Birmingham state herald., 1896-03-01
THE MAKING OF IROA Wonderful Reduction in Cost of
 Production. AND ALL WITHIN A DECADE AFurnace Manager of Long Experience Gives Valuable and Interesting Information
 on the Subject.
Birmingham. Feb. 20, 1S9

Birmingham, Feb. 20, 1896.
 The space allotted being limited to a degree, making it barely possible to touch intelligently all the features that go to make up a full resume of the Bir- mingham iron district, and presumlng that others will cover most of the points, I will confine myself to the discussion mainly, first, of a comparison between two periods, one ending 1888-9 and the other from this through 1895, from the standpoint of improved methods, out of which I will undertake to press the fact that through such larger output mas been obtained and the value of this out put, by reason of a greater proportion Of the higher grades, being largely ennanc- ed. Further, that by reason of such i'm proved methods the life of the furnace Things has been extended, so that now it will stand through product of 150,000 tons, as against 50,000 in the first period. Further, the gain in the number Of days within years work. In the two years of the first period charge of fully $l25 per Ion of iron made being needed to cover the items of repairs, maintenance and refining, while now 50 cents would be ample. Secondly, I will give the hharge in the two periods of most of the items going into the cost. Thirdly, will Set IOTln SOIle tUOuSHto Oi tiiC ioDOi problem and will incidentally touch the steel question and our distribution facifi- ties
 For the purpose of emphasizing the first proposition, I assume that $6 per ton Tor all grades of iron produced as cost will divide the grades into two heads, those consisting of Nos. and foundry, and the other of all grades pro- duced below these, including in the class of Nos. and foundry those highly sili- conized opened-graihed. known as s1lvery and bright. It Is fact that the class covered by Nos. and foundry did bring an average of $1.50 per ton more than the average of the class below Nos. l and foundry; this was true in both periods. To point the comparison, will fix as the selling price for both periods H per ton for the lower class, therefore the higher class would be $S.50. A furnace in the first period that yielded for 25O days with in the year ninety tons, composed one third of the higher class and two-thirds of the lower class, would be considered as doing good work, while a like size fur mace in the last period would, with great CT certainty, turn out for 300 days in the year 175 tons daily, 140 tons of which would go in the Nos. 1 and foundry class To press this more forcibly, Will tabulate the comparison.
 Periods.
 1SSS-9 1895.
 Tons. Tons. Average daily output ....... 90 175 No. 1 and foundry class....... So l4o Of the. class below No. l and eo or foundry ..... oV oo
 On the cost basis given above this ninety tons at $6 per ton would be $540, to which must be added for repairs, maintenance and refining $1.25 per ton, or $112.50, making the total cost on the days work $652.50. This ninety tons, on the quality selling basis, would bring, as down, sixty tons below the and foun- <~l. ton hirfxr fnI l and foundry class at $S.50, $255, This gives a difference in the days work of $22.50. On the quality cost basis, as above, the 1895 period daily product of 175 tons would be, at $6 per ton, $105O; to be added to which for repairs, mainte- nance and refining 50 cents, or $8750, making a total cost for the days output of $1137.50. In the first period, because of the uncertainty of delivery and the irreg- ularity of quality, we were forced to con- cede quite 50 cents per ton in favor of our competitors, Kho were long established. Within the lat year or so we have been able to wipe out this difference, and therefore without unfairness or being H. logical, this concession should be cred ited to the cost reducing the figures above by 175 at 50 cents, or $S7.5o giving the net cost for the days work of $1050 1w, on the value basis, this 175 tons
 uld yield, as down. thirty-five tons be- low 1 and 2 foundry, at $7, s245; and foundry class, 40 tons at $S.50 $t190, mak- ing total of $1435, giving difference on the days work of 1895 period of $3S5. A years work, 300 days, as above, at $385 per day, would show in favor of the fur nance $115,000 while on the same quality basis prices the years work, 250 days, of the first period would show in favor of the furnace $5625, or giving a change in favor of the 1895 period, on the quality basis, with the gain growing out H. ~e..- and the greater number of days secured in the year in favor of the last period in all of $109,375. Comparing the two peri ods as to the main items, going into the cost of ton of pig iron:
 1Sss-9 1895. Ore, coke and lmerock ..$ 7.79.5 $4.1025 Labor and salaries. L7Ia .S1.1s Other items .......... .5O.O .25.70 Total ........ .S10.07.2 $5.27.3S Of course. I do not mean to say that iron Is produced here at this figure, for to it must be added charges for mainte- nance and refining, for materials at their value in the ground and interest, which, at tie present time, would be covered, for the three items, by sum approxi- mating $1.
 Through the long depression, out of which we are now passing. unprecedent- ed in the worlds history, producing the most abnormal fconditions ever known,
 
 sition have been drawn out; among them one little thought of, but in my judg- ment, the strongest, perhaps, is in our labor being efficient. safe and at any wages that are needed to produce iron, from the ground through the cast house. at any figure required to meet cornpeti- ton, foreign or elsewhere. When Penn sylvania found that to keep going coke must be sold to the furnace-man at S5 cents, and iron ore at figures appalling, when the railroads brought their haul age charge to prices never known before, when nearly every railroad handling fur mace stock hauled every pound of it at a loss to them. when the mine proprie- tors sold ore and coke like gold dollars at 90 cents. and their labor fin all depart ments was cut to the point of Restitution the tF,- was made which demonstrated that our labor could. without friction, be reduced to any figure needed to go. and in few instances did they complain at the cuts, when they believed them neces- sary for the running of the furnaces @rxt< JnI1 A<~. z.fY<