The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1880-07-13
PROSPECTS FOR IRON.
HIGHER PRICES LOOKED FOR.
The specuiators in Pig Iron-HoW
the Market Was Manipulated
-Gratifying Outlook for
the Fall Trade,
Etc, Etc.

the Fall Trade,
Etc, Etc.
PITTSBURGH, July l2.-The Telegraph
publishes the following this evening:
"The condition and prospects OF the
iron trade are vital matters to this city,
and just at present all classes Of business
men are looking anxiously into the situa'
ton OF affairs. The sudden and disastrous
depression ofthe trade in the Spring came
like thunderbolt to those who were an
ticipating continuous season OF inflated
prosperity, and business movements since
have been conducted with caution and
some degree OF embarrassment. As the
prosperity Of this entire community de-
pends largely upon our metal industries
1t is no wonder that as the time for the
Fall trade approaches there should be
much speculation over the prospect.
A very careful examination into the
situation has been made by the Telegraph,
the leading men in the trade have been
interviewed, the statistics gathered by the
Iron and Steel Associations recorded, i'm
portations noted and every possible source
OF information used, and as result we
are able to predict. with every assurance
OF its correctness that there will be a brisk
and healthy business developed in the
iron markets OF the country during the
coming fall. There was really no legiti-
mate reason why the sudden break. down
OF prices took place except that the ad-
vance last year was excessive and wholly
speculative under the manipulation OF a
few persons. There was no reason why
iron should have been advanced above a
card rate OF three cents, and had it not
been for the speculations OF few large
manufacturers OF pig iron, 1t would not
have advanced beyond that, and the busy
times would have been continued through
the summer with the same prospect OF per-
manence that now exists.
When the wheels OF industry were pu.
put in motion last Autumn, and the coun.
try began to purchase according to the
need which existed, most OF the furnace |
men here had immense stocks of pig,
which had been made from ore at low |
figure. AS orders began to flow into the
mills, and business started up all over the
country, these gentlemen saw an oppor.
tunity for great speculation. Most OF
them were mill owners also, but their
chances OF making money in manufactur. /
ing bar were smaller than those OF max.
ing great coup by putting up pig metal
The Western Iron Association, under the
intisence OF these gentlemen, kept ad.
vaucing the card rate, and under the pres.
sure OF such an action, ran pig iron up to
an enormous price. They were the first
to close out their stocks, and then came
an inroad OF foreign scrap which, at the
prices, could be sold at great profit, and
such a supplY was imported that the
market broke down completely.
As is well known, there was a general
collapse, and this has given the furnace
men another chance which they will be
very likely to take advantage OF. Under
the influence OF the high prices, the ore
men made advantageous contracts with
the blast furnaces, but as soon as the
crash came there was disposition to get
out OF the agreements. In April there
was convention OF ore men at Chicago,
and there Mr.. Mather, OF the Cleveland
Iron Company, under pressure from the
furnace men, advocated reduction OF 20
per cent. from the written contracts. The
meeting took no positive action, and ad.
iourned with the understanding to wait
the reasonable time OF few months, to
see whether the collapse was permanent
or only a trick to effect the reduction.
To the astonishment OF all the other ore
men they learned within day or two
that the Cleveland company had sent out
circulars allowing an unsolicited reduction
on existing contracts OF 20 per cent. This
necessitated similar action on the part
OF the others so that the Republic Iron
Company, for instance, that had made
contracts for their full production OF ore
this year at Sl2 80 per ton we're compelled
to reduce to $40. Now that the ore con.
tracts have been adjusted TO the satisfac-
ton OF the furnace men, 1t will soon be
seen that the Western Iron Association
will be manipulated to again advance the
price OF bar iron, thus producing cores
bonding advance in pig iron. The blast
furnace made their pig iron that they sold
during the last boom at from $50 TO S35
per ton, out OF ore purchased at absurdly
low figures. Now they have just secured
this years supply of ore at reduction oi
20 per cent. from what they should have
paid il they sell their iron at S25 per ton,
and, in all likelihood, they will boost the
price OF bar iron to stiff 2! cents, which
Is equivalent to pig at about $50,
Already the. influence OF this embryo
movement is felt in the market, as during
the past week city consumers failed TO
buy under 81 cents per pound Tor bar iron,
when but two or three weeks ago they
shaved two cents per pound with ease.
But outside OF this more than probable
new speculative movement, there are good
reasons why iron should advance. Dur.
ing this year three times more railroads
have been placed Hnder contract than for
any subsequent year for long time. The
bridge men have been out Of work the
past few months which shows that the
grading OF these roads has been done and
the other work upon them been delayed
for low prices OF iron and steel. Now or.
ders are beginning to come in plen tifully
and the legitimate demand from these
sources will be large.
There is general prosperity all over the
country in other branches OF trade and
the orders that are coming into the mills
are generally for immediate use. Pig
iron has been Selling at about s22,
but there are already inquiries,
and there is little doubt chat It
will work up to S25 or S26 within a
week or so. Bar iron at 2! cents will grade
pig al about $50. As bar iron can be
quoted to-day stiff at 2t cents, an advance