Lancaster daily intelligencer. [volume] (Lancaster, Pa.) 1864-1928, 1881-10-22
1allrastrr fntrlltgenrer.
SATURDAY EVENING. OCT. az, 1881
BesSeMer Rails.

United States for the past few years has
been the manufacture of 6essemer steel.
and it will probably lie for few years
to come, as the causes are very obvious
which make it SO. The Pennsylvania
steel company, located near our neigh.
boring town of Harrisburg, held its an
nual meeting the other day in Philadel-
phla, and discovered to its delighted
stockholders its possession of over three
million dollars of undivided profits. Its
dividends are at the rate of twelve
per cent. per annum, the managers con-
sldering that the company cannot do
better with the profits than to rcinvest
them in increasing their facilities for the
manufacture of the profitable material,
which they cannot make fast enough to
satify the demand. There are twelve of
these BeSsemer companies in operation
in our country that we know of, and at
least one new one building at Scranton
III this state. They are all as full of bus;-
ness and profits as they can stick, and
all are energetically engaged in increas.
ing their capacity for production. Last
Year they made nine hundred thousand
tons of rails; this year expecting to make
a million and a-quarter, and next year I,
million and a-half, and yet they cannot
supply the American railway demand.
This year a quarter Of million tons of
English steel rails will he imported. al
though they pay Il duty of tw"nty-cight
dollars ton.
That duty is a heavy tax levied upon
our railroads, which does not confer a
just advantage upon the Besselner steel
manufacturers and whose sole public
utility is the amount secured to the
treasury. The serious question for
Congress to consider is whether the duty
obtained upon quarter of million of
tons of rails justiies it in requiring the
railroads to pav twenty-cigiit dollars Il
ton on million and Il quarter of
tons. For they pay to the home manu-
facturer duty equal to that which they
pay the government. BeSSemer steel
IN this country, We are reliably ad-
vised. is produced as cheanly as in
Europe, owing to the superior character
OF the American plant and the greater
skill of its operators. If this is So. it is
obvious that our manufacturers realize
profit on their rails equal to the sum of
the duty. the ocean freight and the
EnuIiSh uf. ,ot ,,I
under these circumstances il is hot SUI
Prising that they are doing their best to
make hay while 50 hot a sun shines.
What is surprising is that Congress is
content that this great tax shall lie put
upon the country: for the business of the
nation has finally to bear the railroads :
burthen. And il may he this fact which
causes another surprising thing TO a?-
pear: which is that the railroad com
panle> themselves are 50 patient under
this heavy imposition. aid are ScaIcely
heard to grumb!". For this rXtracrd
nary good nature there may bc !, better
reason. How much would lc stricken
off the value of the assets of our rail
road companies if they were compelled
TO put down lii" applaiscment cf their
steel rails to thirty dollars instead of
sixty? Yet thirty dollars is all they
would bc worth if Congress should take
off the duty. And thirty dollars is all
that they will bring some day sooH,
whether the duty is on or off For it
will not he very long before the railroad
building mania will subside and tie
steel rail companies, with their enor-
nous plant and capacity for producing
millions of tons of rails, will not find a
demand for their product. Then their
present close union will perish liz the
selfish grasping of each for orders. lis
such unions always do dissolve under
such circumstances. and prices will come
down to about cost.
Then will I've the time 20 build rail
roaGS, and wise men will keep their
hands off investments in new enterprises
until then. Congress may hasten the
day of cheap rails 10y its action; but il
is bound to come anyway, and the great
railroads that have paid big prices for
their steel and like to see the price OF
rails kept np to check the buildin. of
lines, will find that they can
only postpone the evil day. and they will
be prudent in laying up a good surplus
themselves against the time when they
will need to make Il big entry in the