Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1882-11-21
WILL CEASE WORK.
All the Western Bsssemer Stssl
Works to Suspend. I
A Reduction in the Price Of Rails to $42 Per
Ton the Cause.-The Break Made
at Scranton-Pittsburgh /.
Situation.
POLITICS AND TARIFF AS CAUSES.

CHICAGO, November 20.-A break in the
price Of steel rails, caused chiefly by the
Bessemer Company, of Scrar ton, which has
quoted them at S42 per ton, has brought
matters to focus, and the Joliet Iron and
Steel Company is reported to have deter
mined to close down their works on or be-
fore December 1. The same step has been
contemplated by the North Chicago Roll
ing Mills Company, by the st. Louis Steel
Works, and by other corporations inter
ested in the Bessener patents. The presi.
dent of the Chicago company is authority
for the statement that the works on the
North Side will be closed down by Decem-
Der Is, while the union mills may be
run some time longer. This, however,
will depend upon a reaction in the price of
rails to the advantage OF the manu-
facturers.
Political Assignment OF Reason.
The ostensible reason given by the Joliet
managers Is that majority Of Congress
are hostile to the existing tariff on steel
rails and q seeming concurrence Of public
sentiment that the custom dues must be
reduced. Any reduction in the tariff at
present prices, they say, would be TO cause
them to run at heavier loss than they are
now staggering under. In the long strug-
gle from 1873 TO 1879, the company kept
running at loss, mainly to keep distress
from oyertakiag their employees, until they
failed. This time they propose to take in
sail early enough to obviate the loss OF
anything beyond interest on capital. The
result will be the enforced idleness OF sew
eral thousand employees at the beginning
of winter.
o. B. Potter, President OF the North Chi
cago Rolling Mill Company, was ques-
toned touching the situation which the
manufacturers consider so menacing. DO
you apprehend Congressional action hostile
to your INTERESTS he was asked.
IL have no expectation that any decisive
result will be reached by the present Con-
gress. still there is a greneral impression
that the tariff on steel rails can be reduced
without doing any thing more damaging
than reducing the profits of the Bessemer
steel manufacturers. This impression is
erroneous. 1 know that the Northside
works cannot make steel rails for S42 per
ton, nor for 81 per ton, and when the
time comes that we can't get more than $40
for them, the works will be stopped"
Cause OF the Break.
'NEAt mas caused tue DTedk III prices!
The Scranton company lowered its rates.
The demand has been very light for months.
There has been little railroad building.
The result has been IN alarming diminu-
ton OF orders. A year ago all the Important
concerns had orders enough to keep them
busy for nine months. This year every
thing can be cleared up IN less than sixty
days. Contrary to the gen erAl belief, there
is no combination among the eleven Bes-
semer mills IN this country to sustain
prices"
"How will it stand with your employees"
'They have had several years of uninter-
rupted employment at high wages, and
ought to be able 70 weather few months
OF suspension"
Damage by Hewitt.
Congressman Hewitt seems to be on
the side of lower tariff
"A regiment of men talking cannot un-
do the mischief done by misconeeption of
what Mr.. Hewitt meant when he said that
the Harrisburg company had realized 10
on the basis of its alleged caplIaI ~ unated |
OOO. It made s.. 500, 600 profit The fact is,
however, that the company employed
about $9W0,O0O capital. For two
wears past We have all done an excellent
business. That period of prosperity, how
ever, followed on the heels of seven years
of losses which caused the bankruptcy OF
several of the companies"