Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1891-03-07

ments of Southern iron, is what has brought
the remarkable change throughout district
which has heretofore been everywhere noted
for continued prosperity and activity Of its
industries.
] Changing Business Methods.
There are many who believe that the con-
dltions governing the iron market will un-
dergo complete reconstruction as result
OF this shutdown. In this the pig iron in
dustry is only following in tine wake OF
many other industries in settling down to
the question of large business and small
profits. Heretofore the pig iron market has
been susceptible to great advances, and
probably never went below the cost OF
production as it is at present. This
fact has created immense profits and the
knowledge becoming known outsiders con-
cluded to share in the enormous business
which resulted in new furnaces of great
capacity being erected and old ones re-
paired and put in blast in both the North
and the South, until finally the productive
capacity far exceeded the consumption Of
iron, and the inevitable followed and the
day of reckoning is now at hand.
This would not produce such serious re-
suits were 1t not for the action of Southern
turnacemen in coming into this market The
conditions of the propinquity of the iron ore,
coklng coal and limestone are SO favorable
to the cheap production of iron in the South,
and which conditions will always remain
with them, that they are enabled, with the
favoritism shown them by the Southern
railroads in the way of cheap freights, to
ship their product into this market at a COM
paratively much lower price than what fur
naces here can produce iron.
Must Reduce the Cost of Pig.
Since it is manifest that these conditions
will always stay with the side of the South,
it is evident that Northern furnacemen
must manufacture their iron cheap enough
TO compete with the Southern furnaces, and
this must be at even a cheaper cost than they
are to-day making it. 1t is claimed by re-
liable authorities that pig iron of mill
grade can be made in Alabama and Tennes-
see to-day as low as 50 per ton, and this with
the freight added is cheaper than what it can
be made for here. These are the reasons
why Northern iron masters believe that the
days of booms in pig iron are over, and that
the high water mark of pig iron production
in the North has been reached at least for
the remainder of this century.
1t is believed by such authorities as Ed
ward Atkinson that the center of the iron
radius of IS or 100 miles of the summit of
the Great Smoky Mountains, or
the crest of Mission Ridge or up-
lands bordering on the Tennessee
river, which is not far away from what is
called the ''center of gravity" of population
of the country. Within the radius indicated
there are located some of the finest blast
furnace plants in the world. New railroads
and immense industries are being built up,
coal, iron and limestone fields penetrated,
and the whole Solth pulsated with the
blood OF a new life, and the Importance of
all these things, as well as their probable
effect on the Northern iron markets, should
not be underestimated by those ironmasters
located in the North.
Small Profits and Big Deals.
In a conversation with Mr.. j. G. Butter,
Vice President of the Manufacturers Asso-
citation, he stated that there was no proba-
bility of BeSsemer iron ever again advancing
to S23 or S24; that the industry was under
going a sort of transubstantiation, and that
hereafter it would be question of large
sales and close business, and that there must
be cheaper ore, cheaper transportation,
by water or rail, cheaper coke and
labor-in word, economy is the question
that will determine whether Valley furnaces
can fight against their Southern opponents.
Whatever Will be the outcome of the re-
quest by furnacemen for cheaper freights |
and cheaper coke-and at the present writing |
there is no immediate hope FOR the settlement |
If the trouble-I firmly believe that if they |
ire not granted now and permit a resump-
ion of work it will in time reflect detrimen-
ally upon the iron interests. There is no
question but what they will have to resort to
his e1pediency in the course of time if they
wish 10 maintain their supremacy of the in
iustry.
Furnacemen here are fully cognlzant with
he situation and seem willing to stand their
share of the decreased profits if only the rail-
-oads and the coke combine hearken TO the
voice of reason and grant those requests
which are absolutely necessary to again
place the industry on its feet-on a sound,
and lasting basis. c. J. K.