Evening star., 1939-06-25
New Steel Era Brinus
Broader Market for
Southern Mills
/. Alabama Rote Higher
With Pittsburgh Plus
System Ended
By the Associated Press,

BIRMINGHAM, Ala, June a.
Twelve months ago this Southern
steel capital was thrilled by head
lines proclaiming the end of Pitts
burgh plus method of steel pric-
ing which meant Birmingham con-
sumers paid SO a ton more than did
their competitors in Pittsburgh or
Ohio.
The man in the street may not
have understood what Pittsburgh
plus" was, but he was so accustomed
to hearing the districts economic
Ills ascribed to it that he was GER
tain its abolition was great ,.ews.
Those who thought the millennium
was at hand with the announcement
have been disappointed, since no
boom has resulted and new steel
plants have not been springing I'D
like wildflowers.
But Birmingham businessmen
have been given material as well as
Psychological comfort from the
fact that the rate Of steel produc-
ton in Alabama has been above the
national average every week since
the $3-a-ton price differential was
eliminated.
Most informed sources are quick
to agree abolition of price differences
cannot be given all the credit for
the relatively high operating ratios
Of Alabama steel plants, but most
OF them list it first as a cause for
higher producing rates.
Steady Rise Shown.
A breakdown of production by
States Of hot rolled iron and steel
products, released by the American
Iron and Steel Institute, lists Ala
bama output as follows:
For 1894, 628, 400 tons, or 3.32 per
cent Of the national output; 1885,
720,390 tons. Or 3.04 per cent; 1896,
1,087,4l4, or 1872 per cent; 1897,
l,268,175 tons, or 3.45 per cent, and
1888, 1.00l.12 tons, or ATT per cent.
Since 1888 was a poor year for
steel manufacturers. the increased
percentage produced in Alabama
mills Is taken in industrial circles
as proof that Birmingham steel has
found wider market since it was
given price parity with the product
Of Northern plants.
Announcement Of two shipbuild- =
Ing plants, one at Mobile, Ala, and
one at Pascagoula, Miss. followed
elimination of price differentials by
less than six months.
$1o,o00,oe0 to Be Spent.
The Pascagoula plant has con-
tracts for cargo ships to cost ap-
proximately $l0,00O,OO0 and for
which 10000 tons of steel will be
used. The saving to the builder
under the new pricing arrangement
gives him a 10000 better COMPETE
tive position than he would have
had year ago.
The cargo ships at Pascagoula
will be the first of considerable size
built In the Gulf of Mexico area
since the end of the World War
put a halt to the shipbuilding boom.
Diversifcation of the steel indus
try IN the South has been slow. One
major step in this direction was
taken when United States Steel
began production last year in its
new $29,000,00 tin plate mill at
Fairfield.
Birmingham industrialists are
hopeful that the next major con-
struction period in steel will see
many new plants here, adding con-
siderably to the market for Southern
steel.
They believe elimination of the SO
ton price differential will be a
major factor with concerns eyeine
markets in the Southeast, or on the
Pacific Coast, to which Birmingham
enjoys lower water transportation
costs through the Warrior -Tombig-
bee waterway tn MohiIa