The Birmingham age-herald., 1911-10-26
RATE REDUCTION
 VERY IMPORTANT Readjustment of Prices
 Will Follow NO OTHER CHANGES Market Is Intensely Interested in Announcement of Steel Corpora tion That They Will Cancel
 Great Northern Lease
NO OTHER CHANGES

1 Cleveland, O., October 25.-The Iron Trade Review tomorrow will say The reduction of ore freight rates on the vermillion and Mesabi ranges, which will shortly become effective is of far reach ing importance to producers and consum- CTS of iron and steel products. A read l justment of ore prices for 1912 delivery will necessarily follow. The decline in this l rate amounts to from 40 to 50 cents on the ore required for ton of pig iron. The flat rate of 60 cents per ton has been made on both ranges.
 l While ore hauled at former rates will l largely be used in the manufacture of l iron to be made during the next 12 l months, nevertheless iron consumers will not be slow to claim, at as early date as possible, that they should have the benefit of this reduction in the cost of manufacture. An interesting point is the effect of these reductions on the differen- Hal between old and new range ores.
 The disposition of the Hill ore lands in view of the announcement that the United States Steel corporation will surrender its lease in 1915, has aroused considerable speculation, but no definite action is an- ticipated for some time
 Foundries are taking iron freely, and in general stocks in the hands of consumers are at minimum. Current sales are lim- ited largely to small lots to cover immedi- ate requirements only.
 In the Pittsburg district considerable shading has been reported and a sale of $500 tons on basic and malleable Bessemer at approximately $12.50 valley furnace IS noted In the east No. ? foundry iron prices fah within the range of s15 to sl5. 5 delivered. A Delaware river pipe maker purchased 5000 tons of force iron at s1475 delivered, and an eastern steel works continues to carry on negotiations for approximately 10000 tons of basic for the first quarter
 Southern iron, Chicago, is offered at s14.60. equivalent to s1O % Birmingham for the first half There Is evidence of a few sales of southern iron for prompt shipment at ss.15 Birmingham. One cen- tral Pennsylvania buyer closed for about 5000 tons basic for first quarter shipments on which s14.50 delivered was shaded. An interesting development in the east is the activity Of the Bethlehem Steel com pany in merchant iron, and this company promises to become a more important factor in the future owing to it's excess furnace capacity.
 
 New York. October 25.-(Special)-Th Iron Age will say tomorrow:
 Changes in the market position have been of less importance in the past week than the announcements concerning lower iron ore freights on Minnesota roads and the decision of the Steel corporation to terminate it's lease of the Great Northern ore lands.
 The whole trade is deeply interested in iS 1at ttAT fSb ic 4olk a reaction from high royalties on lake ores and in time an adjustment of ore prices to open market conditions in fin ished steel.
 Already there is an attempt to gauge the effect of lower ore freights on the pig iron market for next year. A re- duction in ore for 1912 has been looked for, as the s3.5O and s3.7O basis for non Bessemer ores for this years delivery have not been maintained. and the 20 cents now taken from Mesabi range freights begets new expectations.
 Some cross currents are noticed in bus mess in finished material. Pittsburg re- ports that the very low prices of the past fortnight are stimulating new de- mand to a considerable extent. At Chi cago, or the other hand, it is noticed that l specifications show some falling off. Tn 1 general the scale of mill operations is still large.
 The downward tendency of prices has not been arrested, but buyers are try ing to buy for longer periods-an effort 1 to which some manufacturers are re- spending more willingly than others.
 The chief reduction of the week has | been in wire products, sales to jobbers having been made at s1G0 for wire nails | and at $1 40 for plain wire In northern Ohio q sale of 5000 tons of openhearth billets was made at a price equivalent l to less than Sl9 at Youngstown.