The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1907-01-12
$4,000 IS MONTHLY
GAIN IN REVENUE
Freight Rates on Iron to ADJ
vance Is Cents
MOVEMENT is 100000 TONS
Railroad Men State That Advance Is
Simply Restoration to Old Rate Be-
fore Iron Got Down to
Low Figure.
MOVEMENT is 100000 TONS

Railroad men figure that the railroads
will receive about $4,000 month in
come from the advance of 20 cents per
ton on the freight rate on pig iron which
goes into effect on the first of next
month.
The monthly movement of pig iron
borders on 100000 tons and at % cents
ton this amounts to about $4,000 a
month to the railroads in revenue, or
nearly half a million annually
This increase of % cents on the rate
was made by the Southern Iron COM
mittee some two months ago and at
the meeting in Birmingham this week the
committee declined to reconsider the mat
ter, although there was a protest from
the iron men
The additional % cents is merely re-
storatfon of a former rate and there
will not be another addition to the rates.
There is an agreement between the rail-
roads and the iron producers that when
ever pig is selling at the top notch there
shall be an advance in the rate on iron,
and when the price of iron drops there
shall be corresponding decrease in the
rate.
Several years ago when there was a
panic the rates on iron were reduced
very materially in order that the manu-
facurers could actually exist and now the
railroads are raising the rate to the form
er basis. 1t is a well known fact that
pig iron is vey cheap class of freight
and the railroads make very little haul
ing it.
investments here had not realized one
half the Importance of the community un-
til / came and saw for myself. ] am over
whelmed with the evidences of prosperity
and the bright promises for the future.
"The vast undeveloped resources of this
district are the marvel of the age. The
eyes of the world are on Birmingham.
You people have not begun to realize the
opportunities for development. The cheap
ness of the production of pig iron in the
Birmingham district is the wonder of
the century. The people here had not
taken the trouble to learn how cheaply
pig iron could be made and even now
it Is not fully realized.
Right here | want to make an an
nouncement.
"a large plant for the manufacture of
locomotives will be built in the near flu
ture in the Birmingham district, probably
at Gate City. The plant VIII be modern
in every respect and will employ about
25O0 skilled laborers-the finest mechanics
in America These 250O people will bring
to the Birmingham district 1900 more peo-
pie. members of their families, who will
help to swell the popuIation of the dis
trlct and will contribute to the working
force of the community
"Birmlngham offers the most logical To-
cation for locomotive plant of any city
in the country. The immense railway
mileage contiguous to this city demands
a plant of this kind and more than that
the Birmingham district supplies all the
material necessary for the building of
locomotives cheaper than any other Sec
ton of the world.
Recommends Steel Plant.
"As president of the Alabama Consili-
dated Coal and Iron company [ have also
this day recommended the building of a
steel plant at Lewlsburg to cost approx
imately s1,5O0OOO, and also recommended
the construction of a railway line from
| LeWisburg to Gate City connecting the
two properties of the company at those
| places.
"An immense ice plant at Gate City
utilizing the inexhaustible supply of pure
water is a probability of the near future
| III can De Sdltly toblliotSN NAiee |Df'NViNN'
will be expended in Development at
Gate City in the near future.
0I have just completed tour of the
properties In Alabama In which / am d.
rectly interested and must say that l am
more than pleased with all that l have
seen. | am only sorry that did not come
to Birmingham long ago
| In conclusion Mr.. Hoadley said that he
had taken considerable interest in the
fight that Birmingham had made for the
/ location of the sub-treasury and pledged
his support and all the influence ne mad
in helping Birmingham to secure the in
stitution. He suggested that the presi-
dent of the Commercial club wire John
w. Gates and others in New York, who
| have interests here, to put forth their
efforts in the interest Of Birmingham IN
the matter. He also suggested that the
president and other members of the club
call upon the members Of the New York
congressional delegation for their infiu-
ence.
r. H. Edmonds Speaks.
r. Fl. Edmonds, of Baltimore. editor OF