New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-04-23
THE BIG STEEL FAILURE.
r CAUSES A DEPRESSION IN THE TRADE
:EIIEr THAT EOTH THE STEELToN AND SPAR
ROW POINT PLANTS MAY PROFIT
ABLY CONTINUE.


ABLY CONTINUE.
p Had -!phia AprI 22.-Thc faiuIe OF the Pcnnsyl-
.ania sce Company depressed the ircn and steel
radc. and /; /, the belief In financial circles that
20 .mbnYrl ,smcnl Of the large concern Is but the
,,rcruuaer Of loser fiilucj In the same ine Inc
.:o.k of the P.nrsylvanil steel Company, wich was
.cstorday offered It 100, with no bids. was To-Day
10 cd at 20 with 80 bid. None. however. was 'o'u'
At the Offices of the company in tbs city to-day
n,hing coull be learned beyond The TACT u''
,.tcmcnt d tie assets liabilities, etc. IS beng pre-
par, d. and will be- r9ady for distribution carr! "'N
nc,s Who the heaviest creditors arc IS as yet un'
lpowp hut +. Is said that New-York firms are heavily
involved TIE Philadelphia banks hold large guam
lltics OF Iron paper" and the failure mas ahecteo
many OF them. The paper OF inc rcnNs' "',''
t. Ell Company has always been rcsaroeu d. s'
edged and the sudden failure OF the concern pro.
duccd slump from which there has not pceiH anu
Will not for some days be- II recovery.
4 report that the Pennsylvania Railroad Is Involved
in the embarrassment Is not believed. broAers say
,ha while the railroad Is Interested in the steel com
panv. the interest Is comparatively small, ana VIII
lave no effect upon the former corporation
james NJ swank, socretary Of the American Ito"
and Steel Association while admitting 'hd' "'o
present condition of the iron trade was pau o".'
said today thgt there was no DOUBT tha' ''e ie"''
yana steel C0mpanys embarrassment "ouo o'h'
be temporary. lie said there was tremendous c"p'".
behind 1t, and II would recover with CAUTIOUS anu
,u,,cIous management. Mr. swank further said that
the effect Of p,ecarous condition OF the IRON 'rh'e
was not 80 badly felt by the Pennsylvania S,eei
Company ~ the drain upon lis resources o"e W ''
Increase Of Its plant.
Ual,imorc Aprl - Gpccian.-The embarrassment
# TIE Icnn,ylvaula and tn Maryland steer companies
continued 70 ag'tatr hulDclal circles here 10 Jay
While ,ho b,ub, AMI other creditors OF the Maryland
tact
and tnr. ability t. mcct AL Obligations, some iea'S
mr.. expressed that ii" growing stringency In TIE
money market may cause further trouble. II was
rop,r;cl that the company is considering plan 10
is,u, general mortgage per cent bonus 10 hp"id'c
It's Ind, btcdnc,s ana retire existing securities he
paper OF TIE Maryland company was oh'r'u ior sale
here {, bankers by Il1kc Brothers, as well as one
other bank. The amount OF this paper he'd by oaiihs
I'm thi, city amounts 100000 II Is Endorsed by the
cnn,ylvaril ,cl Company only, ard not secured
by collatcrals
The sparrow Point worls have made lnrg" earn
ing, from tho start. With rails at 80 ton - was
clear profit, and with daily output averaging SD
ton, Il day the absolute profit was 5000 day Boti
conpan, had TO carry the debt OF several new roads
until ihc bonds paid for the rails were marheuape
AID the raroid orioniions could earn interest
cl,o, 81 op .rntrg cxponses The Maryland steel
Company has 6cca ming orders for steel rails ana
ror, LA, On hand business enough 10 last until sep
i"mb,r l. AMI over 10000 tons Of ore at sparrow
rcint Dflc.is q the Baltimore banks say
they feel protected by the valuable plant
and material on hand at the Iolnt.
President Wood now also the receiver OF the Maryland
Company said tonight that he thought that III three
months at the outside both companies Will he III
position to ask for tn" discharge OF receivers. The
action yesterday was taken to protect the company
from getting into incom etrnt hands and the possible
segregation Of the immense plant that II has taken
years Ia build up. All the business now Ii practicahS
on IA cash basis The company has been working to
this md for some years.
There was rejoicing AT sparrow Point today when
Il was announced for II certainty that the works
would be continued Oh full time.
Harrisburg, Penn, April 22-Over Sioo'ooo was
distributed anon; the 400 employees OF the Pennsyl-
yania steel Company at stcclton today II was the
largest send monthly payroll In The history OF the
plant. ana the prompt payment OF the men restored
confidence In the ability Of the company to recover
from It's prc>en; embarrassment. There was bri'i
ran on the >lcclton Eanh. but when Cashier SnaNey
pad every check presented Without oray; ana a, ,,
That the bank would remain orcn undl 80 ms
evening "a accommodate all WHO came IA" run caS'
Nhilc :. frw employees were Withdrawing their d'poa.
III, many others We're dcpOsiing Their money, ana
before noon therr was general feehns OF S.cnT'W
superintendent FELTON, ana Assistant Hup.rn.elluVn'
eny Mer both Sern by rSrS.s " She .nFy wax mo-
oc, a-iun for dc>p,ui'ncy.
The superintendent said the appointment OF re-
ccivcsS would not have any erect whatrV'r upon tne
important improvements now under way NJ st2e!tol
one IL the siN orcnhcrh furnaces i congple,.d
and its product equais two OF The OLD iurnnr"'; Mr
Jenny remarked that The present rolling facilities ar"
NOT ADEQUATE In view o the large output OF the new
open hearth psnt. Mr. FELTON, said the business at
>tce!tou wnS never In II more prosperous ana "h'ouf
aging condition. We have all the work we can. do.
he laid. and orders are sI coming in. see
nothing but the brightest pro lcctS Tor the iiimN''''
future
stephen W. Baldwin. Manager OF the Newlork
nj, II ANN NJ Nn ~
wallst said Yesterday that he felt positive that t''
trouble Of the COMPANY would lie only temporary. and
that the company would wor. out all right and sped
H. He knew that n large offer OF assistance had
been made 80 the company. but II had been d'ciih'd'
The trouble due cniircle TO III" money srinsrncy
and money lenders are dl,rstful Of industrial enter
priscs nov until tarN can see Il better financial ont
look. The president Of ihc company has advised tio
stakeholder, to hold Ia their Stoc!. MIR Baldwin
saws he stockhodcr. and the heads Of the depart
mcnts hold stock In the company. The manllactur-
Ing part Of the companys business Is In fouiiShins
condition. he continued, and will go right on under
he receivers there are acre orders on mana no"
than can be- flied. Regarding he large expenditures
~ sparrow Point, Nd. amounting 10 s5,1OooOo h"
said that they represented not only the manufacturing
business. but an entire town OF 1900 or 1000 IN
balitant,. vita houses built and occupied b. tho
worAmcn, n mag ihcent Bessrmer pian, four blast
furnace, and Il wcll-cqulppDd shpydn. The l rails
are POW made at sparrow iolni they were formerly
made at sccpn, prnh.. but the work. Their" nrc being
modified for the manufacture Of grdcr rails for cleo
tr!c roads This has decreased the output from the
plant there. but the changes IRE nearly completed
and will br a large source Of revenue The liabilities
hid by strong parties. There Is an immense amount
Of material on hand which will be worked up as fast
Ms possible and turned into money to pay on these
liabilities. The company employs about 1000 men.
The stockholders are principally IN PMaoelpha. Ihe
New York ONCE Is "A selling branch.
pE\I >uIy MI AK G 70 ATTACHED.