The record-union. [volume] (Sacramento, Calif.) 1891-1903, 1899-12-01
Raw Materials Will Be Much Higher
the Coming Year.
Miners Of Lake Bssssmer Ores Have
Announced q Large Advance.
The Raise In Price Holds Out the
Promise Of q Year of Good
Profits to Makers Of Pig Iron In
Virginia, Tennessee, Georgia
and Alabama.

| NEW YORK, Nov. 30.-Discussing
the condition of the iron and metal
trades, the Iron Age" says:
The event of the week has been the
announcement on the part of the min
| ers of Lake Bessemer ores of their
prices for the season of 1900-1901- The
| figure decided upon is $40 at lower
! lake ports for the Norrie grade, COM
pared with $2.53 last year, represents
| ing an advance rather larger than was
expected. This is equal to about 81
cents per unit, against shade under
40 cents last year, thus representing
an advance in the cost of Bessemer
| pig iron of about $o.25 per ton for ore
alone. To this must be added the in
| creased cost of coke, at least 81 per
| ton; of iron, of labor and of rail freightS
on raw materials from receiving ports
and from coke ovens. Thus the coke
freights have been just advanced 10
cents per ton and rise in rail freights
| is also imminent. This will, of course,
mean that costs will be considerably
higher, although the full effect will not
be felt until the new ore begins to APP
pear in the mixtures.
1t is figured roughly that the cost
of making Bessemer pig in the valleys
will next year not be less than $14 to
Sl5 per ton for those who must pur-
chase all their raw materials in the
open market OF course, it is true that
only comparatively small percentage
of the Bessemer pig made in the Central
West is produced by concerns so situ-
ated. All the large companies, with
very few exceptions, and many Of the
smaller ones, control a part or all of
their own ore and fuel, and, therefore,
the costs are less by amounts varying
with the conditions affecting each par
ticular concern. But if the demand is
large enough to require even a moderate
quantity of metal turned out by what
might be called the outside" furnaces,
their cost marks the possible attainable
minimum of price up to June l, 1901.
OF general interest is the announce
ment that the non-Bessemer ores are
selling on the basis of $4.25, lower lake
ports, or, say 8 cents per unit. To
makers of basic and foundry grades
this means an advance very close to
that of the producers of Bessemer pig,
and fixes corresponding minimum for
the second half of 1900 and the first
half of 1901.
These prices for lake ores open ex-
cellent opportunities for active mining
for the deposits east of the Allegheny
Mountains and it seems probable that.
for instance, Lake Champlain ores will
go in very considerable quantities into
the Pittsburg and Cleveland districts.
Foreign ores, it would seem, will also
have much better opportunities. Thus
we learn that Pilling & Crane of Phil
adelphia have during the past week sold
for spring delivery between 10000
and 100000 tons of Newfoundland ore
to nine different concerns in the East
ern Pennsylvania districts at ~ cents
per unit, f. 0. b. cars Philadelphia.
To the makers of pig iron in Virginia.
Tennessee, Georgia and Alabama
the establishment of the prices for lake
ores and coke holds out the promise of
year of good profits. because the ma
Jority of them control their own sup
plies. In the past they have suffered
in competition with the Central West.
from the fact that prices of lake ores
were down to a low level and all other
costs were on a starvation basis. To
them relatively a much larger margin
is opened, since the offset to them is
only the increased cost of labor and the
advance in rates of freight on product
to market
The Lake Superior ore mining inter-
ests did not this year in the least share
in the prosperity Of the iron trade. They
have determined to participate in the
profits Of the season of 1y0O-lyO1. and
are sure to succeed.
The blowing out of a furnace is ex-
pected to bring a large interest in the
Central West into the Bessemer pig
iron market.
In steel the only feature of interest
is the appearance of number of large
inquiries in the Eastern markets.