Sharp County record., 1890-10-16
STEEL RAILS.


terest of the Workmen-So Some Profits.
Under the existing law the tariff duty
on steel rails is S17 ton. In the Nc
Kinley bill, as it passed the House, this
was reduced to S13. A ton, and in that
bill, as reported from tho Senate Finance
Committee, it was still further reduced
to Sl1. 30 ton. On the basis of the i'm
portations for the year 1889, these duties
amounted respectively to u, 81 and Al
per cent. These figures should be care
fully noted.
Now the men for whom Congress thus
kindly legislates should be able to give
some good reason why such favors
should be shown them. What have
they to say for themselves
The whole story of protection to steel
ralmakers-as to every one else-is
that the cost of production is so much
higher in this country than it is in
European countries that our manu-
facturers can not successfully compete,
even in the home market with the
cheaper foreign goods, unless the Gov
ernment helps them out If it were
not for the tariff, Sc it is ar
gued, we should be flooded" with i'm
portations of ''pauper made" stuff, our
own manufacturers would be beaten out
of their home market and they would
have to shut up shop and turn their
workmen adrift Therefore we must
maintain our industrial defenses"
That, it is believed, is perfectly fair
statement of the protectionist position.
Pushing the inquiry little further, it
is found that the chief reason why we
can not manufacture so cheaply as they
or abroad is that the rate of American
wages is so high. We have the best
machinery and the most economically
organized mills in the world; we have
an abundance of raw material; there is
no scarcity Of fuel, and in Pittsburgh
natural gas is used; but the great
trouble is that labor costs so much. And
surely you would not, say these great
men, have us depress wages in order
that you may have cheaper rails, We
can beat the world making rails, but
we feel that the American work.
man must be paid sufficient wages
to enable him to maintain his inde-
pendence and self-respect The tariff
makes it possible for us to do this. 1t
puts us on an even footing with the for
eigner; it is meant, so the phrase goes,
to "equalize conditions" Thus it is
that we get back the excess that we
have to pay in wages over and above
what the Englishman pays.
So it comes to the question Of labor
cost, and we have some very valuable
information upon that question in re-
port prepared by Mr. Carroll D. Wright,
the Commissioner Of Labor, on the cost
of production of pig iron, steel ingots,
steel rails, etc. 1t bears date July l,
1890,
On pages "a and 35 of this report the
facts are given about steel rails Two
establishments are taken in the North
ern district in the United States, seven
in Continental Europe and two in Great
Britain. 1t appears from this table that
the cost of making one ton of steel rails
in the first American mill (the estimate
is made on eleven days running time,
during which a. 3S9 tons of rails were
produced) is $24.79, and in the second
1t was $27GS. OF these sums 81. "a and
81. 3S represent the labor cost That is,
the whole labor cost of making ton OF
steel rails in these two mills. And ii
does seem that duty of SIT, or $13 Al,
or even S112O is considerably more than
enough to cover the margin between
$1.54 (the labor cost here) and any less
amount abroad. If the foreign manu-
facturer gets his labor for nothing, he
would only be $1,54 better off in the ton
than his American rival. And so duty
Of $l.54 ton would be ample to equal
ized" labor cost
But this foreigner doesn't get his la
Dor for nothing. In the seven Conti-
mental establishments the labor cost per
ton is as follows: $1O4; So 81; $4 Ga;
49, 5s; $9,G2; $2,97; S2.Ol.
That Is, in every instance, except the
first labor costs more than it does with
us. So the margin, instead of being
against us, is in our favor.
In the two English mills the, labor
cost per ton is $2. % and 81. SO.
1t should he clear from these figures
that an exborbitant steel duty is not
necessary on account Of great labor cost,
and it should also be clear that it is not
in the interest Of tho wage-worker
One other fact in this connection; The
same table shows that tho total cost OF
making ton OF steel rails is between
$25 and S2s; call it $205O. The price at
which they sell at the mills is now S32,
an advance Of rs ton within u year.
Here is a profit of S. 80 ton, The two
American mills that figure in Mr.
Wrights tables have daily capacities OF
sos and 440 TONS That means that al
this fair prico for their product, the,
make from So, 1S0 to S2, 490 day. And
when the price goes up to S37 and S3s,
as 1t did two or three years ago, then,
under the protection Of $l7 ton, which
Is put on for the 'benont Of tho work.
Ing men," the gentlemen realize fully,
as they DO now partially, the blessed.
ness Of the American system,
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