The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1891-09-24
THE AGE OF TRUSTS.
Immense Combinations Organized
to Enjoy McKinleyism.
The steel ran Association.

and of the Scranton steel works by The
Lackawanna coal and iron company
have directed attention TO the fact that
steel rail manufacturing Is slowly but
surely becoming u monopoly. In 1880
the field Of steel rail making was cut
up by the competition f ten different
concerns Now there are but six In
the decade Intervening nine other con.
Germs have either discontinued the bus.
inees or been absorbed
"Penueylvania prreuces two-thirds
of the stoci rolls made In this country.
''There is o tacit understanding
among toe SIX concerns now making
rails which prevents cutting In pricse
ond insureS division OF orJleFs None
Of the companies is powerful enough to
absorb the other, but the business hos
been 80 centralized as TO make the
formation Of a trust an easy matter
whenever the manufacturers feel so
disposed "-Associated Press
NOT A PooL. AN ASSOCIATION
The ebove report of the absorption
of the Scranton Steel Co. by the rail.
makers trust evolaod this explanation
from the secretary Of the Illinois Steel
Co,
'Srhe Dispatch calls the combination
of stoel-rnil mnlrers pool This fs not
correct The various companies have
formed the Railmakcrs' Association.
The object Of the association ts simply
70 prevent ruinous cutting Of retea
There is absolutely nothing In the
rumor that our profits are pooled Each
company is independent Of the otheA
save in one matter OF undereelling.
Now that the Scranton company baa
Joined the association thore ere no rail
companies outside. The Scranton com.
pany has been { disturbing element for
0 long time, bus l suppose that 10 has
found that 1t would be more profitable
70 Join tho association
That the new concern Is not a pool,
but an "essociation," will be comfort
TO consumers Of steel rails who ore
thus officially assured that the mem.
bere of the ''associatlonn Will find IL
moro profitable TO Join" and prevent
the ruinous cutting Of rates" The
league, pool trust or association will
not I presume, Interfere with ruin
Gus TO consnaers) imitation of rates up
TO the full limit permitted by the Nc
kinley tariff
The manufacture of rails has thus
been concentrated IN the hands of six
companies and the price Of rails has
been advanced about s. 90 or S4-00 from
the very lowest figures There were for
merly eleven companies which produced
rails, without counting the Troy or
Cleveland worlsa The Illinois Steel
Co. absorbed three companies the
Carnegies bought out one, and the
LaclSawanna Coal and Iron Co and the
Scranton Steel Co. have consolidated
This leaves the Illinois Steel Co, the
earnegies, the new Lackawanna Co..
the Cambria, tho Pennsylvania and the
Bethlehem Iron Cos, in possession of the
field 1t Is understood that the new
Lachawanna Co will issue So, roo 900 in
stock, and its capacity will be 400, 900
tons per annum.
During the yeas 1887, sO4o, G8s tons of
steel rails were produced IL this
country. The combination, with the
aid and protection of the tariff wall,
forced the prices up from Ss7 per ton,
in 1885, 20 $40 per ton at the beginning
of 1887. Prices then declined to S32. so,
under the pressure of the railroad COM
bination, which found II profitable to
import 1,sOO, 600 tons, notwithstanding
the duty. This importation of l, $780,
900 tons of steel rails, conclusively
shows that American combination
prices are, on an average, $3.50 peE ton
higher than English prices
Previous to 1870 the duty on steel
rails imported was AS per cent ad va
loren. Up TO 1869 ard 1870, Sir Henry
Bessemer had patent on tho steel
rail process, and, like any other article
patented, he might have charged any
price for IL. In 1869 he was selling steel
rails at sl1O per ton. In 1870 his patent
ran out and steel rails fell to $50 per
ton. In 1868, In this country, the price
of Bessemcr steel rails was $l92.5 so per
ton, and in 1871 the price was SlO2 per ton;
and the manufacturers Of steel rails In
this country, seeing that they could
now have the benefit of Bsssemer's In
vention, and wishing to ward OFF for
eign competition, sent confidential
communication to the committee on
ways and means of congress-, asking
for duty of two cents pound or
S44.S0 per ton, or steel. Notice right
here, that this dusy was proposed by
the very men who expected to reap the
benefits, and not by congress at It's own
instance They did not wish the real
reasons and motives 10 be known This
letter, nevertheless, was very honest
document; they put In no idle wOrds
They proposed, by means of heavy
duty on foreign steel, TO keep that out
of the county, and with their own
mills then running, t. supply the
whole domestic market But the com
mittee and congress did not give them all
that they aslsed.-two cents per pound,
or S44, sc per ton-but only .fvo-eightha
of what they asked, or S2S per ton.
Now, how did this duty operate--frst,
30 far as the people were concernedi
second, SO far as the laborers were con.
cerned?
First, then, as t5 how II affects the
people. For the thirteen years ending
in 1883, there were produced In the
United States 0,944, 750 tons of steel
rails. The average higher American
price for rails for those thirteen years
than English rails, was S22 Is per ton,
which average higher price was the
only motive for laying the duty on the
foreign rails Thst Is to say, the effect
of tho laying of ahe duty was to in
crease theAveraga American price, not
TO the full extent Of the duty (Sas per
toni, but to only so per cent of the dus
ty; that is, s22, 15 Now, multiply ths
total number of tons produced by ths
average higher price occasioned by ths
duty, ar d you have the enormous sum