The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1897-05-05
THE SITUATION.
AS Depicted by the Iron Trade Review
Which Is Authority.

OF Tue upper lake COCKS, DuU Jne open
ing Of the season finds no readiness
for it on the part OF ore or vessel in
terests. The Illinois Steel Co. has
closed within the week with the Min
nesota Iron CO, for its 1897 supply of
Mesab ores, but the tonnage is not
vet announced. Some other deals are
pending that may soon result in sales.
But in general the situation Is IA
waiting one So much pig iron on
hand holds furnacemen back; so much
or on Lake Erie docks makes ore
companies with consuming connec-
tic Indifferent on the subject OF
charters. There would be entire
satisfaction by most ore shippers with
an arrangement that would delay the
opening for at least month. A sea-
son contract was made the past week
&C vering 100000 tons and upwards
from Marquette at IS cents. The
usual difference between Marquette
and the head of the lake would make
the Ashland and Duluth rate IS cents,
TO correspond; however, 20 cents ton
mage has been offered, and short-sea-
son offers OF 65 and 60 cents are re-
ported The expected reduction en-
rail freights to Ashland and EscanaDa
has been made. From Gogebic mines
to Ashland the rate is now As cents
instead of 50. and like reduction has
been made from Iron Mountain and
points carrying the same rate, to
Escanaba. From the Crystal Falls
and Iron River districts, which have
taken 57-cent freight, the new rate
Is As cents.
There are two features of the pres
eat situation in iron that mitigate
some of its disappointments-they are
the heavy consumption in many lines
and the widening circle of those who
see the beginning of the end of the
desperately low prices on primary pro-
ducts. Perhaps this feeling is
prompted in part by the experience
shat the acutest stage of malady
cannot long endure, but leaving ex-
perience out, it is not to be expected
that prices will drop far when we'll
known cost for large majority of
producers has been passed. The fact
that pig iron production was at the
rate of 5000. 600 tons a year at the
opening of the month, and that the
rate of stock accumulatiOns has lessen
ed somewhat, points to a consumption
that is apt to be lost sight of in the
failure of many producers to get bust
ness enough to run with respectable
regularity. The larger concerns are
all fairly employed but their capacity
has been increased in the past three
or four years, so that total OF new
business that in 1892 would have gone
fairly around, now leaves very little
TO lap over for the smaller works.
From the latter comes much of the
complaint of scant business and losing
prices. Bessemer steel is still finding
a large outlet in wire and nails and in
sheets and tin plate; but in the
widening business bridge contracts
nave brought to steel works of late,
open-hearth is very largely specified.
In point of tonnage, bodybuilding
is probably the best dependence of the
steel trade to-day, so far as new bust
ness goes. The 1S,00O-ton Montreal
contract, and the work at Boston and
Chicago are the largest jobs on hand,
but in the Southwest there is large
amount of smaller work chiefly
under public auspices. Central West
ern bridge works have taken con-
siderable share of going business, but
have had to 60 some distance to get
it, their nearest field Welding COM
paratively little at present. The
range of prices on bars, plates, angles
and sheets continues on the low level
of the past few weeks. Bar iron at
less than lc pound does not favor a
renewal of the $3.50 pudding arrange
ment, and the breaking down OF that
rate in the Pittsburg district is now
practically complete. The laberques-
tion, in fact. gives indication of be-
ing more of factor in the next few
months. Reductions have not been
few thus far in the year; it is yet to
he seen whether they will be as readily
accepted as the summer months come
on. The Bessemer pig iron market is
sentimentally better. The extreme
prices talked about Of late are not the
basis of actual business. Furnaces in
the valley quote $3.50 for delivery in
the second half of the year, though
on the small sales of prompt iron