Savannah morning news. [volume] (Savannah) 1868-1887, 1884-12-07
Southern Pig Iron.


spring, it W as asserted that pig iron was
produced in the South at
cost of less than $40 per
ton, the protection journals fairly bristled
with arguments and afidavits, and with
profanity, almo to show that the state
ment was untrue and that no margin of
consequence was left to the producer at
s1S to $50 per ton. A few weeks later a
Southern iron company made a contract
to furnish a very large quantity OF pig
iron, covering its output for several
years, at about $12 80 per ton. This was
a poser to the protection organs, but they
did the best they could to minify the i'm
portance of the transaction, and attribu-
ted it to other causes than the low cost of
production.
1t has been known in iron circles for
some time that considerable quantity of
Southern pig iron was steadily going into
Northern markets, but this fact was at
tributed to the peculiar quality of this
iron, which made it desirable for certain
special uses. The shipments of this iron
North have increased gradually from year
to year, until now they have reached such
a degree Of Importance that the Pennsyl-
vania iron men are almost panic stricken,
and show real alarm as to what the effect
will ultimately be on the market; and it
can no longer be concealed that Southern
iron is beginning to compete with North
ern iron in the Northern markets-not
only in quality, but in prices-after being
shipped in some instances over 1000
miles. The net prices which the produc-
ers of this iron get at the FORCES average
81 to S13 per ton, and they seem
willing to sell all they can turn out at
these figures.
Some of the protection organs now say
that this iron is sold at loss to the pro-
ducers, and that they are forced to seek
Northern markets on account of the
Southern markets being overstocked. If
this was true the Southern FORCES would
long ago have been forced to shut down.
On the contrary they have been phenome-
nally prosperous, and are continually in
creasing their capacity. In 1880 the total
production of iron in the United States
was 1926, Ala tons, of which only 394, 1877
tons were produced in the South. In1SS3 the
total output in the country was 5,146,972
tons, of which COG, S79 tons were Southern.
The increase in production in the whole
Uni on was about 30 per cent, while the
increase in the South was IS per cent.
During this year the shipments of
Southern iron to Eastern markets alone
have reached a total of about 76, 900 tons,
nearly two-thirds of which was from VIr-
ginia, while $500 tons were from Alabama
and $500 from Georgia. In recent re-
port to BrddStreets, from which these
figures are compiled, a representative of
the best Eastern furnaces, presumably a
factor, says: ''The Southern iron receipts
knock the bottom out of the market. :
There is no use denying it; it is just as
well to be honest, and those who are de-
nying It are concealing a fact. There is
no experimental stage about the move
ment from the South. With the existing
freight rates, the South can and will send
iron here. That IS established"
SUCH admissions as the above cannot
fail to be excellent advertisements, not
only Tor those who desire to sell Southern
iron, but additional capital will be there
by induced to seek Investment in South
ern FORCES, and the ratio of increase of
production must rapidly increase in the
immediate future, While the outlook is
indeed gloomy for the Eastern producers,
prosperity appears to be assured to those
of the South. 1t is not too much to hope
that within the next decade the South will
not only control the markets, but will
turn out at least one-half of the pig iron
produced in the country.
There are many indications that the
Eastern iron men, who almost unani-
mously demand protection from European
competition, must succUmb. eventually to
Southern competition from which they
can hope for no protection, except in the
re-establishment of freight rates that win
amount to the prohibition Of shipments.
This is not likely soon to be accomplished.
Should the volume Of other business war
rant the transportation companies in
taking that step, other lines would
speedily be constructed.
Southern iron is not only playing havoc
with the Northern producers, but it is
rapidly confounding the self-assumed wis
dom of the protectionists.