Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1892-12-25
NOT AL TIE FAGTORs.

A correspondent OF the New I 0rk 13n1eS
writing from Minnesota, is the latest to en-
deavor to relocate and reform the iron and
steel industry. He starts out with the
assumption that the protective tariff has
permitted pig iron manufacturers to locate
their plants without reference to the
greatest economy in production; conse-
quently he AYERS that, when the tariff is
reduced, the great iron and steel produe-
ing plants will be driven from the interior
to the shores of the great lakes. He pro-
ceeds to the effect that ton of ore can be
laid down at the lower lake ports for So Is
and on the shores of Lake Superior. Con-
seQuently he believes that plants must be
located on the shores of both lakes. The
vessels which carry ore to the lower lakes
will carry back coal to the upper lake
works, and thus, it is asserted, "our iron
masters could produce steel rails at $12 per
ton"
The correspondent who thinks that the
pig iron industry is not driven to seek the
most favorable locations should study the
regular reports Of furnaces in and out of
blast. When he discovers there that
about one-half of the furnace stacks in
the country are constantly idle, he will
run against proof positive that when
furnaces are not located where there is
the greatest economy of production and
marketing, they are turned into dead CAP
ital by the competition of those that are
most favorably located. After he had
perceived that fact he might further dis
cover that the furnaces which are most
steadily in blast are not located on the
lakes, nor are those which stand idle
by reason of their bad location all in the
interior mining districts.
The fact that it takes, about three
fourths of ton of coke to smelt a ton of
Lake Superior ore has often impressed
those of a superficial knowledge with the
idea that blast furnaces should be located
at the iron mines. One OF two expert
ments have been founded on that idea-at
very large cost to the experimenteFs The
syllogism, that as it costs less to transport
three-quarters of a ton of coke one way
than ton of ore the other, therefore it
will be cheaper to make pig iron on Lake
Superior than in Western Pennsylvania,
sounds very conclusive It would be if
the bulky coke could be transported as
cheaply as the heavier ore, and more than
that, if pig iron were the final
product. If those things had been
true, the entire pig iron industry would
have been located on Lake Superior years
ago. But when these gentlemen discover
the further fact that it takes from one
and half to two tons more of coal, or its
equivalent, to convert the pig iron into
finished iron or steel, they may perceive
that there is further factor. The ques-
tion, then, is not that of the transporta-
ton of three-quarters of a ton of coke
against ton.of ore, but of transporting a
ton of ore in preference to transporting
from two to four tons of coke and coal
As long as that is the case the most econ
omical location of iron or steel industry
will be near the fuel, rather than near the
ore.
The correspondent of the Times is right
in asserting that there is economy in the
ability of vessels to carry ore one way
and coal the other, although he does not
seem to be aware that the practice is al
ready in operation. Its economy can be
greatly increased when, by the construc-
ton of the ship canal, vessels can unload
ore at Pittsburg and load with coal back
again. When that is established, il the
correspondent will furnish us with Lake
Superior ore at SS 10 per ton, Western
Pennsylvania will not ask any odds
against European competition.