The Pacific Coast Iron Situation

Discussion of the paper of CHARLES COLCOCK JONES, presented at the San Francisco meeting, September, 1915, and printed in Bulletin No. 105, September, 1915, pp. 1887 to 1898. D. A. LYON, Salt Lake City, Utah.-For some years I have been interested in the iron-ore deposits of the Pacific Coast, and I feel very much indebted to Mr. Jones for the information he has given us on this subject. I think that we are also very much indebted to him for having presented this paper, as he has given us reliable data in shape of facts and figures, which is just what we need in considering whether or not it would be commercially feasible to attempt to establish an iron and steel industry on the Pacific Coast. Personally, due to lack of market, I do not think it is a commercially feasible proposition at the present time. Mr. Jones states that pig iron can be produced on this coast as cheaply as it can be produced in Pittsburgh. Even. so, what can be done, with it after it is produced? To begin with, iron produced on the. Pacific Coast has to compete with iron produced in China. Last year I had occasion to investigate the subject of the market for iron and, steel on the Pacific slope, and found that it was possible for the producers of Chinese iron to sell it for much less than the price for which iron can be produced in the West, and also for less than eastern pig iron is now sold for, even when shipped through the Panama Canal. I was informed that the agents for Chinese iron had instructions to sell it for $1 or $2 less per ton than that asked for other irons on the market. Of course, I realize that the competition of Chinese iron may not be important, but even if it is not, and even though pig iron ,can be produced at the cost given by Mr. Jones in his paper, I do not see any immediate chance of its being so produced, due to lack of market. C. C. JONES, Los Angeles, Cal.-Mr. Lyon is right. It is a fact that Chinese pig is being sold in San Francisco on some large contracts at $18.50 a ton, while $19 is the usual price. We ought to produce iron. on this coast at $14. Personally I do not think Chinese iron is ever going to be an important factor. It is a bugbear out here now. You are not going to have much Chinese pig iron in .this country. Our little friend Japan is going to absorb everything it can. The price of Chinese pig iron at $18 is about as low as it will ever get. If we can show you that we can produce this iron here at the same price as at Pittsburgh, I. think you will have a good opportunity to compete with anything China or India can ever do. Costs there are very low now. They are going to come up by leaps and bounds in the next few years. The labor cost over there may be very low now, but I. have seen some men from there quite recently