, 1870-03-17

Interest on 3sSst fof if fonr months at9
per cent, this being flour months'"
price. ....,........... Luz -
Total EXPENSE when sold. 49,. .......,.,. sa..;o
Average FntstnrRl, price for three weeks
past. as reported In Pittsburgh Cb'*1"e7e1at- ..
sctual salea ...........-............. 1914
Amount left to pay interest, risk, and consln-
iEis resuit should BE- further diminished by
deducting internal revenue ta3 on sa1es, -
Ter Fl Geo, mailing it I cents less. A. B. c.
Now, side By side with this letter Of tho
Treasurer Of tho 1Iimrod furnace, the Comulis-
sioners would place the following letter OF
Brown, Donnen & Co, p1oprietors Of tho. Ma
honing furnace in tho eamo town Of ioungs-
town, written to Prof. Watcrhousc, Of st.
Louis:
OFFICE OF BRows, BoSSu1 i Co.,
MAHos1Su WonKs,
YOUNGSTOWN, o., July 8, 1868.
GxAn SIN: We aro Just in receipt Of q letter
from our friend, ". o. Forest, Esl., East st.
Louis, together With few lines attached from
yourself. We haEo pleasure in replying to tho
questions proposed
alout thrce-f fo,rths Of Lake Superior aad orc
fourth Of native ura to tlo ton OF pig. ThG
like ore coets, delivered at our furnaces, about
Sa. and The native ore, which i found
mined in considerable quantity, and which,
VIXEN roasted, yields 4 good rcrcents3c-say,
80 per cont, ut q cost Of IS per ton. Tho canl
we use il Of excellent quality for making Iron,
being free from hurtful extSaneous matter, a
pure carbonaceous coal, which vo get from our
micB to uur works, and costing about e to
e2.50 per ton. 1t takes 214 to ~ tons Of coal
to reduco one ton of mefaL The limestone
ueed rs flur We set delivered to VI at sL121}zz
per ton, and the whole cost OF making one ton
ct rig metal is about 92j.
Should you ever WRIT this region, We shall be
plcnscd to eeo you, and give you any additional
information in our power. Very respectfully,
Baows, BoSNELL d Co.
Two separate and different statements rolls
tive TO the cost Of making pig iron 1t foungs-
town, O., during the past year, being thus
| brought before the public, it is desirable to
analyze the data thrB submitted, with a viaw Of
determining, ii possible, the cause Of this es-
srectisc pa1tiee. Thrown together in the form
| OF table, these differences arc clearly shown
as follows:
| $40, S6.o5; ore, III Lake Superior, ut 20,
$191s r niye 15s G1s, q. - S3a FL: else nR,sstone
Himrod-Coa., s,,@ tons, at IS, 1915; ~
toms Lake Superior ore, At s10.1s per ton,
:l5.27; e ton limestone a1.so, Is cents
NOke-lu tl1G statement OF NestIS+ BE0WIat
Eonneu L Co., tho maximum prices given by
item arc tckeE, and the use Of the same guam
titjcs Of ore 1nd limestone Is assumed as il
given in the statement Of the Hiinrod Com
Wny.
! Examined il detail, the aboyo differences al
state Mt may be classified unslcr three heads
I. In respect TO the amount and cost Of coal
..:s:..aautte, ss given By Messrs. Brown, Bonnel
i Co., to Mr. Natethousc, weEe from two and
cuc-fourth to two ard one-haH tonay at 3 cos'
Ct frcm e to So. 60 per ton. Tho statement Of
the Hinrod Company. On the other hand, EiVas
three aud one-fouxtA toEs Of coal, At cost Of
Taking tho maximum Of Mcssrs. Brown,
Borntn 4 Co., the discrepancy between tllt
two statements represents IN amount equal to
$3.50 in the cost OF manufacture per ton.
2 In respect to amount and cost Of or
used, the letter Of Ieeers. Brown, Bonneu !
| Co. to alr. WaterEouee states the price oi
Lake Superior orc 1t 20 per ton: that Of tht
Himrod Furnace Company at 51o.1s per ton
Mcsgra. Brown, Eonnen i Co. state that they
uso proportion Of three-quarte1s Lake Supe
nor ore and orc-quartcF nativc ore (the attel
costing SC per ton Iess than tho Lake Supe
rior), PROPORTION which the Commissioned i.
| informed constitutes the usual mixture uset
in the MahcniDg Valley. The Hinrud Com
pany GLAZING, on the other hand, to use in tht
manufacture Of iron Like Superior orc exclu
4 tIFE&E. 4UC NN4ElEEAut} VI ctAk%44<Ak IL SAA
] respect males difference amounting to sl1
in the cost Of manufacturing one ton Of ORC b,
the respective parties:
s. In respect to the cost Of imestone-
, Nessrs Brown, Eouneu : Co., in their 1et.e
to Nateshouso stato the cost Of the jme4toa
! | delivered to be 7L4l5 per ton. The Hinro
|: Company, On the other hand, fix tho price a
E1.3U per ton making difference in thi
! item of nine cents on the cost Of every to-
manufactured By the respective parties. :.
, The aggregate Of these several i:ams Q, dii
ference amounts to s7.62, which, deducte
from eso.53. tho aggregate Of cost given b
J the Hi1nrcd Company. gives 923.9l. an nmou1
!, ! vcr yncar1v corresponding with the aggregate 3
preaerted BY AesHrs- Brown, Bonnen i Co
/ il tlc;r letter to Mr. Wate1aouse-
r able frns, both equally well endorsed as inte
! h8eut and trustworthy, aud doing busines
In the eame locality, and apparently undo
I equally favorable circumstances, should con,
t before the country with two statements of u
( quantities Of materials used ~ them N I'll
: wel-known processes Of iron manufacture =
widely differing onc from the other. Nor is I'll
i; Commissioner 1t all able to explain 20 rcrnsrl
: able discrepancy. Il il, however, otherWss
. with anotheT particular in which these IT
statements diner equally widely, that is tt
! cost Of the different materials used- The Coz
. missnuer confeescs that he would be uuable
!: offer any explanation whatever OF this Poln
( alsc, hAd not the EXPLANATION been 1uInisne
BY . passage In the very letter OF re Ann19 !; :
! is proper fe1 Us to say TINT this statement dos
q not represent the tots1 profits Of cur company
+ in.smnrh a. We 1nine . portion Of our COZ
/ ! upou which We make profit, and AZ ne als
i save commission upon portion ot OLE iron b
= selling il ourselves"
= It would seem evident, therefore, that whe
/ aIcss1s- Brown, Bonnen L Co. made their Stat,
1 nent to Mr. WsteIhouse, they intended simpl
5 to chow the profits of their entire business
o making pig iron, in which ther capital is i,
r vested. In doing 30 they calculated each se1
= asate ingredient at Its cost to them Tns
r 6aid. the coal costs u 30 much the oee,
much The limestone, 80 much sod ..the tot
:, of these gives tie cost Of ali the ingredien
:, together
+ But when the Hirurod Furnace Conps1
L made their statement, they divided their bus
8 / ness into al it's separate branches. They We
, not only iron makers, but also miners and in
/ profit On each Of these different processes
u their business, ind then to make an addition
profit On the whole put together. Somethi1
+ after the fashion Of boot1naker rho ahou
q claim to be, first leather dealer, and next
8 last maker, and then boot cutter, and = DO
should then expect to make separate PRO
r on each of these processes before he could c.
d culate his legitimate profit On his rea1 busine
i Of manufacturing boots.
Il A iron makers, Mesars- Brown, Bd1ueu
n Co. SAY that their coal costa them about g
l. per ton. The Hirurod Furusce Company &
q That their coal also costs them about 43.
ss but that it costs them that price as coal mi
d era, rot as iron makers. As coil miners, th
y n1e entitled to separate profit On their br
q uesa Of nos less than 80 centa per ton, th
n making tho coal cost to them s. per ton
D. only e 80 per tos.--
T. As simple iron makera, Brown, Bonneu