Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1892-03-12
A GLOOMY OUTLOOK
For the Iron and Steel Industry in
the Busy Furnace Valley.
MANY. SIGNS OF DEPRESSION.
TIE Present State of Affairs Due Solely
to 0verproduction.
FIRST STEPS TAKEN TO CURTAIL 1T
,sprcrAL.rEIEGRAM TO THE prspArcr.,

paralysis it has ever been the misfortune Of
these industries to suffer. From the blasi
furnace industry down to the stage of final
completion dullness and depression in g
more or less aggravated degree afflict these
sister industries. Tins deplorable condition
hasremained SO long, and at present is evi.
dencing not the rcmotest sign of partial
cessation, that there is now heard a faint
sound of despair echoing through these
naturally blessed districts. 4 dark cloud
of inactivity and industrial distress is surely
beginning to settle upon the iron-making dis
tricts OF Western Pennsylvania. During a
period of but very ordinary activity IN the
iron trade this town and its envirors are
the busiest spots in Western Pennsylvania,
because of the many natural advantages it
possesses for the economical production and
its availability to advantageously market
either raw or finished iron or steel. 1t
enjoys the identical advantages of the Pitts
burg district, and of course these are uneI-
ceptionaL Therefore, when one sees on
every hand evident signs of idleness, and
continually hears stories of depression, it is
natural TO infer that the causes therefor are
not OF local origin.
The first intimation I received of this
hereabouts was a sight which 1 consider a
very fit precursor of the unfavorable news
that l have since learned. Along the line
OF the Plttsburg and Western Railway for
a distance of three miles 1 noticed an un-
broken line of empty ore cars. The rusty
condition of their running gear and general
abandoned air well indicated that they are
not being used-tor the reason that there is
nothing for them to do. This fact was COM
mented upon by railroad official here. 1t
is his opinion that the traffic business of the
Shenango Valley was never in his expe-
rience so limited and curtailed, and the out
look he thought was serious enough to
demand the immediate consideration of the
various industries affected with a view to
making some provision to counteract the
abnormal depression settling over the
valley.
Few of the Works Running Full.
None of the local industrial establish
ments are running full Mill and furnace
owners wear an air of indifference, and seem
willing to accept with good philosophy the
inevitable result of either total or partial
stoppage of operations At the Etna Mill
of P. /. Kimberly & Co. one OF the two
stacks is ir operation, which condition with
them is rendered possible from the fact
that the product of the stack finds an easy
field of consumption in their adjoining roll
ing mill. This latter is not very busy, and
a loud wall went forth from this quarter
against the unsatisfactory level at which
prices for finished shapes are ruling At
Johnson's Arthusia Mill found the plant
employed to a fair degree of activity, but
from the tone of the conversation of one of
the minor officials they evidently do not
expect to be always so comparatively
fortunate. The Crawford Iron and Steel
Companv's Red Jacket plant is in steady
operation, due to the fact that one of the
associated firms is using the product of the
furnace. This furnace plant is controlled
bv the New Castle Wire Nail Company,
which latter concern is erecting very large
mill adjoining their wire mill, to be used
for the making of steel billets to supply
their own consumption. A member OF the
concern stated that trade was indeed
rocky at present, and from all sources he
was led to place little confidence in the i'm
mediate future
At Ramey & Berger's furnace plant
very considerable quantity of foundry iron
remains on hand, and while the stack is
still operating / was informed that the firm
contemplates, in fact has decided, to close
down in about two weeks. This contem-
plated action is sufficient evidence of the
of things with this firm. One of
the members spoke at length on the un-
favorable conditions on account of the pres
ent enormous production of iron, the limited
the activity of Southern fur
mace companies in selling in Northern mar
kets, and above all the entire and complete
absence of any demand for foundry irons at
any reasonable price
One Active Furnace Firm.
At the Rosina Furnace of the Oliver Iron
and Steel Company the plant is actively en-
gagged in turning out mill iron, but it seems
that here, too. some mitigating circum-
stances surround the mystery of their un-
usual activity. l was informed that the
plant is the property of the Ward estate |
and has for some time been operated under |
a lease which will expire April 1. It was
further stated that it is the intention of the |
lessees to yield up possession then, as they |
find they are able to buy mill iron cheaper |
at their Woods Run, Pittsburg,
mill, where the production of this plant |
finds an outlet cheaper than it can be made |
for here. There is an enormous quantity of |
iron in the yards Of this furnace, the |
amount running up into the thousands of |
tons. When it is considered that very |
little iron is being shipped away, but ali |
being piled I'D, probably the reason for the
unusual sight of blast furnace in active \
operation at the present time can be ac-
counted for
On inquiring into the cause or causes of
this unprecedented depression, the consen-
sus Of opinion seems to lay it at the door of
the great evil of any industry-overproduc-
ton. There are many who venture addi-
tional reasons, such as the activity of the
South in the blast furnace industry and its
consequent competition with Northern
makers, the gradual substitution of the uni
versal use OF steel for iron, restricted con-
and the dullness of general trade.
But by following the causes of these lesser
evils back TO their beginning it will be clearly
.ound that they are only the offspring of
he present evil-overproduction. This one
word covers the multitude of miseries that
low embrace the iron and steel trade.
Paving the Penalty of Error.
AT the close OF 1889 it is estimated that
he blast furnace industry had over
cached itself to the extent of Is per cent,
II, in other words the production then ex-
eeded consumption to this extent Now it
S estimated that the annual consumption of
he country increases each year about 10 per
ent over the former year, so that when the
United States exceeded England in the
production of pig iron during 1890, it at the
anne time surpassed its ordinary increase
bout 10 per cent, thus doubling the over
wrought condition previously existing, and
or which violation of the greatest natural
aw of trade-the equanimity between
;Ippiv and demand-it is now paving a
ouble penalty.
There is not one who takes hopeful view
f the immediate situation, for general con-
dence has been rudely shattered. Every
utside influence portended good for the
ron trade for the year of 1892. The crop
eturns were the largest in the country's
istory; railroad earnings were the largest