The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1901-11-11
DISCUSSES THE
STEEL INDUSTRY
Special Report Made by Indus
trial Commission.
RISE AND FALL IN PRICES
STATEMENT COVERS PERIOD
FROM 1890 10 1901.
RISE AND FALL IN PRICES

Washington, Nov. 10.-The industrial
commission today issued a special re-
port on an investigation conducted by
the commission regarding the cost and
selling price OF iron and steel products
from 1880 to 1901. The statement
shows that in 1890 the cost Of steel
rails ranged from $3.50 to $34.52; in
1891, from S2415 to S25.6S; in 1892, from
s22.65 to S24S2; in 1898, from $l9-25 TO
S22.62; IN 1894. from SlL19 10
S2129: ia 1898. from sl6.6S to S25.47; IN
1886, from S1772 to s20.69; III 1897, from
S15-9l TO Si7.62; in 1898, fran 1857 to
S17.S1; IN 1899. from Ssh in January
to 1882 in December; in 1900, from
S55.l2 in February to S21.S3 Ia October;
in 1901. from S21.54 to 325.gS.
According to the showing made there
was a margin in the selling price over
the cost price for every year from 1890
up 10 July 1883. The highest margin
was ia 1896, and averaged from SI.3l to
Sl0.26 a ton. In July, 1898, loss Of
8 cents per ton is noted, the cost price
being Sl7.05 as against a selling price
of $l7. Again, in June, 1893, when the
cost price was S27.62, there was a loss
of 81 cents. In July Of that year the
loss was S1.51 on a cost price Of S29.76;
S1.15 On a cost price Of S32.15, and 10
September SLAB. on a cost price Of
So. Sc A loss OF about 81 per ton is
also reported for the months of jan
uary. February. March, April and May
of 1900 when the cost price ranged
over $50 per ton.
Losses also are claimed IN steel bill
letc for most Of the year 1900 and for
the first four months Of 1901. A loss
Is recorded for the year 1900 and for
the first four months of 1901. A loss
is recorded for every month in 1893 on
billets. Losses are recorded for the
FIRST three months Of 1900 on pig iron.
The lowest cost Of production for pig
iron was recorded in 1894. when it was
1856 per ton. In 1900 the cost Of pig
iron was sl5.35.
Improved Methods.
Commenting in a general way, the
commission SAYS: Beyond question,
there have been steady improvements
in the methods Of manufacture tending
TO reduce the cost of labor and Incl
dentals per unit Of product. On the
other hand, the advance In wages from
1899 to 1901, especially as compared
with the years Immediately preceding,
no regard to which has been given in
making up the figures, may in part
have Offset the reduction through
such improvements. IL any case, the
comparison as to costs viii not be
greatly Vitiated by inaccuTacy in the
item &c labor and incidentals. since
these represent comparatively small
proportion of the cost Of transforming
the respective raw materials into fin
ished products"
The variation in prices is COM
mented on as follows: Probably the
most conspicuous fact shown in the
diagrams is the very rapid and wide
variations in the prices of all three Of
the products compared. and most of
all in the prices Of pig iron. Even in
the earlier years, not covered by the
diagrams, the price statistics show
similar sharp fluctuations
The diagrams herewith presented
bring out the great and sudden de-
cline in the prices Of all these products
during the year 1880. This was fol-
lowed by a long and gradual fall.
which brought the price of pig iron
down from SIS at the beginning of
1891 to SO at the END of 1894 A sud
den sharp rise in the prices OF all
three products is seen in 1895 but this
was followed by an almost equally
rapid decline, and during 1897 and
1888 the prices stood practically at a
bottom figure.
Rise and FAN Of Prices.
''The most noticeable movement
shown in the diagram is that during
$50, when the price of pig iron rose
from $40 10 SO and the price OF rails
from S17 to S35. Almost equally sud
den and very. great, however, vas the
decline in the prices of these products.
especially billets and pig iron, during
the latter part of 1900. Since that
there has been a recovery which leaves
the prices of all the three products con-
slderably higher than for the years
1890 10 1885,
These often sudden and violent
fluctuations show. among other indi-
cations. the great changes IN demand
FOR iron and steel products from time
TO time. and the marked sensittreness
of prices 70 such changes in demand
No very large stock Of iron and steel
IS usually held in advance, and when
period of prosperity causes a great
extension of the use Of these products
the mills often find themselves tenn
porariiy unable to keep pace with the
demand, while buyers, under certain
conditions, are willing TO pay almost
any price.
"A noteworthy feature OF the dia-
gram regarding steel rails Is the fact
that the selling prices for considerable
periods of time throughout The decade
covered by the figures have been held
uniform. This uniformity in prices
is doubtless due to the existence ot
pools from time to time among the
manufacturers and the sudden changes
followed the periods of uniformity are
probably explicabie, nos so much be.
cause Of changes in demand at pre-
else date OF the change in prices. as
By either the breaking or pools or the
determination on the part of theil
MANAGERS that the previously fixee
prices were too high or too low