The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-04-03
MIDDLE MEN MUST GO
ACTION TAKEN ny MAN.
UFACTURERS OF STEEL.
Negotiations Hereafter VIII BE Di-
rectly Between Producer and Con.
sumer-Mr. divers Statement.

NEW YORK, April Representative OF
the twenty-one leading manufacturers of
Bessemer steel in this country met here to-
day. 1t was reported that a trust would be
formed, and there has been much gossip on
the subject. Before the meeting Andrew
Carnegie, who has just returned from Flori-
da, said to reporter. that he had not heard
of the proposed combination of steel manu-
facturers. II don't think 1t will amount to
much,' continued Mr.. Carnegie. I'm times
Of depression and stagnation people are dis
posed to get together and agree to suspend
the law of competition. But no permanent
results follow. 1 never believe in combna
tons. They are only for weak people. They
give a little temporary strength to these
weak persons. but they are not good for the
strong and healthy"
What is your opinion of the general out
look in business"
well, business is not good" ne replied.
"a general depression prevails. and think
that we must get the presidential election
over before we can hope for general pros
perity. After that / hope that the currency
system of the government will be placed on
a proper financial basis, so that we will get
rid of the agitation for a change of stand
ard"
At the conclusion of the meeting George
T. Oliver, president of the Ha.nesworth
Steel Company. of Pittsburg. made the fol-
lowing statement: with the exception of a
few weeks last fall the manufacturers of
Bessemer steel In the United States have
been conducting losing business for the
past three years. This has resulted more
through the growing influence Of the mid
die men than on account Of competition be-
tween the manufacturers themselves. With
the purpose in view of eliminating such in
fluences and of bringing about closer rela-
tons between buyer and seller, the steel
men met in session and have succeeded In
agreeing among themselves that, in the fut-
ure. all negotiations shall be confined strict
ly to the producer on the one hand and the
consumer on the other. 1t is not intended to
restrict production, except so far as such
restriction will be brought about by doing
away with such fictitious transactions and
The combining of business to the actual wants
OF the f0un5ry In many In middle
from manufacturer, for which he has no
customer in sight. When the time of deliv-
ally, expect his customer to furnish specifi-
cations for the steel. His only course Is to
dump 1t on the market at any price 1t will
bring. One such transaction has, IN many
instances, resulted in the Generalization Of
the entire market, and even the business
for the rest of the season. We hope, through
the influence of this organization and by
frequent meetings and interchange OF views.
to do away with this evil We think we can
do SO.
This organization does not include all the
manufacturers of Bessemer steel, nor Is
such unanimous action necessary. The great
firm OF Schoenberger & Co., of Pittsburg. is
not represented at all neither is the Illinois
Steel Company, of Chicago, bound by the
action of our members, but there is no
doubt in our mind that both of these large
int xx-f1l In ov 9th
manufacturers. as neither has the reputa-
ton Of being disturber in the market. 1t
is not our intention to bring about any un-
due advance in the price Of steel The price
which has been agreed upon for the present,
$40 per ton, Is fully justified by the strong
advance which has taken place within the
past two weeks in pig iron and iron ore.
and II is really doubtful whether. in view
of the existing conditions, manufacturers
can make any profit at that price,"
Mr.. Oliver admitted, with some reluctance,
that another meeting would be held to-mor-
row afternoon. He intimated that the or
ganization would probably be perfected at
this meeting.