New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-06-04
CAUSES OF STEEL SHUTDOWN
NEW PLANS OF AMERICAN STEEL AND
WIRE BELIEVED TO HAVE BEEN
POTENT IN THE NATTER

Chicago June 3 (speciaD-The officials of the
Illinois Steel Company continued TO refuse to-
day to explain why the plant at South Chicago
had been closed down E. J. Burlington, the
president was in New-YorA, and the secretary,
Thomas ]. Eyman, declined to advance any
reason or discuss the matter. II. H. Porter,
chairman Of the Board Of Directors, at his
summer home on Lake Geneva, Wis refused
pointbIank over the long distance telephone to
make any statement regarding the matter. Ru-
rraors had il that the cessation of operations was
caused simply by the necessity for annual re-
pairs Men IN the trade seemed surprised at
the action Of the companys officials. and an
nounced that it had been all along believed that
orders were on hand that would keep the mills
running for several months to come.
Along with this the day developed the fact
that a complete change in the business methods
OF the American Steel and Wire Company had
been agreed TO, whereby the company would be
free from both the Federal and National Steel
companies. Instead Of procuring the unfinished
product from these concerns, they to dig
their from their own mines. coke their coal
in their own ovens from their own coal mines
and with it make their pig iron steel billets
and rods in their own furnaces. This radical
departure was revelation TO the trade and a
revolution IN the company's method Of doing
of the Federal Steel Company.
While the real reason Of the closing down Of
the South Chicago mills remains secret with
the officials Of the company. nevertheless others
interested in the iron and steel business ad-
vance many reasons for a general laxity in deal
ing In the finished products. The consensus OF
opinion that the strikes in the building
trade had done much to destroy the market Of
the American Steel and Wire Company, and
vUn{ trolls
the Illinois Steel mills, was feeling the conse-
oI,ent effects of the decreased demand for wire
and nails especially.
Decentralization is said 10 be the basis Of the
situation. which has been fast approaching
crisis. The surplus finished product, long held
at fabulous prices, and a decrease in demand
caused by the Vaccinations Of labor leaders and
the resultant strikes. all are credited with con-
tribur:ng 70 the present situation. While this
situation confronted the iron and steel trade 1t
is said that the controlling spirits tried to
rule the law OF supply and demand and failed
signaly. This is said to have led to the recent
reorganization of some Of the larger concerns.
That there has been shifting Of interest
somewhere the unsettled condition Of the mar
ket clearly indicates Prominent iron and steel
men, some Of the coreag CUES Of John W. Gates
now credit him with unusual business sagacity
Inquiries among the men in South Chicago
to-day showed great anxiety as 10 what the
company would do The shut down took them
entirely by surprise, and, IL 1t continues any
length OF time will result in considerable suffer
ing. One Of the employees OF the company. who
occupies a position Of trust, but who refused TO
allow the Of his name, insisted that the
shut down was only temporary and was for the
purpose OF making necessary repairs.
The mills Of the company at Joliet are closed
down, but no orders have been received at the
Milwaukee establishment TO shut the doors The
condition at Joliet makes affairs look if the
shutdown would be for a longer period than the
official just quoted believes TO be the The
Joliet mills have been shut down for three weeks
and during that time only few men have been
ordered back the convertors, but work has
not been resumed and nothing is being done to-
ward repairs. The new scale Of wages with the
Arnalgamated Association Of Steel and Iron
Workers has not been signed discussed al
though the present instrument expires June 30.
This would indicate that the officials Of the
company are not greatly Immediately inter-
ested in the position Of the men toward their
employers
BY September the American Steel and Wire
Company will be handling its own business from
mine 10 finished products. Their contracts with
the other concerns expire in the summer, and
this revolution in their manner Of doing business
is really thought TO be at the bottom Of the gen
orally unsettled conditions in the trade.