The age-herald. [volume] (Birmingham, Ala.) 1897-1902, 1899-12-16
STEEL MAKING
IN THE SOUTH

From the Baltimore Sun.
The beginning of the manufacture of steel
at Bnsley, near Birmingham, Ala, recent
ly is a striking and important fact of great
significance for southern industry. Three
furnaces out of the ten that have been un-
der construction began to make steel on
Thanksgiving Day and the other seven are
soon to be in operation. Where pig-iron
can be made most cheaply, steel also can be
made at least cost, 50 that are now
Witnessing the first steps of a movement
that means a vast development. Hitherto
the south has been producing pig for sale
to steel markets in the north. Much pig has
also been exported to England and other
countries. In the north the pig, on being
converted into steel, was made into rails,
armor of warships, cannon, structural
forms, Locomotives, ETC., and much of Ut
found its way back to the south at en-
HANGED prices. The south has for some
years, it is true, been producing excellent
locomotives, and very recently Richmond,
Va, has obtained contracts for several tor
pedo boats, but the profitable contracts of
the federal government, of the railroad
companies and of other large corporations
have been almost wholly placed in the
north, where the only large steel-producing
plants, rolling mills ana machine shops
were known to be. The significance of the
event at Ensley, near Birmingham, the
other day is that it points to a time not far
distant when steel rails, armor for war;
ships, steel ships, tinplate structural
shapes, etc., will be southern products.
Other steel-making plants are already, we
are told, in contemplation and several roll
ing mills are building.
Low cost of production is nowadays the
controlling factor in the location of new in
dustries 1t is the breeze that watts the
cotton manufacturing industry slowly from
New England to-the CaroHnas. 1t trans
ferred the iron and steel industries of the
Atlantic states to western pennsylvania,
and must ultimately spread them over the
SOUTH wherever conditions favor the cheap
production of pig iron and steel The old
furnaces and rolling mills will continue to
produce at unsuitable places While the preSy
emit era of high prices lasts, but the exper1-
ence of the last five years shows that dur
ing periods of stagnation, when prices are
low and only well-stuated industries make
profits, both the iron and the cotton INDUS
try gravitate toward the area of cheap pro-
duction in the south The movement OF
transfer that began in the period of 1893
SO, and has continued till now, will go for
ward with Increased yigor during the next
period of hard times, till Birmingham will
divide with Pittshurg the patronage Of =
how small share of the federal govern
ment's shipbuilding contracts builds up
Newport News and stimulates Norfolk and
adjacent cities Richmond's locomotive and
works bring profitable grfst to the head
of tidewater on the James. Similarly we
must expect the future of Mobile, Bruns-
wick, Savannah, Charleston and New Orr
leans to be favorably affected by shipbuid-
ing and other Industries which cheap SOUTH
ern steel will call into existence. The mild
climate of these ports, which reduces the
cost of living, tends to lower the cost of Ia
bora capital advantage which supple
ments the advantage. derived from cheap
materials.
A feature of the situation in Alabama,
Tennessee and Virginia that promises a
more active development of iron and steel
plants, is the large aggregation of capital
interested in their developmnt. Among
the persons concerned in the Birmingham
plant are officials of the great Tennessee
Coal and Iron company and of the Louis
vile and Nashville railroad. In Virginia
many furnaces and large iron manufacture
ing plants have been acquired by one COM
pany, whose efficient management with
ample capital, must tend to progress in the
iron interests of the Old Dominion. The
prospect of profit will doubtless incite capi-
talists to do the same for the south that
they have done for the development of the
northwest, provided populist ideas, based
exaggerated fears, do not produce local
laws hostile to enterprise. Local invest
ments of 1s00-92, may promote the iron in
dustry just as it has promoted along safe
lines the cotton manufacturing industry of
the south. 1t is the beginning that is diff
cult. After the first cotton mills had shown
the way to success others followed in quick
succession. So it may be expected the Sue
cess of steel-making at Ensley will have
large results.