New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-08-22
LIGHT WANTED.

The meagrc statement made by the American
Steel and Wire Company TO the Stock Exchange
is supposed to have been the main cause of
some decline in the stock. not because the state
mcnt in itself disclosed anything unfavorable
but because It was less satisfactory than some
holders Of the stock had been led to expect
No doubt the company has been making good
profits Ut could hardly have helped thaO buy
ing material all the time ahead Of wants and
on a rising market and selling It's product at
prices RAPIDLY advanced-wre nails, for in
stance. from 81 80 on January I 10 50 80 in
July It would be wenigh impossible for the
company TO escape making unusually large
profits II doing a business Of any magnitude
at such a time. But this company, with many
others must hereafter face different state OF
things, and there is little In its published state
ment to indicate how II is prepared to meet
new conditions.
Pig iron has advanced since the year began
about 100 per cent. Qualities fitted for steel
making are in such demand that large bonus
IS often paid for quick delivery. The steel and
wire company Is lot supposed To be In posi-
ton to command its own materials. although
1t has made some important additions TO It's
property. and definite statements as TO its ca
pacity Of output would be useful. Presumably
It must buy materials at the highest prices
known for years, and after manufacturing them
into finished forms must sell them on markets
which M some point in the future will show
a tendency TO return more nearly 10 accus-
toned prices. No one supposes that the prices
now paid will be continued indefinitely after
the supply has overtaken the demand. AT that
point this and many other companies will feel
obliged 10 show what policy they intend 10
pursue toward the public, and on the course
then chosen will depend much of their future.
Creation Of new manufacturing works
quires so much time in some important lines
that competition Is thereby rendered consid-
erably more venturesome. But II does not
take long to put up new works for the produc-
ton of wire nails, for example. and whenever
prices begin 10 turn downward supplies Of
material or Of product more outrunnng
the demand. new competition Is TO be expected
II company seeks TO proong the high prices
of these days beyond the period of real neces-
slty. Then buying Of materials in advance,
which has insured a good profit while prices
were rising will involve corresponding loss
when prices give way and II a company strives
TO maintain prices until II can work off all old
material it necessarily exposes itself to COM
petition. The value Of extensive manufacturing
worts IS not to be determined by what they
can Alin in times Of extraordinary activity in
business and advance In prices but by the re-
suits attained in both movements. the upward
and the downward taken together. There al
ways will he some bad years, and others not
especially fortunate, with the few which break
all past records, and the real value Of bust
ness can hardly be judged until 1t has weathered
one season of difficulty
Industrial corporations nearly all or
ganized on the basis Of valuation believed to be
propOrtoned to the business done by the vari-
Gus concerns in n series of previous years. 1t
was one Of the strongest recommendations for
them that they would enable the manufact-
urer TO save large sums by economies in buy
ing. management and distribution. that he
could pull through any time Of pressure more
surely and safely. II would he highly crafty
ing to the great number Of people who have
resources invested in these corporations If some
OF them would make known the results OF
their operations in these respects, would show
how well they have done in comparison with
years before consolidation, and particularly
what economies have been actually realized
with the resulting advantage to capital in times
of trial. From statements frequently made il
was by many supposed that the steel and wire
company might he among the foremost 10 cast
such light upon the advantages of the new or
ganizaton. The disappointment at finding no
such information in its report was therefore
not wholly confined to those pecuniarily inter-
ested in its business.