Saddling is caused by the gradual settling (on a micro level) of the wrought iron body under the stress of impact from forging.
Chipped edges: are probably mostly from stray hammer blows, MAYBE the edge being to sharp in the first place.
Broken heels and horns: I've heard that this can be caused by alot of hammering at very cold temperatures, but I think it is mostly caused by using too big a hammer over these areas or by weak spots created in the anvil forging process.
Those are my bets. Take em or leave em.
-Aaron @ the SCF
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