New-York tribune., 1884-12-08
GRIEV1NCES OF PIG IRON PROD UCERS.
WHY THE EASTERN ASSOCIATION IS UNABLE TO
COMPETE WITH THE SOUTH

WHY THE EASTERN ASSOCIATION IS UNABLE TO
COMPETE WITH THE SOUTH.
PHILADELPHIA, Dec. THE Eastern Pig
Iron Association, composed Of furnace propctors IN the
Lchgh and schuykll valleys and Southern NewJersey
will mold u meeting in this city about December 20
Their interests directly Affected by competition with
Souhcrn-m made pig iron. This competition has become
formidable that these producers wll at the meeting
be held in the OF two weeks devise means
of meeting it, They propose to show that they are kept
great disadvantage BY the figures they compelled
pay to railroad companies In freight, coal and
other material, and the price OF coal They assert
that they cannot further reduce price of labor this
important factor in pig iron manufacture has already
been squeezed point where it barely receives su!h
cicnt for existence In order to Correct II possible the
OF the disadvantages under which they labor in
meeting competition, they will make direct appeal to
the railroad companies and particularly to the Philade
phia and Reading Company in whose power the majority
them are to make certain concessions for their
lief.
II will shown in the first place that they must pay
now from 81 30 to ~ 30 for lump coal and rates OF
freight which will exceed two cents per mile while the
Southern roads hauling pig iron to tidewatcr are
glad to receive mills for the service Under
these conditions competition with the Southern product
impossible, and unless tho cost of coal Is reduced 10
made upon the freghts both in raw aud the
manufactured products to market the closing or inc IuI
naces IL an inevitable result The railroad company
must lose that patronage and thousands of men VIII bo
thrown of employment. Estimates have been pre-
pared by of the mast experienced manufacturers
in the association and these will show that the average
cost of freight to the manufacturer at such
industrial centres Reading, Allentown and
asbnrE ana which ar ARE III, the central
alton is 50 80 for every ton of produced. This does
include the freight upon the manufactured article to
market Nor does it include labor interest invest
and numerous incidental expenses which IN tho
aggregate nearly twicO much the freight item
The best prices obtained by the majority of the fur
naccs In the Eastern Association to cover this bare cost
of production dre follows: NOl, Sl19Sl1 %; No. =
S1GQSl6 90 and so SO. A. the yield OF the furnaces
I'm the quality shows only the proportion of % per
cent whole the manufacturers claim that the close
margins under which they operating must he appa-
rent enough convince the railroad companies that u
less something is done for their relief that they must shut
down
The Reading Railroad Company Ii will be contendcd at
their meeting has by its persistent course of high rates
I'm the Schuykill Valley its main liue leaving only
three entire vallcy,whici in operation Ihccon-
pany controls BY its main line and branches the fuel sup
ply and frcighs uf about forty seven furnaces,
and OF this number hrty-four are idle.
Those that arc in operation in most
instances ENJOY the benefits ot what are termed dcya
tive Orra that Is which are situated upon or 80 al-
their properties that they are saved the high
rates freight which others must While the APP
peal be- made to the Reading Railroad tomnany for
relief most especially cOpy ol the same will be sent
TO the Pennsylvania and Ichigh valley Ran.
road companies that they may De urged
to unite with ile Reading In making such reductions IN
rates that they will foster ard encourage manufacturing
enterprises n the line ~ their m islrau OF rihariss
Ing them II the concessions naked by the Eastern Pig
Iron Association granted. II l estimated that the cost
of ufuucing tpn uf pig iron VIII hr a rAst Sj % per
ton less than present 1p matter has hcen discussed
and n IA hrrvrh that the runrelrh netnn proposed hy
the nssocintiun viii have the rfert hrsited