The Birmingham age-herald., 1910-02-01
KIRCHHOFF
 ON STEEL TRADE is Optimistic Or American
 Possibilities LEAVES ON LONG TRIP Will Make Round-the-WorId Inspection of Developments Since 1903.
 Railroads Intend to Make
 coIonizlng Record.
BY PRESTON c. ADAMS.

New York. January a.--(Special.)- )-- Charles Kirchhoff, for 20 years editor of the Iron Age, one of the highest authori- ties in the country on iron and steel. friend and adviser of Andrew Carnegie and Charles M. Schwab, on the eve of his departure on a round-the-world tour to investigate the advances made in the iron and steel business abroad since 1903, when he was last in Europe, gave very interesting interview on the outlook for the export trade in iron and steel. Mir. I Kirchhoff said:
 -'"There are great prospects for export trade directly before American manu- facturers. Our production is now so great and is advancing so rapidly that we must seek foreign fields for steady, legitimate outlet for our products I say legitimate having in mind the much over estimated dumping we hear so much about AS matter of fact very little of this has actually been done in recent years. in accordance with the common acceptance of the term. wherevere man. ufacturers do export surplus products at a sacrifice, with g. view of making 1t up
 
 folly of their course and abandon it. True, it Is wise sometimes to sell in cer- tain markets at prices lower than what you are able to command at home. But that is done because of conditions of com petition, and 1t is sound, broad gauge . business to meet the competition and es- tablish yourself in that particular market as long as you can do the business at a profit. Big volume of business reduces rau all al fl,a lfnn md fof. turer can bring up his volume by seeking foreign markets he reduces costs on what he sells at home as well; and even though at present a protective tariff may enable him to command higher prices at home, he Is reducing his costs against the day when he might have to meet foreign competition at home.
 Taking a broad view of the subject. first of all the United States has the nat ural resources; 1t has the organizations and ability to produce on large scale and work in big units; it has people of energy and a favorable climate. In spite of these. however. generally speaking costs in this country are high, and there in lies our only menace. Our high costs must be cut down. Much is being done in this direction, but the remedy must be far more sweeping before we are on an equal footing with European nations for the trade of the world.
 "Our great organizations are leading in accomplishing this. Take the case of the United States Steel corporation. This company Is rapidly attaining a basis of meeting worldwide competition, because 1t is able to bring costs of production down to the very minimum.A steel plant to be economical must be run full ca- pacity Before the organization of the United States Steel corporation, when f-1I A1.A .11- I.xl 44 run on partial capacity. and as a result none operated economically. Now when orders fall off, entire plants can be shut down, and what production is going on may be done economically, because it is concentrated in certain plants which are run full blast, More than that, the diff ferent mills have different values as eco- nomical producers, and the least econom- ical ones may be shut down first.
 ITO still further reduce costs by in- creasing volume the United States Steel corporation Is making rapid progress in reaching out Into foreign markets. Di- rect representatives are established just as soon as any locality looks promising, and the work is conducted in an intelli- gent manner. As rule the representa- tive Is native of the country which is being opened up rather than an Amerl- can. All correspondence is conducted in tuo ldIS udSC ol lio CouHtly. anu iIlc re- quirements of the country are studied and compiled with in the matter of product.
 Tt is making substantial headway in South America. In fact, there Is every indication of wonderful opportunity throughout pan-Amerlca. Powerful American financial interests are interest ing themselves there, and a large in- crease in trade with the United States Is sure to result. The government railroads, for instance, are looking this way with their orders. Some months since 8 rail order for 100000 tons came to United States makers from Brazil. Builders of machine tools and makers of railway sup plies generally in the United States ought