Evening star., 1925-04-03
IRON AND STEEL
DOMINATION seen
Birmingham Has Rare
Chance to Grasp Trade
Through South.
BY J. c. ROYLE.

Special Dispatch to The Star.
BIRMINGHAM, Ala. April 3.-The
Birmingham district expects within
fve years to dominate the markets
for iron and steel in the territory
south OF the Ohio River. to capture
more than a fair share of European
trade. to supply the West Indies and
Central and South America, and COM
pete on better than equal terms with
the other steel centers for the trade
OF the Pacific Coast and the Orient.
Steel experts here look forward to
tremendous increased output. and
an extraordinary proportion of the
workmen themselves are buying
stock in the industries of the district
with every spare cent they can save.
There is no doubt that they have
cause for their confidence. for no dis
trict in the world has better physical
advantages for the production of iron
and steel
supply VIII Last 100 Years.
The valley here, 5 miles wide. is
bordered on one side by mountains OF
iron ore, of which sufficient is blocked
out to last for a hundred years at a
much higher rate of consumption
than at present. On the other side
are equally extensive deposits of cox
ing Goals and beds of dolomite lime
stone. The furnaces and coke ovens
are midway between. Thus all the
raw materials for manufacture of pig
iron and steel products are at hand
without expensive transportation.
Labor is plentiful and less expensive
than in other steel centers. II is un-
unionized.
Heavy Local COnsum ption.
At present a tremendous quantity of
Birmingham pig Is consumed here.
In the last year 2.7s3.s26 tons of pig
iron were produced and the larger
part was consumed in this district
The iron and steel industry now has
a weekly pay roll of about $500, 600.
The extension of the industry, busi-
ness men here assert, depends only
on the completion of the present port
development at Mobile. Through the
Federal barge line on the Warrior
River. the port at Mobile will give
Birmingham water route to east
Texas, Europe, Florida, the West In
dies, Central and South America and
by way OF the Panama Canal to the
Pacific.
Already extensions are being pro-
jected. The Tennessee Coal and Iron
Co. will put a new steel plant and a
sheet mill into commission this
month. Republic Steel Is known 20 be
contemplating additions to its pres
ent battery of furnaces. Tennessee
Coal and Iron also is building an
elevated railroad from one side of
the valley to the other, by which il
will handle raw materials at a mimi
mum of expense The road is being
constructed entirely from refuse
products about the plants. BY using
these old materials a large amount of
valuable ground where they were
piled has been recovered and made
available for building purposes.
Plants Seeking Economy.
Every plant is Birmingham is striv-
ing for a reduction of overhead. real
izing that it Is better policy to cut
costs rather than raise prices. AS a
result, men in closest touch with the
situation confidently expect a merger
of Independent companies in the not
distant future. They select Sloss-
Shefield Steel. Woodward Coal and
Iron, Gulf States Steel and possibly
Republic Steel for such a combina-
ton.
Officials OF those companies deny
they know of such a possible merger,
but the entire industry here has its
ear to the ground listening for
echoes or preliminary negotiations
which they expect to come from'New
York.
Many steel men point out that such
a merger would enable the companies
involved to compete on practically
equal terms with the Tennessee Coal
and Iron Company. which is a United
States Steel subsidiary and that such
a merger would not mean monopoly,
but more active competition.