Charles Schwab and Steel in Cambria County, Pa. (Part 2)
From: History of Cambria County, Pennsylvania
By: John E. Gable
Historical Publishing Company
Topeka-Indianapolis, 1926

The Modern Bethlehem Steel.

What is this Bethlehem Steel Corporation of which Cambria is a part? The capital invested in the steel industry in America is between $4,000,000,000 and $5,000,000,000. It employs half a million workers. Its ingot production in 1924 was approximately 38,000,000 gross tons and its total production had a value of $3,000,000,000, says Mr. Grace in giving Bethlehem stockholders a basis of comparison on which to measure the importance of Bethlehem properties Since the steel age dawned, about the middle of the nineteenth century, Mr. Grace points out, world consumption of steel has roughly doubled every ten years and there is every reason to believe that it will continue to grow.

The original Bethlehem plant was one of the earliest iron and steel plants in the United States. It was an important factor, though small. As the cost of assembling raw materials has always determined the location of iron and steel plants, the discovery of the ores in the Lake Superior region and their utilization in conjunction with the coal deposits near Pittsburgh transferred the leadership in the steel industry from the East to Pittsburgh. So the owners of the small Bethlehem plant, at the request of the United States government, decided in 1885 to develop an ordnance and specialty plant. For years it was engaged chiefly in the making of guns, shells and armor plate. When Bethlehem Steel Corporation, incorporated Dec. 10, 1904, under the laws of New Jersey, acquired the Bethlehem plant in 1905, the plant had a steel making capacity of 190,000 tons a year.

The Schwab plant early decided there was not sufficient demand for armor plate and war material to insure continued earnings on such work. Probably the armor plant developments at Homestead and Midvale affected the decision. The government support of war material makers was uncertain, at best. The Congress at any time was likely to disavow all obligations except on contracts for which appropriations had been made. At any rate, Bethlehem devoted itself to development along commercial lines to take advantage of the important eastern steel market. Foreign ores had become available and changes had occurred in economic conditions, says Mr. Grace, which enabled the assembling of raw materials on the east coast for the economical production of commercial steel near the markets of New York, Philadelphia, Boston and Baltimore. But to take advantage of this opportunity required the rebuilding of the entire structure of the Bethlehem Corporation, the acquisition of coal and ore supplies, both foreign and domestic, the diversification of products, the broadening of markets and the building, purchasing and remodeling of plants to manufacture steel.

How vigorously this plan is carried out is indicated by the fact that production in 20 years was multiplied 40 times. The ingot capacity had grown from 190,000 tons to 7,600,000 tons; the number of employees from 9,500 to 70,000; the value of properties from $28,000,000 to $450,000,000 (close to that fabulous figure Mr. Carnegie had given to Mr. Schwab to pass on to Mr. Morgan), and 92 per cent of the properties were being devoted to commercial steel production.

For ten years of this period of creation and growth, Mr. Schwab owned all of the Bethlehem stock and turned back into the plant all of the earnings. The present investment in plants for production of war materials is only one and one half per cent of the total property investment and is actually smaller than it was in 1913, although the 1913-1918 period of the World war intervened.

The plant at Bethlehem, as expanded and remodeled, is one of the largest commercial steel plants in the country. The Steelton plant, purchased from the Pennsylvania Steel Company, commenced operations in 1866 and in some respects was long a rival of Cambria Steel. The Maryland plant, purchased from the Maryland Steel Company, was more modern, having been started in 1891. The Lebanon plant, bought from the American Iron & Steel Manufacturing Company, had specialized in the manufacture of bolts, nuts, rivets and spikes since 1882. The Lackawanna plant had its beginning in 1903. The Coatesville plant, formerly owned by Midvale, had been in operation since 1896. Cambria Steel Company and before that Cambria Iron Company had been a leader in the manufacture of iron and steel products since 1852.

New properties, including Cambria, were acquired largely through issue of bonds and stock, but the cost of development and modernization has been paid for principally out of earnings. The depreciated value of Bethlehem properties has increased from less than $28,000,000 to over $450,000,000 and the cash expenditures for additions and improvements in 20 years have amounted to over $300,000,000.

Bethlehem's annual payroll is more than $120,000,000. When operating at capacity its total annual production has a sales value of more than $350,000,000.

Products Manufactured.
Agricultural steel and specialties-Standard and special shapes and sections for all purposes.

Architectural cabinet and mill work.

Automobile steel-Special steel for automobile forgings and machined parts; rim sections; spring and axle steel; brake drums.

Auxiliary locomotives.

Axles, steel-Passenger and freight car; engine and tender truck; driving; motor; electric and mine car, etc.

Bars and bands, iron-Refined and double refined; chain, stay bolt, special stay bolt, horseshoe and engine bolt iron; muck bar.

Bars and bands, steel-Bessemer, open hearth and electric; alloy, special and carbon; black as rolled, annealed, heat treated, cold drawn; S. A. E. specifications and special analysis, suitable for all purposes. Special sections either hot rolled or cold drawn.

Bars, concrete reinforcing-Plain, deformed and special reinforcing bars; wedge clamp joints.

Billets, blooms and slabs, steel-Bessemer, open hearth and electric; re-rolling and forging quality; alloy, special and carbon.

Blanks-Rolled steel blanks for gears, pistons, flywheels, double flanged track wheels, shaft couplings, pipe flanges, brake drums and other circular forgings.

Boilers-Steam boilers for land and marine service.

Boiler heads-Flanged and dished.

Boiler tubes-Genuine old-fashioned knobbled charcoal iron, lap welded; steel tubes, lap welded.

Bolts-All kinds: Plain and galvanized; machine and special; heat treated, simple alloy; Mayari steel frog, track and fitting-up bolts, stay bolts, hollow and solid.

Bridges and fabricated buildings-Designers, builders, fabricators and erectors of all types of bridges and steel structures. Buckle plates.

By-products - Benzol and its homologues, tar, ammonium sulphate, crude naphthalene, and copper pyrites.

Car building shapes-Beams, channels, anglesĄ bulb angles, Z-bars. Cars, steel (passenger and freight).

Car wheels-Rolled steel wheels for freight and passenger cars and engine and tender trucks; for electric, street, interurban, elevated and subway cars; for mine locomotives and mine cars, and cinder, ore and other industrial cars.

Castings-Carbon and alloy steel (open hearth, electric and con,- verter), Manganese steel, iron, brass and bronze; rough as cast or machined. Centrifugal cast bronze sleeves and liners.

Coal-By-product, gas and steaming.

Coke-Furnace, foundry and domestic.

Contra-propellers.

Deck machinery-Steam, electric, electric hydraulic and hand steering gears; steering gear transmissions; capstans, gypsies and windlasses (steam or electric driven); deck winches and mooring winches (steam or electric driven); coaling and hatch winches; hawser reels; chain stoppers. Drop forgings and upsetter forgings-Special designs, large and small sizes, in simple and alloy open hearth or electric steels, high speed and stainless steels, copper, brass, bronze and Monel metal. Forgings annealed or heat treated if desired. Eye bolts and hoist hooks carried in stock. Engines-Pumping engines for municipal purposes; blowing, producer gas and gas oil engines; Diesel oil engines for land and marine service; marine steam engines.

Ferro-Manganese.

Fire extinguishing systems-Bethlehem-Amdyco type.

Forgings-Hammered and hydraulically pressed; all sizes; solid and hollow; rough and finish machined; for marine and stationary engines, locomotives, machine tools; hardened steel rolls; weldless chambers for oil refineries, etc.

Frogs and switches-Frogs, switches, guard rails, crossings, switch stands, steam and street railway special work; Manganese trackwork. Fuel oil burning systems-Land and marine service.

Gears and pinions-Cut and cast bevels; spur bears with straight or herringbone cut teeth, any size; mill reduction gearing and pinions; bridge operating machinery.

Gold dredges.

Industrial and mine trackwork-Light rails, steel mine ties, frogs and switches for light rails, switch stands, rail braces, splice bars, track bolts and spikes.

Ingot moulds-All sizes. Botton and sprue plates and stools.

Machinery-Hydraulic presses, pumps, accumulators and intensifiers; plate bending rolls, planers, multiple drills, punches, large vertical boring mills; rolling mill machinery, heavy duty roll lathes; vulcanizing plates and presses; special machinery of all types and designs; mining and milling machinery. Auxiliary machinery for marine and land service, including -boiler feed pumps (steam-driven reciprocating and direct-connected turbine-driven and motor-driven centrifugal pumps); general service pumps; oil pumps; high pressure pipe line pumps; emergency bilge pumps; extraction or condensate pumps; air pumps; feed water heaters; feed systems; condensers; evaporators and distillers; ejectors; air compressors; hydro-kineters; augmenters; corrosion detectors.

Mine ties-Steel mine ties.

Motor truck wheels, rolled steel-Pressed and shaped from special Bethlehem I-beams.

Nuts-Hot and cold pressed; all sizes, shapes and standards; blank or tapped, cold punched, chamfered, trimmed and reamed; semi-finished; castle.

Oil separators.

Oil well equipment.

Ordnance-Material of every description.

Paraffine wax plant equipment.

Pig iron-Basic, Bessemer, semi-Bessemer, foundry, low phosphorus, malleable, malleable Bessemer and Maya.

Piling-Lackawanna steel sheet piling; straight arched and bent webs; fabricated corners; taper piles.

Plates-Universal and sheared; circular (heads) in all grades for all purposes; miscellaneous pressed work.

Pole line material-Black and galvanized

Pulverizers-For pulverizing coal and other materials.

Rails and accessories-Standard tee rails; girder, guard and high tee rails; light rails; splice bars, bolts, rail clips, spikes and tie plates. Rivets-Boiler, structural, ship, bridge, tank, tap.

Rolls-Carbon and alloy steel; chill and sand cast iron.

Shafts, forged-All kinds.

Sheet bars-Bessemer and open hearth.

Sheet steel-Black sheets; one pass cold rolled and box annealed; blued stove pipe stock; pickled and annealed; pickled, cold rolled and annealed; deoxidized. Blue annealed sheets; hot rolled, open annealed and roller leveled. Galvanized sheets; plain, corrugated, roll roofing and V-crimped.

Ship repairing-Facilities for drydocking and repairing merchant and naval vessels of all types. Diesel conversion.

Ships-Merchant and naval ships of all types.

Shipbuilding shapes-Ship channels and bulb angles.

Skelp-Universal and sheared.

Spikes-Steel and iron; standard railroad, screw railroad track, universal screw, boat, dock and wharf; pressed and rolled.

Stills, condensers, tanks and auxiliary equipment-for oil refineries.

Structural steel shapes-Bethlehem beams, rolled girder beams and rolled columns, plain and fabricated; standard beams, channels and angles, plain and fabricated; car and shipbuilding shapes, standard and special.

Tin plate-Coke tin plates; Black plates; enameling and galvanizing stock.

Tools-Rivet sets, punches and dies, chisel blanks and chisels; hot and cold friction saws; steel stamps; slitting shears, shear blades and special tools.

Tool steel-Bethlehem special high speed, carbon, finishing, nonshrinkable; rock and mine drill steel, solid and hollow; stainless steel; 25 per cent to 35 per cent nickel steel; permanent magnet steel; special tool steels.

Turbines-Curtis type marine turbines.

Turntables, railroad-Bethlehem twin-span; balanced and continuous turntables.

Wire-Plain, bolt, screw, extra soft rivet, hard bright nail and galvanized wire. Cambria barbless twisted and all styles of barbed wire, wire bale ties. Woven wire field and poultry fencing in all regular heights and spacings.

Wire nails-All kinds and sizes; smooth and barbed; light and heavy; common, galvanized, cement coated, annealed and bright; oval and flat head; diamond and chisel point; spikes; wire staples.

Wire rods-Basic and acid open hearth, and Bessemer.

The Plants Operated.

Bethlehem Steel Company, a subsidiary of Bethlehem Steel Corporation, operates the seven steel producing plants-Bethlehem, at Bethlehem, Pa.; Cambria, at Johnstown, Pa.; Coatesville, at Coatesville, Pa.; Lackawanna, at Lackawanna, near Buffalo, N. Y.; Lebanon, at Lebanon, Pa.; Maryland, at Sparrows Point, Md.; and Steelton, at Steelton, Pa. The policy is "to develop each plant to specialize so far as practicable on the steel products best suited to it, considering its physical layout, the supply of raw materials and the market which it serves."

The rebuilding program has included a revision of the methods of handling and storage of raw materials, the renewing and modernizing of coke ovens, blast furnaces, open hearths furnaces, rolling mills and their auxiliaries and the elimination of manually operated mills and appliances where mechanical, electric or automatic operation could be substituted. The elimination of man power has been remarkable.

In the latter part of 1925 and the early months of 1926 the improvement program was beginning to show results. The four new Gautier bar mills at the Cambria plant were put into successful operation, as well as a number of smaller auxiliary units. Two new structural mills, five new blowing engines for the blast furnaces, a rebuilt No. 1 open hearth consisting of 14 100-ton furnaces with an annual steel ingot capacity of 900,000 tons were finished at Lackawanna, as were the new wire, rod and nail plant, the new blooming mill and the additional open hearth furnaces at the Maryland plant.

The Bethlehem plant covers approximately 700 acres of land, extending along the Lehigh River for 3 1/2 miles, in three divisions, Saucon, Lehigh and Northampton. The Ingot capacity is 1, 452,000 tons. The principal products are Bethlehem special and standard structural shapes, bars and special sections of alloys and special steels, tool steels for every purpose, drop, hammered and pressed forging, castings of all kinds, ingot moulds, hydraulic and special machinery, gas engines and Diesel oil engines, structural steel fabrication and rolled steel motor truck wheels.

At the Saucon division the only mills of their kind in America roll wide-flanged structural sections and H columns, both the products and the rolling processes being patented. The Northampton division consists of 424 by-product coke ovens with a capacity of 5,000 tons of coke per day and the facilities for the recovery of by-products. The coke ovens produce 80,000,000 cubic feet of gas per day, the surplus over and above the gas required in the plants for fuel in ovens, furnaces and mills being sold in adjoining municipalities for domestic consumption.

Cambria plant at Johnstown has an annual ingot capacity of 1,700,400 tons, somewhat larger than Bethlehem. It is, says the official description, "one of the few steel making plants in the world where coal goes direct from the mine into the coke oven without storage or transportation. The new Gautier mills have a capacity of 60,000 tons per month of commercial bars, light structural material, mine track accessories, agricultural implement parts and standard and special sections for automobiles and for many other purposes.

One of the important units of the Johnstown plant is the railroad steel freight car department, at the Franklin works, which obtains its requirements of car wheels, axles, beams, plates and other steel materials from other departments within the plant. The capacity of the car department has been increased to over 1,500 cars per month by the rearrangement of the shops for quantity production and the construction of a new car paint shop. The steel car department, operating at capacity, will require 200,000 tons of the corporation's products a year. The story of properties as told to the stockholders also gives importance to the rod and wire department at Johnstown, with a capacity of 12,500 tons a month of rods, wires and wire products of all kinds, including nails and fencing. The Cambria plant also specializes in the manufacture of wheels and axles, rolled steel blanks for gears, flywheels and other circular forgings, sheet bars, slabs, billets, steel mine ties, structural shapes and steel plates.

Lackawanna plant, with an annual capacity of 1,635,000 tons, is not so close to coal as is the Cambria plant, but it receives its ore from the ranges in the Great Lakes district at low freight rates with an all-water haul direct from the upper lake ports to its own docks on Lake Erie. The water haul on the lakes, according to the experts, is now being made at about one-tenth the cost of transportation by rail. In shipping its products the plant has access through the Erie Canal to New York for local eastern and for foreign markets, economical delivery by rail to New England and by rail or water to Detroit, Cleveland, Chicago and the northwestern markets of St. Paul and Minneapolis. Important in the rebuilding of this plant is the change from steam and hydraulic power to electric power in the operation of its mills by using the low cost power from Niagara Falls, a few miles away. Hydro-electric power replaces large tonnages of coal. Among the new or rebuilt units, however, is the battery of by-product coke ovens, together with blooming mill, gas driven blowing engines, new structural and plate mills and an open hearth plant containing 14 100-ton furnaces. The use of gas from the new coke ovens effects a considerable saving in fuel. Mechanical and electrical labor saving devices are other economies in the production of rails, tie plates, special bars, railroad spikes, slabs, sheet bars, billets, steel plates, bars, structural shapes and steel sheet piling and fabrication of structural steel.

The Maryland plant is only 10 miles from Baltimore, on Chesapeake Bay, and the only large steel plant in the United States located at tidewater. It receives its ore and a large part of its coal and limestone by water and ships its products from its own docks by water to the Atlantic seaboard, the Pacific coast and foreign markets. It commands the growing steel markets of the South Atlantic coast. When acquired by Bethlehem in 1916 the plant's sole product was steel rails. Since then it has been completely redesigned and reconstructed with new or rebuilt blast furnaces, open hearths, coke ovens, ore and coal handling facilities and finishing departments, including the rail mill, making it one of the most modern steel plants in the country. All of the coke, iron and steel making units and auxiliary departments have been built with sufficient capacity to support additional finishing departments, such as the new wire, rod and nail department and the skelp for the projected new pipe plant.

The plant has an annual steel ingot capacity of 1,335,600 tons. The 36 tin plate mills have a capacity of 3,000,000 boxes annually. Most of this product is consumed in the local market. The principal products of the plant are rails, sheared and universal plates, sheet bars and billets, tin and black plate, plain and galvanized sheets and brass and iron castings.

Steelton plant, down river a few miles from Harrisburg, 25 miles from the Cornwall ore banks and with its own supply of limestone and dolomite, at the plant, has a steel ingot capacity of 770,000 tons annually. It was one of the first plants in the United States to produce rails and long enjoyed an established position in the manufacture of railroad supplies, rails, frogs and switches and switch stands. It now produces in addition commercial forgings, rough and machined, and carbon steel, manganese and alloy castings. It specializes in the fabrication and construction of steel bridges and buildings, notable among its products being the steel in the Municipal Building in New York City, the Gokteik viaduct in Upper Burma, India, the Queensboro bridge connecting New York City with Long Island City and the towers of the new Delaware River bridge between Philadelphia and Camden, N. J.

The Lebanon plant specializes in bolts, nuts, spikes, track bolts and similar products. It has been rebuilt, with increased capacity, since it was purchased from the American Iron & Steel Manufacturing Company in 1917. The main works alone at capacity can turn out 2,000,000 bolts, nuts and hardware specialties a day. Manufacture of galvanized pole line accessories which serve the telephone and telegraph industry is prominent. The Reading works makes high grade heat treated bolts and the Donaghmore division includes two blast furnaces and a battery of coke ovens.

Coatesville plant, with annual steel ingot capacity of 708,000 tons, and located on the main line of the Pennsylvania Railroad at Coatesville, about 25 miles east of Philadelphia, specializes in the manufacture of steel plates of special sizes and quality for use on locomotives, still bottoms, boilers and fire boxes. It also makes flanges and dished steel plate products, and charcoal iron and steel tubes for boiler and other purposes. Three modern blast furnaces supply the merchant pig iron trade in the Philadelphia district, as well as the iron for the open hearths in the plant. There are 18 modern open hearth furnaces. Boiler heads up to 12 feet in diameter are flanged here and an outstanding feature of the plant is the equipment for flanging and dishing steel plates. The 152-inch plate mill produces the specially wide plates for which there is a substantial demand for use in tank and boiler construction.

Source of Raw Materials.

The Juragua iron ore mines in Cuba and the McAfee limestone quarry in northern New Jersey, in 1905, were the only raw material properties owned by Bethlehem Steel Corporation. From this beginning various properties, advantageously located, have been gradually acquired until Bethlehem has reserves of iron ore, coal, limestone and other raw materials sufficient to supply the existing plants for more than 100 years. Much of the reserve values, as well as water rights, came to Bethlehem through acquisition of Midvale's ownership or leases of Cambria Steel and Cambria Iron Company products. The cost of transporting these materials to the steel producing plants is a large factor in determining their profitable use, or even in controlling the location of plants. The relative advantages of the Cambria County plants in this respect are fairly measure-able. They have always been great as to coal, limestone and water and good as to transportation rates and facilities, while as for labor supply, they have been excellent. As far into the future as one can see now, the permanence and continued growth of the Cambria plants depend very largely upon freight rates on incoming raw materials and outgoing finished or partly finished products.

For one ton of finished steel uses up about five tons of raw materials, including approximately two tons of coal, two tons of iron ore and one ton of limestone and other materials. Probably no steel plant in the United States has placed the bulk of its coal into coke ovens and furnaces more cheaply than Cambria, since on this it avoids freight charges. Short hauls on other raw materials served to keep down average costs.

As stated in the chapter on coal, the question of local taxes on what are actually reserve supplies for future use is important, as important, perhaps, in the long run, as cost of production on account of wage rates and mining conditions. Wages have had a tendency to equalize as between industries and as between competing plants in the same industry. It is to be expected that sometime the whole system of freight rates will also be equalized in some way. But systems of taxation are still fearfully and wonderfully made and the spread between high rates and low rates on coal of the same quality or about equal quality may be, and actually is in spots, sufficient to make carrying charges for taxes equal the present value of the coal in thirty or forty years. The steel maker usually figures this as an item merely in the cost of producing a ton of coal, if he figures it at all, but the factor is present just the same.

Not many years ago there seemed to be so much coal, so widely distributed, that the policy of Cambria Iron Company and some others in taking title to coal in large acreages was not adopted by some of its competitors. But as the value of fuel standards better appreciated in the steel plants, as the steel industry repeatedly felt the pinch of the effects of disturbances in the coal industry, and as steel tonnages doubling every ten years indicated the tremendous probable future fuel needs, steel reached out for gas coal, coking coal and steam coal in larger and larger immediate and reserve supply. As to other raw materials the expanding steel industry was more readily convinced than as to coal that the available supplies of high grade materials are limited and their values are steadily increasing.

Today Bethlehem owns coal properties in Pennsylvania and West Virginia aggregating 150,000 acres of suitable grades for iron and steel making, with an estimated reserve of 800,000,000 tons. The holdings range from the historic Rolling Mill Mine at Johnstown to virgin West Virginia tracts-from the oldest to the youngest in coal mine operation, but all producing mines modernly equipped and all mines and reserve tracts advantageously located with regard to proximity to Bethlehem's plants. No others, however, approach Cambria plants in this respect.

The total Bethlehem reserves of limestone exceed 155,000,000 tons, with the Bethlehem, Maryland, Coatesville, Lebanon, Steelton and Johnstown plants all splendidly supplied on short hauls from the quarries.

Johnstown mines of Bethlehem Corporation, with the Cresson section and Broad Top coals of Cambria, and the Slickville, Westmoreland County and Washington County mines, and the Wehrum and Heilwood mines of Bethlehem and holdings in Washington County, make up the bulk of Bethlehem Corporation's coal in Pennsylvania. Their importance in the coal industry is shown by the state reports for 1923, when Bethlehem Mines Corporation ranked third in tonnage to H. C. Frick Coke Company and Pittsburgh Coal Company, the one the leader in coke making and the other in commercial production of coal. The Bethlehem Mines Corporation tonnage for that year is given as 6,961,163-almost seven million net tons. But Bethlehem is also a large producer in the Northern West Virginia field and holds in reserve the Dickinson coal lands of Kanawha County, West Virginia. With much of the coal, the surface is owned and the water and timber resources are of great value.

Ore deposits owned or partly owned by Bethlehem are even more widely diversified and distributed than the coal and limestone. In addition to the old Cornwall and other eastern ore beds, and a number of mines in the Lake Superior district, extensive ore deposits are owned in Cuba, Chile and Mexico. All of the foreign properties are located at or near seaboard, where the ore is loaded direct into vessels for transport to Bethlehem's plants. Most Bethlehem ore mines are suitable for open pit mining, eliminating the difficulties, dangers and higher costs of underground operation. All raw materil plants are electrified or being electrified.

Bethlehem owned cars, locomotives, railroads and ships make up a great transportation system. They include for rail transportation 4,000 coal cars of modern design with a trip capacity of approximately 250,000 tons, exclusively for Bethlehem's use in direct operation between the mines and the plants. Handling and shipping of material in and out of each manufacturing plant is done by separate railroad companies, all owned by Bethlehem, but chartered as common carriers. In the aggregate these plant lines operate 150 locomotives and their tracks, placed in a single line, would reach from New York to Pittsburgh.

To link plants with the Lake Superior ore mines, and with the sources of raw materials in foreign lands, Bethlehem owns or controls a fleet of 25 ships with a total annual carrying capacity of approximately 5,500,000 tons. Seven of the larger ships, having carrying capacity of 20,000 tons each, are used exclusively in the carrying of ore from Chile direct to the steel plant at Sparrow's Point, Maryland, or to Claremont terminal at Jersey City. Thirteen ships of 10,000 and 11,000 tons carrying capacity, carry ores from the upper to the lower lake ports, and direct to the Lackawanna plant. Many of the Bethlehem ships were designed and built at Bethlehem plants. They are designed for loading and discharging cargo with the greatest efficiency. Lake boats carry steel products and other cargoes on the northbound trip. The ocean going ships were especially built to bring in ore and to carry out return cargoes of coal or oil.

Shipbuilding has been a sick industry in the United States since American ships, converted to or built for war service, carried enough men and materials to Europe to break the German offensive all along the line and end the great conflict. Bethlehem, before the American need, built ships for other nations, but did most for the United States and the allied nations. So it modernized half a dozen shipbuilding plants, four on the Atlantic coast and two on the Pacific, with 10 well-equipped and well organized establishments, conveniently located with respect to the main ocean routes, available for ship repair and conversion work and for new ship construction, with quick service facilitated by the fact that rolled plates and shapes as well as foundry and forged products are to be had from the steel plants of the corporation.

These plants are located at or near Sparrows Point and Baltimore, Maryland; Wilmington, Del.; Elizabeth, New Jersey; Boston and Quincy, Mass., and at Los Angeles and San Francisco.

"While the shipbuilding business during the last few years has been limited," says President Grace, "the ship repair business of Bethlehem's plants has developed year by year. In addition, some of these plants have contracted to do locomotive repair work and other machine shop and specialty work. The plant at Wilmington has a large and well equipped car manufacturing plant engaged in manufacturing steel passenger and special railroad cars. Other important activities at the shipyards include the building of oil field equipment, power plant equipment and marine auxiliary machinery.

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