Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1889-11-02
OLD RATES RESTORED
The East and WeSt-BOund Tar.
IFS on Iron and Steel
INCREASED II PER CENT.
Manufacturers Say the Trade Can't
Stand the Advance.
RAILROADS DEMAND THEIRsHARE

Railroad freight rates on iron and steel
were pushed up another notch yesterday.
In consequence there is considerable agita-
tion among the manufacturers who are di-
rectly affected. The advance is from 10 to
10 per cent over the present rates, and the
new tariffs will take effect November IS.
In accordance with instructions received
from the joint committee of the Central
Traffic and Trunk Line Associations, a
meeting was held yesterday afternoon by
the Pittsburg Committee in the private
Office of the Lake Shore road. Every local
road was represented. After considerable
discussion on the matter the rates were ad-
vanced to the following figures from Pitts
burg:
New York, from Is and Is to Is and 2l cents;
Boston, from Is and 81 to q and "a cents;
Philadelphia, l3 and l6 to Is and Is cents; Buff
falO, from and cents TO l3 and 9 cents; Cleve-
land, from and cents to IS and cents; In
dianapolis, from l5 and IL to Is and Is cents;
Peoria, H., from 20 and IL to % and 20 cents;
Toledo, from Il and 10 to is and IA; East St.
Louis, from . and lS1z to 25 and q cents; Gin
cinnati, from l5and q to IL and Is cents; Chi
cago, from l71z and Is to 20 and 1776 cents.
As will be seen, the advance applies on
both east and west-bound shipments, and
all immediate points will be increased in
the same proportion.
CHASING THE OTHER ADVANCE.
This is following close upon the heels of
the advance of about 10 per cent which was
made about two months ago. On Wednes-
day The DISPATCH published an item to
the effect that there was reported move
ment on foot to advance the rates. A num-
Der of railroad officials were seen before the
item was published, and they all denied
that there was any intention to increase the
present tariff. A number of manufacturers
were also interviewed. They stated that
they did not think the advance would take
place, as the condition of the iron market
did not warrant any further increase.
In regard TO the advance made Yesterday,
q number of large iron shippers were asked
for an expression of opinion about it. Mr..
A. NJ. Byers of Byers & Co., wrought iron
and tube manufacturers, said.
THE rates were advanced about one
month ago, and 1 cannot understand the
necessity of Increasing the burden on the
iron manufacturers. The railroad officials
think that this supposed boom in the iron
business justifes them in advancing the iron
and steel rates. There is no general boom
in the iron business. The prices of raw
material have been advanced from below the
cost of production. It was advanced TO
enable the manufacturers to make a slight
profit Finished iron has not advanced as
much as freight rates. The service of the
railroad companies is wonderfully poor.
SHIPPERS LOSING MONEY.
1.-THE iron manufacturers and large ship
pers of this city are losing money for the
want of better service. The delivery of
cars bv the railroad companies is the weak
est apology 1 ever experienced. The officials
first said they did not have the cars. 1t
now develops that they have not the power
to move what cars they possess There is
certainly no reason for the advance The
slight increase on iron does not Justify it."
Harry Holdane, freight agent of the Ma
tional Tube Works at McKeesport. said:
ut is certainly a mistake 70 advance the
rates now, as it has been but few weeks
since the last increase went into effect
Every winter the rates are advanced. but
this year it came sooner than expected.
The railroad companies think there is a
general boom In the iron business, and want
some of the pie. This supposition Is not
correct The prices on pipe have not been
advanced BY the manufacturers within the
past 60 dsys and there is no reason why the
treights on the same material should be
pushed upward"
At the office of Jones & Laughlin it was
stated that Mr.. Jones was out of the CITY,
In reply to the inquiry, his representative
said:
Suppose the railroads have advanced the
rates, what difference does 1T make? There
is no use kicking, as it will not alter the
case. All the dissatisfied talk of IRON manu-
facturers that could be published for the
next month would have no effect on the
matter, When the railroads want to ad-
vance the rates they do so, and we have to
stand it. They do not care whether we like
1t or not. 1t is customary to push up the
Tates rba0 narIOofiou n1ncoc fnr he
but ! think the change is coming a little
too early this year"
AN OPPOSITE VIEW.
Another manufacturer, who has a large
plant on the Southside. and who asked that
his name be withheld, took the opposite view
of the matter, and said the railroad COM
panies should have advanced the rates some
time ago. He said: '0nly year ago the
railroad business became badly crippled on
account of the different roads fighting about
rates. The iron business was then in a Door
condition, and every road tried to get what
little business there was. The several ad-
vanees that have been made lately brings
the rates up to figure that will allow a
small margin of profit for the shareholders.
Now is good time to make the advance
Cars are scarce and there will not be anv
kicking done. l am glad to see the railroad
officials awaken TO the fact that it is time
the owners of the roads made up some of the
money they lost when the business went to
the dogs"
One of the railroad officials who was pres
ent at the meeting yesterday said: 1.-Two
years ago when the iron business was at a
low ebb and the manufacturers were COM
planning of losing money we reduced the
freight rates at their request. We made
reduction of 20 per cent and followed it
shortly afterward with a reduction of 20 per
cent more. Then we advanced them 20 per
cent and the action Of to-day places tie
rates to where they were prior to the reduc-
tion OF two years ago. In the meantime the
rates have been sliding up and down, but
were never restored until now. We have
discontinued the use of the special rate on
iron and steel articles and placed the latter in
fourth and fifth classes. suppose the iron
manufacturers will rise up add howl about
extortion. They do this generally and we
have become used to it. They do not re-
member the fact that the railroad companies
buy 40 per cent of the iron made in this
country and pay the highest prices for it."
The Chicago, Rock Island and Pacific
road announces reduction in rates on rail-
road materials to Denver and Colorado
points. The rates are good for 80 days.