The Lake County times. [volume] (Hammond, Ind.) 1906-1933, 1909-03-09
ATTRIBUTES CH|CAGO'S STRATEGIC
POSITION ENTIRELY TO GARY
Calumet Region Indiana Is Praised in Chicago Dis
patch to the Wall Street Journal Re
cently-Will Rival Pittsbrg

New York, March a Chicago dis
patch to the Wall Street Journal says:
Recent developments in the iron and
steel industry have directed attention
to Gary. Ind. which is beginning to
look like the town it was intended to
be.
1t is principally because of Gary that |
Chicago has been made the steel price |
basic point for the west Gary is ship |
ping steel rails. There are 5000 men
employed in the works operated in |
shifts Of eight hours each. Four blast |
furnaces and two open hearth furnaces !
are in blast. other departments will
be opened soon.
United States steel officials say the
new plant will effect a saving in the
cost of ore equal to $2.28 a ton on the
finished product, as against the aver
age cost in the Pittsburg district. It
will have an additional advantage in
the western markets Of smaller freight
bills. This advantage would be $3.50
a ton. or the freight rate from Pitts
burg to Chicago, II this city were made
the basing point for prices to the same
extent that Pittsburg has been hereto
fore. No definite announcement on this
point has been made yet, but It is easy
to figure total advantage of 81 to SIS
a ton for Gary over eastern competi-
ton in a great and growing section
of the country.
Eastern Concerns Handicapped.
There can be no doubt for many
years to come about the control by
United States steel of the industry in
Io % 1fo tn
tariq or cuts in the price schedule. 1t
seems strange that so many western
stockholders let go their holdings dur
ing the recent furry in the stock mar
ket-most of them at or near the low
point.
| The Inland Steel company is re-
| spectacle competitor, in the full mean
ing Of that term, but eastern concerns
can not overcome the handicap created
| by their big rival at Gary unless they
establish plants of their own along
the shore of Lake Michigan, and even
then only the head of Lake Michigan
will be the vantage point for the con-
version of from ore into finished prod
ucts.
Northern Minnesota has the great ore
supply, the cream of which Is con-
trolled by the steel corporation. It's
/ own railroads haul ore to the head of
Lake Superior and its own feet bring
1t down to the head Of Lake Michigan
alongside the furnaces, with the least
possible cost. Its control of certain
Chicago terminal railway facilities is
another element in the equation.
Other factors that minimize manu-
featuring costs are the size of the new
plant, the modern machinery through
out and the close proximity to nose OF
the country's largest systems of trunk
lines. Whatever may develop in the
way of local harbor improvements OF
deep waterway. projects, the Gary mills
will be benefited.
Important Rival of Ptttsburg.
Mayor Buses harbor commission
made an exhaustive report to the Chi
cago city council recently. 1t con
tanned the following paragraph: 'Es
tablishment of great industries at Gary
Whiting, Indiana Harbor, Hammond
and South Chicago is proceeding at
phenomenal rate, and will eventual,
make this region an important rival o
; Pittsburg in the production of iron an,
l steel manufactures. Although not al
! of this area is included within the cor
9 porate limits of Chicago this section
SnOuAu De Regarded as q part OF Tn
great Industrial community Of Chicago
The harbor of South Chicago should b
improved as rapidly as possible"
, Gary has no immediate coke supply
The old theory was to locate furnace
near the place where coke was pro
!, duced. New methods have suppIante
:. the old ones. and now nearness to tn
: ore supply is more important than near
:. mes sto the coke supply.
Cooking coal lands in Ohio and Penn
sylvania have become more valuable
with a corresponding increase in til
price of coke 1t is light and compare
{ lively cheap to ship. Gary is provide
{ with every facility for utilizing the ga
L and selling such by-products as 1t ma
: not use.
Mills at South Chicago and Gary dis
e pense with the double handling of OF
y and the rail haul, so the coke tran.
u portation charge is a small item con
e parativeIy, especially when the differ
ence in freight rates is taken into cor
IS sideration. Nearly two tons Of ore al
= required to make one ton or iron. tt
d United States Steel corporation d.
= signed its Gary plant to have a great,
1t capacity than any other steel mills
Re the world. Other large industrial con
l. panies were quick to establish then
Sc selves at this center, which a few yea
ago was stretch of sand and nothir
a more.