The Big Stone post. (Big Stone Gap, Va.) 1890-1892, 1891-04-24

in making iron so cheaply in the South,
said W. W Backman, we'll known pig
iron broker, few days ago. "but l know
they do it, and, to all appearances, they
are abundantly able to keep on doing it
and make money. Southern pig iron ID
laid down in Pittsburg so cents ton
cheaper than Pittsbnrg furnaces can make
it. ! have no doubt Of the truth of that
statement, and have no doubt that the
Southern men who are sending that iron
to Pittsburg are making handsome
profit
"In this market the Southern men are
very active and entcrprising. During the
recent stringcncy in the money market
they sold No. :, foundry grade on which
we base prices, as low as $ll.73 per ton
laid down in Chicago, and the home fur
mace men, to meet them, sold the same
grade as low as $l4,25 per ton, which is
80 cents per ton lower. Since then prices
have improved, and the same Southern
iron is selling from $3.50 to SIG per ton.
Most foundrymcn, here, as in other places,
with Lake Superior ores, they use the two
to neutralizc each other, ard in that way
secure the best results in product. The
coke strike in the East is just now help
ing the Southern furnaccmcn greatly, be-
cause things are so unsettled that North
crn firms are unable to make contracts.
Southern pig iron is not going to be
permanent injury to Northern furnace
men. The reasons why the South is such
keen and active competitor for Northern
trade is because labor is very cheap there,
and the supplies OF fuel and ore so near
to each other and so easy OF access, and
does not begin to equal the supply of pig
iron.
'In The next few Years Southern labor
will successfully demand the same wages
as are paid in the North. That will re-
move the cause Of chcapness, and the de-
velopment of manufacturers in the South
ern States will greatly increase the
demand for pig iron in the South. Both
these causes will operate to keep the
Southern iron at home and TO prevent it
from seeking Il Northern market so eager
" as il does now Another reason of the
present chcapness of Southern iron is the
chcapncss Of railroad freight rates as
compared with those paid by Northern
furnaccmen From the Mahonng and
Shcnango valleys to Chicago the rate has
been $40 per gross ton. From Tonnes
see and Alabama, which are, roughly
speaking, three times rs far away, the
freight-ratc is usually about "A per gross
ton. 1t is now ST per gross ton, and
from March 30lll to August 3lst this year
it will be $3.50 per gross ton.
"a reduction to that extent has ust
been announced to correspond TO the re-
duction which has recently been made for
the same period on the roads leading from
the Mahoning and Shenango valleys and
Pittsburg to Chicago. The Southern rail
WAYS greatly favor The Southern manu-
facturer The rate al times has been as
low rs $50 per gross ton, bat they may
not alwavs 90 that. 1hey may, and prob
ably VIII, exact the same rate per ton
per mile that is paid to railroads III the
North, and Tie elect OF that viii! be. Of
course, 10 enhance 20 ,,la, extent the price
of Southern iron and render It's cOmpcti
ton less dangerous TO Us.
'Thcre is 10 reason NhyN orhern furnace
men need be discouraged by The outlook.
and one significant evidence tha! they are
not discouraged is the fact that iouHgs
town and Pittshurg and Chicago capital
lists have just built and are about TO put
in blast large new furnace in South
Chicago. The Irouuo;s Furnace Com
pany, which is the name under which they
are incorporated, will start work as soon
as the coke strike is settled. They will
turn out about 90, Geo tons every wear"