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The Rise In Iron

The Rise In Iron image
Parent Issue
Day
22
Month
March
Year
1872
Copyright
Public Domain
OCR Text

The great iucrease in the pricu of iron, 1 irgely cauaed by tho extraordmary activity in railroad eonstruotion, not only in tho United Statos, but in Europe and elsewhcro, hns a notioeable effect on all ncw enferpriees, anrl is exceedingly ombarrassing to parties who undinouk the construction of linos some inonths ago ou the baña of tho prices at that time. Thoy now linrl tlint thoy juust pay tem dollars raore per ton thu.ii tbey counted on, and thejr io extromely iortunatc it' they can sueceed in getting cash orders executed within a reaaonable timo. Many English milis rcfu.se to accept ovdors to Imj tillud bc-i')re 1873, and American millsarecruwded for a long time ahead, so thero is no irainediate prospect of a fnll in prices, and anything but cash is apt tobe scorned. J'l o Helgian woiks, wliicli asidefrem England, are the chief nianufacturers for Kuropcan consumption, seaita even moro crowiled, and somc leadmg works hnv.; refnaed contracts to be filled by tLe spring of 1873. Tenders for Besscmcr imíIs for Gierman linea opened rccntly avengod aont $80, gold, per ton, and the lowert was about $72. while a yearago contracts wero tnude at $60. On most American railroads (laid with 5(lb iron) an incronse ol $10 per ton is equivalent to an addition of f 880 to the inoney costs of a inile of track, and in many cases to more than a thousand dollars in tho capital account. As to the cost of iron in Kngland. a paragraph frotn tlie speech of the Chairm a i of tho London, Chatham & Dover R lilway Counpany, at its recent annuii] meeting, will bo intcresting. IIo said : ' T.ikihg the cost of iron and steel chaira and which form so large an item in railway expenditure - just a fortnightago we made our contracts for iron and steel rails and chaira for 1872. In regard to iron rails, we had to pay L10 lOs. a ton, as against L6 18s. 6d. in the preyious year. As regards steel rails, we had io pay L135s. a ton, as against L11 7s. öd. ; for ehairs we had to pay L5 5s. 7dL a ton, as against L3 9s. 3d." These figures show an increase in tho English markot (which to a greal extent govefrf the iron markets of tlu world) of 44 per cent. in the prico of iron rails, 16 1-2 per cent. in the price of steel rails, and 62 1-2 per cent. in irnn ehairs. Next to the co.st of new lins, the expenso of operating old lines will be inöieased by this great rise in iron. It is not geneaally known, or it knowii is no appreeiated, that a railroad 13 in many rvspeets one ot' the most perisbable of proporties. Both rails ind rolling stock r quire renewals at short intervals, many ot out linos, west as wcll as east, wearing out iron rails in four yuars, and soino in a ïuuch shorter period. Sinco the rise in steel rails is not only proportionately but absnlntely less than the rise in iron, it 19 lilcely that the comDanies will be more thun ev;r inclined to

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Subjects
Old News
Michigan Argus