Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1891-03-28
THE SOUTHERN IRON PROBLEM.

From Chicago special elsewhere in this
issue it will be seen that the problem of
Southern iron is making itself felt there.
In fact that is where it is making Itself
principally felt; for the idea indicated by
our correspondent that the shutdown of the
valley furnaces is caused by large shipments
CT Southern iron into this manufacturing
district is a misapprehension. The amount
of Southern iron that has come to Pittsburg,
for instance, is, in comparison with the total
consump ton, hardly worth mentioning.
That iron is useful mainly. if not ex-
clusively, in the foundry grades, and it is
in supplying that field in the West and
Northwest that valley furnaces have felt its
competition the most.
Nevertheless, the growing Importance of
the South as a factor in the production of
cheap foundry irons is assuming decided
proportions, as may be seen by the estimate
that it supplies one.third of the foundry
consumption in the West and is still grow
ing. If the Southern ironmakers can main
tain their present vantage ground of cheap
ness alike of production and transportation,
the Northern interests can only exercise the
choice between reducing the cost of produc-
ton and restricting their business. The
need has already been recognized; the cost
of materials has already been materially
lowered in the items of coke and ore, but
the railroads of this section still continue
obstinate in their determination to kill the
interest that furnishes them their largest
revenue by refusing to reduce rates to a
parity with those which the Southern fur
naces enjoy.
The views expressed at Chicago that the
ultimate advance in wages at the South
together with an increase of the consumptlve
demand for iron in that section will bring
matters to a more even basis, are those
which The DISPATCH has often set forth.
Both factors will work as the essential re-
suit of economic forces. But it is also clear
that while the enlargement of the Southern
market will raise wages and cost, its inroads
upon the Northern market must be met with
a reverse process. The resultant of all the
forces is inevitably that Northern iron must
come down a little in the direction of
Southern prices, while Southern prices will
advance part way to the Northern level.
This makes the movement of reduction in
the cost of manufacture already begun an
imperative ons. An intelligent view should
lead all the interests affiliated with the iron
trade, to do thei= utmost to readjust the cost
of manufacture on a basis that will enable
the pig iron industry to continue on the
largest scale of operations.
But if railroad policy continues its re-
fusal to cooperate in this self-preservative
movement, the blast furnace owners should
not forget complete and final remedy that
lies within the reach of united effort. This
remedy, which has been before referred to
in these columns, is suggested anew by one
item Of news that comes in our Chicago
special. Notwithstanding the competition
of Southern iron, prominent iron capitalists
have determined to start a new furnace
plant near Chicago. Here is a productive
industry taken five hundred miles sway
from the coke supply, and enabled to keep
up the competition with the Southern pro-
duct because 1t has water transportation for
its Lake Superior ore. If the canal project
were realized, which would bring lake trans
portation to the doors of Western Pennsyl-
vania and Eastern Ohio furnaces, this sec
tion could defy the competition of the world
in iron manufacture.