, 1870-03-17
Ia Gcuerpl James 4 Garfield, M. G., aud BY
the latter communicated to tho Washington
Chronicle
OYun OF TIE Hn1oD FuaHAcH Co.,
MANUFACTURES or Pro lRoy,
v,,-ro-nrr a. Dec. ID. 1859, y

nnn OF TIE HunoD FuaNAca Co.,
MAau7Ac1unE1s or Pro iRoS,
Yousossows, O.. Dec e, 1sS9
Ma.ns COMMITTEES, under % The pressure Of the
sdyocates Of "Froo Trado," reinforced par
hsps 10 soms extent by consumers OF pig iron,
are disposed 10 reduce the tarih upon pig iron
70 e7 per ton. As there haa been systemat1c
effort fox months past to raisrep1esent tno
fscts in regard to this manufactnze, and to
make It appear that enormous profits were
msde in the business, it is high time that these
etatAments Hero confronted with tho facts, md
tho effort made to avert the vcry SERIOUS darn-
age which must result to the business from
such reduction. While it is matter ot mere 70
t.Ik and sentiment it Was hardly worth While to
contradict the fa1sehoods, or attempt to correct
the errors in statements which haye bean made
public: but II our legislators are to aeceps
those statements as conclusive Against NJ
without investigation, It would bo an nnWe1-
oorue uzoof Of he fact that noise and bluster
accomplish moro in some directions than quiet
furnIsh 7ou herewith statement Of the
cost of making pig iron, which I hAve nude IN
some hAste, but which, in no other paIacnlar'
Is overstated, - compared with our aetual ei-
1863, to December l, 1869. 6ome Of the ltauas
Of expeuse vary slightly ut different furnaces
in this region, but think It q fair average ot
| tho cost Of making pig fron IN this valley. |
append, also, statement Of tne Gost gt 2, geit,
| ting our iron to Pittsburgh, nud sale through
commission houses there, comparing the sotat
expeute With the asccrtained average price OF
| sales in Pittsburgh Of bitusuinous coaa snelted
| Lake Superior iron for three weeks past, as re-
ported in the Pittsburgh Comme7c1dt N on-
~ given to . four months rata (Which is the
| usual time givcn), by adding OF snbtrastlne
| intc1est, md have excluded foundry iron,
which We hardly make At al, and which
yaries greatly ii price. It Hhould be IN
derstood that the Pittsburgh pTico il the stan,
dard for ali this region, and the product OF ou1
furnaces has always found ita principal marke'
Tiers. These figures show balance OF 81 ID
per ton in favor Of tho manufacturer, "ttct
will ce1tainly do no moro than barely coFer
EMPLOYED. leaving nothing Whatever for risk
and contingencies. Thtoe years ago the p!lct
vas about s10 above the present price, while
the cost Of manufacture was no .greateF tnal
now, The recent decline in gold has seriousl,
affected tho stability OF tho market, and th
{urther decline, which seouas inovita5le, nans
Of necessity (without any reduction in nomlna
tariff rates), give us lower prices. It Is trul
that the expenses Of production must oventu
ally decline in tho same ratio; but thns e1pens
il almost entirely dependent, more Or less d
rectly, upon the cost OF labor, and e1pe!ienc
has shoWn that labor ID about tho last thing +
be affected by change in prices, especially i
that direction.
It is proper for me to say that this STATE
ment does rot represent the tota1 profits Q
our company, inas1nuch as NC mine porto
Of our coal, upon which VIC mike profit, an
as re also HaSe commission upon portion Q
olr iron by selling it ourselves; but it dos
show the actual condition OF that portion 9
our business legitimately belonging to manr
featuring iron an, very respectfully N
truly yours, A. B. CosSE1I+
Treasurer Hinrod Furnace Company.
COST OF KAsUFAETURR OF ONE TON OF r1G LEO,
EXCLUDING INTEREST ON CAtI7AL KNPLpIKD-
| Three and one quarter tons cCM delivered AZ
furnace, Including fuel for boilers, hot
blast ying-furuace, "boE1ng II"
screenings, etc, 1t &. *3.......-............ III
| One and one-half tons Lake Superior orc, de-
| HyerG1 at $301S......-.. ...-...-.--.+-.- To-
One-nalf ton limestone, delivered, at sLSo...
Labor. ~
| Rrnair ......,..... IL
Total cost at furnace. Sa9t
| Freight 70 Pittsburgh. .........-....... $1ol
, | Weighing ',y. railr'ah companies, IS
cents per 1000 pounds. .............. Ii
, | Commission IN Eales at 2M per cent on
= ...,..:s.,+.o .+o VI
per cent, this being a flour months'"
! price. .s.............. 4-Vs
Total EXPENSE when sold ..... .........-. 4a4 j
, Average Fittslrret price fer three weeks
= raztv as reported IN Pittsburgh Ct'nne7r1at-
actuh1 gales. 3d..
| Amhpnt left to nav interest risk, and contln-