The Big Stone post. (Big Stone Gap, Va.) 1890-1892, 1891-01-16
THE IRON SHUTDOWN
Why the Northern Furnaces Find It Inn
possible to Run, Except at Loss.
THE SOUTHERN COMPETITION.
From the Iron ARe.l

The most significant event during the
week has been the determination ex-
pressed by the great majority of the fur
nacemen of the Shenango and Mahoning
valleys to suspend operations, unless the
cost of putting their product on the mar
ket is reduced The furnaces Of the val
eys work under nearly identical condi-
tions. All of them depend upon the Lake
Superior district for their ore and upon
the ConnelIsvllc coke region for their
fuel; only few of them using cinder to
cheaper their mixture for forge grades.
The ore was contracted for Mt time when
prices for pig iron were very much higher,
and when the outlook was very bright in
deed. In fact, quite number of the
furnace companies are credited with hav-
ng made good deal Of money during the
advance early last year, because they had
stocks of cheaper ore from the preceding
season. But during the second half OF the
year the market slumped persistently, and
with contracts for high raw material the
cost remained high. The situation affected
alike those who were producing forge and
foundry grades and those who were run
ming on Bessemcr metal. The latter has
been affected principally by the moderate
business done in steel rails and the
wretched outlook for that branch of the
trade during the coming year, in spite of
the tremendous increase in the make of
soft steel. The foundry and forge irons
hare been influenced chiefly By The compe-
tition of The Southern makers. That
competition has grown more Serere since
the financial stringency.
But while it is fact that valley fornace-
men producing foundry and forge grades
for the open market are struggling against
an exceptional condition of affairs with
their competitors, it is true also that they
must have relief more permanent in its
character They know that soon their ore
will cost them much less, but they must
have assurances that there will be low
erng of treights and that coke will be
still cheaper. They have nothing to lose
and much to gain by idleness now. 1t IS
estimated that if prices on ore and fuel
and rates of freight are reduced to q fig
ure which leaves 4 very good profit to the
ore and coal miners and to the transpor-
tation interests, then the cost of run OF
furnace can be reduced to $l2 at the very
best equipped plants in the valleys, and
we need hardly add that the majority OF
them are modern installations. 1t is this
very fact, which is only too generally
lost sight Of, that the iron made of Con-
nellsvile coke and Lake Superior ores
bears burdens of profits which are not
equaled in any part of the country.
;,;, ha lntncf cpocio1 tnln
graphic advices, VIC may state that in the
Shenango valley there are out the Alice
Ella, Neshannock and Raney- Berger
while there are already banked the Claire
Mabel and one Stewart. Speerman and
Keel Ridge report that they propose TO &c
out of blast soon, and We are advised that
the others will suspend operations by the
10th inst The only furnace which will
continue to run is the one Stewart. The
monthly output OF the furnaces in the
Shenango valley is about $4,000 tons, the
December product having been 43,9OC
tons.
In the Mahoning valley, one each of the
Himrod, Hubbard, Brierhill, Mary Hazel.
ton and Mahoning stocks are out ant
Struthers is banked, Hannah and Grace
were out, and the second Hubbard will
stop on the 10th, as will all the Others
with the exception Of tho Falcon ant
Phoenix furnaces of Brown. DonEell 4
Co. and Thomas ut Niles. The furnace:
idle, or about to stop, represent MONTH!
output of $1,000 tons, while the three
which will continue to run may be rated
at 10 900 tons. In other words, the ca
pacity idle in. the two valleys will aggre
gate $1,000 tons per month, while TIT
plants which will continue to run make
monthly 10000 tons. In all, twenty
three furnaces have signed agreement t
stop by January 10th, and to remain idl
until the majority of those signing thu
agreement resolve to resume.