Steel, Film

As everyone knows, U. S. steel makers may not combine to control the domestic market. They may combine, however, under the provisions of the Export Trade act (Webb-Pomerene law), to undersell foreign mills in foreign markets. Last week, the two principal producers, U. S. Steel Corp. and Bethlehem Steel Corp., controlling over 75% of the American export trade, proposed through their export subsidiaries* the formation of an association to market all U. S. iron and steel products abroad.

Surprised, financial writers recalled that the experiment had been tried before and had failed. Eight years ago, independent companies formed the Consolidated Steel corporation to handle foreign orders. American exports promptly declined. The corporation disbanded. But the alert writers also noted that the mighty U. S. Steel Corp. had not joined that earlier combine, is now uniting with other steel makers for the first time in its history.

Officials proving uncommunicative, it was permissible to conjecture as to the motive behind the unexpected move. The German iron and steel industry, it was remembered, has made a startling recovery since the War, has approached pre-War production levels. Pig iron production, which fell from 1,374,400 tonsf in 1913 to 404,700 in 1923, rallied to about 1,100,000 in 1927. Ingots and castings production in the same years dropped from 1,445,700 to 517,000, recovered to more than 1,300,000. Exports fell to 110,000,/- rose in March, 1928, to 412,100.

Steel makers, led by Eugene Gifford Grace, president of Bethlehem, have seen in this recovery a potential threat to U. S. industry. By consolidation, they may hope to eliminate costs of maintaining separate foreign offices, prevent competitive price-cutting for European business. . . .

Creation of a European film cartel to battle the U. S. invasion, long held a possibility, last week became a reality. Herr Klitsch, director-general of the famed UFA, is the organizer of the cartel, which includes the Institute Nazionale Luce of Rome and, possibly, French producers.

* U. S. Steel Products Co., Bethlehem Steel Export Corp.

/-Monthly average.