The Birmingham age-herald., 1914-01-10
BOWRON RELATES
EARLY HISTORY OF
STEEL MAKING ON
WITNESS STAND
Continued from Page Five)


state of Tennessee? A. Two at South
Pitthburg, one at Cowan.
@. How many furnaces did it acquire in
1856 in Alabama by taking over the Pratt
company? A. Two, namely, the Alice fur
naces il Birmingham
O. Then. subsequent to that, We're any
.furnaces built by yoGr corpanY2 A. IN
1887 and until 1855 We constructed four
blast furnaces at Enslcy.
@. How was the market for iron
about 1898? Mas it growing or shrink
ing? a, The market was steadily
shrinking.
q. Was the iron business in this dis
trict prosperous then? A. 1t was very
far from it,
Q. Were you getting good prices for
your iron? A. Why, i'm the first week of
September, 1896, | can remember selling
5000 tons
Mr.. Cotton. just a moment. The ques-
tion was about 1895. You do not want
to talk about 1896. do you?
Mr.. Reed: | viii take the answer, and
you can put in your objection after
wards, Mr.. Cotton.
The Witness tcontinuing): l can re-
member selling 500 tons of No. foun-
dry a s6.25 per ton
@. Was the iron business in this dis
1898? A. On the contrary, the lethargy
of business incidental to the foreshad-
so great that we found it necessary to
sell our iron in foreign countries, and
worked up, during the year 1897. quite
an extensive trade in shipping iron to
the Mediterranean and North Sea ports.
and, to some extent, even to Japan and
other foreign countries.
I remember selling "A cargo of No :
foundry for shipment to Japan in 1897
at $5.l5 free on care at Bessemer, or
its equivalent put on board ship at Mo-
bile.
1t was not profitable, it was barely
covering the out of pocket cost. with
out leaving anything for the deprecia-
ton of the plant or the exhaustion of
the mineral.
q. Was any suggestion made at that
time OF the Tennessee companY's en-
tering the steel business? A. Yes.
Milton Smiths Action
Q. Tell us about that if you please.
A. Mr.. NJ. H. Smith, The president of the
Louisville and Nashville Railroad COM
pany, came to Birmingham and talked
with Mr. Baxter, our president stating
that unless the Birmingham district
went into the production of steel in his
opinion the entire district would-to
use the common eXpression-go broke,
and that the Louisville and Nashville
railroad had at least $4,000, 900 in
vested in this district and could not af-
gord to lose it. He insisted that as the
largest producer of iron. our company
should go into the manufacture of steel.
and that if we would not do so. then
the Louisville and Nashville railroad
Itself, having an interest in the Bir-
mingham Rolling Mill company would
subscribe additional funds to that CON-
pany 10 enable ii to increase its pro-
duction of steel.
''The executive committee received let
ter drawn up by the president of the Ten
nessee company after consulta ton with
me, ii having been submitted to me be-
fore it was signed and forwarded in
which Mr.. Baxter, our president, urged
upon the executive committee OF the Ten
nessee company the argument of Mr.
Smith, and urgently requested our exec
utive committee to take such steps as
might be feasible toward permitting our
company to enter upon the manufacture
of steel, and the executive committee
passed a resolution which appears of rec
ord on its minutes, of which the certified
copy was sent TO me, and with whi h
/ am therefore familiar, declining to en-
ter into the manufacture of steel
And authorizing the officers of the
company. instead thereof, to enter into
a contract with the Birmingham Rolling
Mill company, agreeing to subscribe 500 :
0Oo towards its capital. making payment
of the sum over a period of one yeat.
in coal and iron at the prevailing mar
ket prices. and further authorizing the
officers of the company to agree with
the Birmingham Rolling Mil company
that If it should enlarge its production
of steel the Tennessee company would
abstain from its manufacture for a Dc
riod of years.
Anxious for Result
IT was extremely anxious that
had been working with a single heart
for six years to bring about that result
went TO New York for the express
purpose of persuading our directors t.
go into the manufacture of steel in 1892
and their attention was diverted by the