New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-11-20
THE IRON AND STEEL TRADE.
MILLS TO BE sHUT DOWN N THE WEST.
THE RESULTS OF THE BREAK IN THE PRICE Oh
STEEL RAILs-ANTICIPATINa CHANGES IN TIE

lsY TELEGRAPH TO THE rRIBuSE.l

TARIFF.
lsY TELEGRAPH TO TIE rRIBUNE.l
CHICAGO, Nov. ia break in the price OF
steel Fails. The Eers viii say tomorrow.
caused chiefly by the Bessemer Company. Of
Scranton which has quoted them at s42
ton, has brought matters to fOcus. and
the Joliet Iron and steel Company 10
reported to have determined to close down It's
works on or before December l. The same step has
contemplated By the North Chicago Rolling hihs
Company by the st. Louis steel Works AMI Dy other cor
poratons sted in the Bessmer paents The pres
ident Cacago company is authority for tne state
ment that the the North Side will be shut down
by December TO- while the Union Mills may be run some
time longer This. viii depend upon reaction
In the price OF rails 10 the advantage OF the manaclu
rers
The osteusible reasons given by the Joliet
managers are that majority OF the
new Congress will he hostile TO the existing
tariff on steel rails and the general public sentiment
that the cus ON dues must DO reduced. Any reduction
in the tariff at present prices they say. would cause
them 10 run at heavier loss than they are now stag
Cerng under In the long struggle from 1873 70 1879
the company kept running at loss mainly 10 prevent
distress from overtaSng their employees until they
failed This time they propose to take In SdI carry
enough TO ooviIte loss OF anything beyond interest Oh
., nal The result will be the enforced iGleness Of sew
era thousand employees az the beginning OF winter.
O. b. Potter president OF the North Ch'cago
Rolling MIL Company was quesuOAe" touo"ins
the situation winch the manufacturers consider 80
menaciug. DO you anticipate Congressional action
hostile 10 your interests ~ he asked.
"Ihave no expect itiOn that decisive result VIII
be reached by the present Congress. sur there Is
general impression that the tarf steel rails can DO
reduced without doing anything more dama-ing than
reducing tho profits OF the Bessemer steel
This impression Is erroneous. know that the NortR
side works cannot make steel rails for So ton or S7
ton ana when the time tnat we can't get more
tnan s42 for them the wheels will be stopped"
"What nas caused the break in pricesP
..The scranton company lowered srates. The demand
has been very hight mouths There mas been httle
railroad building. The result has been an alarming
dnuution of orders. year ago all the important con
panes bad orders enough keep them busy for nine
months This year everything can be cleared up In less
th sky days. Contrary TO t1e general D heL tuerS
no cOmbn t0u among the eleven Besscmer iuS IN tnls
country ain prices -.
gresham Hewitt seems to be on the side OF lower
tarif." a., ,..A,oS
done by the mlsconceptOn OF what Mr.. Hewitt means
when he SAID tnas Harrisburg Company had nseo
79 Dor cent. profit. That estimate Sas maze on sn1
basis Of its alleged capital OF SIOOOOOO, lts peOuA
being 81 100000. The Iact Is however tnat 1De COM
pay emp oyei about SgOOO,0OO capital for Two Lcars
pl-f We nave all done. :xcelcnt business lna.
neyd OF urO.Dcrtv, however followed on ln" n'es o
seven wears Of wnch caused the uptcy OK
several the companies