Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1890-06-16
The Offer of a Belgian Firm to Un-
derSell Home Manufacturers rs
Per Cent. on a Contract
CAUSES A DECIDED SENSATION.
Local Iron and Steel Men Amazed at the
Offer, and Scarcely Prepared
to Credit Ii.
BELGTANS POSITIVE 1T CAN BE DONE,
And Labor Leaders Think the Difference in Wages
Would Allow II.


the offer, as published in THE DISPATCH.
OF a Belgian iron firm to supply the struct-
ural iron necessary for the new Court House
at Minneapolis 25 per cent cheaper than it
could be furnished by Pittsburg mauufac-
turers. The contract is a large one-S30O,-
600 heing the estimated cost-and it has at
tracted the attention of many of the large
structural iron manufacturers throughout
the country, but especially around Pitts
burg. The public. tion of the bold offer of
the Belgian firm was therefore received with
surprise, and has caused general comment.
eft the Belgian iron firm can make good
its boastful offer" say the manufacturers,
''why. the present tariff is insufficient and
the reduction in the metal schedule of 4
cent per pound for structural beams and
channel iron, proposed by the Mckinley
bill, will surely result in allowing the
Belgian manufacturers to carry off most of
the contracts for structural irom."
JUST AS PREDICTED.
Oliver w. Potter OF Chicago, president
of the Illinois Steel Company, iu an inter-
view with a DISPATCH reporter some time
ago, said, when asked whether Chicago was
not undermining Pittsburg's trade in
structural iron:
There is room enough for both Pittsburg
and Chicago in the structural iron market.
The trade will increase from year to year.
The only danger is from Belgian competi-
ton. The iron from the mills there threatens
to crush out competition in the world"
This startling verifcation Of Mr.. Potter's
opinion brought home to Pittsburg manu-
facturers has, therefore, caused much sur
prise, but little alarm, as the offer is too
radical for them to credit. At the Belgian
Consulate, however, the genuineness of the
offer was confirmed, and it was further
learned that the Consul in Pittsburg had
been notified by the Belgian firm of its in
tentions. He said that already Belgians
had secured contracts for structural iron at
Houston and Austin, Tex, and when the
offer was made for the Minneapolis Court
House he had no doubt that the foreign
manufacturers were prepared to make good
their claim.
E. NJ. Butz, a member of the Columbia
Iron and Steel Company, which is largely
engaged in the manufacture of structural
iron and steel beams, is much interested in
the offer Of the Belgian firm, and is collect
ing information on the subject. Mr.. Butz,
in addition to being an iron manufac turer,
is also an architect, and his knowledge of
the subject gives his opinion especial
weight. He was yesterday interviewed by
a reporter for THE DISPATCH and said:
WILL BE INVESTIGATED.
although have not bid for the Mime
apolis Court House contract, vet when 1
read of the offer made by the Belgium firm
1 determined to investigate and will get
some information from Belgium on the SUBJ
iect. l do not believe the Belgian firm
could fulfill such contract, at the present
price of structural iron or steel. In fact,
for two wears we have had no competition
from Belgian manufacturers, as higher
wages and higher prices prevented the iron
and steel from being landed in New York
at the selling prices of the American prod
ucts. There may have been big reduction
in foreign prices, lately, of which 1 am igno-
rant, and until L can ascertain the selling
prices abroad. 1 cannot determine whether
or not the offer was merely a bluff.
"About four years ago, however, Belgian
manu- faeturers did carry off large contract
in the United States. Texas was building
its State House at Austin, and the quantity
of structural iron necessary ran into the
hundreds of thousands of dollars in cost
1.-THE Belgian manufacturers shipped iron
to Galveston and thence to Austin for about
81 cents ger pound, after paying duty and
freight This was about S5 per ton below
what Pittsburg manufacturers could do.
after paying freight 10 Austin. Since that
time the cost of manufacture mas cheapened
somewhat owing to increased facilities, and
at the same time the prices abroad have ad-
Vanced.
''In the Minneapolis contract Pittsburg
would have some advantage over the Bel
gian manufacturers in point of cost of trans
portation, as, after the Belgian iron was
laid down In New York, it would still have
to be carried some 400 miles further than the
Pittsburg iron would have to travel. How
ever. until learn whether Belgian iron can
be landed in New York at less than $50 per
ton I cannot say whether or not the foreign
iron can crowd out the Pittsburg metal.
From present appearances 1 am inclined to
believe that the Belgian firm cannot fulfill
its contract"
CAN SCARCELY CREDIT IT.
Mr.. A. NJ. Byers, the well-known iron
and steel manufacturer, was also skeptical
as to the possibility of the Belgian firm full
filling its proffered contract without loss.
He said: 81 think the offer is too radical.
II the Belgian firm had offered to supply
the iron say or 6 per cent
cheaper than could be done here,
l should entertain but little doubt that they
could do it. But 25 per cent difference is
too much. 1 do not Just now recall the duty
on structural iron, girders and beams, but
iii possible that the Belgian manufacturers
NAV have some means of evading the
straight schedule, and have the iron i'm
ported at lower rate.
SIS there not large quantity Of iron i'm
ported free as ballast for ships?" Mr..
Bvers was queried.
1.-THE greatest quantity of the iron so i'm
ported is raw, as pig metals. 1 hardly be-
iieve structural iron could so be imported"
"If the Belgian firm can make good its
statement would the Mckinley bill prevent
such importations in future?'
''Oh, no. The difference is too great 10
be affected by the metal schedule, so far as
structural iron is concerned, but / cannot
believe the Belgian firm really intends to
make such a radical cut.
Mr.. John Chal ant, of Spang, Chalfant &
Co., said he had not heard OF the Minneap-
oils contract, but he was convinced that at
the ruling prices for iron, 1t would be i'm
possible Tor the firm in Belgium to SO under
sell the American market.
SOME COMPARATIVE PRICES.
A member of the firm of Carnegie, Phipps
q Co uho n re the LARGEST structural iron