New-York tribune., 1889-12-22
AMERICAS IRON AND STEEL
A TALK WITH ANDREW CARNEGIE!


UrAoruRE-THE PRESENT CONDITION OF
THE BUSINESS HIGHLY SATISFACTORY
AND A PROSPEROUS OUTLOOK
FOR THE FUTURE.
while the industrial world is ponderins the s'a'c
nents concerning the extraordinary progress OF Amer
- .n,sacturers which Andrew Carnegie made al
the hanouet of the Boston Merchants Association OF
T,.cember 1o-statements that were corpulent VIII
tarts and comparisons of startling description-Mr
C.rneeie consents to the following interview with
Tribune reporter In regard to that brahch Oh 'e oo
xry,s business on which he Is considered the hshes
living authority, namely the manufacture oil IRON A"o
steel, its past development, present condition ano
future outlook
THE RECENT RISE EXPLAINED
@Mr Carnegie. how do you account for the great
rise that has recently taken place IN IRON anu s'eo'
In the United States p
9Tbe explanation is to be found in the fact that
rices have advanced much in Europe as to prevent
the foreigner from finding market IN America ino
American manufacturer is, therefore, called upon "
supply the entire wants of his country For the nrs'
time ne has undsputed possession OF the nome marho
He was rapidly securing this all of last year. hehoo
the manufactures kept fully employed ho."i,n
standing only some 800 miles of railway were Dul.
as against 1000 the previous year. ~
1000 miles last year. The .,
forms of iron and steel absorbed the surplus vi 'o
iron ore and pig iron produced Europe ""' o
able to sell to America more than l'oVo'oov .DnI
iron ore and from 100000 to 100000 tons Oh nnshee
- .s r,oo, In varions forms every year. These
smporis are now cut off and the American man
s,faoturer is suddenly called on to supply 'hen " 10
xeared that the strain for some time 10 come wiz ="
-,.at unon him and that prices viii materiauS au-
(~ance."
INCREASE IN IRON ORE PRODUCTION
awos NOT the increase in iron production IN
America very great this year," ..
ayes unprecedented: nearly 2oooooo tons greater
than in any previous year, most oi IL oelue o'" w
Lake Superior district, Notwithstanding 'ha' '"o ON
c,osed down with a scarcity of the article +>oA'
season we arc likely to see another l'ooo'ooU "n
.hded IN this years extraordinary product hau l"
grot been for this increase we should nave hao
famine in ore .u ., ovor 80
ais not the product of pig iron greater than ever
9Indeed il is 1t promises to be not lar iroin
vooo. 600 tons. Next year we shall probably pu.
)he Republic ahead OF "icaU bri'"i" ." WV
f pig IRON .,.. n.,,o,,, ror,.
sOur product in 1887 was 7.lS7,ooo TONS ana IN
asss little less than that Great Brltalhs plouuc'
In 1887 was 100000 tons, so you see that IL was
n nrstty close race between us that year. Ehsahu
heat us a little more in 1855. The race VIII oc Z"
Close one in 1890 because Great Brtain's capacity
au he nusbed 10 its utmost owing TO the high prices
nut theurh Great Britain may still make more pig
arn than We do must not be forgotten that America
consumes all the pig iron it manufactures whlle
Great Britain exports much. America is by far 'he
greatest consumer Of pig iron in the world
aWbat is thc extent Of the ron-ore production"
sExtraordnarv. in 1854 the Lake Superior dis
frict shipped 5000 tons of ore; In 1888 our prouuo'
smosHted TO 100000 tons"
AMERICA LEADS THE WORLD.
I'm your Boston speech, Mr. Carnegie, you saih
chat America stands first among nauohs Ill 'ie MANI"
facturc OF iron and STEEL
aso she does in the manufacture of finished iron
and AeeI Here are the figures In 1887 America
manufactured 1880 900 tons of steel as against Urea"
Brtain's 3.17OOOO tons. In iron, Great britain man
ufactured only III 900 tons, while in the Republic
the product was ZOOS 900 tons. But the most eA-
traorduary development has been in steel rails we
make about two tons for every ton made IN Eng
land"
aThe progress of steclrail manufacture seems to
have been wonderfully rapid"
aNothinc like il in the world. Eighteen hundred
and seventy-t the first year IN whlch America
made 100000 tons Of STEEL fifteen years later IL
1887. she made more than thirty times that amount
This is not an isolated illustration of our progress
Nm 1867 only 1850 of steel rails were made II
America: in 1ss7-twenty years later-we made
e,854,0oO tons"
"Are our steel rails cheaper than the English
products"
aThe price of steel rails today is fully great in
london as in New York. Not a cent Of duty on stee
rails is paid by the American consumer. Prices are
also substantially the for steel plates and for
many other articles Of iron and steel
"Do continue to import steel rails? ~
ave have imported but few from England in
snany years"
no REDUCTION OF DUTIES.
AT the present prices abroad are to continue IL
would seem that reduction Of tariff duties might not
injure the country"
"You arc right. But that little word If is very
big word. Reaction in prices abroad is sure to come.
and rather than restrict production-whch would in
crease cost-he foreign manufacturer will do as he
has always done, make America the dumping ground
for his surplus The revenue reformer of freetrade
proclvitieS always makes two assumptions which are
Incorrect. First, he compares costs on both sides OF
The Atlantic adds the freight charges to America and
assumes that this should be the measure of the tariff
against the foreign product. Now difference in cost
Is only element To make iron and steel articles
rheapy manufacturer must make let us says 900
tons q day. If he can find market for $50 tons
day, TO net small margin Of profit
ne had better sell the remaining $50 tons in America
at actual loss of several dollars per ton than to
restrict production Secondly. to the extra cost of
freight to the foreigner the British manu-
dacturer is closer TO the American markets
on the seabord than the American
facturer The British manufacturer delivers his rails
at Savannah. Charleston brunswick Fernandna,
Mobile, New-orleans and Pensacola for much less
freight than any steelrail manufacturer in
America can deliver his product at the same points.
As for points the Pacific coast feigts do not cost
the foreign manufacturer onchalf what they cost the
American. have stood in the Office of the iron kings
of scotland--the Bards-and them give steam
ship company, favor the right to haul from their
Iron yards in Glasgow and deliver TO their iron yards
1n free Of cost hundreds of tons of pig iron
the steamship company paying the Of hauling from
yard TO yard. The ships that sent America for
cotton often glad 10 fetch iron for ballast
will at all times bring IL for mere trife. In
some instances they have paid trihe for privilege
These facts are so potent when understood that there
Is no danger Of any committee House or Senate