ports were large in both years-420,874 tons in 1911 and 446,473 tons in 1912. The tin and terne plate exports increased from 61,381 to 81,694 tons and it is noteworthy that the tin and terne plate imports dwindled to an almost negligible amount-2,052 tons for the year. In 1911 they were 14,099 tons, which was a very heavy reduction from 66,640 tons in 1910. The United States Steel Corporation made further inroads on the British tin plate trade on the Pacific coast of Canada. It also sold the Standard Oil Company its tin plates for export as oil cans, and there were practically no drawback exports of cans or other articles made from tin plate. The Welsh tin plate industry was prosperous enough in 1911 not to miss the Standard Oil Company trade, but last year the business of the Welsh mills fell off in the second half and a number of them were closed down, the Balkan war seriously cutting down the tin plate trade in Eastern Europe.

The United States Steel Corporation did 2,280,796 tons of the export trade of 1912, or 77 per cent. In 1911 its exports were 1,746,492 tons, or somewhat more than 80 per cent. of the total.

Labor.-All through 1912 the supply of labor at iron and steel works was under the demand. The wars in Europe called back a large number of foreigners and works managers found it especially difficult to get common labor. Some of the steel works in Eastern Pennsylvania had representatives at Ellis Island who took parties of immigrants direct to the steel works. At Pittsburgh one or two large steel companies paid the fines of persons arrested for minor offenses, so as to release them for service at their plants. The United States Steel Corporation had difficulty in holding working forces at some of its plants because of its order forbidding the employment of men more than six days a week. Many workmen went to other companies with which they could have seven days' employment. Wages for common labor rose steadily. At the end of the year the Steel Corporation announced that it was working out schedules of advances giving common labor at many plants $2 a day compared with $1 and $1.10 a day in the years following the panic of 1893, and $1.40 a day at some works in more recent years. These advances represent an additional labor cost to the Corporation of $12,000,000 a year. Other Steel Companies have also announced higher wages. Labor scarcity. was pronounced in the coke districts throughout the year.

Eastern Iron and Steel Trade.-The pig iron industry of Eastern Pennsylvania and New Jersey showed only a moderate recovery from the low state into which it fell in 1911. The competition of the Bethlehem Steel Company in the foundry iron trade was considerably less, as that company required nearly all its pig iron for its steel works operations; but Buffalo furnaces were aggressive sellers in New England, and the Eastern Pennsylvania furnaces were handicapped not only by their smaller size, but by the fact that they were dependent entirely upon the open market for their coke, prices for which rose rapidly until they represented nearly 100 per cent. advance over the 1911 level.

The outlook for some of the less efficient of the Eastern furnaces is further clouded by the low freight rate from Buffalo to New York harbor-75c. to $1. less than the present average canal rate-that will prevail when the barge canal is completed.

The importations of iron ore by Eastern furnaces in 1912 were 2,104,576 tons against 1,811,732 tons in 1911 and 2,591,031 tons in 1910, the record year. The Bethlehem Steel Company which made the most important iron ore deal of 1911, from the standpoint of the Eastern iron industry, was conspicuous in the same way in 1912. In the preceding year it had contracted with Swedish producers of iron ore for a total of 3,000,000 tons, deliveries extending over nine years. Late last year it had under negotiation the lease of an important mine in Chile, announcement of which was made in January, 1913. The property is known as the Tofo Iron Mines, and has been operated by a French company in which Snyder & Company of Creusot, France have been interested. The mines are located about 25 miles north of Coquimbo, Chile, and about 4 miles east of the Bay of Cruz Grande from which the ore will be shipped. The property will be developed to a capacity of 1,000,000 tons a year. The amount of ore in the deposit is estimated at 100,000,000 tons. The Bethlehem Steel Company has asked for bids on a number of steamers which will carry the ore to the United States. The Bay of Cruz Grande is about 4,400 miles from Philadelphia by way of the Panama Canal.

The Prospect.-At this writing (the latter part of March) indications are as strong as when the year opened that 1913 will make a new record in iron and steel. Prices on current shipments are $2 and $3 a ton higher than the average realized in 1912 so that the steel companies will have the benefit of both increased volume and price in their earnings.

Steel works are being run under such pressure that manufacturers have not had the tariff seriously in mind as a factor in the business of the year. The expected change in the duty on tin plate prompts seaboard users to buy carefully. A 20 per cent. ad valorem rate would mean 70 or 80 cents duty per box on to-day's prices, instead of $1.20. Cotton ties are another product that will be affected, the expectation being that they will go on the free list. This has kept some manufacturers from rolling the usual advance supply. About 55,000 tons a year are needed and Europe is a small producer. The possibility of a shortage in case of a 10,000,000 to 12,000,000-bale crop is already discussed.

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Leading steel manufacturers look for the present prosperous conditions in the trade to project themselves far into the year. There are some signs that Europe's steel boom has culminated, but they are by means pronounced. It is believed that the effects of tariff reductions will come on gradually and that there will not be a serious shock to business. In time the higher levels to which prices have gone will affect consumption of iron and steel, but there is no sign now that this will become marked in the present year.

REVIEW OF THE PETROLEUM TRADE OF THE UNITED STATES.

FOR THE YEAR 1912.

IT has been many years since the annals of the American petroleum industry were as crowded with incidents as they were in 1912. Petroleum shares the allurements of chance with other mining ventures, going, however, beyond any other in uncertainty, both in finding the treasure and in estimating its volume and value when discovered. Those best informed about the industry, and those who follow its fortunes most intimately, are always expecting the unexpected to happen. For example, a buoyant crude market was looked for as the natural consequence of a reduction in stocks through the failure of production to keep pace with the enormous increased consumption. But even the most sanguine operator was surprised when the price, after advancing from $1.35 per barrel to $1.50, kept on climbing without hesitation right up to $2.00. Marketers had a similar experience. Most of them remember when Naphtha was a surplus product and burned as fuel; then when gas works were induced to use it for making illuminating gas; then when explosive engines outbid the gas plants, forcing gas companies to substitute a cheaper oil product. But that automobiles would ever cause Naphtha to be a scarce article was never dreamt of.

It was less a reduction in supply than a great steady increase in consumption for several years which brought about these results. Our tables show a production of crude in 1912 a little larger than that of the preceding year, but the many new uses of petroleum products, and the increased demand at home and abroad for the leading old ones, aroused the industry to greater activity than ever before. To be sure, with a rapidly rising market some of the uses had to be curtailed. The consumption of Gas Oil was greatly reduced, and Fuel Oil was cut off almost completely, except in the sections where much of the crude is suitable only for fuel.

Another unexpected development during 1912 was the proposal of the German Government to take general supervision of the marketing of illuminants throughout its Empire. The suggestion was to exclude long-established American connections, and largely supplant American products with those of European origin. American enterprise, backed by the superior quality of American oils, had built up an enviable trade which supplied consumers direct along the economical lines of American methods. The new plan was to create a company under Government control with specific provisions regulating prices and profits. At first the public and press favored the project, but general support was withdrawn as its scope became apparent, especially when its result-whatever its original purpose-would be to assist a small group of bankers to make profitable petroleum ventures hitherto unsuccessful.

Production. The year 1912 made a small gain in the total production of crude over 1911. The figures are 3,410,841 barrels, or about 1 per cent. The year 1911 gained over 1910 nearly 13,500,000 barrels, and 1910 over the preceding year 24,000,000 barrels :

As in the preceding year the increase was in the fuel crude fields, while as a whole the production available for manufacture into high grade oils showed a loss. California again heads the column, and apparently will maintain its position for many years. Its growth has been marvelous, averaging 10,000,000 barrels per year for each of the past six years. In 1906 the output was 32,000,000 barrels, in 1908, 48,000,000 barrels, in 1910, 73,000,000 barrels, and now, in 1912, over 90,000,000 barrels. Both the Mid-Continent and Illinois fields showed heavy reductions, and while the Texas and Pennsylvania output was increased, the gain was not sufficient to match the losses in the other fields. The increase in the Appalachian crude of 2,200,000 barrels tends to bring the figures for that field back to the earlier records; still 1912 does not yet show as large a production as that of 1910.

In the drilling of wells there was great activity. The total wells completed, not including California, were 15,515. This is doubtless the largest year on record, although the number drilled in 1910 was nearly as great.

Prices.-The changes in the price of Pennsylvania crude oil at the wells during the year were so unusual that we give the dates upon which the advances took place. Each advance was 5 cents per barrel starting on January 1st with $1.35:

The average for the year was $1.60, 30 cents per barrel higher than the average for 1911.

The average price of illuminating oil advanced through the year in sympathy with the increased cost of crude. The average for the year, 8.33 cents per gallon, in barrels, for export oil at New York, was a cent higher than the average for 1911. It is interesting to note that the appreciation in the price of crude oil has been matched almost exactly by the change in price of refined oil. Last year when crude was $1.60 per barrel refined oil was 8.33 cents per gallon. In 1909 the average price of crude was $1.65 and the price of export oil 8.34 cents; in 1908 the price of crude was $1.78 and that of export oil 8.68 cents.

Exports. Our table of exports show the total for 1912, crude oil, refined oil and naphtha, 1,233,343,585 gallons, about 100,000,000 gallons less than the exports of the same products in the preceding year. But, as a matter of fact, the total exports were quite as large, if not a trifle larger, in 1912 than in 1911. In other products than the three named large deliveries were made in 1912, and from the Port of San Francisco alone crude oil shipped for fuel purposes in 1911 was replaced by residuum, fuel and gas oil in 1912 to the extent of 96,250,892 gallons.

The higher prices figured up a value for petroleum exports for 1912 to a greater sum than has been ever heretofore realized. One trade journal claims that that value was over $124,000,000. The shipments from New York fell off 70,000,000 gallons, and from Philadelphia 40,000,000 gallons. New Orleans showed a splendid increase of nearly 34,000,000 gallons. Boston seems to have lost its place on the map as one of the ports from which petroleum exports are made. Nothing was shipped from Boston in 1910, 1911, or 1912.

MONTHLY RANGE AND AVERAGE PRICES IN NEW YORK IN 1912. PRICES PER GALLON S. W. 110 TEST AT NEW YORK FOR EXPORT.