The Rock Island Argus. (Rock Island, Ill.) 1877-1885, 1881-11-21
Monday. November 20 1873!

At the late tariff convention in Chicago,
Mr. Grinnell, of Iowa, asked for -informa-
ton in regard to the Bessemer steel indus
try and whether it was the monopoly that
free trade claimed it was To this inquiry
Mr.. Blair, of Pennsylvania, Representing
steel rail company who manufacture one
tenth of all the rails in this countrY-an-
swered
There had been good deal said about
the making Of steel railssa monopoly. He
thought he could explain to the gentlemen
who made that allegation that it was not
SO o. Before the bill was passed in con-
gress giving protection to the makers of
steel rails in this country, it was estimated
that the difference in wages in making
steel rails in this country and Europe was
$50 ton. ~ The consequence was that
those interested in manufacturing, before
they undertook to make steel rails by the.
Besserner process, went to congress to get
the duty raised Mr.. Bessemer then asked
a million of dollars fer the privilege of
making steel rails in this country. He was
obtaining then for steel rails here from
$3.50 to $40 per ton gold, and it was then
stated that they could not be made for any
thing less. (2) Eleven companies in this
country combined and bought Bessemer's
patent, and the privilege Of making rails
in this country. for 1925, 900. Some of
these companies broke once, and some
twice, before they got their works in sper
alton. After they got the patent they had
not steel ores in this country that answer
ed the purpose; they had not the workmen;
and it was a number of years before they
made any success here in making steel
rails. But last year the various companies
had made million of steel rails at an aver
age price of of $50 ton. f3) They would
have had to pay that if they had imported
rails from Europe. This patent would
soon run out. The stockholders had
agreed that if one mill made more than an
other 1t should paw a corresponding pro-
portion into the common fund, and some
manufacturers made more money by doing
nothing than if they had been in full blast.
(4) If they had labor as cheap as it was in
Europe they would ask for no duty what
ever.
All of which looks very fairand very
plausible, but when we rembember that this
monopoly is thus fortified: CD 1t is pro-
tected by duty on foreign rails of $ss
per ion, or 125 per cent; ca it is protect
ed against competition by letter patent;
and 60 it is protected by pool whereby
the amount of rails produced is limited by
the managers of the pool. When chal- |
lenged in the recent more tariff. Some
of the fairness and plausibility wears
away
When the tariff rate of $2S per ton was
first established steel rails cost $40 per
ton and il they must be protected it was
not by such an exhorbitant tariff, being
only 20 per cent ad Ua5orem. But steel
rails now only cost $25 per ton and
tariff of s2s, making it amount to 1928.
In the spring of 1879, steel rails were
purchased in England for this country at
S23 per ton; while the duty on them was
S28 per ton. In 1880 this duty was equal
to 1875 per cent on the steel rails imported. |
Investigation shows that in 1880 the |
prices of steel rails in all the ports of |
China, Russia, all Europe, and South |
America. Canada, and Mexico, averaged
about $50 per ton, andsat places Of manu-
facture $25 to S27 per ton. In the United
States the price at the mills was, as Mr.. |
Blair states, $50 per ton, and is yet. In
other words the people Of the United States
are compelled to pay $s0,0oo,000 bounty
to these eleven consolidated mills for each |
years work. The railroads of the United |
States are paying $50, 600, 900 for 1,o00,
900 tons of steel rails, the same amount of |
money purchasing 100000 tons of like
rails for the people of all other countries
outside of the United States.
Now, not content with this bounty of I
$50 per ton on steel rails, the eleven con-
,erns comprising this monopoly have plac-
I'd limit on the number tons of rails to be
3roduced in this country; they close sew