The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1889-05-12
imply because profits arc not so high as

simply because profits are not so high rs
usual.
Mr. Clark refused to tell the cost Of pro-
duction 10 the Thomas Iron Company, but
II was the general belief among iron men
that II could produce iron at Sl3 ton,
aud make from - TO 50 ton on their dii-
fcront grades OF iron at even the present
prices which are the lowest since 1857.
At the Office OF Y. q. Crane, No. 20 Wall
street, It was said regarding the situation:
1--WE believed that the price OF iron had
reached the lowest possible point IL could
20. Now here comes this latest cut IL
will cause general staynation. II will be
dull for four or five months, and then
there will come u reaction In the fall.
There are only two pig iron companies in
America that can stand the present price
the Lebanon aud the Thomas. The dull
ness in the pig iron trade is owing 10 the
lack OF orders from railroads The retar-
dalion in railroad building is due 10 the
Interstate law, which has made railroading
less profitable than Il used to bc."
james Williamson, OF Wilkinson & Co.,
No. CD Wall street, siid: "Ihe Thomas
Iron Company contracted with their rcgu-
lar customers at SIS for No. y aud Sl7 Tor
No. ~ grades. They found that their
customers were not taking the iron accord
'ng TO contract. and had been buying
Southern iron. To put stop 10 this the
Thomas company made this reduction,
but they are not selling 10 outsiders. The
Southorncrs are hoping for better freight
rates, so ~ In compete moro successfully
with the North. They have no home mar
kot worth speaking Of, and they do not
seem 10 make any progress in the West.
They come into our Eastern market. crowd
II with surplus stock, and down goes the
price.
"Cipiial is not such plentiful article
IN The South as their glowing representa-
tons would have ~ believe. They are
far from wealthy down there and cannot
afford 20 hold their stock. So II elbows
It's way into the Eastern market, deprcss.
ing the trade and making but slight profits
Tor themselves Tho Southern iron Is No
poor that the preference Is always given TO
the Northern brahds.
Hugh W. Adams q Co. are tho Eastern
agents Tor the Tennessee Iron and Coal
Company, the Slos lrpn aud Steel Com
pany and fourteen cut Of the twcnty.siN
southern blast furnaces now In operation.
Daniel J.. Todd, OF this firm. said that he
did MI think that the Southern con panius
| MhNll NtitN wa" NaAN hl wv AAhlllfAH AlNu
Company NJ present. at only relates 90
May and June deliveries" he said. al
the cut Is continued. aud the Southern
companies Gnd stock accommodating ON
their hands in consequence. they will have
10 cut, too. My firm declined an order
today Tor 1000 tons at iiuy.cont rcduc.
ton below the usual market price.
"lhc Southern freight traffic In iron l.
controlled by three steamship companies,
the Clyde the old Dominion and the
Ocean. The three work In combination
aud keep freight rates quite high. II thcfo
was amy further eat In the iron market IL
would naturally have the result Of stop.
ping shipments. Tho steamboat cnni.
panics, Tor their own protection, would bc
compelled 10 take a hand Ia the fight and
reduce freight to a point that would per.
init the southern men TO join the battle
with the advantage on their side. do
not think that the present cut will keep
the Southern people out Of the market
They will do a good business, nolwith-
standing"