Savannah morning news. [volume] (Savannah) 1868-1887, 1886-11-12
A HEALTHY INFANT INDUSTRY.
How Steel Rail Manufacturers are
Protected.

The Hon. William l.. Scott, Democratic
Representative from the Erie Pa. dis
trict, was reelected last Tuesday by over
800 majority, although the district is
naturally Republican by at least 5000
majority. Mr. Scott took a bold stand for
tariff reform in Congress, and made his
canvass principally on that issue. In
speech in Erie the Saturday evening be-
fore the election MIR. Scott said, among
other things:
1--WE hear a great deal about the prOtec-
ton OF the wage worker, and am in favor
of protecting the wage worker. But may
1t not be that we are protecting the manu-
facturer more than the wage worker? |
cannot give better illustration of this
than by referring to an incident in con-
nection with Mr.. Jarrett. That gentle
man said he was Welshman and th at be
mad come over TO this country and imme-
diately became an American citizen as
soon as the laws OF the country
would permit. About the same
over there was another subject
OF the Queen of Great Britain arrived in
this country and this State. He finally
located in Pittsburg, but he never gave
up his allegiance to the Queen, and one OF
his proudest boasts today is that he is not
Qneen OF England. But he went into the
manufacture of iron and steel in Pitts
burg, and L know positively, from state
ments made by reputable gentlemen, that
although he did not own the entire works,
he drew out of that establishment during
a period OF 300 days profits amounting
to $4,000 per day. $l,500,000 in one year.
He Is now building a castle abroad, and
he expects to return to his native country
hs,b .n fr,a Nh,v-r ],
protection of this government and die, |
suppose, a British subject. Now let us
take, tor instance, this article Of steel
rails, of which you have heard so much.
Eighteen months ago | had occasion to
buy 10000 tons of steel rails. ! went to
rolling mill III Pennsylvania and bought
them for $25 so per ton. The parties
who sold them to me were per-
fectly satisfied with the price. At
that time there WAS no combination
between the steel mills OF this country.
About six months atterward the seven or
eight steel rail mills OF the country CON-
bined and agreed to divide among them
selves the amount of rails that the coun-
| try would require, and gradually the
price OF steel rails " ent up until it reached
$33 per ton, which is the price TODAY.
From S25 80 to 1913 is an increase Of ST 80.
Now, the advance IN the cost OF produc-
ing ton of steel rails does not exceed 10
per cent. over and above what paid as
the time, or 81 30 per ton. That would
| leave in round numbers an advance IN
steel rails OF So a ton without
! any necessity for it. There
are seven or eight steel rail mills. and
they produce about 1000, 900 tons 0 f steel
rails u ear, and this additona profit of
| So per ton amounts TO the sum of S.. 300
600 to be divided bet Eeen these seven or
or eight mills. DO you think that the
! railroads pay this excessive profit on the
steel rails they buy? Not by any means.
! The railroads simply advance the money,
! and 1t IS you who travel over the rail
roaus and who transport your merchan-
disc and produce over them, who in the
| end pay this immense profit TO the menu
facturers. 1t comes at last upon the y
| pie. Less than year ago | was Ia az
with a friend OF mine on this question OF
steel rails. He probably purchases
more steel rails than any man in
the United States. said to him: ''These
mills are putting up these rails pretty
| fast Don't YOU think they ought to
| stOpW YES" said he, 81 think they
ought to-" know that he knew what he
! was talking about. Said he: "Iou know
! how the iron industries have been for the
/ past few years-apparently hardly alive.
! But do you know one thing:" and then
| calling certain iron and steel company
! in Pennsylvania by name, be SAID
| THAT company represents a capital OF
! $4,000, 900. You know how the iron and
| steel industries have been depressed, and
| yet know that the principal bone OF con-
! tention in the board Of directors of that
company for some time mas been whether
! or not they should make an extra diYi-
| dend OF $l0,00O,0OU.' lApplause.l