St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1888-01-21
IN THE IRON MARKET.
Depression in the Iron Market Causes
Fears of Disastrous Results.
SOME SPECULATIVE IDEAS
Concerning the Causes Thereof and the
Probable Outcome of the De-
preston.

New YORK, Jan. 20.-The depression
in the iron market, which has existed
since the beginning of the year, has Civ
en- rise to fears among number OF large
manufacturers that longer continu-
ance of the present conditions may lead
to disastrous results, while many of the
people interested have expressed be-
lief that any greater depression of the
market is almost certain to paralyZe the
iron industry, at least temporarily. Not
the least serious of the existing cOndi-
tons is the uncertainty in regard to the
settlement of the wage question i'll the
large furnaces and mills. 1t having
been stated that the present depression
in the iron market was due partially to
the fact that the great firm of Carnegie
Brothers had been bearing the market
and underselling every one, a reporter
called OIL Andrew Carnegie last even
ing for the purpose OF obtaining his
statement in regard to the situation.
Mr.. Carnegie acknowledged that there
was great depression in the market at
the present time, and prices might go
still lower. AS to underSelling the
market, he said that if any OF his part
nerS in Pittsburg 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 $4,000 tons of pig iron per
month. Of this amount they were using
10000 tons i'm their works for the manu-
facture 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 had not fallen more
than the quotations for steel rails; in
fact, the reduction in price was proper
tionately equal as regarded both pro
ducts. 1t was legitimate decline of
values under the economic law of sup
ply and demand. AS the price of these
products has fallen off about 20 per cent,
the manufacturers thought it was only
fair to ask the men to submit to a 20 per
cent reduction of wages, depending
upon future advance in market prices
for a prOpOrtionate advance of
wages. But the manufacturers had
asked the men to submit to only
10 per cent reduction. Ii this was not
satisfactory to tile employees his firm
WOulu ilOt Olly Ut WILLIE UuG NOulu OC
anxious to submit the matter to arbltra-
ton. He did not think that there would
be any labor troubles or strikes in the
iron industry unless the men refused this
offer. Mr.. Carnegie said he would per-
SOnally be very sorry for the men If
they should be so ill-adviSed as to reject
the proposed reduction and attempt to
cOerce the manufacturers into paying
more for their labor than the condition
of the market warranted. When it is
considered that Mr.. Carnegie'S firm pro-
duceS One-eighth of all the pig iron and
steel rails manufactured in this cOun-
try and that it employs 10000 men, it
may be understood that the
GRAVITY OF TIE SITUATION
can not be exaggerated, The proposal
men in Mr.. Carnegie'S employ and they
have Signified their ullwillingneSs to
accept it, but have not indicated their
course should the reduction be enforced.
Another gentleman, prominently con-
| nected with a company which pur-
| chases large amount 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 circum-
| stances. He said that while there were
some natural causes for the present
state of the trading he was convinced
that the conditions were not such as. to
1t might be claimed, he said,
for steel rails and that prices
fell accordingly. Under such lack of
demand there would also naturally be a
falling off in the demand for pig iron.
| Under these circumstances he could
| hardly understand why the steel manu-
| facturerS closed down their mills and
kept their blast furnaces going. His
company, he said, could not make and
sell pig iron at a profit at the figure
now quoted by the Carnegies. Last year
all the furnaces and mills were kept
going constantly, and then could
scarcely meet the demand. Both
ported heavily from Europe to take up
the deficiency in the domestic pig iron
market. There would be the same de-
mand this year if it were not for polit-
ical reasons. He was convinced that
the large manufacturers were
PURPOSEI.Y GLUTTING THE MARKET
with pig iron to cause depression. Ii
this were not so he could not realize
why they should close their mills, which
consume pig iron, and still keep their
furnaces going in the manufacture of
that Product. Inc erect OF Sucn de-
preston would be that the steel men,
being all high protectionists, would
come together and resolve that the de-
preston was caused by lack of de-
| mand for steel and iron products, SUI
perinduced by fear among purchasers
of large bulks that the protective tariff
might be reduced or removed at the
present session of congress, thus ell
abIing importers to sell foreign
steel at lower price than
the domestic product could now be
bought for. He believed that President
Cleveland's message had greatly
alarmed the large Western manufac-
turers. and that the present condition
of the market was the result of coup
on their part to demonstrate to the peO-
pie that even the fear of a revision of
the tariff would bear down the price of
domestic products, and consequently
cause reduction in wages. There was
no reason why, in his mind. the demand
for steel rails should not be as heavy
now as last year.
No Demand Made.
WASHINGTON, Jan. 20.-The state
ment cabled from Madrid that the