Show o AOS 0 N ADVISES AGAiNST BUYING STEEL STOCKS STO Believes Production and Trade Crade- Crade Prices Prices- Will Decline Decline I HILLs HILLS Mass Oct t 26 2 Sli- Sli The The stoel gives us I both oth a barometer and ond Ither a I thor thor- ther of din to Hogo W V hosO atee haH hanc just jut c a II survey c r E this great industry Babson Babon Steel prices price sae sas SIx Sr In III a 8 statement Issued houed today tend to follow general genera to busin s to act actus ns ne a Q thermometer In t prosperity or depression the eMI early months or of or this I I I I I licar scar ear business was active and the thc price of steel billets 30 r 1 cent from January Januar to April It was vu c b by them that the Im had been loeen o 0 and business tooK to caution andI and I o a condition stiR stilt Ie alent I e alent Iron and stool eol 1 prices lerv erv natu followed the past six mouths production prOd ba has hOpped and price lia-ie lia o h-o e been steadily de- de de the tha I date I 1 do not feel that steel or production have haic reached Lie tle lois point I It shou should 1 be horne borne In mind that the he wr peI pe- pe iod Olor producing capacity ivas n s g- g stimulated The actual I I output of steel In 1913 was sas about ton with yi-Ith a It producing of probably ably 35 So Sotar I tar in this sear icar ear the steel Industry indus tri has operated on a basis of more than tons Ions annually a late materially 0 er the tho actu output o t recent Years vears A As Aa a matter motter of het the tho abnormal stimulation In steel outputs in August In 1922 output jump jump- jump 1 Sd 1 75 per cent oHr oer o er the Hie ear while whilo during during- the tho first nine months month or of o this year 0 oer er 60 pC cen cent abo 0 the same s period of ot last vear lr How How- eier oer er the mAin point Is lis It this I co ere acre called upon we Could steel teel at bel 56 an tons I en Inday at the current current late jot pf 40 40 tons no o 0 mc alO producing noro steel than ne ae e I C-I c en n consume and nd export No Nor Nor- Jie e lose loe of tho the fact that thit our Euro Euro- Euro reans reans neighbors expanded j Iuro-j producing capacity to rope IO Ith abnormal Bar ar needs situation Ia liw ash 11 ll defined oy ny unfilled tonnage hi the the barometer which from the thelow I 10 low In 1922 of or tion climbed d aith little tin lion to tons In ln of I this sear ear sI six la- la laIN la tel IN untitled unfilled tonnage hs h s dropped 0 approximately Gen Ceo Gen cal I eal 01 busine a as reflected in Itt the thela la hi hn dropped l to 10 per perI I b below low normal My y main is that 11 sh gh no I adl tacit tacit- cal cal Ill departure from the present I price Ie le el I Is s Indicated a II sur surey ey of actual conditions shon i sho that the th I I li is on til th near lear Ide I LII as it Is in most lines today WEAK K o rs 0 1 ni CE I I On the financial side ne e find I further urther f evidence of th's th Up u p In the amount of or f recent re- re re I which has been bem under under- under alon t by some somo of the Ie tenor leaver er com corn companies p anies Mr dr r b babson During periods of record brcak l eg business ne new financing It I Is true t rue may be required Ly the old LOner c alive manufacturers for expansion as nell e ell eli as asb t I too b ne new ones Tt It is 15 15 a a 0 character character- sUc bUe I sign Ign of th of I a sharp s harp competitive period d er alien Ien many new now offerings of fund fund- funded ed dd d debt with th specIally e I ses appear In to connection lIh corporate names that arc oro new II t to o 10 investment lists Hits The absence ot of en any ne new financing on the tho part of older concerns at such U h periods I is noticeable It t-s t I tho time hen shen the more experienced e roan man man is conserving I s I limiting l new bu business neBs J to establish establish- esta lIsh- lIsh NI and 1105 ness lIesa rather than taking on mOl e oy Signs Sig-na of this stage stalIe of have base hat e not been leen licking In inI inte I tit te Iron Iroll Ir n and steel Industry try this InI I I ear car The wJ wisdom dom of th tb rest restraint mint I shown by the largest factors lit at atthe atthe the peal peal peak ot of demand In the V year IU now Is apparent arent Already certain c of th their lr more e noV new competitors are taPIng by the Ice wayside SOro so DO BONDS DC GOOD COOl A few of the concerns have consistently c turned I i back bac into ent with with- with with-ou ou increasing Inc ap offer sound bonds honda for tor This I Ia as S far tar a ai as the e 11 In- In v In should go eo at iO present Those who alco would purchase Iron pal find tel tei stocks n as speculation roust must weigh el h the outlook with Ith the under under- under Minding of th the position accept pt as stockholders of merchandisers In the lies Hea in buying buying- when hen bust bust- busi business ness hess Is slack and the I to sell when business Is brisk ind ml commodity prices high hij-h From this test teat it must be apparent that It Is not yet time Ume to look tor for at- at attractive at attractive purchases In Iron and steel oct ocl s |