New-York tribune., 1880-02-06
THE DUTY on STEEL Rails.
TWO INTERESTING AND FoRCIBLE ARGUMENTS IN
BEHALF OF THE AMERICAN INDUsTgY-MR.
FELION AND MIR. sTORRs

TWO INTERESTING AND FORCIBLE ARGUMENTS IN
BEHALF OF THE AMERICAN INDUsrgY-MR
FELrON AND MR.. sTORRs.
GENERAL PRESS DISPATChl
WASHINGTON, Feb. 5.-Ihe Committee on
Ways and Means resumed aud flushed to-day the hear
ing on the proposed reduction N the duty steel rails
The chairman first called before the committee Samuel
NJ Felton, OF Philadelphia
Mr. FELTON, he is the President OF the Bes
semer Steel Association. which is association Of
various steel manufacturers IN the United states owning
the paouts under which they all work. His testimony
was In substance as follows;
Tbe aasocaton is Incorporated by the laws OF Penn
svlynuIa rs capital IS $S29OO0 The capital repre-
septs the OF the patentnat s what the present
members assooaton paid for them. The assoca
Ton Ws organized in 1877. The persons who originally
bOgnt the interest from cue owners or the patents
Mr. Wiuslow, Mr. Grswold Air Hoiley and Mr. Morreil:
81 Johusow d. Penn. lie could say whether any Of
those genuemeDgwere members OF Congress at the time
TINT tue present duty was nxed on steel rails Mr.
Murrcll Was present and could answer Tor himself.
There are eleven Bessemer sicei-rah mills In the
United States. and there w0ud nave oeeh WE'VE tx-
O. p nat OF them failed and wen out OF existence
in consequence OIL the sharP oopelo. Anat wac tne
Freedom lion Works, OF FehnoyIHania. We uld not
mae any arran cement close the Vulcan Works at ST.
Iouis The Vulcan WORKS were bankrupt, and could
NOT raise money TO pay tueir men.
The Chairmsn-Do you Intimate that Commodore Gar
rlsun was Dankruptf
not OF the indivldua composing IT,
The ChAirman-It has been alleged here that the Nul-
can Works stopped through the operation Of exist
Mr
The Chairmnn-What Is the aggregate capital in.
vested in tue manufacture OF rails in these differ
ent companies
Mr. FetonI should suppose that the capital OF these
dhcrrnt companies would be from S3,0oO.OOO 10
81, 900, 900 each. There ~ probably very nearly
$50 900 900 invested in mat Industry They employ on
tnc average 1900 men each.
The Charman--IIas your association anything 10 do
with regulation Of prices OF steel rails at he differ
ent NIL u n,,s - =, ,, d, ~ ~
Mr. FeOn-NOt AT all helther as 10 tue price nor as
The thairman-why is It that there is uni
mia In all Thnaa rnflla md haf
there Is competition among them as 10 what they
shall charge1
not slightest The prices never were the same at the
various mills for slngle day.
semer sleel Association to these eleven mills
Mr. Felton-Each company Is the owner OF the
of the association Is To fix the royalty 70, atty is
charged per ton TO all the members and is precisely
Mr. Conger-Do you know anything about associs-
our Ca rim on rails and other objects. and whether
tnat association has members In this country
SIR. FeltOu-I do not know OF any of my own knowl-
edge have heard that there such association,
but cannot say positively whether there Is or not
Mr. CarliSe-Do you know Whether 'oe other m'il,
compensate the Vulcan works
Mr.. Fellon-I Will tell you the whole truth about that;
the Vulcan Works, as SAID stopped In oohsequence OF
their INABILITY tU pay their men ANA ther honest debts
Whlle thoy we're In that conuiton some OF other
strel the took the question
I'm pure business point Of view aud they agreed % pay
"A certain sum to the Vulcan Works tO enable them 10
tide over tue tnen hard The Vulcan Works
under IA mortgage of 81 100000 the Interest OF which
was about $4,000 IA year. and they would have been
sold sacrifice aud the property scattered TO the four
winds oi heaven, Just the Frec1om Iron Works IN
Penusyyana were II had not been that other persons
engaged the business % their relief and
| paid them about $4,000 year, Dy which the Vulcan
Works able pay the interest on their mOrig &c;
and To this property and be ready when tue de-
mlnd for steel rails greater than the supply To
start aresn. They have been nohed that thls Is the
case.
Mr.. Carlisle-Are they now In operationt
Mr. Eeltou-I presume they are. / understood that
the, were go operation ON the lst oi February.
Mr. FELTON, went 10 say that as the demand is
greater than the supply at present. he did not think
there would be English rails sent here now II the
whole duty taken on
Mr. Emory A. storrs closed the argument on behalf Of
the steel manufacturers and against the proposed reduc
tion of duty lie denied einphaticaIly the assumption
made throughout the discussion. that the reduction of
duty was sought for interest OF the railroad