The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1886-01-06
Gle G'stetIigeueer
1919, -. = ID IANnAnYo 1850.
The BoOm In steel y atu not Mean y BoOI
in IFun.

III AEAhe
The views of Andrew Carnegie, Of Pitts
burVh, on the outlook for steel rails and
steel goods generally were quoted in yes
terday's dispatches,
While Mr.. Carnegie believes in,the
Venuineness Of the sIeel "boom," II such
II might be called, hO does not feel very
boOmish as regards the new Bessemer
irons and iron goods Of the country.
Another prominent iron master OF the
United States, Congressman Hewitt, OF
New York, does not sgree with Mr.
Carnegie even in regard to the genuine
ness Of the steel boom, Being asked how
the advance in prizes from $50 to $50 per
ton in steel rails wast.brought about 10 lie
quoted as saying;
By the combination to restrict produce
tion, and thus directly maintain whatever
mica may bs agreed upon. The fac! 10
thst the steei.raiI makers look upon this
ADVANCE altog .ther too Tosily, as Ree II,
The Capaciiy OF the steel rail mills 10
1000 600 tons Last year the production
unler under the restrictive process was
100000 tons. This year they propose to
distribute among themselves y production
al 100000, or possibly 100000 tons.
THAT is u little over half their capacity.
That can hardly be called "boom" un.
der such circumstances. Nor will there be
any actual prosperity until the demand
EQUALS the normal capacity. 1t Is simply
nt V,FrunnFikU na
ofthen seem to deem ii. There Is no pros,
perity while the production exceeds the
consumption, as II does nowin a. branches
Of the iron trade. We have toolishly built
up about ourselves q wall Of protection
that has become a positive and absolute
ugtr,sr 10 prosperity. lhe markets OF
he world are cloeed against US, and our
productive capabilities In almost every
branch Of business far exceeds our ca
paclty to corFums Prosperity can't come
In this or any other business until the
country has grown so that we can CON
sumo ali we can produce, or elsa until
something is done to enable US 10 branch
ont and get into the markets OF the world.
The country Is prosperous enough, as
PROSPEROUS 40 II ever was, and there never
was such an abundance OF wealth here as
there is now ready at hand for legitimate
ENTERPRISE. But 1t IL afraid Of our great
curse, overpfoduCtion. Our wealth is In
fact flood that We can't stow away any.
where, II We had open to Us the markets
Of the world We would readily find aplaCe
forit.
There Is one way in which prosperity, or
seeming prosperity, may be obtained Just
now By the lew. During the past tive
wears American manufacturers have learn.
ed two things; the pooling system--tuCh
as the rail men arc now indulRlng Inland
tho boycott. When some shrewd manu-
iacturCr OF iron or anything else can form
his rivals into pool and then get tho con.
sumers to boycott the. pool he will become
prosperous. He can't in any other way
under our present tariff system. Every
manufacturer that can BIO pooled 10 pooled
now for purposes Of protection, and they
will remain pooled until change Is made
which will give to US our natural and legi-
timato markets. 1t Is the same with these
steel.rail makers. They have TO restrict
the manufacture by their pooling system
in order ~ keep up the prices at the pres.
emf figure. II can DO done In no other
way, and without this pool to restrict
prices will break, and the seeming pres.
parity be gone.
"lnen you consider the abolition oithe
restriction on production impractiCableP ?"
certainly. Last year 1000 miles Of
road we're built requiring 100000 tons Of
rails. This years requirements for ex-
tensions are estimated at 5000 miles, or
100000 tons. Repairs, Hidings and re.
placements may use up the estimated pro.
duCtion Of /, 100000 or 1,250,000 tons. II
restrictions are removed, and there Is a
manufacture up TO the capacity OF tile
mills, there would be All excess Of pro-
durtion and break In the market. They
must hold their pool for self.protection."
"What Is the outlook In the iron trade
generally%
az can see no signs Of a general i'm.
proyement. There ls, 1t Is true, an I'D.
vance Of SEGA ton on Bessemer pig. It
now worth $40 q ton OF the mills, and
three months ago we could get only $l7.
The ability to produce and the proper ma.
terial for Bessemer pig is limited. That Is
ono reason for the advance. Other iron
has advanced in sympathy 81 ton, but
this may not hold, for iron Is plenty and
the capacity Of production, as In the case
Of steel rails, Is double the demand. AT
the present price II is but little more than
paying the actual cost OF production.
Nails are now % cents q key higher than
they were a year ago. This Is not due,
however, to q demand, but 10 the fact that
the strike among the nallers Of the West
enabled the Eastern manufacturers 10
raise the price. Now that the strike In
the West has ended the production will
exceed The demand, and think the price
must drop instead Of remaining stationary
or advancing. Take the situation as q
whole, then, 1 cannot see that the outlook
for an increase In prices Is o favorable