The indicator., 1897-08-28

The annual report of the Colorado
Fuel Iron company is out, and it Is
full of encouragement in every detail
Those departments of tie mill which
have been kept running are on a good
paying basis, and when the plans OF the
company are finally and definitely car.
ried out, the rail mill and blooming mill
will be in ship shape and earning hand
somely on the investment. Following
are some interesting extracts from the
report:
while the distance from competing
plants gives the company large protec.
ton in freight rates for the territory
heretofore supplied, the advantage Of in
creased tonnage, in reduction of costs
makes it advisable to reach more dis.
tant markets, where the freight advant.
age is reduced. or entirely wiped out
In the matter of rails, which furnish our
principal tonnage, we cannot expect to
sell any large amount to lines reaching
Chicago and st. Louis, at little, if any,
higher price at Pueblo than they would
have to pay at their Eastern termini.
in view of these conditions, plans
were prepared for new blooming mill,
rail mill and the addition of pate and
structural mill; these plans and est-
mates were completed in December
1896, and steps we're Immediately taken
for carrying them out, but before the
work was commenced in February, 1897,
the price of rails was cut from SIG pcr
ton to SIS per ton in Chicago, and sales
were said to have bsen made as low as
SIG per ton in Pittsburg. This was i'm
mediately followed by general democrat
ization in prices Of all steel and iron
products. 1t was deemed wise to tenn
porarily postpone the proposed improve
ments. though they were more than ever
needed to meet the great reduction in
careful investigation has been made of
the cost of producing Besssner pig iron,
rails, etc, at Chicago and Pittsburg, I'M
der the new conditions. reduced price of
iron ore, freight rates, etc, and to ascer-
tain whether we could reduce our costs
of production to meet existing prices, at
profit. AS result of these investiga-
tons, | am convinced that with the pro-
posed improvements and reductions in
freight rates on raw material, which
have already been secured, that we can
reduce our costs 80 that we can make
large return on the cost of the improve
ments, and fair income from our in
vestment in the works at Bessemer.
Tho result OF these Investigations has
also convinced me that while Eastern
mills have undoubtedly reached their
limit in reduction of costs, for the pres
ent, at least, that we can continue to
mako reductions which will enable us to
meet any further depression in prices
which may occur.
"Plans are now being matured for
the improvements in time
for completion before the railways be-
gin to make their purchases for spring
deliveries.
"The net earnings from operating de-
partments, carried to the credit of in.
come account, were SSl3,3S51i, an in
crease of S92, 47i.50 over the proceeding
year. The net earnings of the fuel de-
partment show an increase Of 1928, l65. &c,
while the iron department shows a de-
crease Of Sl7,S0O.i9. In the fuel depart,
ment the sales OF coal increased 46l,77
tons, and of coke 5S,267 tons.
SIN the iron department the blast fur
naces were closed down October |, 1896,
owing to the large stock of pig iron
which had accumulated The rail mill
has been idle since December ID, 1896.
1.-THE outputs of the merchant mill,
bolt mill and pipe foundry show sub
stantial increase over the proceeding
year, but the heavy expense of maintain
ing the plant and organization, falling
almost entirely on these minor depart
ments, materially reduced their net earn
ings.
"Total not earnings from all sources
amounted to 1925, 020l4, which provided
for all fixed charges, sinking funds, etc,
leaving balance Of s2S0,326.5S from
which dividend OF per cent. on the
preferred stock, amounting to $4,000,
was paid February 20, 1897, and the re-
manning balance OF s20O,3265S was car