St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1893-04-23
MAY WRECK OTHERS.
Iron and Steel Trade Depressed
by the Failure of the Penn
syIvania Company.
Belief That the Steel Company's
embarrassment will BE Only
Temporary.

PHILADELPHIA, April 22.-The fall
ure of the Pennsylvania Steel company
has depressed the iron and steel trade,
and it is the belief in financial circles
that the embarrassment Of the large
concern is bnt the forerunner of lesser
failures in the same line. The stock of
the Pennsylvania Steel company. which
was offered at 100 with no bids, was to-
day offered at so. with so bid. None,
Owever, was sold. At the offices of
the company in this city today nothing
could be learned beyond the fact that
statement of the assets, liabilities,
etc., is being prepared and will
be ready for distribution early
next week. The heaviest creditors are
as yet unknown, but it is said that New
York firms are heavily involved. The
Philadelphia banks hold large quanti-
ties of Iron paper" and the failure has
affected many OF them. The paper of
the Pennsylvania Steel company has
always been regarded as gilt-edged, and
the sudden failure of the concern pro-
duced a slump from which there has not,
and will not, for some days be a recOV-
cry. A report that the Pennsylvania
railroad is involved in the embarrasS-
ment is not given credence. Brokers
say that, while the railroad is interested
in the steel company, the interest is
comparatively small, and will have no
effect upon the former corporation.
James NJ. Swank. secretary of the
American Iron and Steel association,
while admitting that the present con-
ditiOn of the iron trade was bad one,
hot haf
the Pennsylvania Steel company's EN-
barrassment would only be temporary.
lie said there was tremendous capital
behind it, and it would recover with
cautious and judiciouS management.
Mr.. Swank further said that the effect
of the precariouS condition or the iron
trade was not so badly felt by the Penn
sylvania Steel company as the drain
upon its resources due to the increase
OF its plant.
HARRISBURG, Pa, April 22.-Over
100000 were distributed among the
$500 employees, of the Pennsylvania
Steel company at SteeltOn today. 1t
was the largest semi-monthly payroll in
the history of the plant, and the prompt
payment of the men restored confidence
in the ability of the company to recover
from its present embarrassment. There
but when Cashier Shavely paid every
check presented without delay and
stated that the bank would remain open
until $50 this evening to accommodate
all who came, the run ceased. General
Manager FELTON, and Assistant Superin-
tendent Tenny were both seen by a re-
porter, and they spoke hopefully of the
future They declared there was no
occasion for dependency. Mr.. FELTON,
said the business at SteeltOn was never
in more prosperous and encouraging
condition. I'VE have all the work we
can do" he said, land orders are still
coming in. l see nothing but the bright
est prospects for the immediate fut-
ure."
BALTIMORE, April 22.-The announce
ment of the disaster to the Pennsylva-
MA and Maryland Steel companies, made
late yesterday afternoon, had very de-
pressing effect throughout the financial
circles of this city. The firms were re-
garded as being the largest and finan-
cially the SoundeSt industrial enterprises
in the country. AS one financier eX
pressed it, "The failure of the bank of
England would not have Occasioned
much more Amusement than this diff
Guilty of the Pennsylvania and Mary
land Steel companies" The paper of
the companies had during the past four
months been on the market and tit
was considered gilt-edged and was
bought up freely by Baltimore banks.
The estimates of the amount of their
paper held by Baltimore banks differ
widely. By some the amount is placed
at $500. 900, while others say it is much
less. The amount is so distributed,
however, that the banks holding it
would not be seriously effected if they
should lose it all.