Lancaster daily intelligencer. [volume] (Lancaster, Pa.) 1864-1928, 1882-11-21
Aancaster :3ntellge,lcer.
TUESDAY EVENING NOV. al aesa,
WHAT 1t Shows.

The Philadelphia Press does not make
mach headway in its undertaking to
show that the present depression in the
iron ard steel industries is due to the
Democratic success in the elections.
President Colt, of the Reading iroG
company, whose Judgment is az good as
that Of any man in the iron business,
says that over-production is the cause Of
the depression in the iron manufacture.
and that il would have come mucE
sooner but for the stoppage Of the Pitts
Durgh mills. He saw it coming months
ago and 50 did other shrewd observers.
Mr.. Allison, treasurer Of the Allentown
rolling mill company, gives a like opin-
ion. It is one 80 patent on the surface
Of things that it is not possible to con,
trovert 1t.
The result of course will be reduc-
ton of production. The price of labor
and raw materials will fall and manu-
factories that cannot make their product
as cheaply as others in the business will
go out of operation until an increased
demand comes that will put up prices
high enough to enable them to go to
work again. How long this steel de-
preston will last is the interesting ques-
tion. The iron trade has many such ups
and downs, and for the last few years has
had them in every year. 1t may be that
there will be q recovery before the win
ter closes, while some persons think that
we will be or the down grade! for mum.
Der OF years. 1t is not probable, how
ever, that we have yet reached the
long descent that is certainly held in the
womb Of the future. We are likely to
pitch up and down for s,me time yet
before reckless discounting of the future
wrecks us entirely. The good times are
not over yet by any means.
But those very good times that the
Besselner steel rail manufacturers have
had are over for all time to come. They
will never again be able to get twice the
cost Of their product. 1t was manifest
long ago that the time would soon come
when they could get but a fair profit
on their manufacture and it was only
the dishonesty ard stupidity of railroad
managers tnat gave them the great har,
vest they had. Old railroads, flush with
money, ordered rails Immediately when
they might have waited couple of years
and got them at their own price. New
railroads, organized to make their con-
struction companies rich, needed rails at
once to make their jobs successful. This
was the hay-making time of the steel
rail mills, and they improved it. They
can afford to take rest for while. But
they do no. need to do it while they can
get forty dollars ton for their rails.
There is good profit on the manufac-
ture at that, ard probably at a consider.
ably lower figure. The representative of
the Edgar Thomson steel works, who
is reported elsewhere, is careful not to
deny that steel rails can be made at
forty-two dollars ton a quasi-admis
sion that warrants the suspicion that a
considerably lower figure would not
stop manufactory SO favorably situated
and with so good plant as tie Edgar
Thomson, and these were the rails that
were selling a year or SO ago at cvel
sixty dollars, when their cost was no
greater than now. 1t is clear enough
that the steel rail manufacture does not
require duty Of twerty-seven dollars a
ton for its production.