380,850 10.5 3,270 8.8 523,053 3.7 141.7 10;46 5,611 5.8 10.6 35,396 10,088 8.4 144,429 13.0 1,668 8.1 207,638 172 • Western District railroads had 24 per cent of total 1929 rev- enue from iron and steel products, 20.9 per cent in 1940, and 42.2 per cent in 1943. They averaged $61.0 million, or 29.3 per cent annually for the sixteen-year period. Southern District roads had 6.3 per cent of 1929 total, 8.8 per cent in 1940 and 1943, with annual average of $16.7 million or 8.1 per cent during 1928-1943. Revenue Per Ton Table XLIV shows for iron and steel products, average revenue per ton originated of Class I railroads, by commodity classifica- tions, by years, from 1928 to 1943, and sixteen year (1928-1943) averages by railroad districts. Chart 10 shows revenue and revenue per ton originated of Class I railroads from iron and steel products (including I.C.C. Classi- fications 491, 500, 511, 512, 513, and 583), by years from 1928 to 1943. Average (1928-1943) revenue per ton originated of Class I railroads from iron and steel products ranged from 69 for Class 511 down to 1.85 for Class 91. Average for the whole group was $5.16. In 1940 all classifications except 511 and 583 showed increased revenue per ton over 1929. All had increased revenue per ton in 1943 over 1940. Shorter Hauls in the East With the exception of Classes 491 and 511 average revenue per ton of Western District roads for the sixteen years, 1928-1943, exceeded that of Southern and Eastern District roads. Eastern Dis- trict roads had the lowest revenue per ton from all the classes, reflecting principally the shorter average hauls in the eastern part of the country, where there are numerous areas of steel pro- duction. Hauls average longer in the South, and especially long in the western part of the country. Tons Per Car Table XLV gives tons per car of iron and steel products on Class I railroads, by commodity classifications, by years, 1928- 1943. Over the sixteen-year period, 1928-1943, tons per car varied on the average from twenty-six tons for Class 512 to nearly fifty- two tons for Class 491. From 1928 to 1913 the general trend of tons per car for all classes was upward. 173 Year 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941 1942 1943 Eastern Southern Western 16-Year Average Source: IRON AND STEEL PRODUCTS Revenue per Ton Originated of Class I Railroads, Commodity Classification 491 500 $1.72 $3.26 1.66 1.51 1.54 1.43 Interstate Commerce Commission Classification Numbers 511 512 $8.71 8.70 $5.49 5.44 9.19 8.18 7.90 3.27 3.28 3.55 3.18 1.30 3.18 1.30 2.99 1.37 3.05 1.40 1.37 2.67 2.96 1.20 3.70 1.32 3.20 2.02 3.49 2.08 TABLE XLIV 3.419 2.35 4.67 2.53 2.37 1.70 5.89 6.60 5.79 6.90 1928-1943 Dollars 1.85 3.54 7.97 7.81 7.91 8.39 8.53 8.16 8.13 7.90 9.00 11.03 4.29 11.57 16-Year Averages (1928-1943) 513 34.24 4.23 5.54 4.16 4.69 6.10 By Districts 5.87 5.65 5.92 6.20 5.86 9.00 5.33 4.75 30.98 11.26 25.93 11.60 4.21 4.52 6.45 6.53 8.78 8.46 8.10 6.52 4.37 4.05 4.36 3.91 4.51 4.19 Li.68 4.50 4.49 4.43 6.53 5.07 6.62 5.02 4.98 5.47 5.03 7.67 5.51+ 5.71 3.91 583 Average 34.57 $4.44 4.34 4.44 3.98 4.08 4.09 11.1 20.Oli 4.42 4.65 4.28 3.65 6.78 7.98 4.55 4.57 4.59 4.35 4.33 4.41 4.57 4.47 4.97 41.86 4.74 5.20 6.89 7.21 3.67 11.32 18.38 5.33 4.62 5.16 Interstate Commerce Commission Freight Commodity Statis- tics. S 174 Year 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941 1942 1943 16-Year Average Source: IRON AND STEEL PRODUCTS Tons Per Car of Class I railroads by Commodity Classifications 1928-1943 491 5063 51.5 51.6 51.1 50.9 Interstate Commerce Commission Classification Numbers 513 32.8 32.9 32.5 51.0 49.7 49.4 50.5 50.5 51.0 51.3 52.7 53.4 55.3 58.4 TABLE XLV 51.8 500 41.8 42.0 41.4 41.2 39.2 39.8 43.7 43.1 44.5 44.6 13.3 4.2 45.8 45.6 48.1 50.4 43.7 511 30.8 30.7 31.0 29.8 28.L 29.2 30.1 29.5 30.7 31.0 29.8 30.3 30.6 31.2 32.1 33.8 30.6 512 249 211.4 24.4 23.8 24.2 25.5 25.6 25.8 26.2 26.7 • 26.0 26.2 26.4 26.6 29.2 31.8 31.9 31.6 33.9 33.4 33.9 33.9 34.5 32.5 33.7 34.8 35.4 38.8 42.7 26.1 34.3 ! 583 28.6 30.8 31.1 28.5 28.0 28.5 30.7 28.5 30.7 32.7 28.9 30.9 32.2 34.4 35.0 36.8 31.0 Interstate Commerce Commission Freight Commodity Statis- tics. Chart 10 Dollars 550 450 350 250 150 50 10 5 Iron and Steel Products Revenue and Revenue per Ton Originated 1928-43 1928 29 30 31 32 33 Source: Tables XLI and XLIV. 2 -HI! Total Revenue (Millions) Revenue Per Ton 34 35 36 37 38 ← 39 40 41 42 43 } X. TRANSPORTATION OF IRON AND STEEL PRODUCTS B. RAILROAD COMPET IT ION 1. Pig Iron 176 Water Transportation Statistics Statistics covering water transportation are published in annual reports of the Chief of Engineers, United States Army. Pig iron tonnage is recorded under the general classification of "Iron and Steel - Unmanufactured Forms", a classification which also includes scrap iron, blooms, ingots, etc. It is, therefore, not always possible to separate the exact amounts of pig iron handled. However, there are occasional references in these re- ports to pig iron movements at the larger and principal ports. t Duplications of tonnage prevail throughout the reports be- cause each movement in and out of a port is recorded. Theoreti- cally, the total shipments by water from all ports should equal the total receipts by water at all ports. However, it is not possible to balance shipments with receipts because breakdowns are not given to show the quantity of pig iron handled by minor ports contributing to the total. Transportation on the Great Lakes There is considerable movement of pig iron by water, espe→ cially on the Great Lakes. Data on pig iron transported by water to and from principal ports on the Great Lakes, by years, from 1935 to 1940, appear in Table XLVI. Except in the unusually low steel year 1938, shipments of pig iron from these principal Great Lakes ports aggregated between 477,000 tons in 1939 and 682,000 tons in 1936. They were 599,000 tons in 1940. Buffalo and Cleveland are the heaviest shipping points, with Buffalo far in the lead. Shipments from Gary reached high levels in 1939 and 1940, surpassing Cleveland in the former year. Again excepting 1938, these same ports in the aggregate re- ceived between 330,000 tons of pig iron in 1939 and 444,000 tons in 1936. Their receipts were 388,000 tons in 1940. A greater con- centration of shipments than of receipts at these ports in every year except 1938 is evident. Detroit is by far the leading port in receipts; in every year shown except 1939 it had more than half of the total receipts for all the ports listed, Buffalo, Indiana Harbor, Chicago, and iluskegon were other important receivers of pig iron in 1940. Kada 1 Ports Duluth Superior Milwaukee Muskegon Chicago Gary } Indiana Harbor Detroit Toledo Cleveland Lorain Erie Buffalo TOTAL Source: PIG IRON Transported From and To Principal Ports on the Great Lakes Tons (000 omitted) 1935 1936 Re- Ship- Re- Ship- Re- ceived ped ceived ped Minnesota Wisconsin) Wisconsin Michigan Illinois Indiana Indiana Michigan Ohio Ohio Ohio Pennsylvania New York 6 11 22 80 25 1 202 7 23 149 I 11 377 TABLE XLVI LIINI 36 1 271 94 122 307 572 6 60 33 7 } 24 7 444 1011} 41.9 20 1 66 155 ceived ped 1 WEB 1937 1938 1939 Ship- Re- Ship- Re- Ship- Re- ceived ped ceived ped 25 2841. 1 4 1 !!! 3 33 I I 3 174 I Annual Reports, Chief of Engineers, United States Army. 1 11 16 1 13 156 IHC 1 23 391 48 396 4 682 418 609 232 7 [ ] } 14 11 13 } 50 87 175 2 1 HANI 34 27 112 137 30 20 37 330 19 1 1 69 128 16 ~J 2201 22 46 155 477 L } ceived ped 2 25 IHUN 1940 31 63 63 215 HIUM! Ship- 31 14 5 76 388 52 28 98 I 33 248 599 177 178 { 苣 ​Movement on Mississippi River System There is some water movement of pig iron on the Mississippi River system, with a good part of this movement being handled in conjunction with rail movement on one or both ends of the water movement. The following figures for recent years are illustrative. Source: PIG IRON Water Movement on Mississippi River System Tons (000 omitted) Common Carriers Contract Carriers 1943 232 6 TOTAL 64 52 238 (1) 1941 figures are for Class A lines (with annual revenues of $500,000 or more). 2 "Transportation on the Mississippi River system", Sub- committee on Water Transport, R.C.S.T., A.A.R., 1945, Pages 173, 184. TABLE XLVII Year 1935 1936 The figures show a substantial increase from 1941 to 1943 for common carriers and a decrease for contract carriers. The common carrier movement is predominantly up-river from Alabama origins. 1937 1938 1939 1941 (1) 1942 24 30 110 22 New York State Barge Canal Statistics of water movement on the New York State Barge Canal, by years, from 1935 to 1943, are given in Table XLVIII. These ton- nages include billets and pig iron under the same heading TABLE XLVITI Pig Iron and Billets Transported on New York State Barge Canal Tons (000 omitted) } Tons उड 140 323 115 357 Year 1940 1941 1942 1943 Tons 287 183 82 57 Source: Legislative Document #30, Department of Public Works, State of New York. 179 } 1 This movement increased from 65,000 tons in 1935 to peaks of 323,000 tons in 1937 and 357,000 tons in 1939. The trend subse- quent to 1939 was steadily downward, to 57,000 tons in 1943. Coastwise and Intercoastal lovement There is some coastwise movement of pig iron on both the At- lantic and Pacific coasts, often in conjunction with rail move- ment prior, subsequent or both. Comprehensive statistics are not available because pig iron is often included in the statistics with other iron and steel articles. A special compilation covering the calendar year 1937 showed 78,000 tons of pig iron moved in Atlantic coastwise traffic, of which 7,000 tons moved from New England ports, and 71,000 tons from Middle Atlantic ports. Of this tonnage, New England ports received 27,000 tons, Middle Atlantic ports 41,000 tons, and East Gulf ports 10,000 tons. The same compilation showed 9,000 tons moved in Pa- cific coastwise service from northwestern to southwestern ports (1). There is no certainty that these figures cover all pig iron tonnage, some of which may have been included under other descrip- tions or may have moved from or to ports other than the seventy- six comprised in the compilation. If there is any intercoastal movement of pig iron, it is sta- tistically buried by. inclusion with other iron and steel items. Potential and Actual Rail Tonnage About 85 per cent of total pig iron production is consured in the maker's own plant for further processing into stecl ingots and castings. The remaining 15 per cent, representing pig iron made for sale, with the addition of imports, is the potential tonnage avail- able for all forms of transportation. Table XLIX shows the tonnage available for movement by all forms of transportation, annually for the sixteen years, 1928-1943. It also shows the yearly tonnages of revenue pig iron hauled by the railroads. During the sixteen years, 1928-1943, the revenue movement of pig iron by rail averaged 86.0 per cent of the tonnage available for transportation. This average includes two years when the rail movement apparently exceeded the tonnage available. The production for sale is not always sold in the years made, especially in de- (1) United States Maritime Commission, "Economic Survey of Coast- vise and Intercoastal Shipping", 1939, pages 40-51. 180 * " • pression years such as 1932 and 1938, but is sold for movement the following year, producing a bulge in the percentages in those years. There also is some interplant movement of pig iron made for the maker's own use, as to which statistics are not available. There appears to be no discernible trend in the percentages hauled by rail. This percentage was nearly the same in 1943, 2 year of high production, as in 1934, when production was not quite one-third as much, It is evident that the percentages are affected by other than strictly transportation factors. Chart 11 shows from Table XLIX, the tonnage of pig iron hauled by railroads and the percentage thereof to total tonnage available for transportation, by years, from 1928 to 1943. Year 1928 1929 1930 1931 1932 1933 1934 1935 1936 TABLE XLIX PIG IRON Tonnage Available for Transportation, and Tonnage Hauled by Railroads Tons (000 omitted) 1937 1938 Pro- duction for Sale 8,651 10,096 7:356 4,480 1,919 2,316 2,983 4,034 5,750 7,286 3,310 1939 4:356 1940 1941 1942 1913 5,949 7;553 8,270 9,139. Total Total Per Cent Available for Hauled by Hauled By Imports Transportation Railroads Railroads 158 165 153 95 1146 178 128 1117 186 125 3 43 11 (1) (1) (1) 16-Year Average 5,841 (1) Data not available, 98 8,809 10,261 7,509 4,575 2.065 2,494 3;111. 4:181 5936 7/11 3,300 4399 5,960 7553 8.270 9.139 5,939 8,034 8,141 5,242 3,292 1,499 2,344 2637 3,725 5,159 5,915 2:578 41368 5,410 7,692 7:524 7,700 5,110 91.2 79.3 69.8 72.0 72.6 114.0 85.0 89.1 86.9 79.8 77.1 99.3 90.7 101.8 90.8 82.6 86.0 Source: Interstate Commerce Commission Freight Commodity Statis- tics. 50K Tons Millions 10 5 Pig Iron Tonnage Hauled by Railroads and Percentage Thereof to Total Available for Transportation Per Cont \Tons 0 1928 29 30 31 32 33 Chart 11 1928–43 33 34 35 36 1 A Source: Table InTY 37 38 39 40 Per Cent 120 110 100 90 80 70 60 41 48 45 182 2. Scrap Iron and Steel Water Transportation Statistics Statistics covering water transportation of scrap are published in Annual Reports of the Chief of Engineers, United States Army. Scrap tonnage is recorded under the general classification "Iron and Steel Unmanufactured Forms", a classification which also in- cludes pig iron, blooms, ingots, etc. For that reason it is not always possible to separate the exact amounts of scrap handled. However, there are occasional references in these reports to scrap movements at the larger and principal ports, but not on canals, in- ternal rivers and tributaries. GRE Duplications of tonnage are prevalent throughout the reports because each movement in or out of a port is recorded. Theoreti- cally, the total shipments by water from all ports should equal the total receipts by water at all ports. It is not possible to bal- ance shipments with receipts because breakdowns are not given to show the quantity of scrap handled by minor or obscure ports con- tributing to the total. Water Transportation of Iron and Steel Scrap Though, due to the limitations of available statistics, Table L is an approximation only, it fairly represents the quantity of scrap transported by water from and to the principal ports on the Great Lakes, in coastal waters and on the Mississippi and Chio Rivers. gui Only the six years, 1935-1940, can be tabulated for compari- son. For years prior to 1935 scrap tonnage transported by water is not separately recorded and no figures were currently available after 1940. Of the ports on the Great Lakes, Cleveland was outstanding in tonnage handled, with Duluth-Superior and Buffalo usually contend- ing for second place, followed by Detroit. J Figures for tonnage shipped from and to principal ports in coastal waters include only coastvise shipments, not intraport shipments. New York handles the largest volume, followed by Balti- more and Bridgeport. Memphis, Tennessee, is the principal scrap handling port on the Mississippi River. K Clearances up and down the Ohio River, recorded at Pittsburgh, are shown in Table L for the four years, 1937-19!10. 183 Year Year Port Port of Harbor Duluth-Superior Milwaukee ୨ Muskegon Harbor Chicago-Lake Sec. 50 Gary Harbor 5 Indiana Harbor 2 Detroit Cleveland Buffalo Toledo Harbor TOTAL TABLE L - 1 Purchased Scrap Transported by Water On Great Lakes, From and To Principal Ports (1) Tons (000 omitted) Key West,Fla. Gulf Tampa, Fla. Mobile, Ala. New Orleans, La. Pacific Los Angeles San Francisco TOTAL 1935 1936 1937 1938 1939 1940 Recd Ship Recd Ship Recd Ship Recd Ship Recd Ship Recd Ship 11 216 1 292 Atlantic Ocean Boston,Ilass. Providence,R.I. New London, Conn. New Haven, Conn. Bridgeport, Conn. 15 Stamford, Conn. New York, N.T. Philadelphia, Pa. Baltimore,kid. Jacksonville,Fla. Hollywood,Fla. 249 115 1 23 24 209 22 33 21 (2) 1 1 1 ཤ | 37 23 2 I vino 1 1 | | | 20 37 10 8 17 6 1 10 10 1700 I MI HIM 3 1 5 12 5 14 44 164 山 ​378 तत وبلد 149 1 1 1 In Coastal Waters, From and To Principal Ports (1) Tons (000 omitted) 1937 1 84 37 42 11 -3 113 [ 1 ] 108 13 } སྣས། 1 (2) 307 30 335 5 19 5 Li 21 L 466 554 603-6419 742 623 119 132 517 513 707 742 1 1935 1936 1938 1939 1940 Recd Ship Recd Ship Recd Ship Recd Ship Recd Ship Recd Ship 58 157 1 23 22 32 12 16 6 18. (2) LIA NAII 4 (2) 373 65 16 2 I 1 1 1 (2) .com! a 99 71 200 103 161 27 121 16 102 6 12 12 (2) 2 13 23 9 1 1 1 1 1 I 1 13 69 33 Hil 1 !!! 17 47 12 39 1 G 1 15 54 ना (2) 4 365 131 9 35 9 1 1 1 1 1 1 1 1 cının labinINTI 36 2 6 6 (2) :'l 15 130 2 (2) 1 (2) (2) (2) 16 98 16 257 42 (2) 63 lave !®, 19 1 38 no བ 5 работосабы 2 322 28 69 1101 1J 10. 4 1 46 40 233 334 6 (2) 1 1 1 INI 326 61 44 2 37 bani སྨལ། 49 3 I (2) 2 (2) 42 18 65 67 26 (2) .com 1 1 5 (2) BAH matt 3 1 4 6 (2) 11 1.3 95 182 109 213 171 199 200 184 TABLE L - 2 (Cont'd) Purchased Scrap Transported by Water (1) On Mississippi River and Ohio River at Pittsburgh, Pennsylvania, From Year Port Hississippi Minneapolis,länn. St.Paul, Minn. St.Louis, Mo. Memphis, Tenn. Vicksburg, Hiss. New Orleans, La. TOTAL Ohio Pittsburgh, Pa. and To Principal Ports Tons (000 omitted) 1935 1936 1937 1938 1939 1940 Recd Ship Recd Ship Recd Ship Recd Ship Recd Ship Recd Ship 1 (2) (2) 4 (2) (2) 107 2 159 4 (2) 107 6 163 1 1 1 I 1 (2) 84 4 L 88 Up Down 200 160 | 1 1 1 1 111 TIPTI 1 25 Source: Annual Reports, Chief of Engineers, United States Army. IUNI 2 45 1 11 5 101 23 1 7 1 30 ୨ 76 Up Down Up Down Up Down 124 66 499 64 617 158 그 ​(1) Receipts and shipments do not balance and quantities do not represent total handled. See text. (2) Quantity less than 1,000 tons. 6 76 ܕ erry 1 2 6 86 185 when she w New York State Barge Canal Haulage In addition to partial records found in annual reports of the Chief of Engineers, United States Army, there is also a complete record of all scrap transported on the New York State Barge Canal for the ten years, 1934-1943. As shown in Table LI the four peak traffic years were 1940, 1936, 1941, and 1942, in that order, with a total of 178,000 tons hauled in 1942. Most of the movement was westbound to Buffalo. Source: IRON AND STEEL SCRAP TRANSPORTED ON NEW YORK STATE BARGE CANAL Tons (000 omitted) Year 1934 1935 1936 1937 1938 TABLE LI Tons Year 91 1939 98 1940 1941 87 1942 29 1943 161 TOTAL Contract Carriers Common Carriers Tons 69 138 163 178 · 80 Legislative Document, 1944, No. 30, State of New York, De- partment of Public Works. Mississippi Shipments in 1942 and 1943 Some additional figures of purchased scrap movement in 1942 and 1943 on Mississippi River and tributaries are given in the "First Interim Report of The Water Transport Committee" of the Association of American Railroads on Inland Waterways Mississippi River and Tributaries, as follows: Class A - Class A • Bran 25 561 586 The contract carriers, Class A, are the Warrior and Gulf Navi- gation Company and the Ohio Barge Line, Incorporated, both owned by the United States Steel Corporation. Tons (000 omitted) 1941 1942 10 381 391 186 Percentage of Scrap Shipped by Water The following is the best approximation of recorded shipments of scrap on inland and in coastal waters of the United States cov- ering the four years, 1937-1940. A percentage comparison is made with total scrap requiring transportation. Tons (000 omitted) 1938 1939 132 517 182 Waters Great Lakes Coastal Areas Mississippi River Ohio River at Pittsburgh New York State Barge Canal 1937 742 161 88 200 87 Railroads 30 124 29 213 76 499 Revenue Freight Company Material Estimated Water, Estimated Unaccounted for Average 1935-1940) -1940) 4-Year 1940 Average 742 533 200 189 86 617 69 138 TOTALS 1,278 495 1,374 1,783 1,233 24,905 14,584 20,720 22,641 20,712 Total Scrap Transported Per Cent Hauled by Water 5.1 3.4 6.6 7.9 5.9 About 5.9 per cent of all scrap shipped is recorded as hauled by water. It is estimated that with the unrecorded water shipments, about 8.5 per cent of all scrap available for transportation is hauled by water. Percentage Shipment by Modes of Transportation Adding together the movement of scrap by all recorded means of transportation, there remains about 27 per cent of purchased scrap for which the means of transportation is not known. The account- ing stands as follows: Mode of Transportation Motor Truck Movement of Scrap 70 360 81 Per Cent 57.0 7.5 Per Cent 64.5 8.5 27.0 100.0 Motor trucks constitute the only remaining mode for transport- ing the unaccounted quantity. There are no statistics on move- ment of purchased scrap by trucks. Estimates and opinions on the volume handled have not been obtainable from trucking or other Gates Sha เ • 187 officials. All of those interviewed state that around large in- dustrial centers and points of short haul there is a considerable truck movement (including intra-city transport) of scrap to con- sumers. J Unquestionably trucks handle very large volumes of scrap to consumers, principally foundries, many of which are not sufficient- ly large to purchase in carload quantities or to have railroad sidings. There are about 2,900 foundries scattered over the country and in 1943 they consumed 21 per cent of total purchased scrap requiring transportation. 3. Steel Products Truck Transportation There is a substantial movement of steel products by truck wherever steel is made and used. It is particularly heavy from mills in Central Freight Association territory to consuming in- dustries located chiefly in Ohio, Michigan, and Illinois. Heavy steel products such as structural shapes, plates, heavy tubes, etc., are seldom transported by truck. Light, flat pro- ducts and many types of wire products are the easiest to load, and are hauled by trucks. Truck shipments are advantageous for quick delivery of small quantities of finished steel to consuming indus- tries located near the steel plants. A general practice of the steel industry is to include in the delivered price the rail freight from applicable basing point to destination even if the buyer accepts delivery by sending his own truck to the mill. A credit is allowed the buyer equal to 65 per cent of rail freight from mill to destination. Complete statistics on truck movements are not available. Al- though such statistics are reported by the American Trucking Asso- ciation, Incorporated, their coverage is incomplete and the tonnage is not representative. The sc-called independent steel companies, which include prac- tically all producers, other than the United States Steel Corpora- tion Subsidiaries, testified in the hearings in Ex Parte No. 162, Increased Railway Rates, Fares, and Charges, 1946, regarding truck- ing of iron and steel articles. The independents stated that semifinished iron and steel ar- ticles move almost entirely by rail. They estimated that about 1.5 per cent of semifinished shipments were trucked, mostly for distances under 75 miles. 1 On manufactured iron and steel articles the independents es- timated that truck lines in Official Classification territory handled over 20 per cent of the total tonnage shipped by rail and truck for distances up to 300 miles. Approximately 53 per cent of the trucked tonnage was for distances 75 miles and under, 22 per cent for distances 175 miles and over 75, and 25 per cent for dis- tances 300 miles and over 175. Trucking is particularly pronounced between points in north- eastern Ohio, Cleveland being one of the heaviest originating and terminating points. There is also considerable trucking from southern Ohio producing points. Detroit, Michigan, receives a large truck tonnage from the Youngstown, Cleveland, southern Ohio, and Chicago districts. 188 . In statement showing typical movements of manufactured iron and steel articles during the last quarter of 1945, the independ- ents listed the applicable rail and truck rates from producing points to important destinations in Official territory. The rail distances ran from 8 miles to 300 miles. On the majority of movements listed the truck rate was usu- ally one-half cent to one and one-half cents lower than the rail rate per 100 pounds. In many instances a fair volume was trucked even though the truck rate was the same or higher than the rail rate. Generally, in these cases, the controlling factor was service, lower labor cost, or off-track location of the consignee. Water Transportation Table LII gives United States domestic water transportation of rolled and finished iron and steel products, by years, from 1928 to 1940. The annual figures include unadjusted distribution by ports, rivers, canals, and connecting channels, and a total adjusted figure reported as eliminating duplications. United States domestic waterborne traffic of iron and steel products declined from 4.2 million tons in 1928 to 1.4 million tons in 1932, the low point in the years shown. Waterborne ton- nage was 2.2 million in 1933 and 2.0 million tons in 1934. From 1935 to 1940 there was a rising trend, interrupted in 1938, which brought the 1940 total to 5.3 million tons, the peak for the years 1928-1940. Domestic waterborne traffic increased 1.1 million tons, or 26 per cent, in 1940 over 1928, compared to a decrease of 2.2 mil- lion tons, or 5 per cent, in railroad tonnage for the six compara- " WAY 189 ble iron and steel classifications. Adjusted waterborne tonnage for the 13-year period, 1928-1940, averaged 2.6 million tons an- nually. Of the (unadjusted) total waterborne movement, the largest share was handled on the Mississippi River system. The Atlantic coastwise movement formerly was second in volume, but after 1932 it was considerably exceeded by the movement on the Gulf Coast, After 1929, the Gulf Coast movement also exceeded the movement on the Great Lakes, except in 1932-1933. In 1939 Buffalo originated 37 per cent of total lakewise ship- ments of iron and steel. Cleveland, Lorain, and Conneaut, Ohio together, originated 44 per cent of total. Detroit terminated 57 per cent of total lakewise receipts. Table LIII gives lakewise shipments and receipts of iron and steel, by selected lake ports, in 1939. Diversion from Rail to Water In 1940 steel production was about 5 per cent greater than in 1929. Comparing these two years, waterborne traffic on the Miss- issippi River system nearly trebled, and on the Gulf Coast it was more than four times greater in 1940. On the Great Lakes the in- crease was just short of threefold. For Atlantic coastwise traf- fic it was almost 50 per cent. On all other divisions the 1929- 194:0 incrcase was much greater than the increase in steel produc-- tion. Tons of steel products originated on Class I railroads in 1940 were 15 per cent below 1929. River Shipments by Private Carriers Since the canalization of the Ohio River the steel companies have used the river system to an increasing extent. Today the steel industry regularly uses the rivers to move its products from mills to consumers and to carry raw materials to its various plants. Most of the river traffic of iron and steel originates in the Pitts- burgh area and moves to and from plants located along the banks of the Monongahela, Ohio, and Allegheny Rivers. Regular shipments of steel products are made dorm the Ohio and Mississippi Rivers. A great share of the tonnage is made up of pipe and tubing for southwestern oil fields and substantial amounts of structural steel are also shipped. Other products are shipped to southern warehouses for subsequent distribution by rail and truck. A typical tour, consisting of a torboat and about ten barges, 190 0: carries about 10,000 tons of steel products to points as far south as Houston, Texas via the Intracoastal Canal. The upstream move- ment of fluorspar and sulphur to steel mills also is important. DOWN There were five steel companies engaged in river transportation in 1935 and since that year three additional steel companies have acquired floating equipment and begun operations. These eight companies, or less than 3 per cent of the 294 private carriers, ormed 25 per cent of the river equipment in 1942 (1). Shipments by Commercial Carriers Table LIV gives shipments of iron and steel products on the Mississippi River and tributaries, by contract and common carriers, by commodities, by years, from 1941 to 1943. Total tonnage of iron and steel products handled on the Miss- issippi River system by commercial carriers declined from about 1.1 million tons in 1941 to 562,000 tons in 1942, or by 47 per cent. It increased in 1943 to 646,000 tons. Of total tonnage moved on this water system by commercial car- riers, common carriers accounted for 89 per cent in 1941, 75 per cent in 1942, and 78 per cent in 1943. C. FREIGHT RATE STRUCTURES Transportation in the United States prior to the Civil War The colonists who settled on the Atlantic seaboard were depen- dent for many generations on the fatherland for all manufactured articles, except the crudest handiwork. The commerce which slowly developed beyond the ports was handled by wagon or by stage to and from the seaboard. In most cases this was handled over a primitive network of local trails and wagon routes. Until the time of the Revolution there was very little commerce between one colony and another. The Revolution gave a stimulus to domestic manufacture in this country and led to a broader interchange of products between the colonies. This was enhanced by the War of 1812, at which time it was realized that there was definite need of an extension and enlargement of the means of transportation between the Atlantic seaboard and the interior. (1) R.C.S.T., Subcommittee on Water Transport, "Transportation on the Mississippi River System", May 15, 1945, page 120. Ap- pendices C through K of that report contain additional infor- mation on river shipments of iron and steel. 1 S } Year 1933 1934 1928 1929 1930 1,313 1931 911: 1932 522 1935 1936 1937 1,563 1,058 Atlantic Gulf Pacific Great Coast Coast Coast Lakes PORTS 327 440 477 893 1,248 TABLE LII ROLLED AND FINISHED IRON AND STEEL PRODUCTS Domestic Water-borne Traffic (1) United States 521 155 713 1,283 988 553 691 397 639 754 · 952 1,852 1928-1940 Tons (000 omitted) RIVERS 605 727 579 547 550 493 193 580 192 734 310 402 357 490 520 -705 588 1,240 Mississ- Atlantic Gulf Pacific ippi and Coast Tributaries Coast Coast 51 10 31 31 46 298 420 23 552 229 10 521 15 125 189 214 16 24 646 724 11548 그그 ​51 ୨ 53 13 8 1,729 · 999 1,259 641 574 1,213 1,201 1,756 27 1,727 1,866 18 Canals, Unad- Ad- Connecting justed justed Channels Total Total 1,845 2,469 2,819 322 92 77 110 75 36 6L.L 185 477 996 6,958 4,200 4469 2;539 4,524 2,904 3,820 2,286 2,383 1,375 3,483 2,248 3,164 1,977 4475 2,347 963 2,718 546 3,750 LACO 1938 574 378 12 724 15 1,578 797 1,865 1940 1,524 2,423 781 2,087 ·350 677 1,306 1939 34 681 ·893 1;4:15 19 6,369 2,382 9,263 3,366 12,088 5,278 69 591 69 1,725 (1) Includes receipts and shipments, coastwise as well as local, internal and intra-port traffic Source: United States Army, Office of the Chief of Engineers 191 192 } 1 } LAKE PORTS Duluth-Superior, Minnesota and Wisconsin Chicago, Illinois Gary, Indiana Indiana Harbor, Indiana Cleveland, Ohio Toledo, Ohio Conneaut, Ohio Lakewise Shipments and Receipts, by Selected Lake Harbors Lorain, Ohio Detroit, Michigan Monroe, Michigan TABLE LIII Erie, Pennsylvania Buffalo, New York IRON AND STEEL - 1939 Tons Shipments (1) 42,089 27,193 1834 57,480 190,958 0 122;999 103;142 28,133 0 Receipts (1) 46,126 40,073 1,226 52,625 101,417 -880 347,790 TOTAL 941,498 (1) Includes semifinished hot-rolled, finished hot-rolled, further finished, and other iron and steel excepting scrap (iron and stecl). In some cases small quantities of iron and steel were contained in nonseparable classes and were not shown here. O 488 0 590,778 33,693 0 162,578 1,029,004 Source: B.LR., "The Economics of Iron and Steel Transportation", September 20, 1944, page 67, (Published as Senate Doc. No. 80, 79th Congress, 1st Session). ! : ! IRON AND STEEL PRODUCTS Shipments on the Mississippi River and Tributaries 1941-1943 TABLE LIV COLTON CARRIERS Commodity Iron and Steel, 6th Class, N.O.S. Pipe and Fittings, N.0.S. Nails and Wire, Not oven Iron and Steel, 5th Class (Also Tin and Terne Plate) TOTAL COLON CARRIERS Pipe and Fittings, N.0.S. Iron and Steel, 5th Class (Also Tin and Terne Plate TOTAL CONTRACT CARRIERS Source: 1941 (1) 1942 123,863 112,779 283,133 60,220 34,259 9,125 492,472 933,727 CONTRACT CARRIERS 75,492 1240 119,732 TOTAL COMMON AND CONTRACT CARRIERS 1,053,459 193 1943 57,522 39,552 20,112 241,558 390,454 423,682 506,640 14,740 24,519 123,917 115,102 138,657 139,621 562,339 616,261 (1) 1941 figures are for Class A lines (with annual revenues of $500,000 or more), common and contract carriers. Contract car- riers, Class A, are the Warrior and Gulf Navigation Company and the Ohio Barge Line, Incorporated, both armed by the United States Steel Corporation and organized to transport traffic for the Corporation and subsidiaries. R.C.S.T. Subcommittee on Water Transport, "Transportation on the Mississippi River System", May 15, 1945. ! J 194 . In addition to the early use of wagon transportation, rivers and streams were also used wherever possible. One of the main traffic routes to the interior involved use of a combination of wagon and water transportation to the Ohio River where a vast in- terior territory could be reached through the Mississippi River system. The rapid development of canals in the early part of the nine- teenth century greatly extended the territory in which traffic could be moved. The early railroads led from Atlantic seaboard ports into the interior but for short distances, but gradually ex- tended the area tributary to each seaport. The opening of the Erie Canal in 1825 resulted in a direct water route between the Atlantic seaboard and the territory adjacent to the Great Lakes. The period from 1830 to 1860 was a contest between the rail- roads and the canals which had been built largely by the various states. Toward the end of this period the superiority and the ef- ficiency of the railroads was generally recognized and the canals with but few exceptions, gradually lapsed into disuse. Immediately following the Civil War railroad construction was continued and in 1869 there was completed the first through rail route to the Pacif- ic Coast. S The early manufacture of iron articles in this country was confined to regions having available local deposits of iron ore and timber to make charcoal which was used as a fuel. The first iron products made were almost entirely for household use. Iron produc- tion in the United States in 1800 has been estimated at 50,000 net tons a year. Practically all of this was produced in a territory immediately adjacent to the Atlantic seaboard and what transporta- tion took place was by wagon or water. By 1830 the production of iron had risen to about 185,000 tons but was still dependent for transportation on highway and water facilities. One of the main reasons for the phenominal expansion in the Pittsburgh district following 1825 was the availability of raw materials in the immed- iate territory, while the Ohio, Allegheny, and Monongahela Rivers gave ready access to important markets. The importance of water transportation in the early days is al- so illustrated by the development of the Lake Champlain district. This, for a long time, was the most important iron district in the stato of New York. The situation here was similar to that of Pitts- burgh in that raw materials were available in the immediate terri- tory and water transportation could be used to reach the markets. From the very beginning of the railroads in the United States iron traffic was important. One of the earliest railroad tariffs · was published by the Richmond, Fredericksburg and Potomac Railroad, dated January 27, 1837, and provided a rate, from Richmond, Virginia to Fredericksburg, Virginia, a distance of 61 miles, of $3.20 per } ? } { 195 ton on pig iron or unrought iron of any kind and 28 cents per 100 pounds on manufactured iron. Rates and Transportation of Iron and Steel Articles Following the Civil War Railroad tariffs published immediately following the Civil War named specifically a large number of articles manufactured from iron. These articles were generally rated Second, Third, or Fourth Class with carload minimum weights ranging from 16,000 pounds to 20,000 pounds. The specific iron articles mentioned consisted mostly of products for use in construction of railway materials. In addition to the iron articles carried at class rates, special rates were pro- vided on iron ore, pig iron, blooms, slabs, railroad iron and scrap iron. In tariffs published, effective May 1, 1882, iron and steel articles were included in numbered classes and in addition special rates were provided with a carload minimum weight of 22,000 pounds. Rates After Establishment of Official Classification In Official Classification No. 1, effective April 1, 1887, pig iron and related articles, and billets and related articles were rated Fourth Class less carload and Sixth Class carload. Articles generally considered in the manufactured iron and steel group were rated Fourth Class less carload and Fifth Class carload. These rat- ings in the Official Classification have continued to the present time. Effective May 25, 1887, to expire with October 31, 1887, one of the important key rates was published on manufactured iron and steel between Chicago and New York. This rate was twenty-five cents per 100 pounds, the same as the thon existing Sixth Class rate. Rates from and to other points intermediate between Chicago and New York were based on percentages or relationships according to the so-called "McGrahan Formula". Under this formula the rate between New York and Chicago was considered as 100 per cent. The major iron and steel producing points were in groups, which on eastbound traf- fic took the following percentages of the base rates: Pittsburgh Mahoning and Shenango Valleys 66 Cleveland 71 76 Lorain Cincinnati 60 Per cent Per cent Per cont Per cent 87 Por cent Effective lay 8, 1893 this percentage relationship was changed insofar as the Mahoning and Shonango Valleys and Cleveland were con- cerned. The rates from lahoning and Chenango Valleys to longer haul eastern points were made two cents per 100 pounds over Pittsburgh and from Cleveland three cents per 100 pounds over Pittsburgh. To 196 7 the longer haul points west of the Mahoning and Shenango Valleys and Cleveland these same differences under Pittsburgh were published from these points. Canton, Massillon, and Lorain were included on the Cleveland basis, effective February 1, 1895. In December 1889, carload and less carload rates on iron and steel articles from Johnstown, Pennsylvania, were published one and one-half and two cents per 100 pounds, respectively, over Pittsburgh on westbound traffic, while on eastbound they reflected the same differential under Pittsburgh. Rate Relationship Pig Iron and Billets G Prior to February 21, 1893 base rates on billets and pig iron generally were the same. On that date new rates were established which gave pig iron a lower level than billets. One of the impor- tant reasons for the change was the fact that billets are in a more advanced state of processing and have a higher value than pig iron. The base rate between Chicago and New York continued lower on pig iron than on billets until June 6, 1938. On that date as the result of observance of the Sixth Class rates, gross ton same as not, as maxima on these commodities, the base rate between Chicago and New York on both billets and pig iron became 39.20 per gross ton on the Sixth Class rate of 46 cents per 100 pounds converted to the per ton basis. • The Youngstown-Cleveland and Youngstown-Pittsburgh Rate Adjustment + In the tremendously important iron and steel producing terri- tory included between Pittsburgh and Cleveland the key iron and steel rates are based upon rates between Pittsburgh and Youngstown and between Youngstown and Clevoland. As early as 1892 rates be- twoon Pittsburgh and Youngstown were made the same as those apply- ing between Youngstown and Cleveland. These rates were used as the basis for the establishment of other rates between producing and consuming points in the same general territory. This general basis continued in effect for many years subject to the various general percentage increases and the 10 per cent reduction. In 1924 there was a general revision of the iron and steel rates within the terri- tory, Johnstown, Pennsylvania on the cast; Buffalo, New York and Erie, Pennsylvania on the north; Cleveland, Akron, and Canton, Ohio on the west; and Parkersburg, West Virginia and Cumberland, Laryland on the south, as result of I.& S. Docket 1929 (89 I.C.C. 606). These ratos continued until the manufactured iron and steel rates were revised under decision of the Interstate Commerce Commission in Docket 17000, Part 6, cffective May 20, 1930. General Adjustments of Iron and Steel Rates Within Official Territory On January 1, 1903 the rates on iron and stool articles includ- Quinto 1 1 } 3 197 ing billets and pig iron were increased 10 per cent. This increase was initiated by the rail carriers who stated that it was necessary because of existing commercial and traffic conditions. This in- crease was considered and found reasonable by the Interstate Com- merce Commission in "In the latter of Proposed Advances in Freight Rates, 9 I.C.C. 382". On June 1, 1907 further increases were made in iron and steel rates. The base rates were restored to the Classification basis of Fifth Class on Manufactured Iron and Steel, Sixth Class, "grossed" on billets, and on pig iron twenty-five cents per gross ton lower than billets. Rates from Buffalo, Pittsburgh, Liahoning and Shenango Valleys, and other producing points were readjusted to reflect their former relationships to base rates. The level of rates established on June 1, 1907 were subject to general increases under "the Five Per Cent Case, Docket 5860 (32 I.C.C. 325) 1915"; "the Fifteen Per Cent Case, Ex Parte 57 (45 I.C.C. 303), 1918"; and "U.S. R.R.A. General Order No. 28 (25 per cent increase), 1918". Effective February 1, 1901, because of commercial competition, 'the rates from Pittsburgh to New York were reduced two cents per 100 pounds, or 40 cents per ton, to the same as the Buffalo to New York rates. The rates from Pittsburgh to Philadelphia were reduced to one cent per 100 pounds, or twenty cents per ton, and to Baltimore one and one-half cents per one hundred pounds or thirty cents per ton, under the rate to New York in lieu of the usual differen- tials of two cents and three cents under New York. The rates from Johnstorm, Mahoning and Shenango Valleys, and Cleveland were ad- justed to reflect their usual relationship to the Pittsburgh rates. This situation finally resulted in revision of rates on November 1, 1918 to conform to the Interstate Commerce decision in Pollak Steel Company (49 1.C.C. 238). Under this adjustment the base rate be- tween Chicago and New York on iron and steel articles became forty- five cents per 100 pounds, the same as the Fifth Class rate; the rate on billets became $7.50 per gross ton, the same as Sixth Class "grossed"; and the other rates were readjusted, to the McGraham Form- ula relationships to the Chicago-New York rates, including port differential and other destination relationships. → Effective August 26, 1920 rates were increased 40 per cent under authority of the Interstate Commerce Commission Ex Parte No. 74 (58 I.C.C. 220). On July 1, 1922 rates were reduced 10 per cent by order of the Interstate Commerce Commission in Docket No. 13293 (68 I.C.C. 676). The revision of rates incident to the Pollak case decision did not involve rates locally within Central Freight Association terri- K 2 1 198 tory. As a result of Interstate Commerce Commission Docket No. 15110 Jones and Laughlin Steel Corporation (96 I.C.C. 682) the Com- mission prescribed a mileage scale applying from the Pittsburgh group to St. Louis, Missouri and Illinois and Indiana territory. Revised rates were published, effective liay 26, 1926. . Following the Jones and Laughlin case, decided April 15, 1925, fifteen formal complaints, three Investigation and Suspension pro- ceedings, and one Thirteenth Section petition, put in issue the rates on iron and steel, carloads, between points in Central Freight Association territory. These pending cases were consolidated and set for hearing in connection with Interstate Commerce Commission Docket 17000, Rate Structure Investigation, Part 6, Iron and Steel Articles. The Interstate Commerce Commission in its report and order on June 3, 1929 (155 1.C.C. 517) prescribed a mileage scale of rates for application throughout Official territory. In connection with the scale of rates reasonable grouping of points was permitted. The basic scale approximated 30 per cent of the Eastern Class Rate (I.C.C. Docket No. 15879) First Class rates, the Fifth Class rates under that adjustment being 35 per cent of First Class. These iron and steel rates became effective lay 20, 1930 on both´interstate and intrastate traffic, cxcept in Indiana and Illi̟- nois, where the state commissions suspended the intrastate appli- cation and after hearings, ordered the suspended schedules canceled. Home As a result of the 17000 Part 6 rates, complaints were filed with the Public Service Commission of Pennsylvania, Docket 8309, against the shorthaul rates prescribed by the Interstate Commerce Commission. The Fennsylvania Commission ordered for intrastate application on iron and steel, carloads, minimum weight 40,000 pounds, a scale of rates for distances up to 100 miles which were lower than the scale prescribed in 17000 Part 6. These rates rith- in Pennsylvania became effective June 10, 1931. Effective November 10, 1931 the railroads voluntarily extended this basis for applica- tion throughout Official territory, except intrastate in Indiana and Illinois and within New England territory. In Ex Parte 103 (178 I.C.C. 539) the Interstate Commerce Com- mission permitted a temporary increase of 10 per cent except on pig iron and scrap iron where a flat increase of twelve cents per net ton or thirteen cents per gross ton applicd. This increase became effective January 4, 1932 and expired September 30, 1933. << Vadoda In Ex Parte 115 (208 I.C.C. 4) the Interstate Commerce Com- mission permitted another temporary increase which became effec- tive April 18, 1935 and expired December 31, 1936. Iron and steel articles were increased one-half cent per 100 pounds to a maximum 199 of two cents per 100 pounds. In Ex Parte 123 (226 I.C.C. 41) the Interstate Commerce Com- mission permitted increases of 10 per cent. These increased rates on iron and steel became effective April 6, 1938 and on billets and pig iron, and scrap iron April 11, 1938. · donat In Ex Parte 18 (228 I.C.C. 545) the Interstate Commerce Com- mission permitted a temporary increase of 6 per cent, effective March 18, 1942. These increases were suspended on May 15, 1943. Under Ex Parte 148-162, further temporary increases which reflected the original 6 per cent under Ex Parte 18 plus an additional 5 per cent within Official territory were permitted, effective July 1, 1946. Under Ex Parte 162, effective January 1, 1947 iron and steel rates in effect prior to June 30, 1946 are increased 20 per cent, maximum ten cents per 100 pounds or two dollars per net or gross ton. These increased rates are applied to the rates in effect prior to the temporary increases permitted under Ex Parte 13. IRON AND STEEL RATES WITHIN OFFICIAL TERRITORY Pig Iron Rates Previous mention has been made of pig iron rates within Offi- cial territory, which, in numerous instances, were accorded lower rates than billets, as billets are in a more advanced state of pro- cessing and have a higher value. In Official territory pig iron rates have several times been involved in specific cases before the Interstate Commerce Commis- sion. In Docket No. 18387, Hudson Valley Coke and Products Cor- poration versus Boston and Maine Railroad, et al (139 I.C.C. 59) pig iron rates from Troy, New York, to destinations in New England were involved. The Interstate Commerce Commission in its decision prescribed a mileage basis beginning at rate of $2.65 per gross ton for 125 miles and ending at a rate of $3.25 per gross ton for dis- tances 240 miles and over 200 miles. Pig iron rates from Erie, Pennsylvania, to destinations in New England, New York, New Jersey, and Pennsylvania were involved in I.C.C. Docket 17444, Perry Iron Company versus New York Central Railroad Company, et al (142 1.C.C. 637). The Commission found that the rates from Erie to destinations in the New York and Bos- ton rate groups should not exceed $4.90 and $5.10, respectively per gross ton. These rates were published effective August 4, 1928 and also involved some slight reductions in pig iron rates from Buffalo, The Interstate Commerce Commission did not prescribe any specific rates to destinations in New York, but the railroads, ef- 200 ľ fective December 31, 1929, made some adjustment in the rates to New York points east of Buffalo, the new rates being related to those in effect at that time from Buffalo. Additional destination territory was also treated. In I.C.C. Docket No. 21291, Mystic Iron Works versus New York and New Haven Railroad Company, et al (164 I.C.C. 498), the Com- mission prescribed pig iron rates from Everett, Massachusetts, to destinations in New England. The Interstate Commerce Commission prescribed rates based on the mileage scale starting with rates of 31.85 single line and $2.05 joint line for fifty miles and over thirty miles and ending with single line rate of $3.45 and joint line rate of $3.65 for a distance of 320 miles and over 230 miles. Pig Iron Rates Between Foints in Central Freight Association Territory For many years pig iron rates in Central Freight Association territory were established on a point to point basis. Commercial relationships were controlling in determining the level of most of these rates. To establish a more uniform level of pig iron rates, the rail- roads by schedules filed to become effective lovember 1, 1926, and later dates, proposed to readjust by increases and reductions the rates on pig iron between points in Central Freight Association. These rates were suspended by the Interstate Commerce Commission in I.& S. Docket No. 2788 (126 1.C.c. 111). Similar action was taken by the Public Utilities Commission of Ohio and the Public Service Commission of Indiana on intrastate traffic although the rates which were reductions under the previous rates were permitted to become effective. The rates which were published in the suspended schedules pre- served the destination and origin groups which had existed for many years. Distance was given much consideration in the proposed adjust- ment, but commercial and competitive conditions and existing rela- tionships were the controlling factors. The Interstate Commerce Commission found the proposed rates to be not unreasonable and per- mitted them to become effective. With few individual exceptions this level of pig iron rates, subject to the various percentage in- creases, is still in effect within Central Freight Association ter- ritory. S Scrap Iron and Related Articles In early tariffs scrap iron and related articles were gener- ally included in the billet list. Tith development of the iron and steel industry and changing commercial conditions many specific commodity rates have been established on scrap iron and related S ; $ articles lower than the rates on billets. In 1910 a separate scrap iron list was published in the railroad tariffs. Where lower rates applied on articles in the scrap iron list these took precedence over rates carried on articles in the billet list. 201 The original list named only scrap iron and scrap steel but it has been enlarged and amended so that at present it includes: Axles, Old, Car or Locomotive, and Tires, Old, Worn-out, Loco- motive, having value for cutting, heating and rolling only. Borings, not granulated, ground or powdered, in packages or in bulk. Filings, not granulated, ground or powdered, in packages or in bulk. Scrap, Iron (not copper-clad) viz.: T Scraps or pieces of iron having value for remelting pur- poses only, minimum weight 4,800 pounds. Scrap Steel (not copper-clad), viz. : Scraps or pieces of iron or steel having value for re- melting purposes only minimum weight 44,800 pounds. Turnings, not granulated, ground or powdered, in packages or in bulk. (Note) - Minimum weight 56,000 pounds except on ship- ments loaded to full visible or cubical cap- acity, actual weight will apply but not less than 4,800 pounds. Wheels, Car, Old, detached from axles: The rate provided herein will apply on the articles when having value for remelting purposes only. In 1929, on complaint of the Newport News Shipbuilding and Dry Dock Company I.C.C. Docket 19995 (160 I.C.C. 220) the Interstate Commerce Commission prescribed as a maximum basis for rates on scrap iron from Newport News, Virginia, to various destinations in castern Trunk Line territory, seventy per cent of the basic scale prescribed by the Interstate Commerce Commission in I.C.C. Docket 17000, Part 6 on iron and steel. This basis approximated twenty-one and one-half per cent of the First Class rates prescribed. in the Eastern Class Rate Adjustment I.C.C. Docket 15879. This seventy per cent basis has not been voluntarily extended by the railroads, but has only been published where prescribed by the Interstate Commerce Commis- sion and then only on the specific articles named in the order. Cast Iron Pipe Rates Cast iron pipe was included in the original list of iron and steel articles issued in Official Classification territory in 1887. It has been included in the iron and steel list down to the present date, although many rates have been published which were substan- tially lower than the iron and steel rates. 202 ! } In Central Freight Association territory, as early as 1893, rates on cast iron pipe per net ton were generally the same as on billets per gross ton. Within Trunk Line territory the cast iron pipe rates were gen- erally the same as the iron and steel rates, although there were some few exceptions. Prior to June 25, 1918 rates on cast iron pipe from Birmingham, Alabama, and other southern producing points were made on combina- tions over Ohio River Crossings, principally Cincinnati. . The Interstate Commerce Commission in Docket 16356, Krupp Foundry Company versus Southern Railway Company, et al (148 I.C.C. 743) decided December 31, 1928, found that rates on cast iron pipe and fittings from Lansdale and Quakertown, Pennsylvania; Florence, New Jersey; and Chattanooga, Tennessee, as a whole were not unrea- sonable, but for the future would be unduly prejudicial to complain- ant and unduly preferential of their competitors in the Birmingham, Alabama district. A basis for nonprejudicial relationship was pre- scribed by using a mileage scale set by the Commission. This scale is the same as prescribed in the Jones and Laughlin case, I.C.C. Docket 15110, except that it was extended beyond 60 miles to 1,500 miles. Upon further consideration of Docket 16356 the Interstate Commerce Commission, in its decision of July 11, 1929 (156 I.C.C. 415), prescribed the Docket 17000 Part 6 scale, extended to 1,500 miles, in lieu of the scale previously found reasonable. Official and southern railroads published these rates, effective March 20, 1930. The revised cast iron pipe rates were not permitted to go into effect on intrastate traffic in New Jersey, Ohio, and Indiana. · S Sam Cast iron pipe rates from Addyston, Coshocton, and Newcomers- torn, Ohio, and Scottdale, Pennsylvania, to Central Freight and Illinois Freight Association destinations were involved in tariff. changes filed to become effective June 19, 1932. These rates were suspended under I.& S. Docket 3765 (190, I.C.C. 91). The Interstate Commerce Commission, in its decision dated November 25, 1932, found the proposed rates not justified and ordered the suspended sched- ules canceled, which had the effect of continuing the rates from these points on the Krupp case scale. Iron and Steel Export Rates In July 1897, the railroads published from Pittsburgh, Buffalo, and points west, the New York domestic rates to Boston to apply on export traffic only. On December 1, 1903 export iron and steel rates were published to the North Atlantic ports. Originally those export rates were made by reducing by one-third the Chicago to New York domestic rate and observing the HcGraham Formula and other es- tablished relationships. Export rates were maintained until 1916 + 203 ** ** * } when the railroads filed tariffs canceling the rates, effective October 1, 1916. The tariff was suspended by the Interstate Com- merce Commission under I.& S. Docket 930 (43 I.C.C. 5). The Com- mission permitted the cancellation of the export rates from Buffalo, Pittsburgh, and points east, but required that rates for export traffic be published from Chicago, Cincinnati, and other producing points rest of Pittsburgh, based on relation with the Pittsburgh domestic rate which, at that time, was the same as the Buffalo rate. All export rates were canceled under General Order 23 of the United States Railroad Administration, effective June 25, 1918. The railroads again established a general line of export rates effective September 6, 1921 on basis of 75 per cent of the domestic rates. piekar Export rates on iron and steel were originally included in I.C.C. Docket 17000 Part 6, but were later eliminated from the in- vestigation. The shippers and carriers agreed upon a basis of 60 per cent of the domestic iron and steel rates. Under this adjust- ment rates from Pittsburgh and west were established on the basis of the licGraham Formula with Johnstown and related points their usual arbitraries under the Pittsburgh rate. These export iron and steel rates when converted to a net ton basis were observed as max- ima on billets and pig iron. These rates became effective December 31, 1927. • Because of the exportation of large tonnages of scrap iron to Japan the export rates on scrap iron were canceled, effective October 31, 1937. IRON AND STEEL, BILLETS AID PIG IRON LIST IN OFFICIAL TERRITORY The early practice of according special or specific commodity rates to the raw materials, semifinished and finished products of the iron and steel industry lead to segregation of these articles in separate lists. The need for such lists originated when the eastbound rail carriers in 1883 increased their Seventh, Eighth and Ninth Classes by ten cents per 100 pounds from Chicago to New York, but restricted the application of these increases so as not to apply on commodities such as iron ore, pig iron, scrap iron and other iron and steel products of related nature. The first list of iron and steel articles published in a "Spec- ial Iron Tariff" became effective January 9, 1888, and rated all commodities named Fifth Class less carload and Sixth Class carload for application within Official Classification territory. This list included billets and blooms, castings, pig iron, iron orc, and num- erous other products in the categories of raw materials, semifinished and finished products. The raw materials and semifinished vore gen- 204 1 erally rated gross ton same as net ton. Carload minimum weight of twelve tons was provided. During the ensuing years other iron and steel products have been added to the lists. Changes were also later made in the car- load minimum weights. Effective February 1, 1899 the carload mini- mum was increased to fifteen tons, while effective August 1, 1907 the minimum became twenty tons for products rated on a per ton basis, and 36,000 pounds on products subject to rates per 100 pounds. The Interstate Commerce Commission in Docket 17000 Part 6 (155 I.C.C. 517) prescribed carload rates with a carload minimum weight of 40,000 pounds on a list of arti les included in the investigation. This change became effective May 20, 1930. This necessitated adoption of separate lists for carload and less carload, Effective August 15, 1933, the rail carriers published 40 per cent of First Class on loss carload iron and stecl. The less car- load list is similar to the carload list, except that it includes the raw and semifinished articles. JORD As previously mentioned the "Special Iron and Steel Tariff" or- iginally included raw materials, semifinished and finished products. With the establishment of pig iron rates lower than billet rates in 1893, it became necessary to provide what is known as the pig iron list and the billet list. During the succeeding years, various changes have been made in these lists. Changes have also been made in the actual descriptions of these commodities. Effective September 15, 1915, the description of scrap iron and steel was changed to include the following: "having value for remelting purposes only". In carlier years it was the practice of the individual railroads to publish their om iron and steel lists and generally these were included in the rate tariffs. Beginning in 1907 publication started of individual iron and steel lists separate from the tariffs naming the rates. Agency lists were also published, one of the earliest be- ing that issued by the Central Freight Association, effective October 1, 1909. At the present time a separate manufactured iron and steel list is published covering Central Freight, Trunk Line, and New England territorios. Southwestern Territory Pig Iron Rates Under the terms of the opinion, findings and orders in Consoli- dated Southwestern Cases, I.C.C. 13535, et al, 123 I.C.C. 203, the carriers were required to revise the rates on pig iron to, from and GRE 205 between points in Southwestern territory. This commodity was not excepted from the complaints in the above cases, but was among the articles upon which the Commission did not prescribe a specific ba- sis. Based upon Finding 25 in the original report (123 I.C.C. 400) carriers undertook to revise the rates and filed tariffs to carcel existing commodity rates on pig iron, and proposed to establish in lieu thereof Column 20 rates or 20 per cent of First Class rates. This was suspended in I.& S. Docket 3632. This basis was found unsatisfactory to shippers in that it produced drastic readjustments in the rates then in effect, produc- ing both considerable increases and substantial reductions, disrupt- ing relationships that had been built up in the past, and also being in conflict with several decisions of the Interstate Commerce Com- mission; for example, St. Louis Coke and Iron Corporation versus Alabama Great Southern Railway Company, et 21, I.C.C. No. 19669 (148 I.C.C. 221). Gall Stoug A number of conferences was had with slippers with a view to establishing a general adjustment thereon to and from Southwestern territory. It was found that the shippers generally were opposed to a disruption of their rate arrangements by any general plan of revision. As a result of these corferences the Southwestern Lines peti- tioned the Interstate Commerce Commission, under date of August 17, 1932, to eliminate pig iron, car loads, from the findings and orders in the Consolidated Southwestern cases. The following statement was made: "Pig iron is not a commodity subject to distribution by wholesalers and jobbers in our territory. It is shipped direct to a limited number of foundry points and we are informed that the movemont would be only from the Birminghan district, St. Louis district, and Chicago district, with the possibility of some movement from Duluth, Minnesota, and possibly Ashland, Kentucky. The carriers therefore are desirous of maintaining the status quo of these rates so far as may be possible, having in mind the Fourth Section denial orders issued by the Commission, and desire so nearly as this may be done, to maintain the present rates with such minor adjustments as may be necessary, or with the minimum departures from the Fourth Section as may be sanctioned by the Commission.. "It is, therefore, the purpose of the carriers to file application in due form seeking permission to withdraw the rates which are under suspension, but in order to make such readjustments as may be nec- essary and lawful, they should be relieved from the findings and orders in the Consolidated Soutinestorn casos, supra." The Interstate Commerce Commission in its Sixteenth Supplemental 206 Report decided October 10, 1932, excepted from the application and recommendations of the findings and orders entered in these pro- ceedings other than Fourth Section Orders 9500 and 9600, rates on pig iron in carloads. As result of the above the rates that were in effect at that time, namely October 1932, were treated so as to take care of any Fourth Section departures which existed. There have been some The rates changes since 1932 with a view of stimulating traffic. on pig iron to the Southwest have been made on a group rather than a distance basis. The Interstate Commerce Commission in St. Louis Coke and Iron Corporation versus labana Great Southern Railroad Company, et al (148 I.C.C. 221), prescribed certain rates from Granite City, Illinois, to Cape Girardeau, Missouri, and to Springfield, Missouri, and points taking the same rates. This decision was rendered November 20, 1928. As to the rates from Granite City to the Cape Girardeau and Springfield, Missouri, group they found them not only out of line with class rates from competing points, but also with the rates to other destinations. It found the prevailing rate in central territory at that time for 135 miles to be $2.65 per gross ton. Twenty per cent allowance was made for the difference in transportation conditions in the two territories. On this basis the rate from Granite City to Springfield group was prescribed as not to exceed $4.00 per gross ton which resulted in a reduction of fifty cents and in line with a like reduction in the rate to Kansas City, Missouri, that was made on November 1, 192h. Rate of $3.18 per gross ton was also prescribed from Granite City to Cape Girardeau, Missouri, figured on the same formula. There is no output of pig iron in the Southwest at this time. The plants at Daingerfield and Houston, Texas have discontinued production. Southwestern Territory Billets and Articles Taking Billet Rates On billets and articles taking the billet rates, the general basis from, to and between points in the Southwest is the Classi- fication rating Class D, or 22 per cent of First Class rates. P During the war specific commodity rates were established to a few points in the Southwest such as Shreveport, Louisiana, and Ft. Worth, Texas. These rates were established as an emergency var measure and were made with relation to rates in Official and South- ern territories for like distances. Rates were established first from St. Louis and Dast St. Louis and rates from producing points in Official territory and points in Illinois, such as Chicago, were made Class D differences over the St. Louis rate. All of these rates were published with an expiration date of six months after the term- *-* ; 207 } ¿ ination of World War II. The Southwestern Lines made an investiga- tion as to whether or not such rates could be allowed to expire with June 30, 1946, and since there were no serious objections filed thereto tariffs were so amended. Southwestern Territory Manufactured Iron and Steel Articles, Carload The following is a resume of the rates manufactured on iron and steel articles, to, from and between points in the Southwest. The Interstate Commerce Commission in Consolidated Southwestern Cases, I.C.C. Docket 13535, et al, 123 I.C.C. 203, prescribed Col- unn 32 of Appendix 13 or 32 per cent of the First Class rates pre- scribed, rinimum weight 40,000 pounds, Commodity Description No. 2 as per Appendix 10 (the commodity description has been broadened from time to time). Bed -- Item 6920-1, Supplement 30, Southwestern Lines Tariff 173-T, D.Q. Karsh's I.C.C. No. 3680, provides for Class 32 between points in the Southwest and between points in the Southwest and Western Trunk Line territory, and between the Southwest and points in South-- ern Freight Association territory. Item 950-3, Supplement 66, Southwestern Lincs Tariff 252-3, D.31. Harsh's 1.C.C. 3592, provides for the 32 per cent basis between points in the Southwest and points in Official Classification territory. .. Finding 27 of the Commission's decision in I.C.C. Docket 13535, Consolidated Southwestern Cases, froze the adjustment prescribed by the Commission with respect to the percentage of First Class apply- ing at all points in the Southwest covered by the decision. However, Supplemental Order No. 1 modified this finding to provide that if the carriers desired to meet actual or potential water or trucl: com- petition it would not be necessary to provide for the same percentage of First Class at all points in the Southwest. In other words, specif- ic rates could be established to cover such situations. ( By schedules filed to become effective October 15, 1932, and later dates, the Southwestern Lines and Southern Freight Association Lines proposed to reduce the through rates on iron and steel articles, carloads, from points in the Southeast to Texas Culf ports by estab- lishing proportional rates to and from New Orleans and Baton Rouge. These adjustments were suspended in I.& S. Docket 2819 (192 1.0.0. 257). The Commission found the proposed reduced rates justified un- der Section 1, but not under Section 3. The suspended schedules were ordered canceled without prejudice in filing new schedules in con- formity with the findings. The rail carriers published the rates approved by the Commission which wore set forth in the Appendix to the citation given on Page 261. 1.2008 Sand 4 } i · During 1933 the rail lines gave consideration to establishing specific rates from Pittsburgh, Pennsylvania, territory; linnequa, Colorado; points in Central and Western Trunk Line territories, viz.: St. Louis, Kansas City, Chicago, Hilwaukee, Cincinnati and points in the Detroit, Cleveland and Dayton-South Bend territories, and the Middletown, Ohio group and points in Arkansas, Oklahoma and Louisiana to Texas ports, viz.: Atreco, Baytown, Beaumont, Chaison, Clinton Docks (Houston), Fidelity, Galena, Galveston, Houston, Mag- petoo, Orange, Port Arthur, Port Bolivar, Port Neches, Sinco, Smiths Bluff, Sun, Texas City and West Port Arthur, Texas, and Lake Charles, Louisiana. The purpose of the adjustment was to meet water competition and by meeting such competition adjust rates from points not served by water account of market competition which would pre- vail by adjusting rates from points served by water. The following rates were proposed, minimum weight Fresent Rate From St. Louis issouri Kansas City Ilissouri Minnequa Colorado Chicago Illinois Kilwaukee Wisconsin Cincinnati Olio Middletown Ohio Ohio Obic Dayton Cleveland Pittsburgh (2) 74+ 69 73 85 88 85 CS 88 95 99 41 41 41 208 60,000 pounds : Proposed Rate (1) 50 52 50 54.5 64 64 64 But Pennsylvania (1) Applicable on straight or mixed carloads, minimum 60,000 pounds. (2) A rate of 42.5 cents became effective July 28, 1933. The rates shown above under column "Present Rates" are the rates that were in effect at the time consideration was given to the gen- eral adjustment to the Texas ports. The above proposed rates were approved by the Commission, except the rate from Kansas City was made fifty cents and from inequa, Colorado, fifty cents. The pres- ent rates represent 10 per cent over the approved rates as authorized in Ex Parte 123. VA İ The railroads sought Fourth Section relief in connection with the proposed rates which was granted under Fourth Section Application 15151 (see 226, I.C.C. 298, decided February 28, 1930). The carriers also agreed that if Fourth Section Relief was granted the fabrication-in-transit would be amended to provide for the so-called one-way rule instead of the three-way rule. In other words, the through rate from the origin of the steel to the points named above instead of the highest rate from poi.rt of origin of steel # 1 to transit point, transit point to destination, or the through rate from the point of origin to destination. ! 209 The manufactured iron and steel rates prescribed by the Inter- state Commerce Commission are in effect in the Southwestern states on intrastate and interstate traffic, except in Texas where a mile- age scale basis applies. The Texas level is considerably lower than the interstate level and is known as the "bob-tail" scale. This scale reached a maximum of 62 cents per 100 pounds at 975 miles, which rate applied for all distances in excess of 975 miles. Southwestern Territory Scrap Iron and Steel Rates The Interstate Commerce Commission, in Consolidated Southwest- ern Cases, I.C.C. Docket 13535, et al, 123 I.C.C. 203, in Appendix 16, page hób, prescribed Class or 17 per cent of the First Class rates, minimum weight 50,000 pounds. On Page 296 the Commission stated: S BED "We are of the opinion that we should prescribe a general basis of rates throughout the Southwest", further, "There is, however ·9 nothing of record to show that undue prejudice or preference would result from the maintenance of somewhat lower rates from South- western points to the gateways than are applied locally between points in the territory, provided that such rates are necessary to enable the marketing of scrap iron products in the Southwest at the important markets on, north and east of the Mississippi River, and provided that such lower rates are necessary to meet the com- petition of similar commodities from other territories reaching the same markets" I.C.C. Docket 19919, Waste Material Dealers Association of Arkansas versus Chicago, Rock Island and Pacific Railway Company et al, decided February 16, 1927, 152, I.C.C. 41. PTO The complainants alleged that the rates charged on scrap iron and steel in carloads between points in Arkansas on intrastate and interstate traffic, and from points in Arkansas to Hemphis, Tenn- essee, St. Louis, lissouri, Chicago and Alton, Illinois, and points taking the same rates, or rates based thereon, were unreasonable in violation of Section 1 of the Interstate Commerce Act and of the lays of Arkansas. The Commission was asked to prescribe reasonable interstate rates for the state. The Commission found that the rates assailed, subject to the carload minimum weight of 50,000 pounds, were not, and for the future would not be unreasonable. They further found that reasonable alternative rates on scrap iron and steel, carloads, applicable interstate between points in Arkansas,´and from points in Arkansas to Hemphis, St. Louis, Chica- go, Alton, and destination points taking the same rates, or rates P + 210 based thereon, for the future would be rates which subject to a carload minimum weight of 70,000 pounds were not to exceed 13 per cent of the corresponding First Class (Column 100) rates prescribed in Consolidated Southwestern Cases, 123 I.C.C. 203, for application from and to the same points. On petition of defendants for reconsideration of I.C.C. Docket 19919 and the original report in I.C.C. 13535 et al, Consolidated Southwestern Cases, 123 I.C.C. 203, decided June 30, 1930, 164 I.C.C. 587, the Commission found that the assailed "subject to a carload minimum of 50,000 pounds, are and for the future will be unreasona- ble to the extent that they exceed or may exceed rates made 15 per cent of the corresponding First Class rates prescribed in the Con- solidated Southwestern revision. We find further that reasonable alternative rates on scrap, in carloads, to, fror and within the Southwest for the future will be rates which, subject to a carload minimum of 75,000 pounds, do not exceed rates made 12.5 per cent of the corresponding First Class rates prescribed in the Consolidated Southwestern revision. Sports "An order will be entered making the appropriate changes in Appendix 10 and Appendix 16 of the first report in the Consolidated South- western revision, 123 I.C.C. 203, and modifying the order in No. 19919." Se By petition, dated March 30, 1937, defendants sought a reopen- ing,´rehearing, or modification of the Commission's order of June 30, 1930, for the purpose of eliminating the prescribed rate basis of 12 per cent of First Class, minimum 75,000 pounds The Commission reopened the proceedings for still further hoaring. Decision was rendered March 14, 1938. The Commission found that the evidence adduced at this last hearing was convincing that the rates prescribed in 164 1.C.C. 587, as modified by subsequent general authorizations of increases were proper and as high as the traffic could bear (see 226 I.C.C. 683). B The following ratings which are presently in effect are applica- ble in connection with the First Class rates originally prescribed by the Commission in Docket 13535, 123 I.C.C. 203, subject to Ex Parte 123 increase. In other words, the current First Class rates which resulted from Supplemental Order Ho. 21, I.C.C. Docket 13535 et al, 205 I.C.C. 601, increased under Ex Parte 123, have not been made effective in connection with scrap iron. Section 1 of Item 2620, Southwestern Lines Tariff 173-T, D. 2. Karsh's I.C.C. 3688, provides for the following commodity descrip- tion and ratings: 1 } Section 1 Iron, Scrap, as listed below: Scrap Iron, Scrap Steel, Borings, Filings or Turnings (Iron or Steel): Minimum weight 30,000 pounds Minimum weight 50,000 pounds Minimum weight 75,000 pounds Class 20 Class 15 Class 12 211 These ratings apply between points in Southwestern territory; between points in Southwestern territory on the one hand and points in Western Trunk Line territory on the other; between points in Southern territory on the one hand and points in the Southwest on the other. lows: Item No. 1450-J, Southwestern Lines Tariff 152-2, Supplement 183, D. (;. Marsh's I.C.C. No. 31, provides for the same descrip- tion with minimum weight of 50,000 pounds at Class 15, and minimum weight 75,000 pounds at Class 12 Both of the above items are subject to a note reading as fol- Then carload shipments of scrap are loaded in such manner as to be · unsafe for transportation, the carriers may readjust or transfer the lading and will charge for such services per car for re- arranging the load or forty cents per ton for transferring the load from one car to another. fi FROM OFFICIAL TO WESTERK TRUNK LID TERRITORY Hanufactured Iron and Steel Articles Prior to the Western Trunk Line class rate revision, 164 I.C.C. 1, effective December 3, 1931, rates on iron and steel from points east of the Indiana-Illinois line to destinations in Western Trunk Line territory, other than the Twin Cities, Duluth, and intermediate points in Minnesota, Wisconsin, and Iowa, generally were combina- tions of the Firth Class rates to, Chicago, Peoria or the fississippi crossings and of proportional Fifth Class rates beyond. The rates to the Twin Cities and Duluth and intermediate points were, generally speaking, joint rates based either on combination of the rates to and from Chicago or across lake combinations. In the Western Trunk Line Class Rate Case, 161 I.C.C. 1, the Commission prescribed 32.5 per cent of First Class as maximum reasonable rates on iron and steel articles including pipe, as described in Appendix N, paragraph 8 of the Commission's report in that case, with minimum of 40,000 pounds. C The Class 32.5 per cent basis, remained in effect to Western Trunk: Line territory generally until November 29, 1945, when rates were established on iron and steel, pursuant to the decision in 212 I.& S. Docket 5269 (263 I.C.C. 361), from points in Official terri- tory to destinations in Iowa, Wisconsin, Upper Michigan, Minnesota, Nebraska, North Dakota and South Dakota and certain destinations in Missouri on basis of Class 28, subject to minimum weight of 40,000 pounds. Billets, Pig Iron and Other Semifinished Iron or Steel The movement of these articles from points in Official territory located east of the Illinois-Indiana line is not large. There is no general line of commodity rates from points east of the Illinois- Indiana line to destinations in Western Trunk Line territory. Class rates, or combination rates where lower than through class rates, are generally applied. Host of these articles are rated Class "D" (22.5 per cent of First Class) in the Western Classification, subject to minimum weight of 50,000 pounds. Scrap Iron There is very little scrap iron from points east of the Illinois- Indiana line to destinations in Western Trunk Line territory. There is no general line of commodity rates in effect from Official terri- tory to Testern Trunk Line territory. Agent Kipp's Tariff 338-K, I.C.C. A-3616, Exceptions to Testern Classification, provides Class 15, subject to minimum weight 50,000 pounds, and Class 12.5, subject to minimum weight 75,000 pounds on scrap, in carloads, for applica- tion from Official territory to points in Western Trunk Line terri- tory. These class rates, or combination rates where lower than pub- lished through rates, are applied. • FROM OFFICIAL TO SOUTHIN VERRITORY Manufactured Iron or Steel Articles A by ON T Rates are not on any common level nor are they based on any mileage scale. The present rates are generally the rates published effective July 1, 1923, increased under Ex Parte 123. The July 1, 1923 revision was brought about by the denial of Fourth Section relief in connection with the iron or steel rates from Ohio River crossings, St. Louis and Chicago to lower Mississippi River points and Gulf ports adjacent thereto versus intermediate points, published by the Southern and Illinois carriers, which re- quired a revision, following Fourth Section principles, of the rates from Ohio River crossings, St. Louis and Chicago to the entire South, on manufactured iron or steel articles, carloads. GARAN Swinge This denial of Fourth Section relief did not involve rates on manufactured iron or steel articles from Official territory east of the Illinois-Indiana state line to the Soutil, but in order to har- 213 t monize, to a certain extent, the rates from Official territory with the revised rates from Chicago, St. Louis, etc., and in order to avoid Fourth Section departures Ohio River crossings, St. Louis, and Chicago versus northern origins beyond, the carriers concluded to revise the rates from Official territory to Southern territory. The basis for the revision of the rates from Official territory to the South, except from the territory east of the Buffalo-Pitts- burgh line to destinations in lorth Carolina, was an arbitrary rate of 56 cents from Pittsburgh to Memphis, Tennessee. The 56 cent rate was considered reasonable as contrasted with the proposed rate from Chicago to Memphis and based upon all considerations used in deter- mining reasonable rates. The rates from other origins in Official Territory and to other destinations in the South, were related to the Pittsburgh-lemphis rate in the same manner as the carriers pro- posed First Class rates in I.C.C. Docket 13494 rates were related one to the other, From points east of Buffalo-Pittsburgh territory to North Carolina points the then existing rates which were estab- lished following the decision of this Commission in Dockets 10500 and 10515, (57 I.c.c. 523) (62 1.0.0. 6) and (61 I.C.C. 264), were continued in effect. ST This general basis has been continued except as modified by publication of combination rates, voluntary adjustment in the rates to South Florida points and lover Mississippi territory and by or- ders of the Commission in I.C.3. Docket 27806, Summers Hardware £: Supply Company versus Baltimore and Ohio Railroad Company (232 1.C.C. 22) decided March 13, 1939, and I.C.C. Docket 28711, Danville Chan- ber of Commerce versus Baltimore and Ohio Railroad (255 I.C.c. 108), decided January 11, 1943. To certain stations in Alabama, Florida, Georgia, Kentucky, North Carolina, Tennessee and Virginia, joint through commodity rates are in effect which represent combination of rates subject to the Sixth Class rate as maximum. The rates so constructed are published as through one-factor rates. To South Florida points the present rates are generally on basis of deducting eight cents from the local rate to Jacksonville, Florida and adding to such unpublished proportional factor 110 per cent of the Southern Iron Scale (referred to in 195 I.C.C. 255). During 1936 the rate from Chicago and Indianapolis to New Or- leans was reduced from fifty-five to fifty cents and this rate was held as maximum at directly intermediate points. This reduction dis- rupted the relationship in the rates from Chicago versus the rates from other Official territory origins and in order to restore the former relationship and afford the Official territory shippers some measure of relief from the standpoint of competition with the Chica- to shippers, the carriers made relative réductions in the rates from 274 Official territory origins to destinations in lower Mississippi Valley territory. This adjustment was made effective September 6, 1938. In Docket 27806, referred to, the Commission prescribed a maximum rate of thirty-nine cents per 100 pounds from Pittsburgh, Pennsylvania, to Johnson City and Kingsport, Tennessee, represent- ing 30 per cent of the First Class rate to Johnson City. In Docket 28711, referred to, the Commission prescribed maxi- mum rates from Pittsburgh, Pennsylvania; Sparrows Point, Haryland; Cincinnati, Ohio; and other origins in Official territory to Dan- ville, Bassett, Chase City, Clarksville, Martinsville and South Boston, Virginia, which represented 30 per cent of the correspond- ing First Class plus two cents per 100 pounds. $ Se Carriers have considered voluntarily extending the basis pre- scribed by the Commission in the "Danville" case between the entire Official and Southern territories, but as yet no agreement has been reached and the adjustment has not been concluded. Semifinished Iron or Steel Articles There are a few specific commodity rates on billets, blooms, ingots and slabs in effect from points in Official territory to the South. Such rates as are in effect generally reflect the I.C.C. Docket 15879, Appendix E, Sixth Class rate for the short line dis- tance, converted to a net ton basis, increased 10 per cent under Ex Parte 123, and applied per ton of 2,240 pounds. Želj BAN TERRITORY giorg In other instances, the Special Iron Lists from Official terri– tory to Southern territory include a number of the iron and steel articles rated Sixth Class in Official Classification and the Special Iron rates are applied. dad. Pig Iron There is no general line of commodity rates on pig iron from Official territory to the South. Prior to August 20, 1938, there were commodity rates to a number of destinations in the South, but the majority of these rates were canceled, effective August 20, 1938, because of lack of movement. The few rates that are published are not related to any general adjustment nor do they bear any fixed re- lation to the class rates; they were made in the light of the circum- stances existing at the time they were established. RAILAMATER AID RAIL-ATER-RAIL RIVES ON IRON AND STEEL ARTICLES FROM OFFICIAL TERRITORY, BUFFALO-PITTSBURGH AND EAST TO POINTS IN SOUTH-- Rail-water and rail-water-rail rates are published from points 215 in New England and Trunk Line territories, Buffalo, Pittsburgh and East, to points in the southern states of Alabama, Florida, Georgia, Kentucky, Louisiana, ifississippi, North Carolina, South Carolina, Tennessee and Virginia. These rates are either the same as the all-rail rates or two cents per 100 pounds under the all-rail rate via rail-water routes and three cents under the all-rail rate via rail-water routes. RATES TO SOUTH ATLANTIC AND SOUTH FLORIDA PORTS REFLECTING FOURTH SCTION ORDER 11027 FORMULA There are rates published on iron and steel from a limited num- ber of origins to Florida ports which reflect the formula prescribed in Fourth Section Application 13918 Commodity Rates to South Atlantic and South Florida ports, (186 I.C.C. 675), decided August 24, 1932. This formula provides for Fourth Section relief where rates are based not lower than 110 per cent of the contemporaneously applicable rail- ocean combination, nor less than 65 per cent of the rates prescribed or approved by the Commission as maximum reasonable rates for the distance over the all-rail route, nor less than 65 per cent of Class 12 rate prescribed in Southern Class Rate Investigation for the dis-. tance over the all-rail route. These rates are published in Agent Hoke's Tariff 264-C, I.C.C. 696. They apply from Sterling, Illinois, on fencing and fencing ma- terial; from Ashland, Kentucky, on iron and steel articles; from Chicago, Illinois and Pittsburgh, healing, and Youngstown districts on wrought iron pipe; and from Hiddletown, Ohio, on plates. RATE ADJUSTLEIT ON WROUGHT IRON OF STEEL PIPE FROM OFFICIAL TERRITORY TO SOUTH ESTERN DESTINATIONS Sta In I.C.C. Docket 13535, Consolidated Southwestern Cases (123 I.C.C. 203), the Commission found Column 32.5 a reasonable basis on iron or steel articles, including wrought iron pipe, Rates on this basis were published by the carriers, effective July 1, 1928, but upon protests the all-rail rates on rought iron pipe were suspended under I.: S. Docket 3130, Southwestern rates. The former rates re- mained in effect until July 28, 1940, when rates resulting from I.C.C. Docket 27401 were published, I.C.C. Docket 27401 (234 I.C.C. 347) et al, covers rates on wrought iron and steel pipe and fittings, from Official territory to destinations in the Southwest. In this decision the Commission found that the rates on pipe were unreasonable to the extent that they exceeded 32.5 per cent of First Class rates prescribed by the Commission in the Southwestern Class Rate cases. The Commission in Docket 27401 recognized that the carriers were confronted with competition from other transportation agencies and in order to meet that situation they suggested certain rates, lower than 32.5 per i S * S 216 cent of First Class, which were deemed compensatory and free from unjust discrimination, undue prejudice and preference. The Com- mission's suggested bases were set forth in Appendix 5 to the decision in Docket 27401. ( Immediately following receipt of this decision, the carriers in the several interested territories gave active consideration to the question of rates on wrought iron pipe in light of the Commis- sion's suggested rates. This investigation resulted in the adopt- ing of a formula which, though not resulting in exactly the same rates as suggested by the Commission in Appendix 5, the level was substantially the same and the purpose identical. Generally speak- ing, this formula made rates from Pittsburgh and other Official terri- tory origins to southwestern stations the same amount in cents per 100 pounds under their Class 27.5 rates as the proposed rates from Milwaukee, Wisconsin were less than its Class 27.5 rates. Gang There were some departures from this formula and examples are set forth in the carriers' Fourth Section Application Jo. 18996. The departures were: (1) those necessary to eliminate Fourth Sec- tion departures, one destination group versus another; (2) where the southern Kansas border points were held as a minima to points beyond; (3) maintenance of present Texas common point and Texas differential rates as a maxima. This latter provision of the formula resulted in some instances in the full Class 27.5 rates being published from Pittsburgh and other origins to the Southwest. cents. It was the purpose of the formula to retain for continued appli- cation the existing commodity rates to so-called Texas common point and Texas differential territory, whenever they were less than the rates arrived at by use of 27.5 per cent of First Class. This was for the purpose of meeting competition. Whenever the existing maxi- mum commodity rate from Milwaukee to a destination in Toxas tras con- tinued because it was lower than the rates obtained under other pro- visions of the formula, the carriers did not shrink the rates from other origins constructed under the formula. For example, the ex- isting commodity rate from Milwaukee to San Antonio, Texas was 76 (This was 12 cents under the Milwaukee-San Antonio Class 27.5 rate.) This Texas common point rate was retained for the rea- son that it was less than what would obtain under other provisions of the formula. The rate in effect July 27, 1940 from Pittsburgh to San Antonio was 98 cents. Twenty-seven and five tenths per cent of First Class fron Pittsburgh to San Antonio produced a rate of 96 cents or two cents lower than the existing rate. The existing dif- ference between the 76 cent rate from Milwaukee and the 98 cent maxi- mum rate from Pittsburgh to San Antonio was 22 cents per 100 pounds. The carriers, in order to maintain the relationship under application of maximum rates, modified the origin to destination rates only to the extent that 27.5 per cent of First Class made lower than the maximum rates. M , } ! } & 217 The above formula was not observed, however, to the Houston- Beaumont group. The carriers published formula retes to this group but they were suspended on protests of ocean carriers, New Orleans, and Texas Gulf port interests. Fourth Section Application No. 18996 sought, among other things, to continue the competitive rates in effect to these ports prior to July 28, 1940. They are less than the Texas common point rates. For example, from Pittsburgh the Texas common point rate was 98 cents and to Houston-Beaumont group 78 cents. These low rates were published to meet in some measure the barge rates via the Mississippi River and Intercoastal Canal or by truck or rail to river ports thence via barge beyond. The Com- mission found these rates reasonably compensatory and authorized their continuance, Rail-Ocean-Rail Rates Prior to February 21, 1928, the rates on pipe via rail and ocean were published from Trunk: Lino territory in the so-called noncon- curring Atlantic Seaboard tariffs issued by Agent Sedgeman. Rates from Pittsburgh were nade up of a rate of eleven cents from Pittsburgh to Derry, Pennsylvania and the Atlantic Seaboard rate beyond. On that date the Atlantic Seaboard territory was extended westward so as to include licKeesport, Pennsylvania and other points. July 10, 1929, the carriers published a proportional rate of ten cents per ton, increased to eleven cents under general increases 1937-1938. This resulted in a decrease of ten and one-half cents in the prior rates. Effective July 28, 1940, the carriers published rates on pipe via rail-ocean routes, which were the Column 32.5 rates. These rates were suspended on protests of the ocean steamship lines, New Orleans and Texas Gulf port interests. They remained in suspension until rates were published effective December 18, 1940, following Commission's decision in I.& S. Docket 4815. I.& S. Docket 4815, Sub. 1, decided April 13, 1942, prescribed a formula for establishing rail-ocean-rail rates on wrought iron pipe from Official territory to destinations in the Southwest. The rates prescribed by the Commission represented differentials under the all- rail rates. They were set forth in Appendix D of I.& S. Docket 4815. Examples of these differentials are as follows: See statement on following page. 218 VI Galveston-Houston, Texas Shreveport Altus Pampa FROM PITTSBURGH Texas Childress Texas Crystal City Texas Plainview Texas Gainesville Texas Texas (1) Texas (1) Galveston Houston New Orleans, Louisiana (Difference ocean-rail under all-rail) Louisiana Shreveport Oklahoma Texarkana El Dorado Hope Mansfield De Ridder Alexandria Lake Charles O 3 mmino 3 6 7 8 10 10 12 13 VIA 0 3 Louisiana Arkansas-Texas O Arkansas Arkansas Louisiana Louisiana Louisiana Louisiana miningf S 10 11 12 Lake Charles Louisiana Temple Texas (1) Rail delivery. They also prescribed rates from Cleveland group based three cents per 100 pounds and from the Youngstown group based two cents over the rates from Pittsburgh. The carriors having in mind other producing points concluded to establish rates from Erie-Bradford, Pennsylvania, and heeling, West Virginia, the same as those from the Youngstown, Ohio group. Rates from Shelby and Toledo, Ohio were based three cents over Cleveland or six conts over Pittsburgh. This latter basis was agreed upon for the reason that three cents per 100 pounds over Cleveland reflected the average difference in the rail-ocean-rail First Class rates from Toledo versus Clevoland to the Southwest. The Commission also prescribed Column 27.5 from Chester, Pennsylvania, and Sparrows Point, Maryland, where the all-rail rates were the same or lower than Column 27.5 and where the all-rail rate was higher than Colum 27.5 from these origins, rates wero published the same amount higher than Column 27.5 as the all-rail rates exceeded Colum 27.5, but in ho case in excess of the rates from Pittsburgh to the same destina- tions. The carriers published a full line of rates from all origin groups to all destinations show in Appendix E of 1.& S. Docket 4815 and points grouped therewith, except that from Toledo and Shelby, Ohio, rates on basis described were only published to the extent that rates were in effect July 27, 1940. FROM OFFICIAL TO TRANSCONTINENTAL TERRITORY Commodity rates on iron and steel articles, including pipe and numerous semifinished articles, are in effect from all points in Official territory to destinations in Transcontinental territory. { ( These rates are not made with relation to distance nor to the class rates. They were established primarily to meet competition of water lines operating through the Panama Canal so as to enable rail- carriers to share in the traffic moving to Pacific Coast terminals. These transcontinental rates are held as maxima at intermediate points. Transcontinental rates are constructed on group principle, both origin and destination. Official territory is divided into four major groups designated as Groups A, B, C, and D. B, C, and D. of these groups is as follows: Brief description Group A Territory cast of a line from Bufalo, New York, to Kenova, liest Virginia through Pittsburgh. 3 Group B Territory west of Group A and cast of a line Sandusky, Ohio, to Cincinnati, Ohio. 219 Group C Territory west of Group D and east of the Illinois-Indiana state line, including the Southern Peninsula of Michigan, excepting points in the Chicago, Illinois switching district. (-) 1 Group D Territory west of Group C and east of Mississippi River. The rates from points embraced by Groups A, B, and C are made with relation to the rates established from Chicago, Illinois (Group D). The differentials over Chicago (Group D), prior to Ex Parte 123 increases were: Group A 20 per cent minium Group E-10 per cent miniram Group C 5 per cent minimum 30 cents 15 cents 6 cents but they have been disrupted by reason of increase resulting from Ex Parte 123 and Ex Parte 162. There is also a small group designated as C-1, which embraces points in Indiana located west of a line from Argos, Indiana, through Kokomo, Indianapolis and Greensburg, Indiana, to Louisville, Kentucky. Generally, the rates from this group are the same as from Group C. There rates vary with those from Group C, they are, generally speak- ing, the same rates applying from southern points (Birmingham, Ala- JAG 220 bama for example) via routes through Louisville, Kentucky and Chica- go, Illinois.. G There are some exceptions to the general basis described. example, Johnstown, Pennsylvania is in Group A. The rates from Johnstown on iron and steel articles are based on an arbitrary of two and one-quarter cents per 100 pounds over Pittsburgh (Group B). Another exception is the rates published in Agont Curlett's Tariff I.C.C. A-814 and Agent Jones' Tariff I.C.C. 3607 from points in Of- ficial territory to Ogden, Salt Lake City, and other Utah points, also to a few points in Colorado and Wyoming which are generally grouped with the Utah common points. These rates, established in 1940, are differentially related to the commodity rates from Chicago, subject to the transcontinental rates as maxima. The relationship is the difference in Class 32 rates from Official Territory origins versus Chicago to the Utah common points added to the commodity rates from Chicago. · As a further exception the domestic rates on tin plate and terne plate from all points in Official territory are the same as from Chi- cago (Group D). Prior to June 1, 1921 the same rates were published on tin plate and terne plate as applied to other iron and steel arti- clcs, viz.: CROA Group A 183 Group B 166 B с D Group C 1583 Group D 150 Effective June 1, 1921, in order to meet canal competition it be- cane necessary to reduce (Group D) Chicago rate to $1.20, and for competitive reasons this rate was cxtended on December 31, 1921, to also apply from Official territory in its entirety. Since that time rates have been on the downward trend until they are now 77 cents, subject to the increase under x Parte 162. Billets, etc. Item 5590 of Transcontinental Tariff 1-Y, publishes the follow- ing rates, in cents per 100 pounds, on billets, blooms, ingots, muck bars and scrap iron, carloads: From Group - For RATES Minimum Weight 40.000 50,000 171 9 154 14 138 130 130 1116 1116 80.000 113 127 119 119 Bang The rates in connection with the 40,000 and 50,000 pound mini- mums are higher than the manufactured iron or steel rates from and # 221 to the same points. The rates in connection with the minimum of 80,000 pounds are the same as the rates on manufactured iron or steel rates with minimum weight of 40,000 pounds when loaded in cars not exceeding 50 feet 6 inches in length and 60,000 pounds Then loaded in cars exceeding 50 feet 6 inches in length. Item 5625 of the same tariff publishes rate of 21 per gross ton from Group A and $17.44 per gross ton from Groups B, C and C-1 on skelp, carloads. All these rates are subject to x Parte 162. There is little, if any, movement of these commodities from Official territory, cast of the Illinois--Indiana state line, to Transcontinental territory. Pig Iron Commodity rates on pig iron are published to Transcontinental territory. These rates are based on the same principles as those on iron and steel articles. They are group rates, differentially related one to the other. There is little or no movement from Of- ficial to Transcontinental territory. OFFICIAL TO EASTERN CANADA Prior to March 3, 1938, there were a few commodity rates on pig iron and semifinished iron or stoel articles from and to specif- ic stations. In all other instances the class rates applied. The class rates prior to March 3, 1938 were not related to mileage or any other uniform basis. Shippers and receivers asked for a proper alignment of international class rates following this Commission's decision in Eastern Class Rate Investigation, I.C.C. Docket 15879 (164 I.C.C. 3111). K Ú Effective March 3, 1938, new class rates were published on ba- sis of 110 per cent of the I.C.C. Docket 15879, Appendix E, First Class rates, which was a voluntary adjustment agreed to by both United States and Canadian railroads. However, effective on the same date the old class rates were continued in effect for applica- tion on Manufactured Iron or Steel Articles, Billets and Billet List Articles, and Pig Iron and Pig Iron List Articles, to permit further consideration due to shippers' opposition to the use of the new class rates on these commodities. To further this matter, the carriers held meetings among themselves and also with shippers and receivers considering rates which would permit the cancellation of the old class rates on these commoditics. Shippers stressed the need for continua- tion of a number of commodity rates on semifinished iron or steel articles rather than application of the new class rates. To Canada, the relationships to First Class are 40 per cent on Fifth Class and 30 per cent on Sixth Class. Shippers also urged the publication of a basis of rates on manufactured iron or steel articles lower than Sig 222 1 the classification basis of Fifth Class (40 per cent of First Class). As a result of these meetings, the carriers, effective March 3, 1940, completed the cancellation of the old class rates on the arti- cles referred to above and published the following: Manufactured Iron or Steel Articles Colum ratings reflecting 35 per cent of First Class rates and this basis is in effect today. Billets and Billet List Articles Specific commodity rates were published from and to specific sta- tions, where the meetings had disclosed a need for such rates, based on the old commodity or class rates, whichever was lower, in effect prior to March 3, 1938 (the effective date of the class rate adjust- mont) plus the Ex Parte 123 increases. These rates are in effect today. Pig Iron and Pig Iron Articles Commodity rates were canceled because of lack of movement and no need found for continuation of such rates and the application of the old class rates on these commodities was also canceled, leaving for fu- turc application the Classification basis, which is also the present situation. Since March 3, 1940, several commodity rates have been estab- lished on manufactured iron or steel articles to certain Canadian stations, such as Talkerville, Kindsor, and liagara Falls, Ontario, which were made on basis of combination of separate applicable con- modity rate factors. D. Classification of Iron and Steel Articles In Consolidated Freight Classification No. 17, effective Lugust 15, 1946, iron and steel articles are listed alphabetically under the general heading "Iron or Steel". Less carload and car- load ratings are sham for Official (including Illinois), Southern, and Western Classification, In a very few instances separate car- load ratings are shown for Illinois Classification. Illustrative classification ratings are as follows: See statement on following page. 223 ! Article Pig Iron Billets, blooms, or ingots Bars, NOIEN Channels, NOIEN Flate or shoot, NOIBN Scrap, not copper clad Tin Plate Wire Less Carload Rating ¯¯¯(0) (S) (!!) Ŀ! - 6-11 !! - GoL! 41~6~11 4- 6-4 4-6-4 !! 6-1! 4-50-4 4-50-4 Carload Minimum (Pounds) 50,000 50,000 36,000 E. 36,000 36,000 40,000 36,000 36,000 Carload Rating (0) (1) (S) (!!) 6-D-10-D 6-6-10-D 5-5-6-5 5-5-6-5 5-5-6-5 6-6-10-D 5-5-6-5 5-5-6-5 ich & chi (0) Official; (S) Southern; (W) Western; (I) Illinois. Generally, pig iron and semifinished iron and steel articles are rated Fourth Class, less carload, in Official and Western, and Sixth Class in Southern. Carload ratings are generally Sixth in Official, Tenth in Southern, and D in Western. Pig iron in Illinois is rated D. In all territories the carload minimum is 50,000 pounds. Tin Kanufactured iron and steel articles are generally rated less carload, Fourth in Official and "estern, and Sixth in Southern. plate and wire are rated Class Fifty in Southern. Carload ratings are generally Fifth in Official and Testern, and Sixth in Southern. The carload minimum weight is 26,000 pounds. Scrap iron and steel is rated less carload, Fourth in Official and ostern, and Sixth in Southern. Carload ratings are Sixth in Official, Class Ten in Southern, and Class D in bestern. The car- load minimum weight is 40,000 pounds. G The ratings on iron and steel articles are, in many cases, sub- ject to requirements as to packing, marking, type of equipment used, state of manufacture, i.e., whether unfinished or requiring further processing, etc. Fabrication-in-Transit of Iron and Steel Articles Fabrication-in-transit privileges on iron and steel articles, carloads, are, of long standing. Transit is permitted at many sta- tions throughout the United States under published tariff rules and regulations. The fabrication of steel is one of the more important of many transit privileges published in rail lines tariffs. Under tariffs publishing fabrication-in-transit privileges, iron and steel articles, in carload lots, may be stopped en route from points of origin to ultimate destination, the contents of cars unloaded, subjected to any of the different processes indicated in applicable tariffs, and later reshipped in carload lots in a 1 1 #. "knocked down" or "unfinished" state. The term "fabrication" is applied to the processes that adapt the material for structural uses. Fabricated and unfabricated structural iron and steel commodities move generally throughout the United States on the same level of rates. This parity of rates, with application of transit, places fabricating industries at inter- mediate stations on substantially an even basis of competition with origin shipping points and consuming points. The term "fabrication" is also used to distinguish it from processes of manufacturing, such as: conversion of iron ore into steel; moulding of steel into bil- lots; and rolling of the billets into structural material, such as plates, shapes, angles, bars, channels, beans, etc. Angles Bolts Bars Beans Generally, the standard list of commodities on which the fabri- cation-in-transit privilege is given are: Columns Castings Ells Channels Girders Plates Bending Bolting Boring Burning Countersinking lasts Nuts Cutting Drilling Flanging Gagging Painting and the processes generally provided in tariffs permitting transit are: Rivets Trusses Rods Washers Zees Tees 1 224 Planing Punching Reaming Riveting Sawing Shearing Straightening G Tapping Threading Folding Zinc Coating Under published tariff rules and regulations transit is allowed only on articles and forms in an unfinished state for assembly into completed structures, for example: bridges, buildings, and ships. A The markets for fabricated steel are extremely scattered. substantial tonnage goes to large population centers for buildings and other structures. Industrial plants, bridges, and ships are other major outlets. Transit arrangements give interior or intermediate industries the benefit of through transit rates instead of a combination of rates to and from the transit station. A nominal charge for the transit privilege is made. In some instances where the transit point is not directly intermediate between origin and destination there is an added charge for the out-of-route haul. The Interstate Commerce Commission made a general investigation of iron and steel fabrication privileges in "Fabrication-in-transit Charges", 29 1.C.C. 70 (191). 1 1 225 F. Railroad Freight Car Equipment Railroad equipment used in loading iron and steel products varies with the type of product loaded. In a large integrated steel plant practically every product from pig iron to cold-rolled steel will be loaded. Integrated plants require large numbers of freight cars daily to keep production rolling. It is estimated that one large produc- ing company in the Pittsburgh-district requires at least 1,000 cars a day just for iron and steel products. This would not include car requirements for coke, slag, by-products, etc. What The major portion of iron and steel is loaded on gondola cars, The balance is loaded on flat cars or in box cars. A.A.R. rules generally prohibit the loading of iron and steel on hopper cars or self-clearing gondola cars. The majority of shipments are loaded on what are known as mis- cellaneous gondola cars. These are generally steel cars of from 38-foot length to 52-foot length. Any gondola car within this cate- gory is usually acceptable. The next heaviest demand is for gondola cars with wood floors. Such cars are required when blocking and bracing must be secured to the car floor. When gondola cars of specific length are ordered the demand is usually greatest for cars of from 46 feet to 52 fect long. Sixty- five foot gondola cars are also frequently used. The principal use for flat cars is for structural shapes, rails, wide plates, and bar iron. Box cars are used principally for tin plate and for sheet and strip steel. Fig iron is loaded on ordinary gondola cars of all steel con- struction, as frequently it is loaded hot. Semifirished steel is usually loaded on gondola cars. If the material is loaded hot, steel floor cars are used. Generally, iron and steel products can load to the tariff mini- mum weight in standard railroad equipment. Some few light or bulky articles require a car longer than the standard 38 to 52-foot con- dola car or the 10-foot box car. In some cases longer cars are necessary for structural stecl, pipe, or other products because of dimensions. Manufactured iron and steel articles are not subject to Rule 34 of the Consolidated Classification which prescribes carload minimum weights based on the length of the car. } ! ! The steel industry has expressed the following preferences with regard to new freight car equipment: 226 Gondola Cars: Railroads should build all standard gondolas at 52 6 inside measurement; height of side to be not more than 42"1 Fifty per cent of all gondolas should have wooden floors and 50 per cent steel floors. Fifty per cent should have drop ends. At least 5 per cent of gondola cars owned by railroads should be 65 long. 1 Box Cars: Box cars not less than 50 feet in length with double doors, or with single doors not less than eight feet in width are preferred. Box cars less than 50 feet long should have doors not less than eight feet wide. The height inside should be not less than ten feet. Hopper Cars: These should not be less than 70-ton marked ca- pacity and not less than 2,650 cubic feet capacity. The pitch of slope sheets should be increased to permit easier unloading. Covered Hoppers: The railroads are urged to build more cov- ered hopper cars to take care of anticipated increased future de- mand. Flat Cars: These cars should be not less than fifty feet in length and ten feet in width. G. Packaging and Loading The movement of iron and steel products is worldwide and rangos in size from brads and tacks scarcely an inch long to units such as structural steel which may require three cars. The steel industry has been outstanding in developing scien- tific packaging and loading of its products. bann CZ Better packaging of stool has increased the use of open top cars which can be loaded and unloaded faster and more safely than closed cars. The Consolidated Freight Classific tion governs the manner in which iron and steel articles must be prepared for rail shipment. Most of the articles may be shipped loose or in packages, while some may be shipped in bundles, or in bags, barrels, boxes, kegs, or crates. Some articles also have ratings either set up or knocked down. Tin plate may be shipped in packages or on platforms. With respect to packaging and loading the Classi.ication pro- vides regulations çovering marking, gross and estimated weights, loading or unloading, shipments requiring two or more cars, dunnage, #00 227 and specifications for shipping containers. Some of the general Classification provisisions have been amended by "Exceptions to Classification". Loading of steel in gondola cars is governed by "Rules Govern- ing the Loading of Commodities on Open Top Cars", issued by Asso- ciation of American Railroads. This A.A.R. publication provides general rules governing load- ing, clearances, maximum load weights, location of load, quality of bearing pieces and loading materials, and other general loading pro- visions. J Tables are provided giving specific instructions for arrange- ment of loads on two or three cars. The rules contain over 200 figures, giving instructions and illustrations for loading various articles an open top cars. St Methods for loading, bracing, and blocking carload shipments of sheet steel, tin plate and other steel products in closed cars are provided in Pamphlet No. 23, issued by the Association of Ameri- can Railroads. A.A.R. Pamphlet No. 23 provides general rules which must be observed such as protection of car doorway, weight arrangement of load, load limits, protection of car floor, and securing of load. Instructions and illustrations are given for loading and brac- ing of both floating loads and stationary loads. Reference is made to sheets, coiled steel, bars, round steel, rods, shafting, tin plate, and steel discs or circles. gr The American Iron and Steel Institute has issued two pamphlets dated August 1946, one entitled "Packaging and Loading Methods for Domestic Shipments of Drs and Shapes" and the other "Packaging and Loading Hethods for Domestic Shipments of Flat-rolled Steel Products". The pamphlet on bars and shapes is in two parts. Part I covers hot-rolled carbon and alloy steel bars and bar-size shapes. Part II covers cold-finished carbon and alloy steel bars and bar-size shapes. Part I states the greater tonnage of hot-rolled bars and bar- size shapes comprises a raw material to be further processed by the purchaser. Simple methods of packaging and loading are preferred and the major consideration is prevention of physical damage in transit. The consumer also wants the simplest packaging and bracing to facilitate disposal of these materials. Reference is made to A.A.R. loading rules. Provisions include · # 228 marking, counting and weighing, standard and special packaging practices, weather protection, and typical car loading practices. Part II states that cold-finished bars are among the most highly finished products of the steel industry, and that packaging and loading methods are very important. Instructions similar to these in Part I are then given. The American Iron and Steel Institute pamphlet on packaging and loading methods for domestic shipments of flat-rolled steel products is separated into four parts. Part I covers carbon steel sheets; Part II cold-rolled carbon steel strip; Part III hot-rolled carbon steel strip; and Part IV tin mill products. This pamphlet gives instructions for packaging and loading the products mentioned. In addition skid systems are described and illustrated. In loading closed cars it is stated that for general efficiency and protection against damage, full floating loads are preferable. In Part IV covering tin mill products, mention is made that terms used to describe shipping practices and units of tin mill products are largely traditional, and in most instances, are not interchangeable among products. Definitions of the common terms in use are given. Among these are "package", which is a unit consist- ing of 56, 112, or 224 sheets, depending on the net weight of the product. In modern practice with mechanical handling equipment it is customary to combine several packages into a unit, the most com- mon of which is known as the standard ten-package unit. A "base box" is the estimative unit of area, 112 sheets 1x20 inches. Plat- forms used in loading tin mill products are described and illustrated. . { 2. } APPENDIX A PIG IRON, FERRO-ALLOYS, AND STEEL INGOT PRODUCTION DISTRICTS AND POINTS COMPRISING THESE DISTRICTS DISTRICT 1 Pittsburgh Chicago Cities Comprising District Aliquippa Ambridge Beaver Falls Brackenridge Braddock Braeburn Bridgeville Butler Carnegie Clairton Donora Duquesne Etna Homestead Johnstow Latrobe McKeesport Indland Lonaca Monessen Munhall Neville Island Cakmont Pittsburgh Rankin Vandergrift Washington "est liomestead Chicago Chicago Heights Duluth East Chicago Fort Wayne Gary Indiana Harbor Kokomo Milwaukee Pa. Pa. Pa. Pa. Pa. Pa. Pa. Pa. Pa.. Pa.. Pa. Pa. Pa. Pa. Pa. Pa. Pa Pa. Pa. Pa. Pa.. Pa. Pa. Pa. Pa. Pa. Pa. Pa. 229 Ill. Ill. Ilinn. Ill. Ind. Ind. Ind. Ind. Wis. 230 1 Chicago J continued Cities Comprising District New Castle South Chicago Sterling Youngstown ↓ Campbell Canton Farrell Hubbard Lowellville Mansfield Massillon Sharon Sharpsville Struthers Warren Youngstown Philadelphia Baltimore Bethlehem Birdsboro Burnham Chester Claymont Coatesville Conshohocken Harrisburg Ivy Rock Palmerton Philadelphia Phoenixville Reading Roebling Sheridan Sparrows oint Steelton 2. Swede land. · Trenton Cleveland Cleveland Lorain Ind. Ill. Ill. Ohio Ohio Pa. Ohio Ohio Ohio Chio Pa. Pa. Ohio Ohio Ohio id. Pa. Pa. Pa. Pa. Del. Pa. Pa. Pa. Pa. Pa. Pa. Pa. Pa. H.J. Pa. Md. Pa. Pa. N.J. Chio Ohio 한 ​+ Buffalo Wheeling South Detroit Cities Comprising District Buffalo Dunkirk Erie Irvine Lackawanna Lockport North Tonawanda Tonawanda Benwood Hartins Ferry Mingo Junction Steubenville Toronto Weirton Wheeling Anniston Atlanta Birmingham Ensley Fairfield Gadsden Knoxville Lyles-Trigley Lynchburg North Birmingham Rockdale Rockwood Woodword Dearborn Delray Detroit Ecorse Ferndale Newberry River Rouge Royal Oak Toledo } N.Y. N.Y. Pa. Pa. N.Y. N.Y. N.Y. N.Y. W.Va. Ohio Ohio Ohio Ohio W.Va. W.Va. Ala. Ga. Ala. Ala. Ala. Ala. Tenn. Tenn. Va. Ala. Tenn. Tenn. Ala. Lich. Mich. Mich. Mich. Kick. Mich. Mich. Lich. Ohio 231 • ८ West Cities Comprising District Daingerfield Texas 1 East Denver Emeryville Ft. Worth Fontana Geneva Houston Ironton Los Angeles Niles Pampa Pittsburg Portland Pueblo Provo Sand Springs San Francisco Ohio River Seattle Torrance Tulsa Ashland Covington Hamilton Jackson Middletow Newport Portsmouth St. Louis Alton Granite City Kansas City Peoria St. Louis Bridgeport Cortland Everett Harrison Phillipsdale Syracuse Troy Tatervliet Worcester Colo. Calif. Texas Calif. Utah Texas Utah Calif. Calif. Texas Calif. Ore. Colo. Utah Okla. Calif. Wash. Calif. Okla. Ky. Ky. Ohio Ohio Ohio Ky. Ohio Ill. Ill. Mo. Ill. Mo. Conn. H.Y. lass. N.J. R.I. N.Y. N.Y.. I.Y. Mass. 232 233 LOCATION OF STEEL INGOT PRODUCING POINTS WITH NAME OF OWNER AND ANNUAL INGOT CAPACITY AS OF JANUARY 1, 1945 Pennsylvania City or Torm Aliquippa Aliquippa Braeburn Burnham Butler Carnegie Clairton Coatesville Donora Duquesne Erie Erie Farrell APPENDIX B Ambridge Byers Company, A.M. Beaver Falls Babcock & Tilcox Tube Co. Bethlehem Bethlehem Steel Company 2,345 Brackenridge Allegheny Ludlum Steel Corporation? 260 Braddock Carnegie-Illinois Steel Corporation Braeburn Alloy Steel Corporation Bridgeville Universal-Cyclops Steel Corporation Harrisburg Harrisburg Irvine Ivy Rock Johnstown Johnstown Owner Vulcan Crucible Steel Co. Jones & Laughlin Steel Corporation Standard Steel Works American Rolling Hill Co. Union Electric Steel Corporation Carnegie-Illinois Steel Corporation Lukens Steel Company American Steel & Tire Co. U.S. Steel Corp. Carnegic-Illinois Steel Corporation Erie Forge & Steel Co. Erie Forge Co. Carnegie-Illinois Steel Corporation Harrisburg Steel Corp. Central Iron & Steel Co. National Forge & Ord- nance Company Tons (000 omitted) Annual Ingot Capacity Electric and DODA Open Hearth Bessemer Crucible Total 1,182 75 1,625 1 170 591 805 6211 842 1,9711 129 80 1,050 101 336 Alan Wood Steel Company ·550 Bethlehem Steel Company 1,640 Carnegie-Illinois Steel Corporation 19 582 !!! 672 LATE THE I 260 10 1 75 50 158 135 21 54 XX 25 !!! 173 I TI I 20 1 1 25 นา 5 10 1,764 150 50 2,503 395 2,297 21 54 170 591 25 805 624 842 2,147 129 80 1,050 101 336 25 550 1,900 21 4. City or Town Latrobe Latrobe Latrobe LicKeesport McKeesport Midland Monaca Monessen Munhall Oakmont Pittsburgh Pittsburgh Pittsburgh Pittsburgh Pittsburgh Steel Co. Carn.-Ill.Steel Corp. Edgewater Steel Co. Philadelphia Disston (Henry) & Sons, Inc. Philadelphia Midvale Co. Phoenixville Phoenix Iron Co. Reading Steelton • Campbell Canton Canton Canton Owner American Locomotive Co. Railway Steel & Spring Division Cleveland Cleveland Lorain Bethlehem Steel Co. Vandergrift Carn.-Ill.Steel Corp. Washington Jessop Steel Co. W. Homestead lesta Machine Co. Total Pennsylvania Vanadium-Alloys Steel Co. Latrobe Electric Steel Co. Firth-Sterling Steel Co. National Tube Co. 900 Crucible Steel Co. of Amer. 806 Colonial Steel Co. Ohio Tons (000 omitted) Annual Ingot Capacity Electric and Open Hearth Bessemer Crucible Total 103 Youngstown Sh.& TubeCo. Barium Steel Corp. Republic Steel Corp. Timken Roller Bearing Co. Tirken St.Cube Div. 431 231 Crucible Steel Co. of Amer. 14 Crucible Steel Co. of Amer. Heppenstall Co. LO Jones & Laughlin St1.Corp.1,896 Carpenter Steel Co. [[ 1,072 4,732 Jones & Laughlin Steel Republic Steel Corp. National Tubo Co. Sharon Steel Corp. Empire Steel Corp. Republic Steel Corp. Lowellville Mansfield Massillon American Rolling Hill Co. Thecling Steel Corp. Middletown Portsmouth Steubenville Wheeling Steel Corp. Toronto Follansbee Steel Corp. 11:0 740 500 85 26,218 1,212 50 480 · 202 1,020 1,570 1,350 600 3419 610 894 ·616 1,008 126 1 1 1 1 1 300 F……………ETEL 336 1 1 1 1 1 240 It I 594 12 12 18 111111 1 228 7 1 1 1 25 88 38 4* 3 2: 75 75 740 500 50 105 2,150 1,313 29,681 1 1 50 20 1 1 965 345 7 ܐ 1 36 I 234 54 1 1 103 12 12 18 1,200 1,034 7 1,072 4,732 10 25 519 231 182 Į · 43 2,234 1,452 50 1,445 547 1;027 1,570 1,944 636 349 610 948 ·616 1,008 126 24 } City or Town Warren Warren Youngstown Youngstown Youngstown Total Ohio Owner E. Chicago Young Sheet & Tube Co. E. Chicago Defense Plant Corp. Ft. Wayne Joslyn lifg.& Supply Co. Gary Corn.-Ill.Steel Corp. Indiana Hbr. Inland Stecl Company Kokomo New Castle Sterling So.Chicago So.Chicago So.Chicago So.Chicago Copperwold Steel Co. Republic Steel Corp. Republic Steel Corp. Carn. -Ill.Steel Corp. Young. Sheet & Tube Co. Total Indiana Buffalo Cortland Dunkirk Lackawanna Lockport Syracuse Indiana Continental Steel Corp. Ingersoll St.& Disc.Co. Total Illinois Illinois Alton Laclede Steel Co. Ch. Heights Amer. Locomotive Co. Railway St.Spring Div. Columbia Tool Steel Co. Ch. Heights Granite City Granite City Steel Co. Peoria Keystone Steel & Wire Co. Northwestern St.& Wire Co. Republic Steel Corp. Carn.-111.Steel Corp. isconsin Steel Go. Defense Plant Corp. New York Republic Steel Corp. Wickwire Brothers Tons (000 omitted) Annual Ingot Capacity Electric and Open Hearth Bessemer Crucible Total · 950 1,650 1,560 1,104 15,351 1,116 5,719 3,1:00 354 10,599 Allegheny Ludlum St.Corn. Bethlehem Steel Co. Simonds Saw & Steel Co. Crucible St. Co. cf Amer. 326 78 703 302 1;131 3,755 900 7,195 850 38 3,120 1 1 700 784 330 IIIIII 2,350 2,344 1,10/1 2,318 1,728 19,397 330 1111111 500 1 1 500 321 ווווו! ! ! ! } 1,4/16 120(a) 120 38 - 38 1 1 1 LIFI 7 364 24 24 182 11,111 321 170 270 235 848 80(b) Ilm! 33 دیا 321 ·950 22 24 5,719 3,400 326 78 7 703 302 321 1;301 4,525 900 80 8,543 850 38 33 3,120 22 24 236 City or Town Syracuse Tonawanda Tonawanda Watervliet Total New York Anniston Birmingham Ensley Fairfield Gadsden Maryland Rustless Iron & Steel Baltimore Sparrows Pt. Bethlehem Steel Co. Total Haryland Owner Dearborn Detroit Crucible St. Co. of Amer. Allegheny Ludlum St.Corp. Wickwire Spencer Steel Allegheny Ludlum St.Corp. Detroit Ferndale Total Alabama Berwood Weirton Total Michigan Alabama Michigan Total Test Virginia Wheeling Steel Corp. National Steel Corp. Weirton Steel Co. Tons (000 omitted) Annual Ingọt Capacity Electric and Open Hearth Bessemer Crucible Total 54 Kilby Steel Co. Connors Steel Co. Tenn. Coal, Iron & R.R.Co.1,568 Tenn.Coal, Iron & R.R.Co.1,092 Republic Corp. 180 4,188 1 3,835 3,835 Ford Motor Co. 770 National Steel Corp. Great Lakes Steel Corp. 2,050 Rotary Elec. Steel Co. Allegheny Ludlum St.Corp. Forging & Casting Div. West Virginia 54 715 3,429 2,820 1,850 1,850 1. I 1 I 240 24:0 1 1 1 1 1 ││ 336 336 25 162 11 1111 20 1 1 1 80 197 170 3 370 I 1 I 54 4 180 25 4,350 בב: 4,075 4,189 74 · 60 1,568 1,092 715 3,509 967 2,050 170 3 3,190 336 1,850 2,186 · } 3 City or Town Fontana Los Angeles Niles Oakland Pittsburg So. San Francisco Torrance Torrance Geneva d Pueblo Total California Duluth Owner Ft. Worth Houston Pampa Total Texas Kaiser Co., Inc. Bethlehem Steel Co. Pacific States St. Corp. Judson Steel Corp. Columbia Steel Co. Bethlehem Steel Co. National Supply Co. Columbia Steel Co. California Ashland Newport Total Kentucky Utah Geneva City Steel Co. Amer.Rolling Hill Co. Andrews Steel Co. Amer. Steel & Tire Co. U.S. Steel Corp. F Harrison Roebling Total New Jersey Minnesota Texas Tons (000 omitted) Annual Ingot Capacity Electric and Open Hearth Bessemer Crucible Total Colorado Colorado Fuel & Iron Corp1,272 Kentucky 720 117 77 393 235 Texas Steel Co. American Rolling Hill Co. Sheffield Steel Corp. Cabot Shops, Inc. 202 1,744 1,233 783 413 1,196 610 466 466 New Jersey 30 Crucible Steel Co. of Aner. Roebling's (John A.) Sons Co.253 283 111111 1 1 [ [ [ 1 1111 1 1 1 30 89 24 46 9 198 1 I 1 1 1 22 12 34 180 237 180 750 117 89 77 417 235 116 211 1,9412 1,283 1,272 783 413 1,196 610 22 466 12 500 210 253 463 1 238 City or Town Claymont Worcester ¡issouri Kansas City Amer.Rolling Mill Co. Sheffield Steel Corp. Washington Seattle Seattle Seattle Total Washington Bridgeport Atlanta Owner 瀛 ​Worth Steel Co. Knoxville Delaware Bethlehem Steel Co. Northwest St.Rolling Hills Isaacson Iron Works Stanley Works Amer.Steel & Tire Co. U. S. Steel Corp. Total Oklahoma Hassachusetts Connecticut Georgia Atlantic Steel Co. Oklahoma Sand Springs American Rolling Hill Co. Sheffield Steel Corp. Hinderliter Tool Co. Tulsa Phillipsdale Washburn Wire Co. Rhode Island Oregon Portland Oregon Steel Mills Tons (000 omitted) Annual Ingot Capacity Electric and Open Hearth Bessemer Crucible Total 460 460 Tennessee Knoxville Iron Co. 426 210 B 210 280 188 152 52! 54 GO I I III 1| 1 1 I 1 1 1 1 1 { I 32 104 136 1 1 I 1 9 ୨ I 60 38 426 210 32 104 346 280 188 154 54 ୨ 63 60 60 38 + Virginia 239 City or Town Owner GRAND TOTAL * Newport News Newport News Ship- building & D.D. Co. X x - Less than 500 tons * Crucible Ingots Tons (000 omitted) Annual Ingot Capacity Electric and Open Hearth Bessemer Crucible Total 8 1 Source: American Iron and Steol Institute. 8 84,171 5,874 5,460 95,505 (a) Idle capacity formerly included with Youngstown Sheet & Tube Co. (b) Idle capacity formerly included with Republic Steel Corp. 240 { LOCATION OF BLAST FURIACES PRODUCING PIG IRON AND FERRO-ALLOYS WITH NAME OF OWNER AND ANNUAL CAPACITY AS OF JANUARY 1, 19. City or Town Chester Clairton Owner Aliquippa Jones & Laughlin St. Bethlehem Birdsboro Braddock Bethlehem Steel Co. Brooke Iron Co. Carn.-Ill.Steel Corp. Pgh.Ferromanganese Co. Carn.-111.Steel Corp. U.S. Steel Corp. Carn.-Ill.Steel Corp. Interlake Iron Corp. Carn.-Ill,Steel Corp. Carn.-Ill.Steel Corp. Bethlehem Steel Co. National Tube Co. Crucible Steel Co. Donora Duquesne Erie Etna Farrell Johnstown NcKeesport Sheridan Steelton Swede land Total Pennsylvania Campbell Canton APPENDIX C C Midland Pittsburgh Steel Co. Lionessen Neville Isl. Pgh. Coke & Iron Co. Palmerton New Jersey Zinc Co. Pittsburgh Jones & Laughlin Steel Rankin Carn.-Ill.Steel Corp. Riddlesburg Defense Plant Corp. Sharpesville Pgh. Coke & Iron Co. Sharpesville Shenango Furnace Co. E.J. Lavino & Co. Bethlehem Steel Co. Alan Wood Steel Co. Cleveland Cleveland Cleveland Hubbard Jackson Jackson Lorain Pennsylvania Ohio Young.Sheet & Tube Co. Republic Steel Corp. Republic Steel Corp. Jones & Laughlin Steel U.S. Steel Corp. Young. Sheet & Tube Co. Globe Iron Co. Tons (000 omitted) Annual Capacity Coke Jackson Iron & Steel Co. National Tube Co. Pig 1,800 1,920 138(1) 3,012 127(1) 529 150 1,578 165(1) ·511 1,494 1,278 532 537 290(1) 1,800 2,119 70(1) 151(1) 439(1) 792 455 20,187 1,451 235 1,690 480 530 200 1 1,764 Ferro- Alloy (2) Pig TITI 77 UT} | 145 180 11 135 (1) 1111 36(1) 573 !!!!! Charcoal 84(1) 90 (1) EITTI…………ETETTIILITI 1 ! [ 11 !!! | Total 1,800 1,920 138 3,012 127 606 ·4:50 1,578 165 115 ·511 13674 1,278 · 532 537 290 135 1,800 2,119 70 151 439 36 792 455 20,760 1,451 235 1,690 480 530 200 84 90 1,764 Sv 241 City or Town Owner Lowellville Sharon Steel Corp. Martins Ferry Wheeling Steel Corp. Massillon Republic Steel Corp. Mingo Jct. Carn.-Ill.Steel Corp. New Miami Amer. Rolling Hill Co. Portsmouth Wheeling Steel Corp. Steubenville Wheeling Steel Corp. Struthers Toledo Struthers Iron & Steel Interlake Iron Corp. Republic Steel Corp. Young. Sheet & Tube Co. Carn. -111.Steel Corp. Republic Steel Corp. Youngstown Youngstown Youngstown Warren Total Ohio E. Chicago Gary Indiana Hor. Inland Steel Co. Total Indiana Chicago S. Chicago S. Chicago S. Chicago Indiana Young. Sheet & Tube Co. Carn.-Ill.Steel Corp. Buffalo Buffalo Illinois Young.Sheet & Tube Co. Interlake Iron Corp. Corn.-Ill.Steel Corp. Wisconsin Steel Co. Granite City Koppers United Co. Total Illinois New York Hanna Furnace Co. Republic Steel Corp. Lackawanna Bethlehem Steel Co. Tonawanda Viclaire Spencer Steel No. Tonawanda Tonawanda Iron Corp. Troy Republic Steel Corp. Total Hew York Pig Tons (COO omitted) Annual Capacity Coke 174 152 235 788 509 258 560 ∞.181(1 ·520 (1) 1,612 502 1,838 450 14,239 ·610 4,166 2,236 7,021 682; ·520 (1) 3,635 720 427(1) 5,986 780 · 615 2,556 390 171 (1) 235 4,747 ווווווווו!!!י Ferro- Alloy (2) Pig Total 174 11 1 !!!!! 1 וווּ דוּ Charcoal 1 ! ! ! ! 1111111 ! ! ! 1 1 1 1 1 !!!!!! 174 152 235 708 589 258 560 181 · 520 1,642 · 502 1,838 450 149413 -619 4166 2,236 7,021 684 -520 3,635 720 427 5,986 780 ·615 2,556 390 171 235 4,747 242 City or Town Birmingham Birmingham Ensley Fairfield Gadsden Holt Woodward & Iron Co. N.Birmingham Sloss-Sheffield Steel & Iron Co. Total Alabama Benwood Weirton Owner • Republic Steel Corp. Sloss-Sheffield Steel Sparrows Pt. Bethlehem Steel Co. Dearborn Detroit Newberry Total Michigan Geneva Provo Total Utah Alabama Ashland Total Test Virginia Tenn.Coal,Iron & R.R.Co.1,348 Tenn. Coal, Iron & R.R.Co. Republic Steel Corp. Tenn. Coal, Iron & R.R.Co. Woodward Iron Co. Maryland Michigan Wheeling Steel Corp. National Steel Corp. Utah Tons (000 omitted) Annual Capacity Geneva Steel Co. Columbus Steel Co. Coke Pig Ford Motor Co. 504 Great Lakes Steel Corp. 1,100 Newberry Lumber & Chem. West Virginia Kentucky Amer.Rolling Mill Co. 420 281(1) 105(1) 985 490 526(1) 4,155 2,712 1,604 · 202 1,200 1,402 1,150 201 1,354 774 1 Ferro- Alloy (2) Pig Total 420 281 · 158 1,379 985 490 52 526 4,291 53 (1) 31 11 52 1 136 } | | | | I [ I 1 ! 1 I Charcoal ▬▬▬▬▬▬▬▬▬| 1 I 32 (1) 32 || 1 1 1 1 1 1 2,712 ·504 1,100 32 1,636 - · 202 1,200 1,402 1,150 204 1,354 774 * • City or Town Pueblo Fontana Owner Everett Duluth West Duluth Total Minnesota Colorado Fuel & Iron Corp. Colorado U.S. Steel Corp. Interlake Iron Corp. Texas Daingerfield Lone Star Steel Co. Minnesota Kaiser Co., Inc. Rockdale Rockwood Wrigley Total Tennessee California Mystic Iron Works TOTAL UNITED STATES Massachusetts Tennessee Products Corp. Tennessee Products Corp. Tennessee Products Corp. Tennessee Virginia Lynchburg E. J. Lavino Co. Pig Tons (000 omitted) Annual Capacity Coke 630 442 127(1) 569 400(1) 389 176(1) | || | | 66,3115 * Source: American Iron and Steel Institute. Ferro Alloy (2) Pig ! 1 71 1 25 (1) 116(1) Charcoal 990 36(1) (1) Merchant Plants. (2) These furnaces make ferro-alloys and not pig iron. 1 11 1 1 1 I I ! 24 (1) 24 1 243 Total 630 442 127 569 400 389 176 25 4.6 24 95 36 56 67,391 I ¿ 244 · AMERICAN IRON AND STEEL INSTITUTE Annual Statistical Reports Basing Points and Competition in Steel (1935) Directory of the Iron and Steel works of the United States and Canada, 1945 Edition Steel Facts - Published Irregularly 1934 to date The Picture Story of Steel ASSOCIATION OF ALERICAN RAILROADS RAILROAD COMITTEE FOR THE STUDY OF TRANSPORTATION - SUBCOMMITTEE FOR ECONOMIC STUDY Alloying Elements and Coating laterials Group 1 - W. C. Curd, September 1945 Fluxing and Refractory Materials Group 1. C. 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UNITED STATES NATIONAL RECOVERY ADITHISTRATION Operation of the Basing Point System in the Iron and Steel Industry, Washington, 1935. 247 UNITED STATES STEEL CORPORATION T.N.E.C. Papers. Pamphlets and Charts submitted by United States Steel Corporation to the Temporary National Econ- omics Committee. 1940 - three volumes. Contents I Economics and Related Studios; II Chart Studies; and III The Basing Point lethod. United States Steel News - Honthly 1936 to date. Kate -.V H WORTHING, MARION Postwar Problems of the Steel Industry, Staff Report of Industrial Section, National Resources Planning Board, June 1943. Pla о O O O C UNIVERSITY OF MICHIGAN 3 9015 02113 3783 Transo. HE 2321 . I7 A84 02609 JAN 28 Assn.of Am. Railroads. Railroad Committee for the Study of Transportation. The iron and steel industry. BALD I DATE DUE :