Evening journal., 1889-05-08
FIERCE IRON WAR BEGUN
Manufacturers in Pennsylvania
Alarmed.
RATES ALREADY CUT 81 A TON.

The Thomas Company, of Pennsylvania.
Forcing the Issue-Hundreds of Fur
naces VIII BE Closed and Thousands of
Workers Thrown Out of Employment.
ALLENTOWN, Pa, May s-A strategic or
a most aggressive movement has been made
by the Thomas Iron company, one Of the
leading iron corporations Of this state,
within very brief period 1t seems to be
leveled at the southern producers Of pig iron.
Yet its consequences to the smaller furnaces
in this valley, and in fact all over the state,
can scarcely be estimated. 1t is a well
known fact that iron cannot be drawn from
the furnace in Pennsylvania for less than
SlS or Sl3 ton, and Mr.. Carnegie says that
the blast furnaces Of the south can produce
it for 50 a ton. Iron in this valley is made
from anthracite coal, and, thus produced, is
worth perhaps fifty cents a ton more than
iron made from bituminous coal But, Civ
ing the best advantage to the Pennsylvania
producer, the southern iron master has a lee
way of 81 per ton over the local furnace
man in this state
Freight Rates Not Considered.
The general impression has been that
freight from the south to the north would
help the Pennsylvania producer out, but the
fact is that the iron man in Georgia and Ala
bama pays only from 2s to 40 rents per ton
more for transportation to the seaboard than
the producer in the Lehigh valley, who is
within three hours OF tide water. For long
time the people in this locality, as well as in
otbpr caqtipps pf pappuwlxras,fa bova bao,
struggling against the inevitable Added to
the menace of cheap iron from the south
comes the new process of making steel direct
from the pudding furnace or from pig iron
in its cold state. But the latter Improvement
is not yet thoroughly perfected, and the Sc
rions difficulty in the way of the Pennsyl-
yania producer just now is the cheap product
from the south, which can be put at tide
water or Sandy Hook at 81. so less a ton than
any Pennsylvania iron, adding 80 cents Tor
the extra value Of anthracite over bituminous
made iron.
Small Concerns Must Go TO the Wall
In this contest against the south the greater
iron industries of Pennsylvania are enlisted,
while the smaller ones go to the wall in the
combat The Lehigh valley is one Of the
oldest and richest of the iron producing in
terests of the Keystone state, and this place
is its center. Allentown has its hand on the
sensitive pulse of the iron trade, and it nat
urally feels all Of its pulsatons. Therefore
not only this city, but this whole valley, il
not the state, is to be deeply affected by tn,
action Of the Thomas Iron company in dc
claring a reduction of 81 ton on No. / y
and No. 2 X iron. While the Thomas com
pany IS not entirely the master Of this valley
its action affects every other establishment
Of the same character or course, the othe
big corporations stand by its action but th,
small furnaces owned by individual operators
must 60 out Of blast because they canno
make iron at the price scheduled by the king
Of companies.
Thousands Thrown Out of Employment
1t is openly charged that the Thomas IroI
company have reduced the price of iron 81
ton for the purpose of making an issue anC
forcing the southern producers into some sor
Of pool. This may or may not be true, bui
the fact is that this reduction by this com
pany closes every individual furnace in tn,
valley and throws thousands Of workmen out
Of employment.