The Birmingham age-herald., 1906-01-07
OUTLOOK Is BRIGHT
 FOR IRON MARKET
Southern Furnace Companies Are Exceedingly Prosperous
RANGE OF IRON PRICES
The Prices at No Time In 1905 De- cIined to Unprofitable 5asis-The south's Consumption of It's
 Product Increasing.

The outlook for the iron industry in the Birmingham district in 1906 is excep- tionally bright. One of the most encour- aging features of the iron situation here is the fact that the number of local millers steadily increases. Covering that point and a general survey of the iron market conditions, the following article by Joseph D. Morten in the last issue ] of the Iron Trade Review of Cleveland 1 will be read with interest:
 ''The year 1906 begins under strikingly similar conditions to those prevailing at the beginning of 1905, so far as the south ern pig iron market is concerned. The year 1905 began with buyers well covered over the first quarter of the year, with the ruling quotation for southern iron 1 S13.5o Birmingham for No. foundry. There had been a good buying movement and furnace interests were maintaining prices, waiting for resumption of buy ing. How far ahead buyers purchases would carry them was the problem then, the same as it is now.
 Tn 1905 1t developed that consumers had bought enough iron to carry on 1 long and tedious waiting campaign, re- sultng in lower prices. by the time they were again ready to enter the market.
 '.The year may best be studied by divid- ing it into four periods. which furnish a ready index to the course of the mar ket as follows
 ] January 1 to May 1: Southern iron, $1S.50 Birmingham Market dull. Buyers taking iron on contracts. Heavy pro duction indicated. Buyers holding off and furnaces equally complacent about future tonnage
 May 1 to July 1: Furnaces more in- cined to seek business. under accumulat- ing stocks, resulting in invitations to make firm offers. All business in sight eagerly sought and prices declining rapid ly down to S105O to s11 Birmingham.
 July to October l: This period wit messed two of the heaviest buying move ments the market has ever seen. The 1 first occurred about July 15, and the sec ond and heaviest buying was at the close ! of September. The July buying was on the basis of $1O.75 to $11 Birmingham, and the | September purchases were at Sl1.5O to SIP Birmingham basis This buying movement advanced prices to s12.5o Birmingham.
 "October 1 to December 31: There was a steady run of buying in the early part of this period. which took up a large proportion of the offerings and prices ad- vanced gradually and without excitement to s14 Birmingham. Toward fhe close of this period buying stopped, with buy | CTS well covered for the first quarter of 1 1906, and many covered through the first l half of the new year.
 Tt is worth yof note that the devel opments of the year 1905 have made 1t clear that southern pig iron has been mar { keted and consumed in the south on steadily increasing scale. careful esti- mate after an investigation made by MT. | Charles A. Stillman, the Birmingham representative of Rogers, Brown & Co.,, warrants the statement that the south has consumed 52 per cent of the pig iron made in that section, against 30 per cent ! five years ago. This has been brought | about by the establishment of a great number of new industries in the south, 1 whose productive capacity has been 1 doubled In many cases. Plans are now being considered by important interests looking toward a further development in the same direction.
 "A notable fact concerning the past year, has been the continued prosperity in the pig iron business. At no time dur | ing the year have prices declined to an unproftable basis, and a large proportion of the business gavesthe furnace interests satisfactory profits. This is especially sig nificant when account is taken of the in crease in production The preliminary estimate of the chief state mine inspector l of Alabama indicates that the total make of pig iron in that state. has been ap proximately 100000 tons, about 250,OOO 1 tons more than was produced in 1904. The | yield of coke has also broken all records, and the output of steel cast iron pipe and finished iron of all description have been in larger quantities than ever be- 1 fore
 This great development has had to con | tend with scarcity of labor in the iron producing districts. and some annoying 1 labor troubles, but it appears that the southern producer is becoming increas- | ingly better able to cope with this feature, and there is reason to hope for a satisfac- tory labor condition in the south for the new year, as employing interests will ap- | ply their knowledge gained from experl- ence in the handling of this question.
 "ln the marketing of southern iron for considerable part of the year, the price