The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1879-04-11
AN IMPORTANT CIRCULAR.
The Depression at Pittsburgh In the Iron
BuslneAy.

interests in and around Pittsburgh as Civ
en- in tho INrELLIoEScER Of yesterday, tax.
on from the columns OF the Pittsburgh
Poa, is certainly not a pleasing one to con-
template. 1t showsa degree Of depression
and encouragement that the public, much
as they have heard about the disasters to
the iron interests Of the country since the
panic, were scarcely prepared for. There
is no doubt that this interest Is Mt this
time rs severely pressed as at any period
since the panlc-perhaps more so. We
refer TO the iron interest on this side Of the
mountains. East Of the mountains it
would seem to be in a better shape. This
results from the fact that fuel never was
30 cheap since the war as it is now east OF
The mountains, and also from the factthat
labor, which is so important an element in
the cost Of production, is lower there than
at Pittsburgh. 1t is said that there is now
difference OF from three TO four dollarsin
the cost Of producing a ton OF nails be.
tween the East and the West, and that ow-
ing to the present low rates Of freight the
Pittsburgh manufacturers are crowded out
OF markets in which they have hitherto
sold a portion OF their product.
This is certainly n very serious state OF
affairs, and one that calls imperatively for
the exercise OF a spirit Of wisdom and justice
between employers and employees. There is
certainly some solution for such a crisis as
isnow upon the iron business, and we can
only express the hope that those who are
in the business. as manufacturers and op-
eratives, will be able to come together and
compare views aud accommodate diFeren.
ces upon such q basis as Will enable the
two to keep alive side by side and move
along slowly in the mutual hope Of abet-
ter day.
As showing how this crisis in the iron
business is viewed at Pittsburgh we repro
duce herewith the following circular from
the firm OF Chess, Smyth 4 Co., one OF the
leading nail concerns OF that city. 1t is
addressed to the operatives in their EN-.
ploy, and reads rs follows:
To The Boilers, Heaters, Rollers and Nuisrs in
our employ:
Believing that the time has come when
we should place before you a full and can
did statement OF the difficulties that sur
round the iron trade OF the West, as well
Us Of the competition with which we have
TO contend, we ask your careful considera-
ton OF the following statement:
You cannot have failed to notice the
rapidly increasing use OF steel as a substi-
tute for iron in many OF its forms. By the
Bessemer and open hearth process, steel
can be produced at q cost not much in ex.
cess Of the cost OF iron. In the manufac.
ture OF these steels skilled labor forms but
a very small part of the cost, and that
labor does not include any boiling, and
but little heating and rolling. The high
character OF steel makes it a cheap substi.
tute for the higher grades Of iron, such as
bridge iron, plates, sheets for stamping,
hoops, wire and small irons OF all kinds.
We thus find that the only iron on which
forsome years there has been any profits
being crowded out by steel, and the pros
pect is that the future will be worse in
this respect than the present. 1t rests
with you to delay the complete introduc.
ton OF steel, and to retain thereby a much
better opportunity for employment.
Again, We would remind you that prices
for iron have declined for the past five
years, until, at the present time, iron is
sold far below what It ever sold for before
i'll the history OF the iron trade Of this
country. For many years il was a principle
recognized and asserted BY you that Wdges should
bear a relation 10 the selling price ofiron. That
is n principle Of the sliding scale, which
was so useful in the past. We askrvou, in
all candor, with this before you, are wages
that are fair when bar iron is selling at
$500 a ton fair when bar iron is selling
for less that $4,000? Or, should we pay
the same wages when competition compets
us to sell nails at Sl.90 per key as when we
were getting $3.25?
Again, wetind ourselves competing with
nails made in our w State and in other
sections OF the country where skilled labor
IS from % to 90 per cent lower than with
us. At different points in the East boil.
ing is $3.50, $500, S3.25, $3.50 and $500
per ton, and at no place is il higher than
the last figure, and for cutting IOd. nails
from II to l5l cents per key; other
branches Of labor in proportion.
These combined conditions make the
odds so terribly against us that Il is no
longer q question whether We can run our
lnllls with profit, but the question is, can
we run our mills at all without ruin to our
selves Wehave been running the past
two years in the hope that trade and prices
would improve, and that these conditions
that press so heavily upon us be changed:
but, instead, prices have constantly de.
clined, and competing sections have had
reductions in wages, while ours remain
the same.
While factories East, by reason OF the
low wages ruling in that section during
the past two years, have been running full
time, and placing their goods in markets
where we had formerly a share OF the
trade, and where our brand would now
nave the preference could we compete
with their prices. By reason OF the extra
cost Of production here We have been COM
PEELED to withdraw, and in consequence
we have not run more than half time, and
this at q loss to us, and also to yourselves:
ana while we are no advocates OF cheap
labor, we feel the sooner that our products
can be successfully placed in competition
with points where low wages have been
ruling the earlier will we be enabled to
furnish you steady employment,
we neither desire nor seek a contest
but we tell you frankly that we are nnsble
TO continue the rates Of wages that No are
now paying. With pig iron at SIS, and
nails at 81 0Oa2 90, your own Judgment
and knowledge Of the iron business viii
tell you that We cannot,
Under these circumstances we have de.
Glded to place these facts before you frank.
y ahI iuily, INT to ask you to earnestly
towards meeting this changed Condition of
attairs, and towards assisting us TO retain
our trade. We do not ask nor suggest
that the prices Of labor in our mill shonli
be reduced to those in the East, but we
claim, and with every consideration Of
Justice and right on our side, that thew
SnONlI In FnNOnn1 ha1nU, L