Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1891-05-24
BUYING UP PIG IRON.
Chicago Manufacturers Evidently
Expect a Big Advance.
A BROKERS' OPINION ABOUT IT,
Some Recent Purchases That Seem to Have
Great Significance.
DEMAND FOR THE SOUTHERN PRODUCT.

ESPECIAL TELEGRAM TO THE DISPATCH
CHICAGO, May 23.-During the past two
or three weeks the big iron manufacturers
of Chicago have been heavy buyers of pig
iron The Mccormick Harvester Works
bought 5000 tons in single lot a few days
ago and as much more in smaller quantities.
The Deering Harvesting Machine Works
has within the same time bought about
Is, 600 tons.
The syndicate which controls and operates
malleable iron works in Chicago, Indianap-
oils, Cleveland and other points East has
purchased not less than 40, 600 tons of Lake
Superior charcoal iron, at prices, it is said,
ranging from SIG 80 to S17 30 per ton; the
prevailing prices in the open market for
this same grade of goods are from SIT so to
$1S. Large numbers of smaller establish
ments have also been heavy buyers, some
of them having contracted for enough pig
iron to last them more than year.
Taking Time by the Forelock.
A notable fact in connection with this
buying is that it is being done more than
month before the time when manufacturers
usually lay in their supply. Evidently
there is general and widespread belief
among class of people who ought to know,
that prices have reached their lowest ebb
and that the market is about to stiffen.
The opinions of brokers as to whether the
facts Justify any such apprehension vary.
Mr.. W. w. Backman, a well-known broker,
who has recently been appointed agent OF
the Iroquois Furnace Company, in which
Hay Walker and Cashier Given, of the
Farmers Bank of Pittsburg, are largely in
terested, is of the opinion that, notwith-
standing the heavy buying, prices will not
advance to any considerable degree. There
has been a stiffening of about 30 cents
a ton in consequence of these purchases
which take certain furnaces out of the mar
ket and absorb their product for some
months ahead" said he, "but I do not
know of any reason for believing that prices
will very materially advance in the near
future. I think they have reached as low a
point as they will reach; there is no pros
pect of their going any lower.
Reason for the Opinion.
ssMy reason for thinking, so is that the
iron business in general is dull. 1t is very
significant to me when I see so many of
these big establishments shutting down or
running with only half their force. And,
besides. L think there is no likelihood of an
advance in railroad rates. The prevailing
prices in this market just now are SIS 80 for
No foundry, SIS for No. 3 and s14 80 for
No. g."
The Iroquois people have opened an Office
in the Rookery, under the management of
S. Francis Eagle, formerly of Youngstown,
o. If the coke strike permits they will go
into blast about July 1, and, with capacity
of 175 tons per day, they may exert de-
cided influence on the market.
Southern pig iron continues to pour into
the Chicago market, about the same proper
ton being taken as noted in previous tele-
gram to THE DISPATCH-about one-third
of the entire amount consumed. In the
large purchaes noted about that proportion of
Southern iron was taken, to be used in COM
bination with Northern irons.