Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1890-02-21
"A WIRE ROD TRUST.
It Will Take the Place of the De-
funct Federal Steel Company.
THE ORGANIZATION IN EMBRYO.
To Maintain the Present Price Of the Ma
terial, the Object.
RAE TALKS ON THE STRIKE AT PUkxY

Following the collapse Of the proposed
Federal Steel Company, which was COM
bination of the principal wire and wire nail
manufacturers in the Upited States, comes
a proposition to form q syndicate Of wire
rod manufacturers. A secret meeting was
held in this city last week and the matter
talked over. Another meeting will be held
within the next ten days, when it's expected
that a policy of organization will be out
lined and one of the numerous schemes sug-
gested will be adopted.
So far the matter is all wind. It will be
remembered thst about four months ago the
wire and wire nail manufacturers of the
country tried to form a combination. They
held three meetings in this city and one in
Chicago, when the matter was published in
THE DISPATCH.
It was the intention to call the combina-
ton the Federal Steel Company, and the
matter had so far progressed that an option
was secured on the eighth floor of the Lewis
block, where the headquarters of the company
were to be located. On account OF the oppOsi-
ton of several members the project fell
through just about the time the organization
was beng formed.
NOT GIVEN UP.
The men who were the "pushers" in the pro-
posed combination have not given the seneme
up by any means, and have broached the sub
iecr of forming a smaller combination which
would take in nothing but the wire rod mills.
The other syndicate proposed to take in wire
mills, wire fence mills, nail mills and all other
branches of the business. There are in the
United States about 15 wire rod mills,
and a correspondence is now going on.
as to the feasibility of the scheme. Four Of
= llo va Tod To- 10 Thou aro
as follows: Oliver & Roberts, Braddock Wire
Company, New Castle Nail Company and Car
negle. Phipps Co. 1t was denied at the time
that the latter firm were going into the other
combination. Afew days afterward the prime
movers in that company had figures on Car
negie's Beaver Falls mill. Whether they would
sell their rod plant to the new combination or
not could not be learned yesterday.
The information in regard to the new COM
bination was obtained yesterday from manu-
facturer of steel billets. Owing to the scheme
being in embryo, he would not allow his name
to be used. He said the object of the new COM
pany was to keep up the price of wire rods.
The present market price of rods is $50 so per
ton This is very high price, and is caused
by the high price of steel. 1t is expected that
as soon as the relapse of the iron and steel
boom takes place, the price of rods will go
down. To keep them at about the same ngure
it is proposed to form the combination.
THE OLD SCHEME REVIVED.
An attempt was made to see Mr.. George 7.
Oliver in regard TO the matter, Duts owing 70
the festivities incidental to the Presidents re-
ception, he was not in his office. 1t is supposed
that the plan of organization to be adopted
will be the same as the defunct combination.
A stock c. Lpany will be formed and chartered.
Each manufacturer OF wire rods will be given
stock or cash for his mill, which will be ap-
praised by committee. The average capital
of the 15 mills in the country now is about
Sl25,0O0 This would make the aggregate cap
;Sn1 aIov,k fhln a mas
three new plants have been put in operation
They are located at Allentown. Pa, New Castle,
Pa, and Anderson, Ind.
Within three years. the wire rod business has
developed SO rapidly that the foreign rods are
practically excluded. The competition among
home manufacturers, however, became so keen
that some of them have concluded about the
best thing to be done is TO combine the wire
rod interests. By doing this, they not only con-
troll the wire rod business, but the wire market
as well.
The meeting referred to was held in room
at the Hotel Anderson one afternoon about
the middle Of last week.