The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1922-10-22
BUYERS TOSTRIKE,
FEAR OF CAST IRON
PIPE MAKER HERE
Present Prices Are Based on
Purchases Made Before Re-
cent Advance in Cost of
Material

Frankly. we believe that the pres
emit prices that are being asked for
pig iron will result in a buyers strike
so far as the users of cast iron water
and gas pipe are concerned" declares
Paul A. Ivy, sales manager of che
American Cast Iron Pipe company,
one of the largest manufacturers in
the Birmingham district.
He further asks: What do we
(people of Birmingham) gain by the
high price of pig iron and pipe If
thereby their use is decreased?'
In a review of the relations BE-
tween the prices of pig iron and their
effect on cast iron pipe manufacture.
Mr.. Ivy writes The Age-Herald:
"As manufacturers of cast iron
pipe for water and gas mains, we
read with much concern the letter
from Swanson McGraw, Inc. which
appeared in your issue of October Is,
also your editorial comment as APP
peared in Fridays paper. In this
connection pardon us for suggesting
that our leading Birmingham news
papers have rather encouraged high
prices for pig iron by constantly
printing stories in big headlines as
to prices that have been obtained for
iron and predicting still higher
prices, as well as information that
might lead the pig iron producers to
believe that the pipe shops alone in
the Birmingham district would be
able to consume more foundry iron
than could be produced
A Buyers Strike
Frankly, we believe that the
present prices that are being asked
for iron will result in buyers
strike so far as the users of cast
cerned As implied in your editorial,
the prices that are now being
charged for pipe are not based on
the present price of pig iron, but on
purchases of iron made before the
most recent advances. The furnace
people perhaps lost money on opera
lions for the first quarter or prob
ably the first half of this year, and
as a consequence fell justified In
asking a price now as high as the
traffic will stand. But we believe
there is danger of going too far and
thus killing the goose that laid the
golden egg
Largest Consumer
THE cast iron pipe industry Is
probably the greatest consumer of
foundry iron in the Birmingham dis
trict, but the pipe manufacturer will
not be long content to buy iron and
pile pipe on his yards if the users
of cast iron pipe call buyers strike.
This company has made strenuous
efforts to encourage winter buying
and thus make the pipe industry an
all year instead of a seasonal bust
ness. 1t Is obvious that this would
benefit the pig iron producers, the
pipe producers and the pipe con-
sumers. Generally speaking. pipe
49, L. vs.~A
approaches, but with an advance of
so per cent to 60 per cent in the price
of iron during the last few weeks
we do not feel that the pig iron pro-
Queer Is encouraging or helping US
this fall in a program that should BEN
eft the pig iron industry as much as
the pipe industry.
Prosperity and Prices
Birmingham newspapers we be-
lieve have a tremendous opportunity
to promote the welfare of the city
and the Birmingham district by CIV
ing more active support to those In
dustries which are consumers of pig
iron.s This does not necessarily mean
less active support to the producers
OF pig iron. The interests of the two
are interviewer and inseparable. The
error to which we would call atten-
ton lies in the common assumption
that prosperity and the high price
of pig iron are synonymous.
Prosperity. IL we may make an
almost obvious statement is not a
question of high prices. Any of us
who are willing to draw a moral
from the momentous year of 1891
should be well aware of that fact.
Any doubling Thomas might inter-
view some of our railroad men and
a.
how much high freight rates has
contributed to railroad prosperity.
High freight rates are as 'tinkling
cymbal and sounding brass If there
is no freight. High pig iron and
cast iron pipe prices are exactly the
same thing If due to them nobody
will buy the pipe made from the pig
iron.
1T SO happens that in the same is
sue of The Age-Herald in which the
letter from New Orleans was printed
there appeared another article con-
tanning the following two para
graphs:
1.-The productive capacity of the
cast iron pressure pipe plants in the
United States is about 100000 tons
annually. and the soil pipe capacity
is about 100000 tons.
A Large Industry
More than so per cent of both
pressure and soil pipe is made in the
south. The Birmingham district Is
the largest pipe producing center in
the world. Birmingham itself has
the largest individual pipe foundry
in the world. producing about 10 per
cent of all the pressure pipe made in
the United States
Surely, such an industry 10 worthy
Of the intelligent support of Birming-
ham people. Yet when . substitute
pipe material Is purchased by a mu-
nicipality because cast iron pipe is
too expensive 1t Is . defeat for Bir-
mingham pipe and Birmingham pig
iron. The question for Birmingham
people then to consider is: What do
we gain by the high price of pig
iron If thereby their use IL de-
creased?"