Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1890-03-05
STEEL AND TARIFF.
BraddOck Able TO Compete With En-
gland in Selling Steel Rails,
ACCORDING TO AN IRON EXPERT.
Products of Homestead Works Largely
Bought by the Government.
WIRE NAILS AND BARBED WIRE DULL
OFFICE OF PITTsBURG DISPATCH,
TUESDAY, March 4, 1890.

OFFICE OF PITTsBURG DISPATCH,
TUESDAY. March 4, 1890.
The question of reducing tariff on steel
rails is regarded bv some as of no practical
importance in the present condition of trade,
as prices are fully as high in England as in
the United States 1t is somewhat difficult
to get at the actual cost of making steel rails
at the Edgar Thomson Works, but when the
market price was SIG per ton, as it was last
summer, there was certainly fair profit to
the manufacturer. The advance in the past
SIX months has been close to $40 per ton and
the increased cost of making in that period
has been about So per ton. The increased cost
has been in coke. ores and tonnage labor.
An expert in steel making recently expressed
the opinion that, even at the increased cost of
materials and labor, steel rails could be pro-
duced at Braddock under $50 per ton. The
highest estimate of the cost is S2S, leaving net
profit TO the manufacturer of sl2 to SIS per ton
When it is remembered that the output of the
Edgar Thomson is about 200 tons of hnlshed
steel rails every "a hours, 1t is plain that money
is being made.
The assertion is made by the expert quoted,
without fear of contradiction, that steel rails
can be laid down in Liverpool from Braddock
and sold there at market prices at a prom po Oh
$40 per ton-a condition of things unprece,
dented in this industry. The advance on steer
rails in Great Britain the past six months mas
been fully 30 per cent greater than It mas Deen
in the United States. Ne are fully able to
hold our own in the worlds markets against all
competitors in the manufacture OF steel rails
steel Products Mt Homestead.
Interviews with some of the employees of the
Homestead Steel Works have developed few
facts which are here jotted down. The Home
stead works, unlike those of Braddock, are
turning out a great variety of steel products.
such as boiler plate. beams. channels, angles,
and in fact everything in the line of structural
steel Three thousand tons were furnished
from these works for the great Chicago Audi
torium. The works are at this time hllnT
large contract for the new ST. Paul Opera
House in process of construction. Beside this,
supplies of every description, in the shape of
angles and channels, are being furnished for
the new Government cruisers in process of con-
struction at Philadelphia and San Francisco.
The output of plates for the past few months
has been about 200 tons per month.
In the month of January 1000 tons of the
finest boiler plate were produced at Homestead.
The very highest tests on boiler iron are those
demanded by the Baltimore and Ohio Railroad,
and the Homestead plate was equal TO this test,
as it called out some heavy orders from that
company. The margin of profit on boiler plate
is narrow. On structural steel there is a good
profit The price of the latter is quoted at 500
per tor.
A pleasant feature of the situation at Home
stead 10 the workmen is that on the acceptance
of the recent scale it was agreed that the works
would be run for three years. From present
outlook there will be demand sufficient for all
that can be produced for a year or two ahead.
small Profit on Bnrbed Wire.
While there is comfortable margin on rails
and structural steel profits of late have been
obiterated in some lines of steel and iron pro-
ducts by the increased cost of materials.
Barbed wire and wire nails are among the arti-
cles which are now produced with a very mar
row margin of profit.
Said a representative of one of our largest
rolling mills recently: I'VE are selling some
lines of products at loss, but find it necessary
to do this in order to hold the trade in other
lines where there is profit. And in addition to
this, it would be more expensive to stop than to
90 on. We work on in the hope of better
day. If we can hold on long enough the better
day is sure to come.
The manufacturer of barbed wire. bar iron,
cut nails and wire nails, who is not well heeled
and prepared to work without profit if need be
for year or two, is likely to encounter snags.
In these departments of our iron and steel IN
dustries We are likely to have some practical
demonstrations of the Darwinian doctrine of
the survival OF the f1ttest in the near future"