New-York tribune., 1880-01-14
THE TARIFF ON STEEL RAILS
MP. vAyDFRBn!Ts BILL 70 REDUCE IT.

LEAST, rNsr NOT LOWER THE PRICE OF STEEL
raILs-AL1FGYD AND ACTUAL PROFITS or THEiR
MA>UFAcrURr
To the Edft0rOf The Tribune
SIR: in April Of last year addres sed you com
niuuicaton on lie subject of purchase by Mr. W.
a. Vanderbilt Of steel rails rom an English man
ufactursr. In that letter stated that one Of the
reason. behind tins purchase was probably, to
make capital" to USE at Washington this Winter
don't remember tat Mr. Vanderbilt denied this
himself bat il was certainly denied for hiln y'ry
vigorously by a" ccrtam bieh official Of the New
York Central Railroad. Mr.. Vanderbilt Las been
steadily ut work siace tho Summer in getting this
matter advanced t. the point, where it has at last
taken shape ia the bill introduced in the House yes
torday by Mr. Covert. OF Ncw-Iork.
The hill proposes as regards iron. 10 remove the
dUty from ore (how will Virginia and Lake superior
like ;hi3 % to reduce lhc duty on mon scrap Ci an
kuus 10 % land suppose on pie-iion a'ao' AMI l"
make steel rails pay so instead Of 925 per ton
"a.l Of which is 10 be OF immense benefit 10 railway
corporations aud Manufacturers 1T 1t becomes law"
circular with petition for SIGNATURE at'ached has
been 4 stl0uted among the railroads IA the hope
that some agitation can be scared mp 10 support 3'r
Vanderbilt. who. backed by the importers, is tlo
re9l mover IN th, matter.
The importers object IN this agitation .s pla,u,
pockets with commissions. Mr. Vandorb,lPs action
is not 50 pain unless indeed be i seeking 20 repay
the srubs hc got when he last Icd tobIvsicel rails
from soncof tho American manui sciu,crs. iio sill.
rf coufs, claim that BE- is trying 20 get the duy re-
duced IN order 10 lower the prIcr. But his,it won't
do for SON. time vct-uof until. indeed, tao supply
exceeds The demand 1T may secm paiadoTcai to
say chat removing the duty, whom it Is 30 heay,,
viii raise the price; but it is nevertheless
so ~ lcast POO GOO tons Of steel rails, beyond the
capacity 20 manufacture OF the American mills, VIII
bc required In this country ia 1850. The removal
on reduction of the existing duty would put two
thirds of that amount Of orders in tho market at
once. Errlish and Continental buyers. f0resccing
the American demand would rush their orders into
tia foreign market, which is to-day in very eX-
cited and "panicly" state and steel rails would
most likely be al 500 per ton inside Of a month
" al Of which is 20 ID, of immense benefit TO roilway
corporations and manufacturers"
The steol companies are to-day very uniustly ac-
cuscd of making outrageous profits at the expense
OF tho railroads Such Of them as were not behiud-
band when this boom commenced wiil do exceed
mgy wei. and those that have suffered viii make
up some Of their sscs. Mr. Wand, rbilt and hI, asso-
ciatcs cxclaUn against tine outrage that exists when
the steel companies are making rails at about $40,
and are selling rails at S70 ana SO. The profit IS
evidently enormous-T3G TO $50 ton, just tGuk
Of il Why II mus. make the poor man wish he
owned half Tho steel works, well as half the rail-
roads Of the country. II looks an outrage hut It l.
mot s 80 IS about the present COST and from ~ to
$l3 represents very fair average OF DecemOeTs
INVOICE, # any Eastern mill; SO is tho price for
f1iur, delivery, ana with pig iron to-day worth
over 10, and everything els advanced IN proper
ton it cannot be such an outrage as Is generally
represented.
II Congress can give the American steel-makors
labor as cheap "a it is on the Continent mot only
IN their steel mills but ia all prior departments
OF tie mauufacture--ore Mines coal mines. blast
furnaces machine shops. ctc..l and Will episate 50
that they are not hanIi. .appsd by the railroads
mean by this that Mr. Vanderbilt shall not be
allowed 20 help carry goods cheaper from Liverpool
10 Chicago than be would take the same class OF
goods from New-Yorr 20 Buffalo ;-if they can pass
q law that Will make money worth no more than
3ll to > per cent for investment IN manufacturing
concerns. then. indeed, tho American steel
makers can and will hold their own, tariff or no
tar.ii and Congress can heavily TAX railroad
watcred stock o. make up deficient revenue.
The country is doing we'll IN all its branches OF
trade. and it needs no change in the iron tafif to
make IL continue IN the same happy direction. 10
make any serious attempt the tariff. during this
I
ing trade and 1t Will not lower the price of iron
with any permanency for at least two years. even
if the duty il reduced Labor so great part OF
the cost OF steel that steel Sil always need protoc-
ton mot prehibitory tariff until that period
riyes when this country IL as densely populated
with ll-ied people the Continent of Europe.
| The whole question OF the tariff Is one requiring
| too much non-partsan common sense and practical
| knowledge to be efficiently handled by Congress
alone hut if such a thing could be got as commits
sion Of honest and intelligent men, appointed with
| out reference 10 politics. they would undoubtedly
| be- able 10 give Us protection without prohibition,
! aud 10 sweep away many OF the absurdities OF the
| present taI1n.
| Iron men would gladly hail tho appointment OF
such "A commission, aud would cordially ass 81 them
! i'm getting the duty on iron and steel placed ut
| point where aifor,ling honest protection, u was
not absutdly prohibltory; but they do not want
! their trade disturbed ana agitated IN the
| mistaken epdcayor OF Mr.. Vanderbilt 10 St.
| cure an extra L. per cent dividend on his
| watered railroad stock lt was the American man
uiactuTers who gave America cheap steel rails ~
| the past Now the demand has suddenly exceeded
! the supply, and prices have RbnOrmally advanced
in a snort time-two or three years at the nost-the
| supply VIII exceed the demand, and down again
will 20 prices to starvation point. Yours trnly,
| ALFRED EARNsHAw.
| Philadephia, Jan. 8. 1850
| T. She foregoing letter was written on the
evening of the 9th, and would have been sent To
you yesterday but for my unexpected ab
| sence from h0me. | to-day have cables from
| Eugland fully confirming the views haye
| taken Steel rails jumped c2 10. on news OF the
| Tariff bill reaching English manufacturers ana ana
are now quoted at 10 gulneas per ton, l. O., over ToV
| per ton here Everything has IN fact advanced; !;
old rails steel blooms, spiegel escn iorlO-inangan-
| csc etc. which is.' Of course. " all greatly To me
advantage of railroad corporations aud manuiac-
turers." A. T.