The age-herald., 1898-05-12
PIG IRON AND THE SOUTH

| al activity. The latter period would now appear to be at hand, according to authori- ties of weight and prominence whose op- | portunities for learning of developments of consequence to the iron trade are of the best. In the front rank of iron trade au- | thorities are to be found the gentlemen whose views as expressed to a representa- tive of The New York Times, are herewith given.
 | MT Archer Brown, of the firm of Rog- CTS, Brown & Co.,, says:
 s"rhe effect of war on the iron trade has been distinct in two opposite ways. First, the demand for material from the govern ment, such as armor plate, projectiles, gun carriages, etc., has stimulated activity in some quarters. The large plans for new navy construction also promised heavy de- mand for steel in the future.
 "The opposite effect, which has been very marked, is in the suspension of new enter- prises for construction because of the close money that has resulted from the war scare. Tight money is always an enemy of the iron trade. Plans for building rolling stock and other equipments for railroads, for new bridges water works, city improve ments, office buildings, and so forth, are very frequently closely connected with the floating of securities. When bonds are not wanted many such undertakings are put aside to await better conditions It Is known that there were large contracts about coming out, especially in car build ing, that have been put on the shelf till money is easier.
 "In spite of this, the surprising feature is that the consumption of iron and steel has apparently not fallen off particle, This effect speaks plainly of what would have been happening in the iron trade if war influences had not intervened For several weeks preceding the outbreak of war buyers held back in anticipation of cancellations of their own orders and the breaking of prices of raw material. That these fears were groundless and the actual trouble overdiscounted was proved by the fact that marked revival of demand sprung up very soon after war was de- clared
 "As a matter of fact April was the month of heaviest tonnage of sales for a year pastwith some of the large producers at least. The leading southern interest, the Tennessee Coal Iron and Railroad company has closed orders for about 100000 tons of pig iron in the past three weeks and has other large deals pending. In the three months previous it has not sold as much. In addition to this, it has taken heavy coal contracts for the government.
 Great factors in the iron trade which have not been injured are the agricultural implement business, which has been stimu- lated to further activity by the improved condition of the farmers, and the large steel works, which were crowded with or- ders for many months ahead when the war trouble came on. There has been some talk of cancellation of orders in the latter interest but it has amounted practically to nothing,
 Now that naval victory has convinced our people that the war cannot be a very long or serious affair, confidence is return ing to all departments of the iron trade and prospects are excellent Consumption, which is running at the highest rate in our history, is likely to increase rather than diminish. The production of pig iron con- tinues at about 100000 tons per month, and it is being sold at close to the lowest prices ever known. Already the sales of lake ore exceed in the aggregate, believe, the entire total of any previous year. Lake freights are cheap, ores are low, coke is very low, and the cost of manufacturing based on cheapest of raw materials is likely to remain unchanged.
 "Our export trade has necessarily suf- fered most in the war disturbances. War risks have run to high figures; but worse than this, freight rates have gone up to point where exports in some lines are im- possible. We were having a good pig iron trade with Great Britain and the contin- ent, but that is practically suspended for the present. Rates have declined some- what in the past week, and when it shall appear that the Spanish navy is not likely to seriously ennoy shipping, rates will very likely resume their normal level and ex- ports will go forward.
 "The newspaper talk on both sides of the ocean of possible pig iron famine in Great Britain and this country has little basis of fact. Great Britain last year con sumed her output, drew about 50O0O0 tons from stocks, and used 91,O00 tons from America. The London Statist drew from this the conclusion that this year their re- serve stocks would be exhausted, for in- crease of output in Great Britain is not likely. The condition, however, has ma terially changed on the other side While home consumption is larger than ever, the British export trade has fallen off heavily. The result is that Middlesborougn stocks just now are accommodating instead of running off. The German output has in- creased by nearly 100000 tons year, and that country is determined to take care of her home requirements. This cuts off a good deal of trade which England hitherto iidS Telltu OH.
 'On this side, production of pig iron will decline rather than increase unless prices improve. If prices improve materially we could run our 12,000,000 tons annual pro duction up to 100000. and some think as high as 15,0OO.OOO tons. The latter, how ever, would be the maximum of existing capacity"
 Discussing the conditions and prospects of the southern iron trade, M. George IT Hull. president of the American Pig Iron Storage Warrant company, makes the fol-. lowing inspiriting statement:
 within the last ten days or so trade in southern iron has picked up very much. and some large sales have been made. One notable purchase has been by the Addv- ston pipe. works, amounting to 25,OOo tons. Single sales of 5000 and 10000 tons have also been made from the iron producers in the Tennessee and Alabama regions, and 1t IS said that full figures have in all cases been received for the product. The Tennes- see company is now sold ahead from five to six months. This company produces 5o.- 900 tons monthly.
 As to the effect of the existing war with Spain on the iron business, its immediate effect was almost a aascatio,, of ~oto~