New-York tribune., 1895-02-11
A BOOM TOWN.
AND THE SOUTHERN IRON
INDUSTRY.


MINERAL BEfr-coLLAPsE OF REcI-
pRoc1rY NEUTRALITY-SUSPICIOUS.
OF BASIC STEEL
sr.vv CORRESPONDENT OF THE TR.pUNE.l
,,. ,,ars,r,o, nroeress of the South. like that
=, the Northwest has been retarded by the exag-
~...,.a dsveopment and premature collapse OF
CO., ,owns" Many millions of capital were
,.os hotween 1880 and 1890 with reckless
s,,,,.,, and hind folly In real estate specula-
It,, ord inflated paper enterprises. There are
me-. In the Southern iron belt where land
-. =, 9, 600 900 in volume were made few
,.ors apo at fictitious prices. and where farms
rare c,t ND into building lots streets laid out
.,a covered. and electric light poles set up In
n,ep fields: yet not more than twenty or thirty
Families ale now living there. The money In
.s,od IN paper towns Of that kind has been
sunk and never will be recovered. other towns
wore doomed" on the strength of Inaccurate or
deliberately fasified reports respecting the thicK-
ness of coal seams IN adjacent districts; ana the
collapse of their fortunes has been complete.
Another class of towns. which had a supstah''ai
basis in natural resources for Industrial prog
ress. has suffered from real estate specuiauo"
far in advarcc of reasonable Valuations "o"
ern men. being conservative In their IDEAS N"'
nut less money into booming opera'o"' ..,.
Nor.hern investors: but they have met VIII"
..... ,o.sos While many Industrial enterprises
oro.nized as gambling ventures have e"ueu IL
.-,.,,,.,,. moi n few have been reoiganizeu'
90 Nth tre return of better times Will become
profitable .,o..a ,s
p,rn,,nrham. the Magic City OF Alabama Is
not like Fort Payne. Cardir or o'her ooo"'
TOWNS" Of an extreme type. lis resources loi
tho economical production OF iron are uneNceheo
anywhere In the Union. and II is natural ceh'e
- r,,rufacturnC industry. These facts are
o,.o, more evident to-day than they were IN 1880
r.. Tho first furnace was built. Geological sur
ovs have confirmed in detail the earliest estl-
,.tes q. rho extent and value of the Cahapa'
1yorrior and Coosa coal measures; and the quail
,,v Of the iron mined in adjacent districts mas
surnassed the expectations OF the pioneers oi
tho industry in Northern Alabama birnihs-
ham has not shifted its place on the map II II
80 re.r the coast as it was fifteen years ago.
and its transportation facilities lor co'iec'i"s
oro cos, and limestone and sending out pig iron
or finished products have been greatly increasea
hu, every commercial traveller who enters II
..sats ~ u as "a dead town." without trade;
and even with most of the furnaces roii'hs
~,u,s and factories in full operation. ii is per-
,..dsd with feeling of depression and despono-
.ncv Its natural advantages and resources
ere undeniable; but its energies have been para
,vzed nv an exhausting speculative debauch.
birmingham was unknown before 1870 ana Oh
little reputation until after $780, and theh lot
ten years 1t forged ahead Of all competing 'o"ns
IN the Southern mineral belt. us lhuus'i'"'
prog,ess was based upon the generalization Una.
wherever iron, coal and limestone were iou"'
o,oss together ir inexhaustible quantity. manu-
featuring and business stronghold would be es-
tablished. Having started upon l's career a9 '''e
natural centre of the richest ana most la\oia','
situated mineral district in the South' IL was az"
,..r.,.sd throughout the Union by industrial pro-
ynoters doomed" by real estate SPECTATORS anu
.rt,ac,al,v stimulated in every way. Rapid as
20. ,,s Growth during this period Of inflated
activity when boom towns were springihg up
,,,. ,,usbrooms throughout the South. real estate
sn.cuIators were calculating with creduli'y upon
an exnsnsjon OF its population and business our
tho the nresent decade that was beyond the range
NJ possibiity and opposed to reason There were
fifty or sixty licensed real estate dealers anu
they enlarged the town IN every oirecuoh o''
paper and inflated prices Even pefore loso rea'
estate was so high that new INDUSTRIAL concerns
were deferred from purchasing sites IN the CITY
and were crowded out into smaiier anu ieSS
promising towns When tide OF co'h"'eiciai
depression swept over the country Birmingham"
was submerged. 1t is to-day most Conspicuous
example O.. the evils IF exaggerated deVeiop-
ment and overweight energy. even when there
:. . so,.d foundation for continuous growth and
commercial prosperity
when men have been drinking brandy and
.,.unaene in a reckless debauch. they are un-
narved and depressed when stimulants are re-
,,o,..d and they are put upon a cold-water diet
That is the present plight Of Birmingham. Inc
rro., Industries centred in the town and In It's
OUTLYING circle Of swarming SUBURBS are !"
onerat,on and there Is employment for miners
and onerators: but everybody is complaining OF
tho duln.ss OF the times and OF unremuner-
.,,vs business Disconsoate boomers are DIS
b.ar,ened nv empty streets and falling rents;
.nd n is true that a floating population wnich
ro. bere In 1890 has been drawn of. and that
tho reduced earnings Of merchants nave forceo
them 10 economize and 10 move INTO less eN-
nensive stores. Illusions have been dispeiied'
Men now perceive that the value OF real estate -
not determined by exaggerated forecasts OF phe
nomenal progress in the future, but by actuai
conditions OF trade. and that rents OF stores ana
,r,ces asked for manufacturing sites have been
ont of proportion with the purchasing power or
a Door working population and any possible
returns upon Industrial investments made be-
tween 1880 and 1890. There must be inevitable
ehrinkages In values before the paralyzihg eHec's
OF inordinate speculative activity can be fully
counteracted and business restored TO normal
conditions.
Birmingham is well-buiit town. win manu-
som. business blocks excellent schools attractive
parks and well-lighted streets. 1t is too new TO
be picturesque. or even interesting. apart from
.ts Industrial progress With the exception OF
Atlanta, 1t has better railway facilities In hve
trunk lines than any other manufacturing centre
in the South; and its system Of suburban troll
ley and dummy lines is very effective. What
Is most impressive is the magnitude OF the IRON
plant established there since 1880 There are 2lo
coke furnaces and 119 charcoal furnaces In the
United States, and OF these Birmingham has