The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1883-04-24
THE TWO OPINIONS
oN rAE Ple IRON Market.
tn. rAonl. Iron conpas,'. R.duetlos-' btaA,n
s. uswitps 0pisloa Ga the Brsak-ar. weeks
Has Something to Say ibout IL
Which Is Decidedly Iat.rt,iisE.


s. nswitts 0pinion Os the Brsak-nr. Weeks
| Has Something TO Say ibout II
which Is Decidedly Iat.rtslisE.
PITTSBURGH, April 2s.-Last Saturday the
announcement was made in New York
that the Thomas Iron Company had re.
duced its nominal asking price for foundry
pig iron from S24a22, according TO brand,
to S92a20, delivered in Hoboken. The
Thomas Iron Company Is one Of the largest
engaged in the business, and has eight fur.
naces located at Hckendauqua, Pa, on the
line OF the Lehigh Valley Railroad. This
sweeping reduction was consequently re-
garded Us q matter OF very great import
ance.
It was reported that the action Of the
company named was induced by the fail.
ure Of James Marshall & Co, OF this city,
but, as will be seen by what is TO follow,
those who are well posted in the iron busi-
ness do not accept this theory.
Mr.. Abraham 3. Hewitt, who was inter.
viewed by New York Sun reporter said
that Marshall & Co. did not handle enough
pig iron to so effect the price. Mr.. Hewitt
added that pig iron had been going down
for months, although not in the open
market, and only those who knew the in
side prices could buy low. The Thomas
Iron Company was losing money, and all
who made or dealt in pig iron were selling
out because they could not afford to hold
it. The weak frms, Mr.. Hewitt said, must
20 to the wall. The cause OF a decline was
a capacity to produce beyond the capacity
OF consumption. .-.nNl.
HEwITT's IDEAS.
When asked what measure OF relief he
would suggest, Mr.. Hewitt answered that
he would favor the cheapening OF raw
material and thus make good wages for
employees. .-..'.-.
The announcement Of the reduction was
telegraphed to Pittsburgh manufacturers,
but, judging from an interview with Secre.
tary Weeks, OF the Western Iron Associa-
tion, this morning, the pig iron market in
Pittsburgh will not be much affected, fiat
all. 30;
ut is nothing new for the Thomas Iron
Company reduce prices" said Mr.. Weeks.
"They do it often, and do not wait for their
action to be found out, but announce 1t In
open market. They have their own ore
and other materials, every facility for man
ufacturing cheap, and plenty Of capital"
"But why was this reduction NADER?
"Of necessity"
"On account OF foverproduction?'
"No, sir. There is no oyerproduction of
iron in sight. There Is less pig iron in the
Western market o.day than there was a
month ago, but 1t is the capacity for an
everproduction that caused the drop.
There are two classes Of speculators and
two causes which induce them to buy.
One OF this class buys when there are pros.
poets OF rising market, and buys, not for
his own use, but to sell again. The other
and legitimate speculator Is the one who
buys for his own use and intends to con.
sune what he buys; he also buys when
there is prospect OF higher prices, or
when he thinks he cannot get the iron
when he may need it. Neither Of these
features exist now, and consequently buy.
ers will not hold pig iron when they can
compel others to hold 1t, On the other
hand, there are certain circumstances when
dealers decline to buy, and these are when
there is no prospect OF change, or,
II any, decline in prices, and that is
the state Of the market at present.
In fact" continued Mr.. Weeks, ."the era
OF high pricesin iron is over. Money that
brought fifteen and eighteen per cent rent
is now six and seven; bonds that brought
nine and ten are now Ave and house rent
would have been cheaper had 1t not been
for last years strike. There were plenty. Of
people who had capital to invest in houses
who are afraid to invest. The teachings
OF political economy did apply to the
prices OF the present, and now they apply
TO the prospects OF the future"
NE. WEEKS OPINIONS.
Here the published interview with Mr..
Hewitt, mentioned above, was shown Mr..
Weeks, aud after glancing at that portion
of it referring to cheapness Of raw material
and good wages for labor, Mr.. Weeks said: (:
"Cheap raw material How can better
wages be paid by cheapenirg anything /!
Raw material What is raw material?"
This was the second question contained
that he was expected TO say something, the
reporter contemplated startling Mr.. Weeks
with the highly original announcement that
raw material was raw material; but finally
concluded that as there was a possibility OF
being mistaken, 1t would be best for him TO
say nothing. -.
Mr.. Weeks then continued: ''The only
raw material is air, wood, water, or the gold
and iron ore, or Whatever II may be that is
in the ground. What Is one mans finished
product is another's raw material. There
Is very fine grade Of finished steel manu-.
factured here that sells at two and three
dollars pound, and yet 1t Is the raw
material for dental instruments. Anything
that labor has been expended upon is not
raw material The gold Ia raw material
when It Is in the ground, but when II is
removed and made into ingots 1t is not raw
material. When Il is made into watch
cases, II Is still the watchmakers raw
material. When the steel Is made into
plow, 1t Is the farmers raw material"
81 suppose, then, that there Is nothing
but raw material until the potatoes which
the farmer plants are cooked, boiled and
eaten?"
ayes, and even then the potatoes are the
raw material Of labor"
"Then you do not think that the Mar.
shall failure bad anything to do with the
reduction by the Thomas Company
"No. The Thomas Company did not
put down prices. They merely recognized
The existing state OF affairs, and the market
here will not be affected"
In conclusion Mr.. Weeks stated that
foundry pig iron, on which the reduction
was made, Is now selling in Pittsburgh at
from S2 to $3.50.
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