Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1891-01-17
LARGEST ON RECORD,
A Notable Year in Iron and Steel
Production in the Pittsburg
District
HAS JUST BEEN CLOSED.
All Previous Efforts Eclipsed by the
Enormous Output of 1890.
MANY CHANGES BACK TO COAL.
valley Furnaces Forced to Shut Down by
Southern Competition.
las JUST BEEN CLOSED.
MANY CHANGES BACK TO COAL.
AN ENCOURAGING PROSPECT AHEAD


The financial crisis unfortunately disturbed
business during the last quarter of the year,
and it was. therefore, with a very depre-
ciated and weak market the trades entered
in 1891. Manufacturers are of the opinion
that the extreme depression must necessarily
bring an amelioration, which will take
place just as soon as confidence is restored
The present condition of the market is by
no means favorable to the establishment of
new enterprises, but the hope is expressed
that matters will right themselves, and that
the close of the year 1891 will be as brilliant
as the opening was bad.
The production of finished iron and steel
| In the Pittsburg district last year was the
largest in the history Of this section, being
| estimated at over 2,OO0 900 net TONS The
production of pig iron of the entire country
Tor the year 1890 was also the heaviest n
the history Of the industry of this country,
amounting to 10,1S3,016 net tons for the
year. This amount is 1,666,937 net tons
greater than 1889, which year was the year
OF the greatest production prior to 1890.
Largest Producer in the World.
The year will pass into history as one of
enormous production, placing, as it does for
the first time, the United States in the lead
OF the iron pro ducing nations of the world,
and, as the country consumes not only all
the iron it produces, but also large quanti-
ties of iron imported, it is also the largest
iron consuming nation in the world.
The most important topic of discussion
among local iron men and workers Is the
banking of nearly all the blast furnaces in
the Mahoning and Shenango valleys during
the latter half of last week, owing to their
being refused a reduction in freight rates
and being granted only partial reduction
in the selling price of coke. This action was
decided upon at meeting held at Youngs-
town on December 81 last, and will throw
from 8, 900 to 10, 900 men idle, as we'll as to
seriously cripple the business of the rail-
roads, as the traffic from the furnaces proves
large factor in the business of all the
lines entering the valleys.
Much interest has been aroused over the
entire country as regards the situation of
the pig iron producers in the Mahoning and
Shenango valleys, due to Intimations circu-
lated that the furnaces, unless they could
effect some reduction in the cost of raw ma
terial, would be compelled to close down.
The primary cause of the trouble, as stated
by furnacemen in those sections, is the very
large quantities of Southern iron that is
consumers. It is asserted that during the
last seven months of the year 1890 from 40
900 to $4,000 tons Of Southern iron were re-
ceived In the valleys, thus throwing Oh the
market an equal amount of local iron, and
that, in order to dispose of this surplus iron,
makers are obliged to cut market prices, aud
that in many cases, where attempts to sell
failed, the iron was stored in the furnace
yards, where it still lies.
Aided by the Railroads.
1t is only with the cooperation of South
ern railroads that Southern furnace COM
panies are enabled to ship their product
into the valleys. They virtually enter into
a partnership with the furnacemen, mas
much as they agree to fix the freight rates
on pig iron according to the selling price of
iron, and further, in the case of contracts
made for future delivery, they agree to pro-
tect the furnacemen from loss in case of a
decline in values, by further reductions in
the freight tariff, even if in affording such
protection the sliding scale is abrogated. A
comparison of the freight schedules on like
material as charged by Southern railroads,
and those Northern roads leading into the
valleys, will show without much elucida-
tion the great disadvantages the valley pro-
ducers are working under.
Iron is hauled from Birmingham, Ala, to
Youngstown, distance of about 800 miles
for 81 10 per ton, while the rate charged
from Youngstown to Pittsburg, distance
of 65 miles, is 80 cents per ton. In the first
instance the rate is equivalent to one-half
cent per ton per mile, and in the latter 1.23
cents per ton per mile. In the matter of
raw material rates the disadvantages are
almost as great Coke is hauled from the
Pocahontas field in the Virginias to Chat
tanooga, distance of 424 miles, for ex-
10 mi for oba I,
Northern roads for hauling coke from the
Connellsville regions into the valleys,
distance of 100 miles.
1t Is true that the Southern product does
not approach Northern made iron in the
analytical properties, when considered for
making merchant bar iron, but it is extern
sively used as mixture with Northern iron,
its quality permitting of a run of % per
cent, the result being good grade of mer-
chant iron.
Advantages Over the North.
The South enjoys great advantages in the |
manufacture of pig iron over the North. |
1t is notable that pig iron can be made very |
much cheaper in Georgia, Alabama and |
Tennessee than in Pennsylvania, or in any
other part of the country. The conditions of |
the propinquity of the iron ore, coking coal |
and limestone to each other make an ideal |
condition, unequaled anywhere in the
world outside of the famous Cleveland dis-
trict in England. 1t is through the exist
ence of these very favorable conditions,
coupled with the cheapness OF labor in the
Southern States, that enables that section to
produce so cheaply and come in competition
with the Northern makers
Furnacemen in the valleys hold that the
railroads, in giving the advantages they do
to secure Southern shipments, lose the three
tons they would get by protecting the trades
in the valleys, viz: Coke and limestone into
the valley and pig iron out; and further,
that in consideration of the enormous
amount paid in the wav of freights by
Valley furnacemen, amounting in some
months to S250,U00 they should be protected
from the inroads of Southern competition
by making the rate on iron from the South
commensurate with that on iron being
shipped out of the valley. Al
During the last few years there has been
no increase in the number of furnaces erected
In the valley. but the capacity has been in
creased by the introduction of more modern
blast furnace appliances, ii, in some cases,
amounting to so per cent. 1t is claimed
that further reduction in coke to 81 30 per
ton I. o. b. cars at ovens, a reduction of 25
cents per ton in the freight rate for coke
into the valley, and reduction of freight
On iron to Cleveland aud Pittsburg, would
enable the furnaces to continue.
Producers are Standing Firm.
The late reduction in the price Of coke, 1t