The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1916-11-09

TO be one of the developments grow
ing from the revolution in American
industry and in world shipping ana
commerce caused by che European war
is the opinion of the Portland oregon
ian after o careful study OF cond-
lions developing as result OF the
war. Before the war the only facllitles
for making steel in Portland were
possessed by the Portland rolling
Mills. which were equipped to make
round, square and flat steel by WORK
ing scrap over, but that plant has peen
idle for four years. The bulk OF the
supply came either from Belgium OF
from the eastern mills. The war mas
cut off the Belgium supply Oh pars'
angles and shapes, and the demand mas
SO far outrun the capacity or Amel-
can mills that the Steel corporation
has already sold its entire output for
the year 1917. Pacific coast mer-
chants and jobbers have delayed buy
ing for building and general business
in the hope that the prices would take
a downward turn, but they can now
hold off no longer and are so hungry
for steel that they pay premium over
the market price.
This market condition has caused
erection of mills at San Francisco and
Seattle for the supply of the PACING
coast. These mills have both rolls
and open hearth furnaces for manu-
facture of steel, chiefly from scrap
but also from pig iron and even from
raw ore Large quantities of scrap are
gathered from all parts of the coast
from as far north as British Columbia
and as far east as Montana, and even
from Hawaii. The supply is fairly
proportionate to the demand, Tor
when demand is strong business Is
&C tive, railroads are scrapping old cars,
engines and rails, and mills are scrap
ping old machinery, while slacken-
ing Of demand usually corresponds
with slackening of those operations
which produce scrap.
The demand has now outgroWn the
output of the Seattle and San Fran
cisco mills, and increased production
has become necessary. Sound busl-
ness has prompted the decision of the
Pacific Coast Steel company to erect
a plant at Portland, for this city, as a
railroad terminal and manufacturing
center, Is a good market for scrap
gathered from the interior and from
western Oregon and Washington, and
is also a liberal buyer of finished steel.
by working scrap over into shapes
here, the company will save 81 ton
freight on raw material to Seattle
and $3.50 a ton freight on the steel
thence to Portland. While prices are
now so high that the company can
pay this extra cost and still show a
profit, 1t has an eye to the time when
normal conditions will prevail. This
cost might then eat up the profit, for
steel is usually sold on a close mar
gin.
The companys present plan is to
add to it's present Portland plant few
rolls which could turn out light chan
nels, to bring from Seattle some new
machinery to make other shapes and
to build heating and pudding fur
for the rolls. But all conditions are
now favorable to the manufacture of
steel from imported pig iron, or even
from ore. Pig iron can be brought
from Hankow, China, and laid down
here cheaper than 1t can be made in
Alabama, the Hankow plant now be-
ing operated by the Imperial Iron COM
pany, which is controlled by the Jap
anese. Iron ore has been brought to
this coast from British Columbia,
Mexico and China, and little has been
produced in Washington. The Beth
lehem Steel company Is now arrang-
ing to import ore from Chile, but it
could be brought to Portland to better
advantage, for it would furnish a re-
turn cargo for lumber vessels, the dis
lance is less than to Atlantic ports
and there would be no rail haul, as
there is to Bethlehem. There is ample
llIle Ill OE6SOH anu COhe III WASHING :
ton for smelling by the old process,
and oil is used to generate power but
with development of water power, cleo
tricity can be used both to generate
power and to smelt ore, the latter pro-
cess being already in use elsewhere.
The plan is therefore to expand the
Portland plant within two years by
erection of open-hearth furnaces and
ore running mills which would turn out
ship-plates. The plates for nearly all
the steel ships now under contract in
the Portland district have already been
contracted for, although an urgent call
for 1000 tons from new Portland yard
has been turned down for lack of fac
illties. But the company expects to
be ready to supply sue hmaterial by
the time the ships now under construc-
ton are completed and before the
builders are ready to buy material for
more vessels
No doubt is entertained by the men
behind the enterprise that the ship
building industry in the Columbia bas-
IN has come to stay and that there will
consequently be permanent market
for the product of their contemplated