Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1892-03-14
GOING OUT OF BLAST,
Furnacemen in the Shenango Valley
at Last Realize That
OvERPRODUCTION is AN ENEMY.
Immense Stocks Of iron Piled Up Waiting
for Bidder.
NO CONCERTED ACTION CAUSING DELAY

auces would indicate comparatively fewer
signs of general activity than are apparent
in this industry in the Shenango Valley.
Diligent inquiry, however, reveals the fact
that the universal paralyzation of the iron
trade vitality affects this district. Nowhere
else does the contemplated action of the
furnacemen assume a darker gloom. The
district embraces the thriving towns of
Sharon, West Middlesex and Sharpsville,
all eminently iron producing places. Their
advantageous location midway between the
centers of supplies of coke and ore, and
proximity to the limestone beds, coupled
with their central location between the
great iron consuming points of
Cleveland and Pittsburg, Buffalo
and Wheeling, insure capahility of pro-
ducing pig iron as economically as any
other district in the North, and marketing
their products to greater advantage than
anv other district outside of the unequaled
PittSburg district. For these reasons this
spot is prosperous even during periods of
more than ordinary depression in the iron
trade. Therefore, when evidence of great
depression are apparent hereabouts and
signs of possible total stoppage visible, the
iron trade is writhing from the sererest
lashing it has ever received from over
production. The general inactivity of the
plants and the enormous stocks of iron on
hand fully confirms this
At the Ella and Fannie furnaces of the
Wheeler Furnace Company, the property of
Pickunds Nather & Co., the Cleveland ore
operators. one stack is idle and the firm
contemplate banking the remaining stack
in a short time. 1t has probably 80 600 to
10000 tons of pig iron on hand, and when
Mr. Wheeler, the general manager, was
asked his opinion of the condition of trade,
be frankly stated that the present state of
things was most deplorable, and the imme-
diate outlook indicated no improvement.
He believes that all furnaces in this district
will shut down, because it is the only way
ont. Heexpresse6 himself as being pleased
with the announcement that some plants
have already carried this inviCorating pol
iCv into practice, as it is the only way to re-
move the seat of the trouble.
A shutdown Is Their Salvation.
At the stewart Iron Company's plant in
Sharon one stack is idle and a member of
the firm positively stated that they intended
banking the other also. The operation of
their forge consumes the product of the
stack now running, but the dulness in de-
mand for finished products warrants the
closing down OF the blast furnace plant 1t
may he in a day or probably not for month
before this action will be carried into effect
Al the sharon Iron Companys plant one
"
from authority that the other plant will
I've kept in operation in order to supply the |
30 tons necessary FIR use in their adjoining
rolling mill. Tne Keel Ridge stack of Kim
beIly & Co. has been idle since tho last shut |
down movement, and will not again resume |
owing TO its inability to make iron as
cheaplv as it can be bought for at present
Talks with officials of the Sharon Steel
Casting Company Sharon Chain Works and |
Ascaman Steel Casting Company revealed |
an exceedingly dull condition of trade, with |
the outlook rather dubious. |
At sharon and MddleseX there is a total |
Of eight stacks, but three of which are in |
active operation, with the probability of |
TWO Of these three shutting down soon This /
will leave one stack, with a ca pacity of about |
$4,000 tons annually, in active opera tion and |
seven. with total annual capacity of about |
200, 600 tons idle. This idle capacity repre-
scnts reduction of about 400 tons per
week in the rate Of production.
Here find the condition is even worse
than al Sharon or NiddleseI, because this |
district has a greater total production and |
its control is not in the hands of so few con-
cernS-a fact which greatly Iends TO sti1nu-
late local competition. Farther the district
is solely producing one, not a pound of the
pig iron being consumed here. There are in !
iAi> locality nine furnace stacks under the |
control o: six different companies, and their
condition is as follows: OF tie two stacks of
The Spearman Iron Company, one is in blast
and one idle. l learned from the firm that
they contemplate banking the now idle fur
mace probably in n month. At this plant
there Is about 1000 tons of unsold iron in the
yards
Yards Full OF Foundry Iron
At the Mabel Furnaces of Perkins & Co. |
one slack is working and one idle. was in
formed BY the manager that they also con-
template shutting down altogether, and in
fact, order to this effect was issued on
Monday week by the owners Messrs. Hanna
& Co.. Of Cleveland. but Immediately coun-
teTmaHded not because OF any encouraging
signs, but for private reasons. All the iron
made i being piled in the yards until at
present about 10 zoo tons of linh grade of |
foundry iron re piled up about the plant.
The TWO stacks of Pierce. Kelly Co., |
known a. the Douglass Furnaces. are idle as
81 result Of the finarcal enb 4rrassment OF |
rhis concern, made known some two weeks
ago by the tragic death of MI. Kelly. There
was meeting OF creditors on Thursday, |
which was attended by Mr.. Frank Pierce of |
son. OF New Castle; Il. McCurdv, of 1oungs-
town; John Scott, of New York; John Tod,
o. 90, Clevel%Hd a.Eio and other creditors.
tue Judgment creditors not TO press their
claims .or two years. Mr.. Frank Pierce was
appointed trustee with full control. The
plant viii not resume until some improve |
ment is Observable in the trade. The condi-
tons of the firms affairs are such that it
would require about 50 per cent of the pro-
Ceeds OF the sale of the plant and the total
available assets to liQuidate their indebted |
ness. There is probably $4,000 worth of
iron on hand, portion of which will be sold
4
ployes.
At the Sharpsvflle furnace probably 5000
tons OF iron are on hand and unsold. and it |
was generally agreed by the members of the
firm that activity in the pig iron industry
was prominent by its absence. 1t was stated |
hy Nj. Pierce that there was no money in
BeSsemer iron at present, and for this rea- |
son they refused to sell their product. Un-
less prices improve shortly, and their inten- !
lions not 70 sell remain firm, it is only /
question of how soon they will shut down.
They Are All of One Opinion.
At the Wheeler Furnace Company's plant
about 10000 tons OF iron are in the yards. In
view OF the fact that this concern has closed
one OF their Middlesex stacks and intend
banking the other it is reasonable to sup
pose that when the same conditions prevail
i.ere the same line of action is very likely;
in fact. such was stated at the office. The
Claire furnace will also shut down, as they |
have about 1000 to {, ,000 tons of iron on hand
and the outlook to them is not sufficiently |
even to continue running a
short time longer
The total number of active stacks in this |
vicinity l. five, with annual capa city of
A bout 1856 0C0 tons. while the number of inac-
tive stacks is four, with a total annual |
of about 600 tons. i can posi- |
-hat every blast furnace in this district will
20 ont Of blast in very short time.
1t IS estimated that the amount OF unsold |
iron in the hands of producers in the Sine |
mango Valley is the enormous total of 100 600
toms. Producers now believe that this sur
plus suck has DaralyZed the market |
ana viii hold il down for some time. Every |
person spoken to expressed the belief that
stoppaGe of production But while this
opinio is universal, il is impossible to bring |
b bout concerted action TO checkmate the
evil. There is no individual or association