The morning news. [volume] (Savannah, Ga.) 1887-1900, 1891-02-16
WHAT STEEL RAILS COST.
TIE SHOWING FOR THIS COUNTRY
AND EUROPE

ADrOad.
WASHINGTON, Feb. 15.-Tbe President
has transmitted to congress the report of
Carroll D. Wright, commissioner of labor,
on the cost of the production of steel and
steel rails. The inquiry was directed by
the act establishing the department. with a
view to ascertaining the cost of producing
articles dutiable in the United States in the
leading countries where such articles are
produced, by units Of production, In order
to show the differences in the cost of pro-
duction between this country and Europe
and the possible bearing Of these differences
on tariff rates.
The report covers three features: First,
relating to the cost of production of the
articles selected; second, relating to the
rates. wages, Time, earnings and efficiency
of the labor employed; and third, relating
to the oose of living and total earnings and
expenditures of the men employed.
Col. Wright was able to obtain facts from
6l8 establishments manufacturing various
kinds Of iron and steel or its more finished
products.
THE SOUTH VERSUS THE NORTH.
For the purposes of this report, Col.
Wright has divided the United States into
two districts, northern" and southern. !"
A comparison of the cost of the materials
used In the northern and southern districts
of the United States shows that the differ
encs In favor of the south in the cost of ore
and of coal is very great. although the diff
ference, so far as this is concerned, is par
TALLY offset by the comparatively higher
price OF iron il the northern district.
The ore used in the nor shern district costs
per ton an average of S4.401 cinder, scrap,
etc, So 631; limestone, 79. s. cents: coke, i. 304
and coal, S2695
The cost in the southern district for ore is
stone, 1901 cents; coke, $S.0S4; and coal,
$l.566.
COST OF PIG IRON.
The report shows the total cost Of one
ton OF pig iron, from the mining of the ma
terial to the finished point in thirteen esnab-
lishments in the northern district, five in
the southern and one in Great Britain.
In the northern district the direct
cost Of the labor in the production
of Bessemer iron range from
So 70 to SO a.; for officials and clerks, from
l715 cents to 81 cents; supplies, repairs and
taxes, from 81 60 TO SIS 80; transportation
to the point where used, from 81 90 to IS 80;
difference between the foregoing actual
costs and the costs as charged to the blast
furnaces, from 81 10 to S. o6. The totals
therefore range from $13 81 per ton to
SIG 80.
In the southern district the costs per ton
Of the run of the furnace range as follows:
Direct labor, 81 50 TO 81 TO; officials and
clerks, Is cents to 45 cents; supplies,
repairs and taxes. 66 cents TO 81 20; trnns-
portation to points where used, sc cents to
81 SIS; difference between the foregoing
and the costs as charged by the blast fur
mace, 81 cents to$9 on. The totals there's
fore ranged from 50 IS per ton to $40 81.
In one establishment in Great Britain the
total cost Of these elements per ton is $40 81.
COST OF STEEL RAILS.
The table shows the results of inquiries as
to the cost Of producing steel rails in thir-
teen establish Uents, two of them being in
the United States, eight on the continent
Of Europe and three in Great Britain. In
the United States the net cost of the ma
terials was S2l 10 at one establishment, and
$25 II at the other. The cost of labor was
81 54 and S3 IS. Thus the total cost at
one was $24 70, and $27 6S at the other.
On the continent the net cost of the ma
terials varied SIT 80 to $40 SS; the cost of
labor from 81 02 to 81 "a per ton.
In three establishments in Great Britain
the net cost Of the materials varied from
SIG 80 to S18 05, and the cost of labor from
81 80 to 81 81. The totals, therefore, varied
from $18 58 to S21 80.
WHY WE SHOULD BEAT THEM.
Col. Wright states that the labor cost in
ton Of steel rails, speaking of the labor
cost after all the materials have been assem-
proper manipulations for the production of
rails. should be less per ton, rela-
lively, In this country than in Great Britain
or on the continent Of Europe, bec luse the
American producers of rails dispense with
at least one expensive process still
adhered to by many foreign pro-
ducers, and the materials in the
United States are purer than
those used in most other countries. Hence
the quantity Of ore required for the produc-
ton Of ton of rails is less in this country
than in many places abroad, and the labor
required to handle the materials in
the raw to produce a ton is less.
This is shown by the quansfties Of
ore used in the different establishments.
In one establishment given in the northern
district of the United States 4, 1877 pounds of
iron ore were necessary for the production
of one ton of standard rails, while in an
establishment in Great Britain 5, ,127 pounds
of iron ore were necessary for the produc-
tiou of one ton of practically the
same kind Of rails; while on
the continent of Europe 5,701
pounds of ore were necessary for
the production of one ton of rails. These,
Col. Wright says, are far more indicative
of the true conditions surrounding the pro-
duction of rails in the respective countries
than any Of the others given. The entire
direct labor cost of production in these
three establishments was $11 SO for the
United States. 81 81 for Great Britain, and
s. 10 for the continent Of Europe, showing
a difference as against the United States Of
favor of the continent Of Europe.
COST OF TRANSPORTATION.
-- In speaking of the transportation Of steel
rails, the colonel says that in some cases the
heavy freight charged for transporting iron
and steel rails benefits American manufact-
urers; IN others it places them at serious
disadvantage at ports where there is water
competition with Eurcp pean manufacturers.
As an Illustration of the practical workings
of the freight rates with reference to steel
rails, the report quotes the statement of the
steel companies in the United States.
He said the difference in the ccst
of the production Of steel rails
in Chicago, for instance. and in England
would not exceed SO SO or 81 per ton, and
that the freight rate t$5 per toni from Chi
cago to New York offered large protection
to his company.
AVERAGE DAILY EARNINGS.
As TO the time the " workmen are employed,
the report gives examples of dsily averages
10 this country and in Europe ia pig iron
r14- IT,. -