Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1888-12-18
MR. w. H. WALLACE
Tells what Ais the Cut Nall 1Garkst-A
Comprehensive Statement.

Tells What Ais the Cut Nall Marietta
Comprehensive Statement.
10 response to Q query from the St
Louis Age Of Seel as to "What Is the mat
ter with tha cut nail market" President
". H. wsllace, of the Jeferoa Iron
Works, Steubenville, Ohio. answered at
some length, and as his opinion will Be in.
teri sting at this time, it ID printed in full.
Mr.. Wallace said.
THE trouble that affects the cut nail
market is somewhat complicated, and can
be divided into several parts. Probably
the most demoralizing influence is the sub
stitution of the wire nail in large mum
Der of cases and for q large percentage Of
the purpose, to which the cut nail VA
formally applied. In 1857 the production
of wire nail', according to the report Of the
American Iron and Steel Association, wa
/, $50, coo kegs. II no wire nails had bs en-
made, to the extent Of this product there
would have been greater demand for cut
nails. The amount named would have re
Quired the average product Of three OF
four Of ths largest cut nail mills.
"Since the lst Of January, 1888. the re-
ports received from the trade Indicate thai
the displacement during this year hes been
very rapid. many dealers saying that theiI
sales include 80 per cent Of the wire nails
in some cases rs per cent, and in few
even the intention Of disseminating the
handling of cut nails altogether. The in
crease in the number Of fsctorie, and the
enlargement OF the szs of the old ones, to-
gether with the reports from the trade Of
the increased demand for wire nails, would
indicate that we may expect the statistics
tor 1888 10 show product OF possibly 2,
500, 600 kegs Of wire nails, or a substitu'
ton of them for the work Of from six tc
.isht cut nail factories of the largest size,
Ordinarily the growth Of the country
would have provided in some degree for the
capacity for overpioduction Of the cut nail
works, but this abuormsl (fiom the cut
nail ct st,ndpoint) intrusion OF q new article
made by different procsss OF manufsc
turipg, keeps the nail mai kst oveIproduced
and makes il a question whether in time
the cut nail will be entirely superseded by
the wire nail.
"Auother cause of trouble hiss been the
establishment Of small factories, containing
few machines, titusted in various parts
of the country and slso the location of 0
few machines here and there in works de-
voted to the production of other lines OF
manufacture. These were all operated on
the b ,sis of special labor contracts at rates
of wages much below those paid by the
regular manufacturers, aad were usually
restricted to the production Of small or foe
nails, which formerly were PLACID on the
price lists at q large advance over the prices
of the common or heavier sizes.
These small tstablishme eots. generally
know as tack factories,' came into The
market as bidders for the best pay ing pirl
of the business and bad great inaoenct
in demora alizing prices The manufactur'
ers' association, to meet this competition,
has twice within three years reduced the
relative prics Of tie small or fiue nails,
and this lnilu, nca Is not - great as before,
but i'll contributes share to the difficult
ties Of the situation, particularly as some
of the larger manufacturers "a minority o'
them, however, havs sl4o spt cial labor
contracts, similar 30 the tsck fsctorits, and
the outcome Of their competitf5a
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
againtt the wire nail, there is fair pros
pect that in time the demand will Increase
sufficiently with the growth Of the country
to absord the product Of the present cspac.
ity and the normal growth Of the business.
For The abnormal growth there is no room,
and any additional establishments. in any
except the most favorable localities and
with ample capital, can only provs disas
trous TO those who bnild them"