The Birmingham age-herald., 1903-09-07
PRODUCERS MAKE
 REDUCTION IN IRON
Sales of Southern Pig Reported
 at Eleven Dollars
DECLINE REACHES LIMIT
Authorities Agree That Bottom Notch Has Been Struck = One Effect Will be the Cutting Off of In-
 portations from Abroad.

An article which appeared in the New York Commercial. and is here repro duced is of great interest to the furnace men of the Birmingham district:
 It was stated today, apparently on good authority, that one of the largest pig iron producers has reduced the price of No. 3 southern iron $l a ton, thus bringing the rate down to $11 a ton. Only last week the Southern Pig Iron asso- citation made an official reduction in the price of pig iron, and 1t was thought that no further reduction would be made. Since the reduction last week consumers have been purchasing freely.
 Frank A. Burr, general sales agent of the Tennessee Coal and Iron company, was asked regarding the reported cut in southern pig iron prices. Mr. Burr said that he had heard the report in several places and would not be surprised if 1t proved correct.
 "The Tennessee Coal and Iron company has not made any reduction in its prices" MT. Burr continued "and does not at present contemplate any. As a result of the reduction last week. orders have been coming in freely. It is possi- ble, however. that some producer has re- duced the price of No. to $11 basis. cannot say at present whether we will meet such cut, if it has been made Of course, consummers will not pay us SIP ton If they can purchase pig iron else- where at $11 a ton
 Decline Reaches Limit.
 Archie Brown of Rogers, Brown & Co.,. an authority upon pig iron, discussed the situation as follows:
 "The pig iron problem. so far as east ern furnaces are concerned is resolving itself very fast The decline in prices has reached a point where nothing is left for the makers even after every economy has been put into effect Furnaces are therefore working up materials and plan ming for a shutdown. It takes a long time to stop or to start a blast furnace, for the operations lead back to the mines. So it is not impossible that before the winter is over, scarcity may develop where plethora is supposed to exist.
 As matter of fact, stocks are light at furnaces generally, the Alabama dis triet alone excepted. Jt is known, also, that stocks in consunl rs' yards are ab- normally small due t6 the policy of buy CTS of delaying purchases till the last moment in the hope of catching little more favorable price. It is possible, therefore. that the game of breaking the market may proceed too far. Even the furnace worm will turn. Users of pig iron who expect the market to go on down to where it was in panic years must remember that cost is up 50 to 65 per cent in every district in the country, and that 90 per cent of this cost re- solves itself into labor. which is not yet ready to go back to the wages of the panic period.
 'orders continue liberal in number, but restricted as to tonnage Deliveries required are almost Invariably prompt, with frequent requests for tracers Tn 6 number of instances hardship has result ed from inability of furnaces to supply desired grades promptly
 Imports Are Made Less.
 '"fhe July imports of pig iron were 3S.- 900 tons. against 62.OOO tons in July. 1902 August will show a greater reduction Scrap dropped from 12OO0 tons last year to 350O tons this year. A certain amount of special irons, such as low phosphorus, spiegel etc., will continue to come in, bu. the movement of ordinary foundry iron and Bessemer is over
 Tn connection with import and export movements, it is interesting to note a distinct improvement in the German iron trade, even since the exports to America have ceased. The return tide of heavy forms of iron and steel from the United States to Europe will begin when the enormous differential In wages is at least partly capitalized.
 'Rumors that the Pennsylvania rail- road contemplated postponement Of im- portant parts of it's scheme of improve ments are officially denied. Work will go on without Interruption Restrictions by other roads of improvement plans will depend very much upon the markets for securities. Builders of equipment report that the railroads will place further heavy orders for much-needed rolling stock as soon as money is easier.
 Surprise is expressed at the continued heavy demand for all kinds of iron and steel finished products coming from the great west. series of good crops sold at high prices tthis year promising to be no exception) has created buying power that seems to be unlimited"
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