The Birmingham age-herald., 1906-12-09
Some Remarks on the Significance of the
 Recent Interview of John w. Gates

It analyses well, and is strong and con vincing throughout, although it's length tends to impair the cumulative effect of the points which he makes.
 We have attempted to winnow the more important of these and to arrange them in their logical sequence, with some com- ments.
 Before doing this we would say that those who discount the interview on the theory that it is a stock-boomng device are in error. The interview is evidently intended as d sort of prospectus for the new stock issues of the Tennessee Coal, Iron and Railroad company, and as such is legitimate. The fact is GATES MONEY TALKED FIRST-he and his as- sociates obtained control of the Tennessee and Republic companies and formulated and began the execution of a plan for the development of these properties requiring the expenditure of millions of dollars, be- fore MT. Gates ''broke into print" as the saying is. The information as to the re- sources of the district which is embodied In the interview is undoubtedly part of the data which influenced his syndicate to come into the district. Now let us look at the dominant features of the interview.
 Birmingham District Contains
 Nearly, If not Quite, as much
 Iron Ore as in all the Holdings
 of the Great Steel Corporation.
 According to MT. Gates, the Tennessee and Republic companies have 1000 ,006 tons of iron ore, against 150O,00000 900 tons owned by the United States Steel cor poration, including the recent purchase from James J. Hill. The ore in that pur- chase has been estimated at about 5OO,- O0O,000 tons. So these two companies in the Birmingham district have approxi- mately as much ore as the steel cor poration originally held. If the other iron making companies in the Birmingham dis trict can show only one-fourth as much ore as the Tennessee and the Republic (and that is very low estimate indeed), we must credit the district with 125G,- 00o00O tons-a supply nearly equal to the holdings of the greatest iron-producer in the world.
 And this supply lies side by side with coal and limestone, whereas, the raw ma tcrials of the Steel corporation are sep arated by great distances MT Gates two companies have enough ore to last two hundred and fifty years, assuming that their yearly production of pig ron is in- creased 60 to 70 per cent. The deduction is that BIRMINGHAM WILL BE MAk ING IRON LONG AFTER THE OTHER PRODUCING CENTERS SHALL HAVE CEASED FOR LACK OF ORE.
 Birmingham Makes Iron Two
 Dollars Ton Cheaper Than 1t
 fs Made Anywhere Else in the
 World, and Her Furnaces will
 be in Blast When Slack Periods
 Extinguish the Fires in Other
 Stacks.
 MT. Gates estimates that Birmingham can make iron $2 ton cheaper than Il can be made anywhere else on earth. This is a paramount consideration in slack periods of the trade. It means whether there be mergers or not, the FURNACES OF THE BIRMINGHAM DISTRICT WILL BE KEPT GOING WHEN THOSE IN OTHER SECTIONS OF THE COUN- TRY ARE COLD.
 James J. Hill Anticipated Mir.
 Gates Statement that fhe Bir-
 minghnm Steel Rail is the Best
 in the World.
 Mir Gates statement that the steel rail made in the Birmingham district is the best in the world was practically antic- pated by the expression of James J. Hill. the great railway manager and industrial seer. to one of the directors of the Ten nessee company nearly two years ago. Thus the supremacy of Birmingham in the manufacture of steel rails may be regard ed as established, as the rail is made cheaper here than at my other point in this country. This supremacy will be ex- tended in time to nearly all other forms