Steel industry

“ The American steel industry, as you know, has been struggling through hard times in recent years. The steel companies and their workers have been trying hard to save their industry by cutting costs and modernizing their aging plants and equipment. ”

“ This was not only because of the American Steel Company’s competition; the steel industry as a whole was running wild. There was no controlling it. For a year or two the demand for steel would exceed the utmost supply at prices which made a steel mill more profitable than a gold pocket. Then new mills would appear everywhere at once and presently, although there never could be enough steel really, the bowl would slop over from sheer awkwardness. ”

“ Thus the last field of activity for the laborer and his shovel, in the iron-ore industry, has been usurped by mechanical devices. From the time the ore is taken [283] from the mine until it appears as molten metal from the furnaces, it is not touched except by mechanisms driven by steam, compressed air, or electricity. And yet, so rapid is the growth of the iron and steel industry that there is almost always a demand for more workmen. ”

“ The great East, with its railroad and manufacturing development, has been supplied with its steel—from Pittsburg. Now it is the West and South-west, and the Orient, to which our great volumes of steel trade will turn. It is Duluth’s chance. Because the ore is at her doors, she can turn out iron and steel cheaper than any other city in the world; and she is the nearest distributing point to the West. This movement to Duluth is inevitable. The world’s steel industry has been constantly moving and changing. ”

“ No matter how we try, probably none of us ever realizes the immensity and importance of the iron and steel industry with approximately 460 huge blast furnaces here, 5000 cast and malleable iron foundries, about 1000 Bessemer and open-hearth steel and some 3000 puddling furnaces, and the many thousands of factories which each day are turning the products of these into rails, plate, wire, pipe, and the infinitude of finished articles which enter into and are mighty factors of our civilization. ”

“ Our steel industry is thus another triumph of American inventive skill, made possible by the richness of our mineral resources and the racial energy of our people. An elementary scientific discovery introduced the great steel age. Steel, of course, is merely iron which has been refined—freed from certain impurities, such as carbon, sulphur, and phosphorus. We refine our iron and turn it into steel precisely as we refine our sugar and petroleum. ”

“ It is true that United States Steel might go into plate fabrication. The record shows nothing as to production or demand in the Consolidated trade area for plate fabricated articles. Nothing appears as to the number of producers of such goods in that territory. What we have said in other places in this opinion as to the growing steel industry in this area is pertinent here. Eastern fabricators will find it difficult to meet competition from western fabricators in the western market. Cheaper western rolled steel and freight rates are a handicap to eastern fabricators. ”

“ The expansion of the steel industry in the South is further limited by the fact that it is an agricultural, not an industrial, section. A steel mill does not, in the main, make products to be sold direct to the ultimate consumer. Its output must be manufactured by other companies into machinery, locomotives, and a thousand and one other things. Its customers are other industries, and there are comparatively few industries in the South. ”

“ One viewing the continuous activity at the mines, the building up of cities on the ranges, and the tremendous interests represented in the great shipping ports may forget that this is but one end of the gigantic industry which makes the United States the steel-maker for the world. ”

“ Germany and England were greater producers than America; but by the close of the century the annual output in the United States was above fifteen million tons as against England's ten and Germany's seven; and since 1900 this lead has been greatly increased. The steel industry has become so great, in fact, that it is "a sort of barometer of trade and national progress." ”

“ Commerce and transportation are dependent upon steel, and to-day there are employed in the iron and steel industry of this country, 1,426,014 workers.
The Making of Steel. The workshop of civilization is now on the west side of the Atlantic because of the vast manufacturing establishments producing steel on this side of the ocean. The so-called Bessemer process in making steel has brought about a change that is almost as revolutionary in its far-reaching results as any of the great revolutions in the past. ”

“ Yet all the time they attended strenuously to business. They were men of steel, physically and mentally powerful. Carousing was an emotional outlet. Gambling on the Stock Exchange was hardly more than pastime. Night and day they kept their eyes on that sign in the heavens.
They had delivered the steel age. The steel industry was their private possession to do with as they damn pleased. They could make a circus of it if they liked. They did. Their way with it had become a national problem. The steel industry was much too important to be conducted in that manner. ”

“ We still speak of boiler iron, railroad iron, iron ships, etc., but these names are reminiscent, for in the construction of modern boilers and modern ships, steel is used exclusively. In the past decade it is probable that no railroad rails even for the smallest and cheapest of tracks have been made of anything but steel.
The last half of the nineteenth century has been one of triumph of steel manufacture and production in America, and at the present time the United States stands head and shoulders above any other nation in this industry. ”

“ The history of the steel industry in America bristles thick with the names of millionaires who worked their way to fortune from the slag pile. And for every one9 of these there were many, whose names are forgotten, who sacrificed health, strength, and fortune in the mad fight for the wealth that poured in unstinted stream from the glowing furnaces of molten iron. The law of steel was essentially that of the survival of the fittest. ”

“ One naturally wonders how it is possible to mine and carry these ores to the shipping ports of Duluth, Superior, Two Harbors, Marquette, Ashland, Escanaba, etc., put them aboard ore carrying boats, transport them by steam power to Milwaukee, Chicago, Gary, Detroit, Cleveland, Pittsburg, Buffalo, and the many other iron centers and convert them into iron and steel at a profit. This, of course, is only possible because of the inventive genius of man. For every operation ingenious machinery has been constructed which has brought the cost of such operations to its lowest terms. ”

“ A trip through one of the large steel plants with its furnaces, its blooming and slabbing mills, its rail, plate, structural and rod mills is one of the most interesting that can be taken. If the visitor is not afraid of smoke or dust or of what seems to him an uncomfortable heat 276on a warm day he will discover new worlds. No particular attention is paid to the casual visitor to the plant, but, for those who show real interest, steel men have a warm welcome, from manager to the sample boys. ”

“ There was of course labor. But labor no more invents the tools that are the means to economic conquest than soldiers invent the weapons of war, and has generally less understanding of ends than soldiers have of the strategy.
The men controlling the steel industry came to be grouped in three main divisions. There was the original Pittsburgh group, under the leadership of a round head named Carmichael; it had founded itself in iron and then gone into steel. It was steady and powerful and had gained some influential support in Wall Street. ”

“ The steel companies which are located here do not have to bring their materials laboriously from a distance but possess, immediately at hand, apparently endless store of the three things needful for making steel—iron ore, coal, and limestone. All these territories have their personal romances and their heroes, many of them quite as picturesque as those of the Pittsburgh group.
It is doubtful indeed if American industry presents any figure quite as astonishing and variegated as that of John W. Gates, the man who educated farmers all over the world to the use of wire fencing. ”

“ Even though on paper conditions may seem to be favorable in outlying territories for the development of additional plants, this development is often held back by competition from the established centers. On the west coast of the United States, there are raw materials for an iron and steel industry and there has been discussion for years as to the possibilities of starting a successful large scale steel industry. The consuming power of the local population for all kinds of iron and steel would seem to be great enough to warrant such action. ”

“ The top part which contains the pipe is cut off and goes back to the furnace to be remelted. It is termed “discard.”
The big steel makers themselves shape most of their steel into such finished products as rails, plates, rods, and wire. Some of it is by them reduced from the ingot into intermediate “blooms,” “billets,” “bars,” etc., and sold in this form for the manufacture of axles, drop forgings and the hundreds of products which we each day see. ”

“ In that case United States Steel-the giant of the industry-was allowed to fasten its tentacles tighter on the economy by acquiring the assets of a steel company in the Far West where competition was beginning to develop. ”

“ Clean-up man in the pit was my first job, which I held until I passed to third-helper on the open-hearth. Later I worked in the cast-house, became a member of the stove-gang, and at length achieved the semi-skilled job of hot-blast man on the blast-furnace. I acquired the current Anglo-Hunky language and knew speedily the grind and the camaraderie of American steel-making. In these chapters I have put down what I saw, felt, and thought as a steel-worker in 1919.
Steel is perhaps the basic industry of America. ”

“ If the present situation continues, it may place the American steel industry at risk by undermining the ability of American steel producers to continue investment and research and development, and by reducing or eliminating the jobs needed to maintain a pool of skilled workers essential for the continued development of advanced steel manufacturing. ”

“ From the day when steel was made “by the spoonful” to the present, when the great “Steel Trust,” with its thirty-eight Bessemer converters and 334 open-hearth furnaces, is capable of producing some 65,000 tons every twenty-four143 hours, is a far cry reckoned in terms of industrial development short as the reckoning may be in years. The pioneers of steel never dreamed of the enormous proportions to which the industry would grow, the innumerable uses to which the metal would be put.
What is steel? Iron that has been refined and hardened by processes in which heat plays the most important part. ”

“ Labor in making steel will give us [Pg 525] as many tons of it in a year as the same labor would give us if spent in the raising of wheat to be exchanged for foreign steel. The duty on steel, if this is the case, has become inoperative, in the sense that it no longer acts to save from destruction the steel-making industry. It is perniciously operative in another direction, for it is an essential protector of a quasi-monopoly in the industry; and this illustrates what often happens in cases in which the infant industry argument proves to be well grounded. ”

“ We have here the problem of bigness. Its lesson should by now have been burned into our memory by Brandeis. The Curse of Bigness shows how size can become a menace-both industrial and social. It can be an industrial menace because it creates gross inequalities against existing or putative competitors. It can be a social menace- because of its control of prices. [2] Control of prices in the steel industry i powerful leverage on our economy. For the price of steel determines the price of hundreds of other articles. ”

“ Of recent years, mild steel has been the great competitor of wrought iron. With marvelous energy, skill, and much capital the manufacturers of Bessemer and open-hearth steels have adapted their products very well to the needs of the iron user, while the enormous tonnages turned out in short time by use of ingenious furnaces and other devices has resulted in a low cost of production. ”

“ How many Americans realize that steel was used even less in 1865 than aluminum is used today? Nearly all the men who have made the American Steel Age—such as Carnegie, Phipps, Frick, and Schwab—are still living and some of them are even now extremely active. Thirty-five years ago steel manufacture was regarded, even in this country, as an almost exclusively British industry. In 1870 the American steel maker was the parvenu of the trade. American railroads purchased their first steel rails in England, and the early American steel makers went to Sheffield for their expert workmen. ”

“ Conditions in the steel trade are not encouraging for the immediate future. The industry is apparently going through the period of deflation from a war to a peace basis just as are other industries all over the world, but while the immediate future is somewhat cloudy, the outlook for steel, if one looks ahead several years, is unquestionably bright. ”