The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1904-01-13
IRON AND STEEL IN 1903.

Starting with the heaviest production rec
ord and furnace stocks Of pig iron practically
wiped out, the year 1903 brought some startling
developments in this great manufacturing indus
try. Partly because Of the shortage of fuel, but
mainly through unprecedented consumption, the
year opened with the strongest possible statsti-
cal position and brightest OF prospects. Although
the leading producer maintained list prices far
as possible, Ii a common occurrence for very
heavy premiums to be paid where prompt deiv-
cry desired, and, barring the speculative
rise early in 1900, the general level of iron quo
tations was above all recent records Pressure for
increased railway facilities factories mills
and office buildings was 50 great that there was
little dispute as 10 quotations. Steel was needed
in abundance, the Nations producing facilities
taxed to the utmost and the capacity Of the
blast furnaces and rolling mills greatly in
fuel, the situation appeared most healthy six
months anthracite coal strike had just ended,
and freight traffic in the Connellsville coke re-
giOn badly cOngested. These were the only
artificial stimulants 10 prices. Exports had fallen
off because of the Unsuitable home demand and
imports had doubled The United States Steel
its books. Hence, ii was not surprising that the
year usheTed in most auspiciously in all de-
partments of the iron and steel industry
Something wrong in the sanguine prog
nOsticatiOns. II Is not simple matter to pick
any definite date any single event that can
be termed the turning point but the industry
has met with severe reaction. There is diff
ference Of opinion on this point although many
conflicting statements have been made regarding
the cause. Possibly the simplest explanation is
the best. For five years the industrial prosperity
of the United States had met with no check,
and enterprises had expanded. facilities in
creased and productive forces extended until con-
sumptive demand hopelessly ecipsed by ca
pacity OF output Conditions are peculiar in this
industry regarding the matter of production and
consumption because every extension OF facili-
ties for increased output provides a temporary
consumptive demand, and when the limit is
reached in other branches of trade il has been
far surpassed in this But there many
eminent authorities who point TO Wall street
and the money market the first obstacle 10
progress while others are equally earnest in de-
nOuncing labor troubles the chief drawback
Unquestonably these two events have initiated
against industrial progress Labor troubles, espe-
cially in the building trades. tied work
cautious investors Cancelled many plans for work
that about TO begin
During the last few weeks there have been
numerous indications that confidence was return
ing that better things are expected OF 1894 The
decline in quotations has been checked; at the
recent meetings Of manufacturers former price
lists reaffirmed, and even Southern fOun-
dries declined TO accept future contracts at the
lowest figure for pig iron. A few moderate sized
orders placed In various branches OF the
industry. and there were fewer indications that
prospective purchasers would await more attract
ing OF contracts in expectation OF lower prices
has been the most depressing feature. testifying
10 the lack OF urgency among consumers. de-
cided change in attitude as compared with tho
situation when the year 1903 opened. few re-
cent bond sales by railroads also encourag-
because IL is expected that the additional
funds viii be expended In extending facilities,
which means consumption or steel. Export busi-
ness is once more attracting attention. a general
reduction wages throughout the industry has
curtaiied cost OF production, and the decline OF
about Is per cent. In cost OF coke, as compared
with the high price OF 1902, Is also helpful. al
| though the latter comparison is due 70 special
conditions and wages had been very sharply adj
vanced during the years Of unprecedented pros