The Birmingham age-herald., 1924-01-29
NO NEW STACKS
 AT BIRMINGHAM
 NLAST l5 YEARS
Richard Peters Tells Of Alabama Minerals In
 Special Account

The Birmingham district has advan- tages which no other iron-produciny center enjoys, in its short transporta- tion haul, its climate which makes mine operation possible the year round, it's abundance of cheap labor and other fa- cilities. The Iron Age sets forth in an article in it's current issue bearing on the increased cost of pig iron production during the past decade. The article is written by Richard Peters, Jr., partner of the firm of Robert c. Lea and com pany of Philadelphia, an authority on the subject.
 Mir. Peters discusses the varying fac tors entering into iron production in various centers and cites as worthy of comment the fact that, although pres ent companies have expanded their op- erations and renovated old furnaces, no new furnaces have been established in Alabama during the past fifteen years.
 Production Costs
 Regarding the general topic of iron production costs, the writer says:f
 "The cost of clements entering into pig iron is reflected in seyery finished form of ferrous materials. This fact. coupled with the oft-repeated statement
  suggests an interest in an analysis of manufacture. That these elements are not always reflected in the market value, or the selling price, is an unfortunate commentary, which, however, is not pe- culiar to this industry alone.
 The primary factor entering into the cost of producing pig iron is the value of the raw materials, which, for con venience in comparison, are divided into ores (or metallic mixture), fuel and limestone. To these basic elements must be added cost above materials, " which consists of labor, repairs, sup plies, refining, superintendence, admin istration, taxes, insurance and capital charges. The division of these costs above those of the materials varies con siderably with individual manufactur- CTS, but are fairly uniform in their total for plants of similar construction and capacity. V
 For the moment let us consider only the raw materials, and if we an a1yze the cost of these commodities i. will be readily shown that their value is made up almost entirely of labor and of transportation. In the case of iron ore it is evident that the cost of pro- duction of pig iron is affected by the quality of the ore, not only through the amount of it's iron content, but also with respect to it's physical character istics. The ore may be rich in iron, but refractory, and magnetic ore will require more pounds of fuel. per unit to smelt it than will a hematite On the other hand, low grade ore may be self-fuxing, so that it's value in the furnace may compare favorably with an ore much higher in metallic contents It is the common practice of the trade to negotiate for iron ore on the basis of it's unit value. As the ore increases in richness it's value is enhanced, noi !. only per ton, but also per unit of iron contained.
 By far the largest bulk of the orc used is shipped in its original form as produced from the underground mines or open pits. There are a number oi ores which are naturally low in iron but on account of the cheapness in win ming them they can be beneficiated tt advantage at their producing points by concentrating, jigging or washing. Il follows that these processes tend tt