The Kinsley graphic. [volume] (Kinsley, Kan.) 1890-1940, 1891-03-06
lie sTEEL al TRUsT.

1t Puts Up the Price of Raus-Great Profits
OF the Rau NTakers-HIgh Protection and
What 1t Costs-A Strong Monopoly Which
Needs NO Protection.
The steel rail misunderstanding in the
United States has been consolidated
into fewer and fewer hands during the
past ten years Ten years ago there
We're eleven companies engaged in
making rails; now there are only SIX,
and these are in com binatiOn which
controls prices and output A recent
meeting of the manufacturers Were
held, at which it was agreed to put ur
the prices of rails to $50 a ton, the
price having been as low as S2T. so at
the beginning OF the year.
The present price of the Besse-
mer steel rails in England
is 81 ton, or 50 lower than
in the United States. Our total
production of rails last year is given by
the American Iron & Steel Association
as /, 797, 600 gross tons of 2,24O pounds.
If the present difference OF 50 a ton
should continue through the year, we
should pay S16, 178, 600 more for our
rails this year than the same quantity
would cost in England.
In order to prevent us from buying
rails where we can get them cheapest
protective duty of S13. Il a ton is placed
on rails, although the difference be-
tween the total labor cost of production
in England and the United States has
been officially stated by United States
Labor Commissioner Carroll .. Wright
to be only 279I cents ton. This is the
difference in the entire labor cost, be-
ginning with the iron ore.
The entire cost of producing a ton OF
rails in the United States is given by
Mr.. Wright as S25, II and the entire
European cost, as averaged from seven
establishments on the Continent and
two in England, is stated by the same
authority to be be SD. n. This makes
a difference in the total cost of produc-
ton of just S3-to cover which our tariff
grinders give a duty of S13.44l
AS the steel rail trust has fixed the
price of rails at $50 ton, or 81. 80 above
the cost OF production, the total net
earnings of the six companies for this
year on I, 797. 900 tons will be 81, ZOO, goo.
Our experience in the protection OF
iron and steel has been carefully studied
and the result reduced to figures by
David A. Wells in his Recent Economic
Changes" Mr.. Wells takes the figures
given out by the Iron and Steel AssOcia-
ton, of Philadelphia, covering the ten
years from 1873 to 1887, inclusive, and
shows that the consumption of iron and
steel averaged 5000, 600 net tons per
annum. The average price of anthracite
pig iron in Philadelphia was 81; the
price of Scotch" pig IN England was
freights, would make about SI5 in this
country. The average difference was
about 81.
The average price of best rolled iron
in Philadelphia was 5000 per gross
ton; in England the corresponding iron
was S35. 4s, a difference of over S14; but,
taking the lowest differencs-SZ-iS
then appears that the consumers here
paid on go, 600. 600 tons in ten years
1920, 600, 600 more than the English con-
sumers paid; or, more accurately, more
than a like quantity would have cost,
taking the English price plus the
freight.
The aggregate consumption of steel
was 20. 600, 900 tons. Taking then the
lowest form of steel-the rails-the
average American price was S44; the
average English price $50. The in
creased cost to Americans was $3.50, OOO,-
600; but, deducting 81 per ton from the
iron used in making these rails, the diff
ference. Is 81 ~ nnn nnn
price on iron and steel was then $780,
100000 for ten years, or $50, GOO, 600 per
year.