The Worcester spy. [volume] (Worcester, Mass.) 1898-1904, 1899-07-20
LOCAL MONEY In EACH
Bankers Are Gecre-
tive---One Broker
Pessimistic About
Success of New
Steel Organization.

The organization of the new steel and
wire company in Worcester is going on
as rapidly as possible.
Those connected with the local end
of the dell are in constant communica-
ton with the New York capitalists, and
1t is understood that formal meeting
of all parties concerned in the combine
is to be held in Worcester some time
during the coming week
The same sscrotive policy is being OBJ
served as at the beginning. But it was
learned yesterday from excellent
sources that half the capital of the new
company will be subscribed here with
out hardly an effort
The bankers do not care to commit
themselves individually. They feel that
If they were to be quoted it would APP
pear as though they were advising in
vestors. But it is an open secret that
they are unanimous in the hope and
belief that it will be brought about.
Only one broker, who, by the way,
trades to a very considerable extent in
American Steel & Wire, was found who
spoke in any way discouragingly of the
proposition. He said:
There is a. possibility of company
successfully posing as an opponent of
the American Steel & Wire company,
but the chances are big risks The Am
erican company has more orders than
1t can fill, and there is enough work
ahead to keep all departments of the
combine busy for months without look
ing for further orders
The American Steel & Wire Co. has
control of the major part of the wire
business. There is chance for wire
mill to be successful in competition with
the combine, but there can be no oppor-
tunity to form q company powerful
enough to buck against the American
Steel & Wire company. A new wire mill
might have business enough to be kept
running until the orders now held by
the American company have been
filled Then it would be a hard struggle
to get enough business outside the COM
bine to keep a wire mill in operation.
Frank F. Billiard, who will undouht-
eddy be one of the chief factors In the
new deal, was visited by a Spy man
at his home last evening. He did
not deny the rumor, but said: at is
too early for me to talk about the
matter yet. The public will learn
whatever there is to know in proper
time"
The only fear expressed among pos
sible investors in the enterprise is the
possible scarcity Of raw material. The
price of iron and steel is still going up,
although the rise since January /. 1899,
has more than doubled their value.
Prices are now higher than they We're
In 1879, before the great decline began,
which resulted in bringing Bessemer
pig iron down below $40 a ton. The
demand is still much in advance e the
supply, and consequently further in
crease in price is looked for.
The New York Journal of Commerce
says:
Bessemer pig iron at $40 at furnace
means handsome profit to the fur
mace owner. When contracts for ore
were made last year, running through
This year, the ore producers received
an advance of only 20 cents ton over
the previous years prices With a ton
and half of ore used to each tor Of
iron, this means an advance Of 30
cents ton to each ton on the ore. Coke
is probably so cents a ton higher, and
a ton or less is used to each ton of
iron, so that the additional cost OF ore
and coke entering into a ton of pig
iron is not more than so cents over
prices of last year. Labor has been in-
creased materially, adding probably 20
ShNS a loAl, willie ililleSlOnS 10 hlSbv-,
but 1t Is safe to say that the additional
cost Of making pig iron over the cost
OF last year is not more than $1.25 to
$l.5O ton, and with some furnaces 1t
is probably less than our lower figure.
Bessemer pig has sold at Valley fur
FACE at 50 ton, though to some fur
PAGES this probably represented a loss.
I Is safe to assume, however, that the
valley furnace that can sell its iron
at $40 a ton, is making not less than
" to $3.50 ton. 1t should be remem-
pered, however, that all the furnaces
nave sold iron at lower prices than are
ruling today, so that the average may
not be higher than SIS or SIG. This
however, may represent profit If S4
70 70 ton, which with furnace MAX
ing $50 tons day, means $1,000 day
or more clear profit.
=, In spite Of all this, the projectors Oh
she proposed company express conf
uence that they will be able to so con-
tol conditions in the open market as
- purchase raw material on an even
iootlng with the American company.