The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1883-11-26
SECRETARY J.D.WEEKS
oN-TAE PRESENT DEPRESSION
In the Iron Manufacturing Iadustry-orsr.ptOdus
ton not the Cause for stAsaatIOa In the
Trats-nIiIs That are Run att Loss.
New Light on an old SatJset.

PITTSBURGH, November 25.-rhe DispateN
to-day contains the following: "The man
who would go into the iron business at the
present time is fool" was the emphatic
remark Of Mr.. Joseph D. Weeks, Secretary
Of the Western Iron Association, to re-
porter Of this paper yesterday afternoon.
"There is a popular impression" he con-
tinued, "that the present depression in the
trade Ia due to overproduction, but 1t is a
mistake. There has not been time for
years when there was ss little pig iron on
hand as at the present. Now, this seems
like contradictory statement, but is new.
ertheless true. The trouble at present, and
one that must continue for some time, is
that there is too great capacity for produc.
ton. When the boom In the iron market
occurred several years ago and when every.
thing was going ahead at 4 Rseat pace, a
large number OF mill men increased their
capacity OF production without taking into
consideration the fact that the boom would
not last always. AS result, whenever the
demand began to fall off they found that
they must either run their mills at cost or
shut down. In some instances they found
that II was necessary to run at consider
able loss.
TIE DIFFERENCE OF YEARS.
at is not now as 1t was some years ago."
continued the gentleman. Then 1t took
weeks and months to FIJI up gap made at
one place, where the production was in
adequate. Now with the admirable facili-
ties Of transportation, il there is sholt
supply in one place, it is only question Of
a few days until the difficulty Is overcome.
II Pittsburgh mills cannot eupply the de-
mand, some other place can, and In very
short time. The present condition Of the
iron business Ia entirely owing to the
enormously increased facilities for supply.
ing all demand"
"And what is the remedy?"
"rhe only remedy is to wait until the
country grows up 10 make the demand
equal to the capacity for supply. 1t is not
q panic by any means; 1t s merely q
squeeze. The general condition oil the
country is not such as to warrant panic,
yet it pays some Of the larger mills Of this
country to run at loss Of $4,000 per
aunum.
In response to the further inquiries OF
the reporter Mr.. Weeks explained mis- state.
ment Ms follows:
TIE EXPENSE or SHUTTING DOWN.
San OF the large mills in this city are un.
der heavy expense. II they shut down,
their taxes, insurance and other smaller ex-
penses run on. Then besides their force
Of workmen is scattered, their machinery
falls into q condition equal almost to
break dowp, and their expenses are nearly
as great, generally speaking, as II they were
in operation. II they shut down for year,
OF the end Of that time they discover that
to start up, the expense OF getting their
men together, making repairs to the rusty
and otherwise injured machinery, added to
the expenses Of u year, including taxes, in
clerical hire, watchmen, ETC., will
run up to $4,000 before they are
ready 10 start. Now, II, instead
Of chasing down, they run
ahead steadily on orders that are not pay
ing, and on. which they are short at the
end OF year $50. .0Ca, they save S25,0 900 in
the long run, while they are waiting for the
better times to come. Iron manufacturers
in the last ten years, taking the average
through, have only made fall profit. 10
be sure there were two or three years Of
prosperity when good profits were made,
but there were years Of depression and loss,
and when the average Is figured up it
shows only a moderate profit through the
pariodI l have mentioned. II is this one
star OF hope, this anticipation OF better
times to come that keews the iron men up"
TUE CAUSE OF Low PRICES.
"What Is the cause Of the low prices at
the present timer
"There are too many manufacturers
waiting for orlera. Competition If you
choose 10 call it. Here is q man with a
large mill who finds that by taking an Or
der he will be able to run his mill at half
its capacity on q very small margin. He
will then take other orders at cost to start
up the other hall, for the general expense
is about the same whether the mill is run.
ming at half or at full capacity. BY start
ing the other half at mere cost figure he
reduces the expense Of the first
half, which be ia operating at little more
than q running figure. It Is this desire 10
keep going at any price that has pulled
down, and as soon as the country grows up
to the increased capacity Of our iron mills
the present state OF affairs will cease. You
may expect 10 hear OF mills shutting down
and starting up for some Time to come. II
they haven't the orders they shut down.
As soon as they get orders TO justify they
start up"