Gary Weekly Tribune, Friday, 5 March, 1909

STEEL CHEAPEST AT GARY

Official of a Big Pittsburg Concern Makes Amazing Statement of the Dethronement of Smoky City.
A Pittsburg Dispatch in today's Chicago Examiner says:

F. A. Ogden, freight manager for the Jones and Laughlin Steel company, the biggest independent in the country, and the most bitter opponent of the United States Steel corporation, tonight made the amazing statement that he feared in the near future Chicago would make the prices for steel and that Pittsburg would be relegated to the background. In other words, he sounded the death knell to Pittsburg as a great industrial center and adds the industry which made Pittsburg to the vast resources of Chicago.

Can Save Railroad Tariff.
"The inland rates on ore," said Mr. Ogden, "is $1.14. In other words the United States Steel corporation can lay down Messaba ore at its docks at Gary, Ind., just that much cheaper than we can obtain the same ore in Pittsburg. That is the freight rate per ton on ore from Cleveland or Ashtabula to Pittsburg."

When Mr. Ogden said that he feared in the near future that Chicago would make the price he meant that instead of the freight rate from the lake coast to Pittsburg being added to the price of steel, that much would be deducted from the Pittsburg price and steel would be sold just that much cheaper in Chicago.

Basis of Price War.
"Here is what it means," continued Mr. Ogden. "We will say that it takes two tons of ore to make one ton of metal. Twice $1.14 is $2.98, so that, conditions being the same at Gary, Ind., the United States Steel corporation can turn out steel there just $2.28 a ton less than they can at their plants in Pittsburg."

After committing himself to this extent Mr. Ogden refused to go further, but from another steel man the fact was elicited that this condition was the primary cause for the declaration of the United States Steel corporation for an open market.

With a price agreement with the independents the trust would be forced to keep up the Pittsburg quotations, the very thing that they seek to avoid in order to exploit outskirts of Chicago.
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