The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1888-12-04
7HE CUT NAIL TRADE.
All Admit that it is in Unsatis.
factory Condition.
WHEN WILL 1T GET BETTER2
Interesting Expressions on the Sab
Jcct by Wheeling Manufacture
crs, aud Views Of Proml.
ncnt Men Elsewhere.

Try WeTe invited on the cut nAll tTauc,
and the cause Of its unsatisfactory con.
dition. Says the st. Louis Age Of tSteel,
which invited the expressions:
The president OF one Of the leading
companies at Wheeling, W. Va, writes:
THE main trouble in the nail market
grows out oil the lack OF confidence be-
tween the various manufacturers OF cut
nails. This, coupled with the over-pro-
duction has tended to reduce the selling
price of steel nails to point considers
! bly, below cost. Another element that
should take conspicuous place in the
present demoralized condition is the
growing evil-the broker-whose anx-
iety to do business causes him to adopt
unbusinesslike methods. We have no
cure,aii to recommend; are turning out
our usual quantity, being upwards Of
10000 kegs per week, aud expect our
aggregate sales for 1883 to reach the
highest point they have touched ior
several years"
The secretary Of Wheeling com.
pany comments on our questions rs fol-
lows: "What is the matter with the
cut nail market?' It's all right-over-
production. The manufacturers are not
satisfied with the present condition.
Why don't they remedy 1t by Cnrtailing
production instead Of trying to exceed
their capacity and hunting the lowest
figure that will take the husiness2 Com.
petition is lively, prices low. demand
light, profits reduced TO u minimum.
Correct, except as to profits, for which
you should write losses great. No im-
provemGnt likely to occur in the near
future. Wire nails fill at least half the
requirements for nails in the Western
market"
A Pittsburgh manufacturer says the
trouble is due 70 over.prOduCtion and
the competition OF wire nails; the only
remedy is an increase OF the coRsamP-
ton, which he hopes to see next year,
us he thinks that building operations
and improvements OF every description
will be brought about by the settlement
OF the tariff question in the last election.
There is also evidence now of vast im-
nrovements and betterments oOntem-
plated next year by the railroads OF the
country, and the consumption OF this
one industry will be so large in the near
future that remunerattve prices will be
obtained by manufacturers OF steel and
iron products, and necessarily OF other
products entering into the consumption
OF railroads.
Gen. Powell, OF Belleyille, H., writes
1.-THE main Gauge OF the present unre'
munepatiVe status oil the nail market is
found in the total absence OF all cooper.
alton between the manufacturers in the
West since 1885. The divergence be-
tween the cost of labor in the Eastern
and Western States, together with the
equalization OF ireights either by ocean,
gulf or rail, on the products eI the At
lantic Association TO within mere tribe
OF difference from the factories embraced
in the Western Nail Association, into all
the principal great Western nail markets,
forced upon the Western Nail Asso-
citation the great naileEs' strike
that began juno !, 1881, and that con-
tinued for twelve months, in the West
ern Nail Association territory, with the
exception OF some few mills. During
this time the supply fell far below the
demand, causing an advance in nails
from 81 G5 card rate, June |, 1885, to
50 70 card, in October following; which
induced the working Of every machine
In the Atlantic Association that bad lain
Idle for yeITs, and the building hi sew
eral new wire nail factories, augmenting
largely the actual productive capacity
when in work. The result was very
largely increased productive capacity,
fully so per cent in excess OF actual con-
sumptiYe demand. Hence, since the
spring OF 1886 the present policy ofnen-
co.operation, either in production or
price, has ruled, and induced the ruin.
GUS system Of the survival OF the tlttest,
causing the demorliazed condition OF
the nail market throughout the States.
"In, my Judgment 1t will take ten
years at least Tor tho growth OF this
country, based upon theiuCrease OF pop
u!ation and corresponding increase in
all interests during the past ten year,, to
oyertake and equaiize the demand for
nails to the present productive capacity,
provided no additional nail machinery
Is put in operation in the next ten yeara.
| | am free to express US my opinion, that
the demand for nails for some years TO
come will be SO much below the full
| Vi ~" aNtAAy
twenty.four hours notice, that it will Of
necessity require some system OF gen.
eral cooperation on the part OF all nall
manufacturers that will equaiiZe
the supply to the demand. to
prevent further loss, or To even
afford n small margin on nails. |
can see no good reason why the nail
market at present should not afford .
firm 50 % card for nails, in comparison
with oil other manufactured products.
And l fail to see or know OF any reason
why firm 81 % card I. o. b. mill East or
West, could not bo maintained through
the honest and hearty cooperation oiall
manufacturers in the matter OF regulat-
ing the supply to the demand; the es-
ta6lishment Of general agencies, the
division d territory, all subject to the
submission OF a board under the control
ofthe Eastern and Western Associations.
Unless something Of this character is
adopted there cannot be any relief to the
present ruinous condition Of the nail
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