The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1888-01-21
THE CONDITION OF IRON.
A DEPRESSION IN THE MARKET
CAUSES SOME GLOOM.
This State of Affairs Gives Rise to
Fears Among Manufacturers that 1t
May Lead to Disastrous Results
The Carnegies.

May Lead TO Disastrous ReSult5-
The Carnegies.
New YORK, Jan. 20.--The Tins says
"The depression in the iron market which
has existed since the beginning of the year,
has given rise to fears among a number OF
large manufacturers that q longer contin-
uance Of the present conditions may lead
10 disastrous results, while many Of the
people interested have expressed a belief
that any greater depression of the market
is almost certain 10 pardlyze these indus
tries at least temporarily. Not the least
: serious OF these existing conditions is the
uncertainty regard TO tho settlement Of
the wage question in the large furnaces
and mills.
at having been stated that the present
depression IN the iron market was due
partially to the fact that the great firm Of
Carnegie Bros. had been bearing the
market and underselling every one, rep
resentative OF the lines called on Andrew
Carnegie last evening for the purpose Of
obtaining his statement in regard to the
situation.
"AIr. Carnegie acknowledged that there
was a great depres ion in the market at
tho present time, and prices might 90 still
lower. As 10 undertaking the market, he
said that II any OF his partners in PitlsDurg
were selling any OF the products OF their
mills and furnaces for less than he could
get for them he would feel alarmed for
their sanity. The total product of their
furnaces, he said, was 5000 tons OF pig
iron per month. OF this amount they
were using 10000 tons in their works for
tho manufacture OF iron in miscellaneous
shapes other than steel rails. The rail
mill had been shut down because there
was no demand for rails at this season.
Any surplus Of pig iron made at their
furnaces was being sold at the best price
obtainable. The market price for pig iron,
he said, had not fallen more than the
quotations for steel rails; in fact, the re-
duction in price was proportionately equal
M regarded both products. Ii WAS a
legitimate decline Of values under the
economic law Of supply and demand. Az
the price OF these products has fallen oil
about 20 per cent, Mr.. Carnegie said, the
manufactures thought IL WIS only fair TO
ask the men 10 submit 10 20 per cent
reduction OF wages, depending upon iu-
ture advance In market prices for pro-
portionate advance OF wages. But the
manufacturers had asked the men 10 sub
init 10 only 10 per cent reduction. II
this was not satisfactory TO the employees,
Mr.. Carnegie said, that his firm would not
only be wiling but would be anxious to
submit the matter TO arbitration. lie did
not think that there would bo any labor
troubles or strikes in tho iron industry
unless the men refused this offer. Mr..
Carnegie said he would personally be very
sorry Tor the men II they should be 10 Ill
advised "a to reject the proposed rrduc.
ton and attempt 10 coerce the manuiac-
tures inio paying more Tor their labor
than tho condition OF the market war
ranted.
"Whon II Is considered that Mr. Car.
ncgic's firm produces onc-cighth u all the
pig iron and steel rails manufactured in
this country, and that they employ 10000
men, IL may be undentood that the gray-
ity OF the situation cannot be exaggerated.
The proposal referred 10 has been sub
mitted 10 the men in Mr.. Carncgie's en-
ploy. and they have signifcd their unwil-
lingness TO accept u, but have not indi-
Gated their course, should the reduction be
enforced.
Another gentleman, prominently con.
ncctcd with a company which purchases
large amounts Of pig iron, was willing TO
talk about the state Of the market, but
would not consent to the use OF his name
under any circumstances. lie said that
while there were some material causes for
the present state al trade, lac was con
vinccd that the conditions were not such
M 90 Justify the heavy decline IN prices.
IL might lie claimed, he said, that there
WIS no demand for steel rails, and the
prices fell accordingly. Under such lack Of
demand there would he, also, naturally n
falling Of in the demand for pig iron. On.
der these circumstances he could hardly
- understand why tho steel manufacturer
closed down their mills and kept their
blast furnaces going. Ills company, he
said. could not make aud sell pig iron at 4
profit ut the figure now quoted by the
Carncgics Last year all the furnaces and
mills were kept going constantly, aud then
could scarcely meet the demand. 10th
bes-cmor ore and pig iron ore were i'm
ported extensively from Europe 10 max,
up the deficiency in the domestic pig iron
market
''Tlicro would be the saine demand this
year II IL WERE not for political reasons
lilo was convinced that the large manuiac
tureB were purpoeely Cutting the market
with pig iron 10 cause a depression. II
this were not 40 he could not realized why
they should close their mills which con
sumo pig iron, and still keep their furnac,
going In the manufacture u that product
''1he effect Of such a depression would
be that the steel men. being all high pro
tectionists, would come together anil 70
solve that the depression wus caused by q
lack Of demand Tor steel aud irun pro
ducts, superinduccd by a fear among pur
chsscB OF large bulks that the protective
tariff might b. reduced or removed at III,
present session Of Congress, thus enabling
Importers TO sell foreign steel at lowe
price than the domestic product could nov
be bought for lilo believed that prcai
don't Clevcland's message had great,
alarmed the largo western manufacturers
and that the pmeent condition Of the mar
koi was the result OF n coup on their par
10 demonstrate 10 the people that even ia,
fear Of a revision Of the tariff would beal
down the prices ~ domestic products, anC
consequently cause q reduction In waps
There was no reason why, In his mind, h'
demand for steel rails should not be Al
heavy now ~ last year"