A NOTABLE CHINESE INDUSTRY.

New Zealand Herald, Volume XLVI, Issue 14223, 20 November 1909, Page 1 (Supplement)

A NOTABLE CHINESE INDUSTRY.

BY G. W. S. PATTERSON. . Although the outside world knows little of it, and only the people immediately interested are closely watching the development of the industry, it is no secret that vast deposits of both coal and iron ore are being actively exploited throughout the Chinese Empire. And the great iron and steel producers in the United States and in Great Britain have long ago recognised that in course of time the output of China will more than exceed that of the two kingdoms combined. Which, of course, is a large order.

But whereas bodies of existing deposits of haematite ore in those two continents are confined to a few well-known and thoroughly exploited districts, no geologist has been found, so far, rash enough to come forrard to say what the limitations of China, in this respect, may be. Hitherto, but few legions have been explored or prospected. But those in which iron and coal have been discovered and worked are of such incalculable richness that the possibility of China becoming a rival to other countries engaged in the steel trade, has long since passed the inchoate stage. And it seems fairly, certain that before long, Japan will enter the lists, and even if she confines her operations to supplying her own - foundries with material for home consumption, the loss to Great Britain, whence she has hitherto drawn her supplies, will be one of no inconsiderable magnitude. At present,' however, this contingency appears fairly remote, and the day when Japan will enter, into export competition with other steel-producing countries will hardly arrive in the near future.

With China it is far different, as a brief account of the operations of the Han-yang Iron and Steel Works will plainly show. And this concern is but one of the many companies which have sprung into existence during the last few years., It's sphere of operations is situated near the old Chinese city of Hankow, six hundred miles up the Yang-tee River; and, as vessels drawing at least 20ft of water can be brought alongside the company's wharves, it follows that transport is not a matter of any difficulty. For, at the mouth of the Yang-tze, and for many hundreds of miles towards its source, are to bo found cargo steamers trading to all parts of the world. Otherwise, it' is certain that steel-making pig-iron from a Chinese blast furnace could not well be delivered in New York, at 70s per ton, c.i.f., and more than one shipment has changed hands at that figure.

Nearly 4000 Chinese, controlled by 30 European engineers, foremen, electricians, and miners are employed by this company, and when it is realised that the average wage for unskilled labour does not exceed 5d per diem, with skilled native mill and furnace labour ranging between 5s to Is 6d per"day, it is obvious that a cursory study of the wages-cost will result in the conclusion that, comparatively speaking, there must be a huge saving in working costs, when these are contrasted with those obtaining in more civilised countries.' ' /

The salaries of the imported superintendents and officials are naturally higher than the homo scale, but , between the total averages no contparison can be drawn." I

The Han-yang Company practically controls—if not ownsthe iron-ore mines of Tayeh, which are situated some two hundred miles further up river. They have an output of 1500 tons per day, and the ore which is of excellent quality—averaging over 60 per cent., is brought down to Hankow, in the company's home-made steel lighters, which are towed by tugs, also constructed on the spot. In the matter of construction, material, fittings, turnings, bearings, etc., the company is essentially self-supporting. At Kankow the raw material is turned into sheets, plates, bars, railway, and other structural material, girders and bridge requisites, and many other steel products. In addition, a large percentage of the output is shipped to Japan, that country having already proved herself a ready and willing customer for all the available raw material. Roughly speaking, the Han-yang plant includes three blast-furnaces of the most modern and improved type, with a combined daily capacity of 500 tons of pig-iron ; four open-hearth steel furnaces, each with a 60ton daily capacity; rolling mills for bars, rails, plates, and fittings ; and bolt, nut, and spike machines. At present, however, this plant is totally inadequate to fulfil the demands made upon it, and additions are now being made. Other extensions of a wide and comprehensive nature are contemplated, and the company proposes to establish a second series of foundries ,lower down river, where a speciality of bridge and railway material will be made.» ,

All the coal used in the works is brought from Fan-g'siang, where large collieries are established on a tributary of the Yang-tze. Although these' mines are nearly two hundred miles from the Works, coal can be landed at Hankow for a little over 5s per ton, the transport, being by water and accomplished by the means of native labour alone, amounting to only a fraction of the cost. It is said that no coal-barge brought down river ever returnsas the expense of poling or towing back, up stream would be prohibitive. Therefore the barges are broken up on arrival at Hankow, the timber being sold as lumber, and as there are no forests in that portion of China, and timber is always in demand, what would appear to be a drawback resolves itself into a good-paying proposition. ;■;

: The output at Fan-g'siang is, approximately, 2000 tons per diem. There are also 200 coke ovens, capable of dealing with 500 tons of blast-furnace coke every 24 hours. An increased supply is only dependant on the demand. In fact, it is estimated that in the province of Shan-si alone, there exist over 600,000,000,000 tons of coal, six times the estimated quantity available in the United Kingdom.. Add to this the available reserves, already proven, in the province of Shantung, calculate by what has already been produced on the fields around Tientsin, and it will be readily seen that the riches, in this respect, of China, are incalculable. It may be said, indeed, that all over the Empire one comes across seams varying from 1£ to 25ft thick. What really remains in the unexplored regions can only be left to the imagination. ' ■.

The wholesale extension of existing railways and the inauguration of other systems has given a tremendous impetus to the steel and iron trade in China, and it is worthy of note that in the construction of the Pekin-Hankow line, every rail and the majority of the other material was supplied by the Han-yang Company. Their annual export now exceeds 40,000 tons of iron and steel, exclusive of and apart from the output sold and utilised in local requirements.

' The Imperial Government is no inconsiderable buyer, as a good deal of material is required for the arsenals lately established. And for the benefit of the authorities, all the latest processes, involving electrolysis, and other methods, are installed. Wherefore, there is no reason to doubt that in the near future, China will have at her disposal the means to build not only her own guns and rifles, ,but to construct her own battleships, docks, engines, and all other requisites for the better protection and advancement of the Empire.