NP, FO 4/15/1861

From the Fayetteville (N. C.) Observer
 
April 15, 1861
 
For the Observer
Messrs. Editors,
   I notices in the last issue of your paper, two articles which suggest to me some thoughts concerning the Deep River region, that may be of sufficient merit for your columns. The articles were: One concerning the completion of the Fayetteville & Coalfields Rail Road {Western RR}; the other, an article concerning the Oil Wells.
   The President of your Railroad Company closes his report with a hope that "capital and enterprise," may be induced to establish Iron Works on Deep River. I propose to show some inducements for such an establishment.
   As you are aware I took some time and trouble two years since to collect information concerning the manufacture of Coal Oil, and at that time, and at various times since, I have endeavored to improve every opportunity of obtaining information concerning the manufacture of Iron. Nearly all manufacturers were but little disposed to give information, but, I think, a very respectable mill for rolling and re-rolling railroad Iron, can be erected for $100,000. If smelting ore is carried on in connection with the mill, this sum may be increased in a small degree. The cost of such an establishment is much diminished by its location. On Deep River there is an abundance of building stone, fire-clay and fire-proof stone; the ore is also easy of access; Coal abundant and will be cheap. Fine timber is also near at hand.
   The other article alluding to the oil wells would make most persons think that nothing could be made by extracting oil from coal. In the first place I do not believe half the tales about the oil wells secondly, they must soon give out; thirdly, the oil is difficult and expensive to purify. Again, I have it from a gentleman who has been long in the business, and has made money in it, that he can make more money on oil from coal than on that from the oil wells. The black band iron ore of Deep River has, by careful experiment, been proved to yield an oil superior in purity to any distilled from coal. The quantity is: "16 1/2 gallons of crude oil per ton of ore -- such crude oil will yield 7 gallons of superior illuminating oil and 6 gallons of lubricating oil." I quote from the manuscript letter of a distinguished and able chemist who tested the ore.
   As to the Kerosene company of New York and the Breckinridge Co., in common with many others, were started as fancy stocks, went in debt largely upon no capital and were badly managed. The fact that they and others failed, does not prove the business a bad one any more than the failure of a merchant makes the business of another, who is industrious and economical, unprofitable. The oil business will have its day of excitement and then it will become, like all other branches of manufacture, a settled business, and it will be, when well managed, very profitable.
   Suppose then it were determined by a company to erect a rolling mill, &c., on the Taylor property or Mr. McIver's -- I have never seen the black sand at the latter place, but think it exists. I mention these two because they are or were in market for sale or lease. At either place fire-clay and good sandstone can be easily obtained. Suppose that company erects iron works to the amount of $100,000, with a view to make iron from the black band ore -- of course any other ore can be used also; at McIver's a fine bed of iron ore exists about half a mile north of the coal outcrop.
   The works being erected for the purpose of making iron from the Black Band Ore, that ore must of course be debituminized before it can be placed in the furnace. Instead of wasting this bitumen let the Company erect Works for extracting the oil from the ore -- it being possible to erect works of this character upon a good plan and of capacity for about 400 gallons refined oil per day for about $6000. It would take 58 tons of ore to give this yield. Allowing this burning oil -- leaving out of view the lubricating -- to be sold at 50 cents a gallon and it would bring in the little sum of $200 per day -- take off cost of extracting ($60) and $140 is left, which would aid some in paying expenses of making Iron. I have heard it said that the oil would pay its own expense and that of the Iron too; at any rate it would be worth saving if only 25 cents a gallon, for it must be got out before Iron can be made.
   I have stated that 58 tons of debituminized Iron Ore will thus be furnished for the furnace. Now this ore contains a large proportion of carbon -- nearly sufficient to smelt it -- therefore another saving is effected, for by the extracting process the ore is not only debituminized but also roasted, and the carbon is found in the form of coke. Dr. Jackson's analysis of this ore gave 47.50 of peroxide of iron; Prof. Schaeffer, of the Wilkes Commission, made only 17.08 of protoxide of iron, but he acknowledges his specimen to have been inferior and I think Dr. Jackson's to have been better then the average run of the vein, therefore I place it at 37.50 of peroxide of iron. An ore of that quality will yield 26 per cent of pure iron -- equivalent of 56 tons of ore to about 14 tons of iron. This 14 tons of pig iron will make at least 12 tons of Railroad bars -- worth, say, $50 per ton: $600.
   If such an establishment, then, bringing in from oil $150, from Iron $600, in all $750, will not pay, I am sure no business will; the more especially, too, when the market for the Iron is immediately on the spot. The profits from such an establishment would be at least $200 per day. The present is an unfavorable time to go into a venture, but with the legislative provision in the charter of the Western Railroad it becomes a certainty. The profit per ton per day (at $200 per day for 14 tons) is $14.28 (fourteen dollars, twenty-eight cents, five mills and a fraction.) The Western Railroad Company and Wil. & Char. R. R. {Wilmington, Charlotte & Rutherford RR} will need at least 8000 tons -- the profit on that quantity would, therefore, be $114,280. At the rate of 14 tons per day it would take 571 days to make the 8000 tons; but double the capacity of the Works -- the cost is by no means doubled -- and the 8000 tons could be delivered in less than a year. As a matter of course increasing the capacity of the Works increases the profit -- at any rate, in this instance, I have based my calculation above upon the statement of Mr. Mallett that "the President of the Wil. Char. & Ruth'd Road would give his co-operation," and I suppose co-operation to mean that he will buy Iron made in the State if it is a good article and fair price. 
   Should other Roads want Iron, as they most assuredly will, the business and profits of the Works will be continuous in manufacturing new Iron. But, suppose business grow dull for the sale of new Iron, money could be made by re-rolling old rails. An establishment for this purpose is needed in this State now, and the necessity increases every day. This branch of the business is well known to be very profitable.
   I shall not now trespass on your space further but will endeavor to give other thoughts upon this and like subjects at some future day should these be worth a place in your columns.
H. E. C.

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