Alabama Blast Furnaces

Modern Era - 1880-1940

THE MODERN ERA 1880 - 1940 I N 1880 the first two coke furnaces in Alabama went into blast. Building of these plants and their successful operation may be considered the beginning of modern pig iron manufacture in Alabama, which up to that time had been merely a minor charcoal iron producing state. Opening near Birmingham of two immense coal fields in close proximity to vast ore bodies made these furnaces possible assuring an abundant and dependable coal supply. Following the opening of these coke furnaces in Birmingham enthusiasm ran high. The Southern press was jubilant and filled with optimistic predictions. Northern interests sent representatives to Birmingham to confirm the miracle-a mountain of ore on one side and an almost inexhaustible supply of coal on the other. All agreed that the mineral development of the state was assured a bright future. Alabama was pictured as a place where nature had bestowed her favors with a lavish hand. This favorable publicity produced its effect. During the next five years the state's iron industry progressed at a reasonable rate. In these years, five more furnaces were built in the Birmingham District. These also prospered and soon tales of bonanza spread far and wide. Optimism rose to high levels, and presently the great Alabama "Iron Boom" was in progress. Between 1886 and 1890 twenty-seven blast furnaces were built in Alabama. Glowing reports induced the flow of capital from all sections of the country. New towns came into being; old towns assumed boom proportions. Land speculation, corporate promotions and stock selling _.o+~ 27 f;o.- ALABAMA BLAST FURNACES became the order of the day. Railroads furthered the fantastic scheme. Not only did they contribute to furnace projects, they often fostered them by guaranteeing cheap rates to Northern markets. Every blast furnace was pictured as a gold mine and the world was invited to participate in the expected flow of profits. The years from 1886 to 1895 witnessed the construction of more blast furnaces in Alabama than any other period in the state's history. The whole nation became Alabama conscious. This is not a period, however, to which Alabama can look back with pride. Many of the furnaces constructed during this boom time were failures, marked today only by piles of slag. All too often furnaces were projected to enhance local property values. Too many were built upon a foundation of optimistic speculation rather than factual knowledge. In 1907-08 there were no less than fifty-one completed blast furnaces standing in Alabama. From that date the number has steadily decreased. In 1939 two furnaces were dismantled to leave but 19 remaining in the entire state. Over-expansion during. the boom period was most unhealthy for the state. Alabama, as an iron producing district, fell into disrepute. Gradually, however, the weaker concerns were weeded out. Numbers of consolidations took place in which the stronger companies absorbed the less strong. Some of these consolidations were also ill-conceived and eventually failed. Furnaces which had been built without regard to such factors as markets, raw material supplies or transportation were abandoned. Gradually order supplanted chaos and stable conditions finally prevailed. During the sixty years from 1880-1940 great advances were made in all phases of the Alabama iron industry. In the field of labor a marked change took place. In 1880 there were 1500 men employed in the industry who worked an average of 76 hours a week. In that year (1880) a total of 68,995 gross tons of pig iron were produced. Today there are approximately 15,000 men employed in the manufacture of pig iron in Alabama who produce nearly 3,000,000 gross tons yearly. There was in 1880 a chronic local shortage of skilled labor. As a consequence for a number of years skilled men were imported from Northern and Eastern plants to run and maintain the Alabama blast furnaces. Here it is interesting to note that the industry pays today approximately $1.00 per ton in corporate taxes, whereas in the year 1887 it paid only $0.026 per ton of iron-a sum only 1/40 as much. Market conditions also greatly changed during these 60 years. In 1880 more than 900/0 of Alabama iron was shipped to Northern localities. -,o~28~o.- THE MODERN ERA Slowly this situation altered. By 1910 the South was absorbing 20% of the production. Pressure and soil...