Birmingham state herald. (Birmingham, Ala.) 1895-1897, 1896-05-17
bon, II: phosphorus, .O16 sulphur, .037;
manganese 20. silicon 90

manganese 30; silicon, 90.
Alabama
Pig. Scrap.
SIMEON -. ...... ........... .52 $50.
Phosphorus .......... ........ .720 1850
Sulphur ........ 49,. ......... $50 .O60
Manganese ....... $50. -. 49,. .35
First test after all was melted-Car-
bon, lao; phosphorus, "a.
After addition of 1000 pounds ore
Carbon, SO; phosphorus, 90.
Composition of Stag before tapping
Silica, 1898: metal iron, 1920; phos-
phorus acid, 8.13
would call your especial attention to
the fact that dn this heat only per cent
of scrap iron was used, that being the
product of the mill in the shape of crop
ends of billets and blooms; also the ex-
tremely low percentage of waste in con-
version and the extraordinary quality Of
the steel.
We have In the Birmingham district ev-
erything necessary for the production of
steel at a low cost. First and foremost,
cheap pig iron; then an inexhaustible
supply of dolomite of quality perhaps
superior for basic lining purposes to that
found at any other point in the country,
and which may be laid down at the steel
furnace at price not exceeding one
fourth of that paid at present by the Car
negfe company at Homestead; in fact, 1t
Is being so supplied today to the blast
furnaces of the Tennessee Coal, Iron and
Railroad company in large quantities for
fiuxing purposes. We have most favora-
BILE climatic conditions cheap labor and
cheap fuel. My investigations as to the
cost of manufacturing steel billets in the
Pittsburg district lead me to conclude
that In the case of the Bessemer, from the
pig metal to the ingot, the cost is about
SO per ton, and from the ingot to the billet
$1.50 per ton; IN the basic open hearth
process, from the pig to the ingot, $3.50
per ton, and from the ingot to the billet
$1.50 per ton. From this 1t may be seen
that the difference In favor of the Besse-
mer process is only about $1.50 per ton,
while the basic open hearth product COM
mands on the market from 81 to IS per ton
more than does the Bessemer, depending
upon the quality of the metal furnished.
Permit me at this point to call your
attention to the significant fact that by
the BesSemer process one price prevails
and one grade, and one only, can be pro-
duced, while our process, the basic open
hearth, furnishes soft or hard steel, as
the case may be, of any analysis or quail
ty desired. Open hearth billets are
quoted today at Pittsburg at S. per ton
above Bessemer billets We are con-
WINGED beyond question that steel billets
may be manufactured in the Birming-
ham district, if undertaken under the
favorable conditions afforded by mod
ern plant of large capacity, with ample
and improved equipment and facilities
for handling materials, at a cost not ex-
ceeding $3.50 per ton above the cost of the
pig iron. Taking our iron at today,s mar
ket price, say 81, this would give us bill
let's at cost of $13.5 per ton at Birming-
ham. The class of stock that we would
produce Is now quoted In Pittsburg at $25
per ton, and upon examination of the
trade journals you will find the quotation
supplemented by the words Gin good de-
mand." Based upon rate of freight Of
$3.50 per ton, this would leave the Bir-
mingham manufacturer profit Of about
81 per ton in the very heart of our great
est competing district. and in a territory
where there is at all times and under any
and all conditions an enormous consump-
ton Of steel billets. In neutral markets
our position would be one Of strength and
material advantage.
AS an evidence that the foregoing fig
ures and estimates are at least conserva-
tive I may say that quite recently q
southern furnace company by parties
wholly responsible to take their iron at
COST and turn over to them steel billets
of any size or quality desired at IS per
ton, they proposing to make their profit
out Of this price paid for conversion.
This would indicate that the cost of con-
version might be reduced to figure cons
siderably below our estimate. Assuming
"a az. to. .so,,aa he ,.r,,Sred - >,
ra;,s go .a.,rg thot the nrasent conahie
natio, @ r-,ee is COS rer ton at Pittsbrre
a. hanorpes snnarept that there wouId he
loft . VERY hendsorna margin of nrof5t in
that trade. Indeed the southern manu-
facturer must not be satisfied to stop
with the bi1let hut must 20 on further
and furnish to the trade the finished ar
ticles of Consumption, 1t being a well
known fact that the greatest profit ac-