The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1888-01-21
DEPRESSION IN THE IRON MARKET.
The Trade On the Verge of Being Paralyzed,
with Possibility of Still Lower Prices

NEW YoRK, Jan. 2O-The Times says; "The
depression in the iron market which has existed
since the beginning of the year has given rise to
fears among number of large manufacturers
that longer continuance of the present condi-
tions may lead to disastrous results, while many
of the people interested have expressed belief
that any greater depression of the market is al
most certain to paralyze the iron industry, at
least temporarily. Not the least serious of the
existing conditions is the uncertainty in regard
to the settlement of the wage question in the
large furnaces and mills. It having been stated
that the present depression in the iron market
due partially to the fact that the great firm
of Carnegie Brothers had been bearing the mar
ket and underselling every one, a representa-
tive of the Times called on Andrew Carnegie,
last evening, for the purpose of obtaining his
astatarnsnt rsysra fu tfrs& sftuatroz. Mr.. Car
negie acknowledged that there was great de-
preston in the market at the pres
ent time. and prices might go still
lower. AS to underselling the market. he
said that if any of his partners in Pittsburg
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 to tai
producer of their furnaces, he said, was $4,000
tons OF pig-iron per month. Of this amount
they were using 20. 900 tons in their works for
the manufacture Of iron in miscellaneous shapes
other than steel rails. The rail-rnill had been
shut down because there was no demand for
rails at this Amy surplus of pie-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 reduction
in price was proportionately equal regards
both products. 1t legitimate decline Of
values under the.economc law of supply and de-
mand. AS the price of these products has fallen
of AL 20 ner thought
was only fair to ask the men to submit to 20
per cont reduction of wages, depending upon
future advance in market prices for a pro-
portionate advance in wages But the manu-
facturers had asked the men to submit to
only 10 per cent reduction. If this was not
satifactory to the employees MIR. Carnegie said
that his firm would not only be willing but
would be anxious, to submit the matter to arbi-
tration. He did not think that there would be
any labor troubles or strikes in the iron industry
unless the men refuse this offer Mr. Carnegie
said ne would personally be very sorry for the
men if they should be so i'll 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
ranted. When it is considered that Mr. Carne-
and steel rails manufactured in this country.
and that they employ 10000 men. it may be
understood that the gravity OF the situation can
not well be exaggerated. The proposal referred
to has been submitted to the men in Mr.. Car
negie's employ, and they have signified their
Willingness to accept it, but have not indicated
Another gentleman prominently connected
with a company which purchases large amounts
of pigron, willing to talk about the state
of the market, but would not consent to the use
of his name under any circumstances he said
that while there were some natural causes for
the present state of the trade, he was convinced
that the conditions were not such as to justify
the heavy decline in prices. IL might be claimed.
he said, that there was no demand Tor steel
rails. and that prices fell accordingly. Under
such lack of demand there would also naturally
Naa fall lsncr off xbe dam and N lp-ir
der these circumstances he could hardly under
stand why the steel manufacturers closed down
their mills and kept their blast furnaces going.
His company, he said. could not make and sell
pig-iron at profit at the figure now quoted by
the Carnegies. Last year all the furnaces and
mills We're kept going rconstantly, and then
could scarcely meet the demand. Both Bessemer
ore and pie-iron were imported extensively from
Europe TO make up the deficiency in the domes-
tic pig-iron market. There would be the same
demand this if it were not for political rea-
sons. He convinced that the large
manufacturers were purposelye glutt'ng the
market with pig-iron TO cause depression. If
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 manu-
IActure or tnat product Ihe effect OF sucn
depression would be that the steel men, being
all high protectionists, would come together and
resolve that the depression caueed by
lack OF demand for steel and iron products, su-
perinduced oy a fear among purchasers OF large
bulks that the protective tariff might be re-
duced or removed at the present session of Con-
gresS tnus enapHng importers 60 sell foreign
steel ct lower price than the domestic product
could now be bought for. He believed that
President Clevelands message had greatly
alarmed the large Western manufacturers, and
that the present condition of the market was
the result of coup on their part to demon
s,rate to the people that even the fear OF a re-
vision of the tariff would bear down the prices
of domestic products, and consequently cause
reduction in wages. There was reason why
in his mind the demand for steel rails should
not be heavy now as last year
Steamship News