The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1893-04-19
IRON AND STEEL MANUFACTURES.

The earn egie and Bethlehem steel CON-
paHies flourish on Government contracts,
and for the heavy kind OF work they under
take are practically without competitors in
the whole Of this vast country, rich as II is
over a wide area in metallurgical ores and
fuel. Pennsylvania leads not only in the
production Of steel, but in shipbuildlng. In
the latter respect, also, the contracts mostly
come from the Government. Ii would be
better for the nation financially and Indus
trially to see less concentration and more
competition. The prices are tempting
enough to start steel making in every State
that has ore and fuel 1t would be instruc-
tive 10 compare the payments obtained for
aTmOr plates abroad with those which en-
rich the pr0prlet0rs of the huge works in
Pennsylvania. 1t is extremely unlikely that
the foreigner anywhere is almost enabled 10
pay for the cost Of his plant out of one set
of contracts. but this is what is practically
asserted by the Engineering NelCS as TO
American work for which bids were opened
by the Navy Department at Washington on
February 5. This journal says that the
prices for armor plates must excite the envy
of manufacturers who eagerly accept orders
for structural steel at less than $40 per ton.
The bids referred to were for the supply Of
1000 tons Of nickel-steel armor plates, and
the CaInegies and the Bethlehem firm made
offers at from $500 to $3.50 per ton, besides
500 more per ton ii the Harvey process is en-
ployed. The remark follows that making
a very liberal estimate Of the cost of manu-
facture, it looks as il the profits on this
order alone ought TO go long way toward
Tepaying both the companies for their
original expenditure on their atmor-makng
plant" Coming from a technical journal,
this criticism is not mere editorial breath.
The wonder is that the situation has not
been eomprehended from the point of view
of self-interest by other manufacturers
1t was announced the other day that
opposition is soon to arise in the Carnegie
headquarters of Pittsburg. Capitalists Of
New York, Philadelphia, St. Louis, Gin
cinnati, Boston, Pittsburg. and few from
Europe, are TO establish steel works on the
Mon0ngahela, a short distance above the
Smoky City. and intend to manufacture
steel on great scale. The capital stock is
S100,000000. Why so much capital is neces-
ssry is not obvious. A very much smaller
capitalization would duplicate the world
famous works of Essen and Elswick rolled
into one. The syndicate may have
schemes in the air Of owning vast
pTODeTlleS IN coal ana iron, and ike
Prick, the manager OF the Carnegie works,
it may embark in coke producing. Admit
ting the great advantages of position which
Pittsburg possesses for iron works, the
superiority is not so positively unassailable
that competition should not be attempted
elsewhere. The resources OF the great
lakes region are magnificent, and works on
grand scale should spring up there. On
the Pacific Coast iron and steel industries
are needed 10 far greater degree than ex-
lists both in California and on Puget Sound.
Capitalists should be able to make ventures
of this kind with confidence. We ara def
cient in good qualities OF fuel. it is true, but
by no means destitute, and the seaboard
provides foreign supplies. Ores are abund-
ant and good, but have been little worked.
1t is understood that Mr.. Irving NJ Scott
has project in hand of establishing gun
factory on San Francisco Bay. The steel
plant necessary may be made equally
available for armor-plates and for mild
steel used in shiDbuildng Works of this
scope are desirable in the interest Of the
Government. which should, by division of
contracts, give such encouragement as is
consistent with public duty and policy.
They are certainly desirable to develop
the industrial wealth latent on the coast.