Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1893-05-03
THE LOGICAL RESULT.


vania Steel Company carries solemn
warning to the great iron kings of that
section, but it is only one of numerous
other similar signs of the times that
have gone before UNDECIDED.
This great steel company was forced
to take refuge in receivership simply
because Of the continued lack Of demand
for iIs prodLct-the logical result Of the
situation which Mr. CHARLES j. HAIR
RAH, one Of Pennsylvania largest steel
manufacturers, summed up Ia one SEN
tence during the campaign OF last
year. He said that high tariff taxes
had stimulated new steel plants until
"we have the capacity TO produce
1000, 600 tons OF steel rails each year,
when the consumption is only about
!, 200, OOO." At the same time he de-
cIared and demonstrated that the great
need Of the iron and steel manufac-
turers was Stree opportunity" and
they would successfully compete with
the world. Mr.. BENT, himself, who
built up the Pennsylvania Steel Com
pany, has publicly declared that lit is
not so much protection as free oppor-
tunity that our iron and steel indus
tries demand"
The Philadelphia Times, commenting
on the company's predicament, says;
So sharp is competition now in iron and
steel that comparatively few Pennsylvania
ores can be used at all, and the needed for
eign ores are heavily taxed. Large iron
works at Reading, in the heart OF the iron
ore region, use eighty per cent. OF Imported
ores. it costs Just the same to reduce ton
OF iron ore with forty per cent. OF iron IN III
as il does 10 reduce ton containing sixty
per cent, and in addition TO the indispens-
able qualities Of foreign ores for mixture
with the best of our local ores, there are
few Of our ores which yield over forty per
cent. Of iron.
JAMES NJ. SwANK. in his annual re-
view Of the iron and steel trade, states
two facts which the Pennsylvania man
uiacturers would do we'll to consider.
They go to the marrow Of the depres-
sion in the iron and steel trade. First
ne says 1.-The principal cause Of the de-
preston Is to be found in our capacity
to produce much more iron and steel
than the country can consume, not
withstanding the enormous cOnsump-
ton the last few years" Second-That
"the outlook is not favorable for works
that are badly situated, or are of anti
quated construction or are operated
with insufficient capital" and he forci-
bly, adds that 'the law Of the survival
Of the fttest is inexorable and merci-
less"
The bulk Of the iron and steel mills
Of Pennsylvania, outside of the Pitts
burg district, are not favorably situated
to compete with mills that have better
natural advantages and cheaper raw
materials.
But the highly protected tariff barons
Of Pennsylvania have made so much
money out Of iron and steel and made
1t so easily and quickly that the trade
has become overcrowded with those
anxious TO get share Of the govern
ment's bounty until to-day, as Mr.. HAIR
RAH stated, the country has capacity to
produce 4, 900, 900 tons Of steel rails with
a consumption Of but 1000, 900 tons.
The sooner Eastern Pennsylvania man
ufacturers recognize the inevitable-the
fact that they cannot compete with the
iron and steel mills Of the South and
West-the better it will be for them
and for the trade in general. Their
mad pursuit after the apparently mex
haustible bounties of high protection
has finally resulted in driving the iron
trade Of the country to bedrock condi-
tions, where it is a question of the
cheapest production and the survival
Of the fttest."