New-York tribune., 1900-04-06
THE SITUATION " IRON.

The greatest of the manufacturing industries,
and to a large extent others because of their
dependence upon that must yet wait for an end
of the famine In Bessemer steel. To locate the
trouble precisely has become of importance.
Large contracts have been made already in
which basic steel instead of Bessemer
quired. But it is still the fact that for in
which large proportion of the pig iron is con-
sumed only the Bessemer pig is az present con-
sidered suitable, and the supply Of that iron in
the central region has been to large extent
covered by contracts running months ahead.
Moreover a considerable part of the product s
controlled by an association which fixes prices
at its pleasure. and Il has been for some time
expected that at its meeting last Saturday 1t
would fix prices considerably higher than those
hitherto charged. Practically all that the
ciated furnaces in the ShPnangO and MahOning
Valley can produce until July has been sold at
s24. S24 90 delivered at Pittsburg and two
weeks ago it was announced with appear
ance OF authority that at least $25 at furnace
would be demanded for the last half of the
year But 1.-The Iron Age" OF yesterday men
toned the refusal to change the price at the
meeting of Saturday and said:
This may may not be significant. according
to the standpoint from which the matter Is
viewed. 1t is believed that the makers of Besse
mer pig would be satisfied to take orders for the
remainder of the year at S24 at Valley furnace
There seems to be good reason for compli-
menting the association upon its shrewdness in
this instance. No doubt the price OF Bessemer
pig in the central region might have been sub
stantially advanced for some months, but there
were already some furnaces changing from forge
or foundry iron to Bessemer and many more
would probably have done If price rela-
lively too high had been set. Also in that case
a i'm bppQ q
substitution of basic for Bessemer steel In i'm
portant contracts and the progress of that
change tends to leave the Bessemer furnaces OF
the valleys in a much less satisfactory position.
Some people have imagined that the ore from
which Bessemer pig can be made has all been
effectually monopoliZed for the year, but no
foundation for that impression as yet appears.
On the contrary, il is certain that some mines
of Importance will greatly increase the supply
in the future. One other thing is certain-that
any attempt to monopolize Bessemer ore at
So 30 ton any such price would quickly re-
suit in enormous developments in Cuba and in
Canada north OF Lake Superior nor would
duties on the ore be defended with success
under such circumstances.
The Bessemer Association presumably real
lied that the handsome profit obtained from
producing pig Mt $24 ton would last much
longer If no attempt should be made to in
crease it. In this as in most other cases
where great business interests are involved
nobody can afford TO insist upon more than
Sonable profit. The vast interests in railroad
development in tunnel and bridge construction,
in building of vessels for the Navy and for the
lake and ocean trade. and in competing with
foreign countries for retention of the good busi-
ness already secured in manufactured products
of iron and steel, would all be concentrated
with tremendous power to break down any
reasonable eXaction. How many millions of tons
shall be quickly added to the steel making sup
ply of pig or Of ore is merely question Of
money. and the availability of Southern sup
plies for products of basic steel has also be-
come important.
The iron and steel industry has enjoyed by
far the most prosperous year in its history not
at all because Of any improper or unreasonable
extortion. but because the extraordinary demand
suddenly rose far above the supply. and that not
in this country only, but throughout the world.
1t is even now serious question in foreign
manufacturing circles whether the needs OF
other countries can long be met without draw
ing largely upon the United States for supplies.
In such conditions phenomenal rise of prices
was both natural and legitimate. but II would
be a dangerous mistake to hold them by arbi-
trary power any longer or further than the con-
dtions of supply and demand really warrant
1t is presumable that the Bessemer Association
its prospect of future prosperity and profits are
pig Just at this time