Rock Island daily Argus. (Rock Island, Ill.) 1886-1893, 1891-10-23
THE STEEL RAIL TRUST.
/ LEGITIMATE oUTGRoWTH OF
HIGH PROTECTIVE TARIFF.


American People-wages Reduced and
Preparations Made to Raise Prices.
One of the strongest trusts in the
United States is that which was formed
few years ago by the steel rail manu-
facturers. Ever since its formation it
has had complete control of the bust.
ness, and has been able by the assist
ance of the protective duty on steel
rails to control the markets and fix the
prices at which its products are to be
sold.
Last year the only drawbacks to the
complete success of the trust were re-
moved by the purchase of the Allegheny
works by the Carnegie Bros, and the
consolidation of the Scranton Steel COM
pauy and the Lackawanna Coal and
Iron company under the latter name.
When these changes were made the
trust was composed of the following
concerns: The Illinois Steel company,
Carnegie Bros, Limited two establish
ments), the Cambria Iron company, the
Pennsylvania Steel company, The Beth
lehem Iron company and the Lacka-
wanna Coal and Iron company; in all
six companies.
Last year the Pennsylvania Steel COM
Iany began to build new works at Spar
rows Point, Md, and late last month
the combination held an important
meeting in Philadelphia to make ar
rangements for the admission of these
new works into the trust. This was sat
isfactorily accomplished, as the follow
ing from the Philadelphia Press of Sept.
26, an exponent of high tariff, shows:
IAN important meeting of the steel
rail combination was held in this city
yesterday, and serious differences which
have served as bones of contention were
satisfactorily adjusted. The admission
of the Maryland Steel company, of Spar
rows Point, to the combination, over
which of late there has been considerable
discussion, was determined upon at yes
terday's meeting. The percentages of
the total production allotted to each
member necessarily underwent some
change upon the admission of the new
member, but this was accomplished
without friction and to the satisfaction
of all the companies embraced by the
condition, and a member of the COM
bination said yesterday that everything
was harmonious and the prospects for
business bright"
just as in 1923 and 1867, the trust
is now ready to take advantage of any
boolns which may occur in railway
building and foreclose, as it did in
those years, its high tariff mortgage.
While the trust has been active in per-
fecting its already strong consolidation,
SO far as outside competition with it is
concerned, it has been equally active in
another direction. 1t is the intention Of
the trust that all Of the proceeds of the
tariff mortgage, which it expects soon to
foreclose, shall go to its members only,
and not be shared with its workmen
And here again it is but exercising its
trust prerogatives. No one has ever
heard of trust formed for the pur-
pose of increasing wages. On the con-
trary, all the trusts have, as one of their
first acts, reduced wages. Such was the
case with the Plate Glass trust, the Oat-
meal trust, the Sanitary Pottery Ware
trust and others. Such is now the pur-
pose and aim Of the Steel Rail trust.
With the price of its raw material fall
ing, with no cut in its combination price
Of thirty-one dollars per ton at western
mills and thirty dollars per ton at eastern
mills, and with the prospect of a boom
in railway construction next year, all of
the mills have reduced wages since Jan.
last, and some are contemplating still
further reductions. Since Jan. the fol-
lowing members Of the trust have cut
down wages:
Lackawanna Iron and Coal company
average reduction of twenty cents per
day Jan. /.
Pennsylvania Steel company-reduc-
ton in wages of from 8 to 10 per cent.
Feb. 1.
Bethlehem Iron company-reduction
of 10 per cent. Feb. ..
Carne gle Bros, Limited-reduction of
10 per cent.
Illinois Steel company-reduction of
wages March 6, followed by strike.
A still further reduction is to be made
by the Carnegies, as the following notice
to their employees posted in their mills
on Oct. l, clearly shows:
NOTICE.
To Our Employees:
As provided In our agreement, we hereby
notify you that we desire to aunul it Dec. 81.
1891, and that we will be ready to make q new
sliding scale agreement with you at any time
after Oct. TO- 1891 to take effect Ian. |, 1892.
The contemplated changes are rendered nee
essary prir cipally by the introduction of many
mechanical improvements and advanced
methods OF manufacture by which the output
has been very much increased since our agree
ment went into effect.
CARNEGIE Bros, LIMITED.
II. @. FRLCK, Chairman
Just as was the case with the other
members Of the trust and with the Car
negies early this year, the new sliding
scale is to be downward one.
Meanwhile, The Iron Age, high
tariff organ predicts a boom for next
year in the steel rail business.
That the trust will take advantage of
this boom IS certain. The history of the
steel rail trust well illustrates the effect
of high tariffs. The tariff shuts out
foreign composition and enables the