The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1889-05-14

| A representative OF THE APPEAL, met w
H. Leedy president Of the Birmingham
STOCK Exchange yesterday, as he was en-
route to Hot Springs. The reporter know
ing that Mr.. Leedy was familiar with the
condition of the iron trade In Alabama. asked
him If he had seen the article In THr ApprA 7.
oil Sunday morning, concerning the fight
between the iron manufacturers of the North
and the South. His reply was, Eyes indeed.
SIR got copy of TnE ArrEAL at Tupelo,
Miss, and the first thing that my ewes fell
upon was the article you refer to. read il
very studiously and of course with the great.
est interest"
Have you any criticism to offer" asked
the reporter.
While my business is that of bond and
stock broker but as many of these are based
upon iron, | am compelled to give the
Industry more or less study from
this standpoint OF course we are all very
sorry to have the fight between the Northern
ana southern ironmasters precipitated. we
were satisfied to allow them at the North 10
make their own prices for iron, and we in
very quiet way reap the benefits. We have
'Ss''hNh
iron, in fact would rather that IL be not
known. But DIR. Caldwell, president of the
Elyton Land Company, in his speeches i'm
the East last fall, gave away State secrets
when he stated that pig iron could be made
Tor from $500 to 80 per ton, and invited the
incredulous to come down and sec for them-
selves. Since then the Northerncrs have not
only come South individually but In drovcs
OF great numbers, 10 investigate for them
SOLVES tho n, =.
statements. IL is needless TO say that they
were startled beyond expression 10 learn that
these prices were not underestimate"
III seems ome, said the reporter, "that
from the statements of the Pennsylvania
people there are only two companies in the
l.eIlgll valley who can meet the South at
the reduction they propose TO make"
Mr. Leedy cut the reporter short here and
denied him the privilege of showing his own
lami harity OF the situation, and said:
And bear In mind, .hcsc estimates are
made upon the basis Of what they are pleased
to term sll iron, being the cheapest figure
that they say IL can be made at the South.
when we have reluctantly admitted that we
can make II from IS 30 81. Their admitted
cheapest manufacturing rate Is Sl3, and they
Jay the nattefing JUNCTION 20 their souls
mat we cannot manufacture or live at Sill
with freight added. Mr.. w. h. CLARK, prcsi-
dent OF the Thomas Iron Company, says
1--WE reduced our prices $3.50 for the two
grades OF iron No. | y and No. Y, making
the prices 5000 and $3.50 for May aud June
delivery, TO protect our own trade. The
prices Of southern iron for the grades were
SlL0O and 5000, equivalent TO our reduced
prices when the superiority Of our grades of
iron Is taken into considerations We found
that our customers were buying Southern
iron at the cheaper prices, to our dctrimcnt,
and we must take care OF our own interests.
The Southerncrs can't reduce their prices |
any further, because they cannot make any |
money at the present market rate. Tho |
trouble with the South is that they have |
built too many blast furnaces, and have not |
sufficient capital 10 operate those already /
builL As consequence they cannot keep |
any stock In hand, aud must shove their /
output into the market 81 get quick returns |
Then, there has been oYcrpruductiou all \
around. The Southern companies cannot |
make profit The average cost Of produc. |
ton OF their different grades Is sll per ton. |
The freight 70 New York j. 1913, and the |
cost OF selling through agents Is 80 cents a |
ion' making total average cost OF $i6.2j. |
Dur freight Is only o. cents ton from the
lcbigh Valley, and we have no selling cost,
dealing directly with our customers, with
out the Intervention Of brokers or ngcuts.' /
1T II true that we have got none too much /
money at the South, but We are making II |
and investing the surplus earnings in new
furnaces. When the fight RACES att. hottest |
Jones Valley will be liquid blaze aud We
viii turn out the pig IN larger quantities
Than ever before, and they will have the sur.
plus 10 carry aud not ourselves Asaunit
we are opposed To another war on the South,
but II It's forced upon Us we will fire upon
hem from our reserve unknown 20 them
possibly $50 pig iron. What falling II
aill be bciora this onslaught in the North
II Is sheer impos,bility for them 10 meet
iuch prices In the North"
"Why can the South manufacture 70 much
'heapcr than they can In Pennsylvania; why
5 Il AN impOssibillty for the North 10 meet
~ j. Il because labor is cheaper was
iskcd.
The reply was prompt and strong.
Because" said Mr. locdy, Eve have
very advantage. The question of labor has
iothing 20 do with our ability to make iron
hcaply. Nature has done everything for as.
The reason. and only reason that We can make
ron 10 chcnply Is because the three ingrc-
licnts that are necessary for making pg.iron
the ore, the Limestone and the coal-arr
onnd right together. They are not scpa.
atcd a. they are IN Pennsylvania, but are IN
he hills surrounding the furnaces and can
lc litcmlly shovecd into the tunnels of tbo
furnaces from the hill.tops, without any
ost Of transportation, while at the North
he ore j. gotten at one place the coal al
mother, aud the Limestone nt another. The
0st Of transportation Of these and the labor
involved Is immense nc the North. We
ave no such expense, aud when the eight
ONES We can say; Lay on, Macduh, aud
ahmed DO he who hrt cries hold,
nOughp"