The Birmingham age-herald., 1923-11-04
HIGH |RON NOT
 REAL BASIS IF PROSPERIT
Pipe Manufacturers Call At- tention To Increasing For-
 eign Competition-CIoser Co-Operation Is Essential
FURNACE MEN, HOWEVER POINT TO OWN TROUBLES
Say If They "Co- Operate" To Any Further Extent They Will Have To Close Down,
 Due To Heavy Expenditures

w III tloNC V OlOON DNUi's
 Due To Heavy Expenditures
 Birmingham iron. manufacturers are not ''toting fair with their best Alabama customers, the cast iron pipe industry, according to com plaints that have been current ln business circles for the past several days, and The Age-Herald, on sa'- various concerns at interest.
 Pressure pipe makers of the dis trict have to go into the northern and eastern market they say and in order to meet competition in these fields. they must take advantage Cf lecturers here are not giving them this advantage, they say, and hence they must buy pig iron at the same prices, or relatively higher prices than their competitors elsewhere must pay.
 The loss of a 4,000-ton order of cast iron pipe to French manufac turers, at Los Angeles recently, is cited as q significant item indicating the seriousness of the situation con details of this loss, summed up in tonnage on coal, coke, pig iron and labor, mean that Birmingham is at least S150,000 poorer for having failed to secure this single order. The Pacific coast, moreover, is not the only region in which destructive competition must be met, and the ripe interests express the conviction that iron manufacturers must give them sympathetic cooperation. Iron Maker Has Troubles.
 We have our trouble, too," is the comment from iron interests.
 
 cost of production" declared an of- ficial of one company. If we CO., operate to any further extent we shall have to close down our fur naces."
 The situation is one that pig iron manufacturers have not faced before. according to information given The Age Herald. Due to an extreme cau- tion and conservatism on the part of iron purchasers, Birmingham fur naces are receiving orders only for spot delivery. Manufacturers are buying hand to-mouth, for present needs only. This is not regarded as an unhealthy sign, as far as tile general industrial situation is con- cerned. It means simply that buy CTS are content to purchase what they need at present. It may be that they are cautious because they do not know what conditions will be during the presidential year that is ahead of them. It may be that they are anticipating q still further decline in pig iron, and do not wish to buy at the present prices.
 There are no alarming factors in the situation, say the iron manufac- turers. but it is rather unfavorable to their interests at the present time. They are doing their best to cooperate with the pipe industry. they assert, for they appreciate the fact that these plants are the heavi- est local consumers of pig iron.
 Northern and eastern manufacturers of iron have been selling their prod cost of production, which accounts for the low prices prevalent in these markets, said a spokesman for one of the larger iron producers of the dis trict. There has been heavy curtail- ment of production in all iron centers, because of the slack demand, and the present situation will continue until the normal resumption of buying. Prices cannot go any lower in the Birmingham market, furnace men as sert. because 1t would mean cessation of furnace activity if they did. Coke Prices Have Effect.
 Present quotations on coke as we'll as pig iron are putting the Birming-
 
 vantage. and, withal, competition Is growing keener in the north and east, according to E. E. Linthicum, presi- dent of the National Cast Iron Pipe company, in outlining the situation for The Age-Herald.
 The pipe manufacturers of the Bir- mingham district are working at a distinct disadvantage at present time, owing to high prices of coke and pig iron obtaining in this district. as com pared wlth prices north and east said Mir. Llnthicum.
 Fully so per cent or more of our tonnage goes north of the Ohio and west of the Mississippi river. The situation In the past has been that the Birmingham market has been sui ficiently under the northern and east ern markets to enable the Birming- ham melters to absorb the freight to the competitive territory. That situ- ation no longer obtains. Birmingham price on foundry coke is from s7.50 to sS per ton, northern markets S. to s6 per ton. Birmingham price on pig iron to local melters is S20 to s2l The price of foundry iron at Pitts burg is $21 to $23, with French iron coming into the eastern ports a s21.75, duty paid. The Chicago naf- ket on pig iron is SPA. When you taka into consideration the fact that tha Birmingham pipe men have to pay sS to S12 per ton freight to reach these competitive markets you can fully understand that the outlook is not very encouraging.
 "The Pacific coast. which has drawn its pipe supply almost entirely from the Birmingham district, has lately been buying quite a lot of French pipe The situation on the Pacific coast is further complicated for the future by the erection, at no distant date, oe two large foundries, both of which contemplate the manufacture of cast iron pipe along with other products.
 O O O
 Only Favorable Element.
 "The only favorable element in the situation. and the only reason that the Birmingh pipe foundries are enabled at this time to operate at full capacity, is the fact that the northern shops have not sufficient producing capacity to supply the demand.
 "A number of years ago when the pipe market was very low, five or six northern shops were closed, The ton mage formerly made by these shops gradually drifted to the Birmingham district. These shops will probably never be operated again on account of not being modern construction.
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