The Birmingham age-herald., 1909-01-27


 From the above figures you will note that the average freight rate on Birning- ham pig is considerably in excess Of the present tariff.
 The cost of making pig iron in Bir-. mingham in 1907 prior to the panic Of October of that year, was $l2.6l per gross ton of 2240 pounds, thus making the cost laid down in New York, during that period, $12.61 plus $425 equals $16.S6, ex- cuding any profit
 The present selling price of Birming- ham No. 9 is S13 f. o. b. cars or $17.25 New York harbor
 The present selling price of Cleve- land (English) pig iron Is $12.04. This pig can be delivered in New York har- bor for $2 per ton freight. So that on the present basis, Cleveland iron would cost on dock, New York, $12.04 plus s2, plus s4, equals $1S.o4, or a dif- ference of only 79 cents.
 It may be argued that the present average cost of making pig iron Tn the Birmingham district is less than s1261 and this Is quite true, but the lessening in cost Is simply the result of panic conditions and revival of prosperity would immediately send the l cost back to the 1907 figures. Even at the present selling price there is no undue profit, for with our lean ores requiring from # to tons of coke per ton of iron the yield to the stockholder is small. The truth of this statement Is evil denced by the following figures: Cost of building one com
 plete stack of 200 tons daily capacity ............,..,. foV'VVo Cost of building 300 coke ovens and opening coal mines .........'.. ooV'oVV Cost of building coal wash
 or 75,o00 Cost of onening ore mines. 125,000 Cost of onening ouarry.... 50,0O0
 Total .s1. 300, 900 This investment will have to be renewed once every ten years, and as such furnace will produce in this period about 750,000 tons of pig
 iron the product would have to make tor renewal $1,300,- 900, and for per cent in- terest feo'V"o Or practically $3 per ton. so that even if the average cost or iron pc slO now only living profit Is being obtained at today's selling figures. Furthermore you will note that no allow ance is made for investment in mineral lands and depreciation thereof, it being rather roughly assumed that the appre citation in the value of mineral lands will soccer this.
 If should be further stated that the pig iron market abroad would welcome the least reduction in the tariff as the above figures show that a very moderate reduc- ton would allow them to use our At lantic seaboard towns as dumping 41 4l,4rA seaboard towns that we look for the con- sumntion of a large amount of our sur plug pig.
 Turning now to coal: If you will look at the map of the United States you will note that the Ohio and tributary streams provide a highway for the coal fields of Pennsylvania, Ohio, Kentucky and partially to those of West virginia.
 AS a general proposition the coal Of these states is of rather better grade and more cheaply mined than ours, therefore they can control the whole river trade, all the way to New Orleans. On the At lantic coast the Pocahontas field with it's ten-foot seam of the best coal in the world, can be mined and put on board ship at prices we can never hope to reach.
 This means that the Atlantic seaboard trade, from Maine to Tampico, Mexico, is controlled by the Virginia and West Vir- ginia coals, and this leaves us only the restricted area immediately contigous to our district.
 The truth of the foregoing was demon- strated last autumn when, owing to an excessive and prolonged drouth, coal could not be boated down the Ohio This h1oueht about an immediate demand from Mississippi. valley points and at one time this district shipped into New Orleans alone 5000 tons per day. As soon as the Ohio reached a boating stage, however, this demand failed.
 Now, if the tariff be removed on coal, the Nova Scotia mines, situated as they are. on tide water, can supply the At lent,c coast by direct barge and steamer at figures which will deprive our Vir- qinia and West Virginia mines, with their railroad haul to tide water of all profit, and cause them to further seek interior trade. thus still further restricting our sales area!
 From the above figures and facts, which are most conservatively stated. it Is evident that Alabama Is rather in need of an increase in the tariff than de- crease. Respectfully sumbitted