Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1889-05-25
THE WHOLE SITUATION.

| well, III WOuld not exist. Inc Otner
mills would not agree to sell limited
number of kegs of nails per month, while
the La Belle was slashing away and put
ting as many nails on the market as they
could turn out. 1t would be simple fool
ishness. Now I'll tell you how the whole
thing came about As you know, each
mill belonging to the association pays
into the guarantee fund $40 ON
each machine in it's factory, and each fac.
tory is limited, according to the rules OF
the Association, to sell 30 many kegs of
nails per month. For every keg they sell
over and above this number they are COM
PEELED to pay ten cents per keg"
"Well, it appears that the La Belle sold
about 10000 kegs above the limit last
month, which would amount to about
81, 900 they would, under the rule, be COM
pelled to pay into the Association treas
ury. This they declined to do, and en-
nounced their intention of dropping out Of
the Association. This was the condition
of things that stared the organization in
the face, and the meeting was called to
take some action. 1t seemed to be pref
ty hard job to decide upon what course to
pursue, and several times it looked as if
the whole bottom of the organization
would drop right out, aud it would meet
an ignominious death. But at last it was
agreed to suspend the ten cent feature for
two months. which let the La Belle out
for the time being,
Now the effect ofthe thing is that while
the Association is in existence still, il is
in name only and not in eff, ct, It's main
principle having been dropped out. The
only thing that makes it an Association
still is the fact that the guarantee fund
hasn't been divided up, which is probably
owing to the fact that the meeting could
not decide whether or not to withhold
the 81, 600 mentioned above from the guar
antee deposited by the L. Belle. So the
thing was suspended fol two months, maybe
with the hope that something will turn
up"
why; didn't the organization have any
effect on the price OF nails?"
"Yes; price would be made at the meet
ings, but that was the end of it. A dealer
could purchase nails at almost any price.
The wise dealer would buy say two car
loads at time He would make out an
exact list of sizes he wanted and then per-
haps send copy to sll the mills with the
! inquiry of what such lot of nails could
be purchased for. Then there was cutting
right and left, with the result that the
buyer generally got the bill down pretty
low. There seems always to be some
manufacturers who, either because they
want to keep their mills in operation or
need money, or for some other reason, will
come, way down on the price, and sell for
less than actual cost. Now that is the
way the thing has been working, and the
Association had no control of the selling
price at all"
"what remedy do you see for this state
of affairs?"
''There is only one, and that is to form
a trust, combine, or whatever you may
choose to call it, The production must be
limited, and the way to do it is TO have
every key OF cut nails made, sold through
one agency. Each mill should be allowed
to contribute 20 many kegs of her product
per month or per year, 20 that sufficient
be made TO meet the demand, aud the
price-a fair price to affixed on the
product, and then there would be none of
this cut-throat business.
at would also be much fairer for the
dealer. beause he would then know just
what be was about and always be certain
that he would not clip up the prices
As it is now, a man may purchase big
lot of nails one day and the next discover
that he could have secured four or five
cents per keg off from what ne paid. This
is undoubtedly the only true solution OF
the difficulty.
"There is another cause at present fer
the low prices. The Terre Haute mill, |
understand, has decided TO abandon the
nail business and they have very heavy
stock on hand, as well as q great deal of
steel. This they are manufacturing into
nails and selling them at almost any price
to get rid of them. 1t is very likely the
Belleville mill, and perhaps another is
doing the same thing"
SIS there any foundation for the state
ment that there is a crisis in the situs-
tiOn?"
"None at ALL There is no more crisis
now than there has been for long time
mast. No; do not think that making the
number OF nails to the pound larger would
have any beneficial effect Good day"
ANOTHER GENTLEMAN's VIEWS.
"What effect will the abolition Of the
ten cents per keg feature have upon the
Nail Association was asked Of another
manufacturer.
at will have none at all, " replied be,
except that the mills can 20 ahead and
sell all the nails they want to, and SEINE OF
those dealers who want TO buy big lots can
do So This action, however, is only tenn
porary, and the Association at any time
can replace the ten cents per keg."
"Well has the La Belle withdrawn from |
the Association"
mo; it is still member and will no
doubt continue to be- They became tired
of paving the ten cents per keg fer all nails
sold over a certain amount, and threatened |
To leave the organization, so it is probable
that this fact bad something TO do with |
the action taken by the meeting. have |
doubt about the step being wise one"
"Could the Association get along If the
La Belle should drop out ?"
"Oh, yes; it could get along, bnt 1t is
not probable that it would, but do not
think they will drop out"
'Is there any more of crisis in the cut
nail situation now than there hiss been |
since the Association Was formed 2"
mo. l think not. There is no reason |
Ubv il should be. The reduction accepted
by the nailers places it in even better po- |
sition than it was in the past"
"What steps have been proposed to
place the market on basis that will give
you a show Of competing with the wire
nsil?"
"Weu, one thing we must do is TO give
as many nails to the pound as wire nail
men give, which can be done. The pro-
duction must also be limited by the forma-