New-York tribune., 1896-12-09
WHY SOME TRT SITS DIE.

The collapse of several combinations IN the
great iron and steel industry Is the most signiii-
cant event Of the first month after Mckinley's
election All except one of these combinations
was formed under the operation Of the destruc-
tive tariff Of 1894. They were formed TO resist
the fatal influence Of excessive competition for
the restricted business that was possible, at n
time when American markets had been so large
ly opened to foreign competitors that the work
ing force and the consuming power Of the peO-
pie had been greatly diminished. Whether they
were wise or unwse. whether justly managed
or uniustly they tend to dissolution as soon as
there is a sure prospect that American industries
generally will be revived, and the consuming
power Of the American people restored. by a
proper tariff Each concern had It's own special
reason for being and for dissoving but the
broad reason behind many others is that the re-
srlctions which were thought necessary to self
preservation when American industries were
Frustrated with no definite certainty of recovery
are found irksOme unbearable when there is
ground for hope that there will be work enough
before long for all American works and the best
reward for those who best serve the public
The Nail Association, which was the first Of
these combinations to collapse, suffered because
the output and price of both wire and cut nails,
it raised the price for wire nails from 81 cents
at Pittsburg in May last year. just before it was
organized. to 81 J5, or thrccfold and from -
cents for cut nails at that time to 81 80 keg.
which is over thrcefold. This invited such out
side competition and the establishment Of so
many new works that the association would
have broken up months ago but for the hope
bat a Uannr1l uSh of buSiupSS WoulI
Within two weeks prices have fallen from 81 -,
to 81 81 for wire nails. with a new card making
the price Of other sizes closer to the base and
from 50 30 70, cut nails 10 81 cents. according
10 a statement from Chicago. Thus the actual
decline. the smaller sizes considered as well as
the base. has already been more than half.
The Beam Association was formed last year
in place Of one which existed prior to the Nc
Kinley tariff. and went to pieces under its opera.
ton In January, 1892. 1t has raised the price
comparatively little; from 81 20 May 1, 1895, the
price rose to 81 GO in August OF last year. but
was reduced to 81 40 early this year. and then
gradually raised to 81 - last May. The larger
makers are now selling at 81 80. and mt the high
est point the price was only J333 per cent of
that charged in 1881 or when the tariff of 1890
was adopted and the price recently maintained
was but 5l.J7 per cent of that price Both were
about quarter lower than the price when Pres.
| ident Cleveland was elected. The apparent rea-
son for disruption Is that there is going to be
business enough. and the competitors want to
secure each as much Of 1t as they can.
| The Billet Association formed this year. was
| Intended TO save the manufacture from the ef
fects of destructive competition, but has been
10 constantly undersold by outside holders and
by makers of open hearth steel that 1t has not
been able to maintain In general force It's firsi
advance Of about So per ton With every pros.