The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1888-12-18
THE NEW NAIL ASSOCIATION.
The Office Opened Yesterday-SIueh Good
Hoped for.

ganized Western Cut Nail Association,
opened his Office yesterday at l4O4 Main
street. Great benefit to the trade is ex-
pected by nail manufacturers to come
out Of the organization. The exact
scope of the organization IS not known
TO outsiders. 1t has been represented
that there was no restriction OF produc-
ton and no forfeit or bonds by the indi-
vidual mills; yet the supervisor is ex-
pected to handle funds to such an ex
tent that he is required by the constitu-
ton OF the association to give bond Of
$4,000, and his merely clerical" duties
are sufficiently onerOus to justify sala.
ry OF 81 500 a year.
"The trouble that affects the cut nail
market is somewhat complicated, and
can be divided into several parts"
writes W. II. Wallace, President OF the
Jefferson Iron Works, Steubenville, in
response to the inquiries Of the Age Of
.SteSl; probably the most demoralizing
influence is the substitution OF the wire
nail in large number OF cases and for Il
lar4 percentage OF the purposes to
which the cut nail was formerly applied.
In 1887 the production OF wire nails, &C.
cording to the report OF the American
Iron and Steel Association, was !, 250, 900
kegs. If no wire nails had been made,
to the extent oil this product there
would have been greater demand for
cut nails. The amount named would
have required the average product Of
three or four OF the largest cut nail mills.
Since the LIST OF January, 1888, the re-
ports received from the trade indicate
that the displacement during this
year has been very rapid, many
dealers saying that their sales in
clude 80 per cent OF the wire nails;
in some eases 70 per cent, and in few
even the intention of disseminating the
handling OF cut nails altogether. The
increase in the number OF factories and
the enlargement Of the size OF the old
ones, together with the reports from the
trade OF the increased demand for wire
nails, would indicate that we may ex-
poet the statistics for 1888 10 show pro.
duet OF possibly 100000 kegs Of wire
nails, or substitution OF them for the
work of from six to eight cut nail facto-
ries of the largest size. Ordinarily the
growth OF the country would have pro-
vided in some degree for the capacity for
overproduction Of the cut nail works,
but this abnormal (Irom the cut nail
standpoint) intrusion OF n new article
made by different process OF manufac-
turing, keeps the nail market overpro-
luced and makes il Il question whether
in time the cut nail will be entirely
superseded by the wire nail.
"Another cause OF trouble has been
the establishment OF small factories,
containing few machines, situated in
various parts OF the country, and also
the location of a few machines here and
there in works devoted to the produc-
ton OF other lines OF manufacture.
These were all operated on the basis OF
special labor contracts at rates Of wages
much below those paid by the regular
manufacturers, and were usually re-
stricted to the production OF small or
fine nails, which formerly were placed
on the price lists at large advance over
the prices OF the commoner or heavier
sizes. These small establishments, gen.
orally known as tuck factories came
into the market us bidders for the best
paying part OF the business and had a
great influence in demoraliZing prices.
The manufacturers association, to meet
this competition, has twice within three
years reduced the relative price Of the
small or fine nails, and this influence is
not SO great MS before, but still contrib
utes share to the difficulties OF the Cit
uation, particularly US some Of the
larger manufacturers "a minority Of
them, however, have also special labor
contracts, similar to the tack factories,
and the outcome Of their competition.
"The question OF permanent improve
ment in the future is involved in the
problem OF the wire nail as substitute
for the cut nail. II the cut nail by the
lower cost and selling price can hold its
place against the wire nail, there is a
fair prospect that the demand will in
crease sufficiently with the growth OF
the country to absorb the product Of the
present capacity and the normal growth
of the business. For the abnormal
growth there is no room, and any addi-
tional establishments, in any except the
most favored localities and with ample
capital, can only prove disastrous to
those who build them"