Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1892-11-01
A FREIGHT BUREAU
To Be Established Under the
Auspices of the Chamber
of Commerce.
THE CITY BADLY TREATED
In the Matter of Rates by Railroads
Running Out of Pittsburg.
GEO. T. OLIVER TALKS PLAINLY.
e Says That Local Industries Are Eeing
seriOusly Hurt
THE CITY BADLY TREATED
GEO. T. OLIVER TALKS PLAINLY.
0ME INSTANCES OF DISCRIMINATION

ject was presented to the Chamber in q
piper read by George T. Oliver, in which
hs pointed out some of the more glarlng
Irregularities The result of the investiga
tpns into the subject will probably be the
establishment of freight bureau in Pitts
btrg.
The letter upon the subject read before
the chamber some time ago by Robert j.
Bailey was returned by the Committee on
Transportation and Railroads without any
Recommendation. Alter an examination
the committee came to the conclusion that
its contents did not Justify the attention of
the board or its committee. In presenting
its report the committee said it was entirely
willing to take up the subject anew and
asked that any persons prepared to furnish
reliable data to the committee in connection
with the subject of freIghts should leave
their names with the Superintendent of
the Chamber in order that they may be
notified to appear before the committee at
its future meetings.
A Freight Bureau Suggested.
In considering Mr. Bailey's letter in
committee last Friday evening three hours
were spent. 1t was the general opinion
among the members thst it was not for the
Chamber of Commerce to undertake the ex-
pense of maintaining bureau with COM
petent man in charge to look after the in
terests of the manufacturers. 1t was
proposed that the manufacturers, mer-
chants and others interested should create
separate organization for the establishment
of a freight bureau, which should be oper-
ated under the prestige of the Chamber of
Commerce, but the expenses to be paid BY
the association SO formed. 4 few hundred
dollars to paw the salary of a competent,
well-informed man, who would devote his
whole time to obtaining an equalization of
rates, would obviate the difficulties that the
Chamber of Commerce has heretofore en-
,ountered-lack of funds and time to push
their claims-and the expenditure would
not be noticed.
After presenting the report on Mr..
Bailey's letter, Mr.. Scott asked that MIR.
George T. Oliver be permitted to read
paper which he had prepared on the SUBJ
ject of freight discrimination. Mr.. Oliver
presented strong arguments, showing the
need of the establishment of a bureau to
look after freight rates Mr.. oliver said:
n DraWDaCk uanu1aCturerS.
ItAsa q matter of common remark that while
Alleaneny county maintains the position she
has held for a generation as the great heavy
manufacturing center of the United States,
she is making little or no progress in finish
ing the materials which she turns out in such
abundance. Thousands of tons of iron and
steel are daily produced within her borders
to be shipped to different points east and
west. there TO receive the finishing touches
,s<,h oil x-il1 dor n N ha
consumer. To a thoughtful mino the Ques-
tion naturally occurs, why is not Pittsburg
as good locality as any other for this kind
of work? Is there any good reason why the
raw materials which we produce in such
abundance should not be finished here in
stead OF being shipped hundred or perhaps
thousands of miles to points whose
only advantage over US lies in the emery
and enterprise OF their people? Must we
content ourselves with being the hodcar-
riers and laborers for the whole United
Siatesf i honestly believe that we are drift
ing in this direction much faster than most
OF us suppose. While our progress in the
mast has been marvellous, it has been mainly
because we possessed advantages in the way
of cheap fuel which other localities now
share with u.s. and in some instances really
outstrip us. the manufacturers of the nat
ural gas belts OF Ohio and Indiana still enjoy
the fuel which is a matter OF blessed men,
ory with US, and most of them have freight
contracts with the roads on which they are
located which enable them to successfully
compete with PiItsburg manufacturers.
Recognition From Railroads Necessary.
lam no pessilnist in regard to Pittsburg
believe she can not only maintain her su-
premacy as q manufacturing center, but can
largely increase her importance in the in
dustrial world. She can do even more than
this. She can build up her mercantile inter-
ests so that they will rival her manufactures
in importance and extent This, however,
can only be accomplished by earnest
thought and dilisent, continued efforts on
the part OF her people, to secure for the city
the recognition she deserves from the rail-
,oads centering in our midst.
am sure that am within the mark when |
state that within the past ten years the |
cost, as well as the selling price, of iron and |
steel in their various forms has been re- |
duced from 10 to 5nper cent. The reduction |
will certainly average S5 per cent. This in |
cludes most articles entering into railroad |
equipment ana believe will apply as well |
- the average cost of railroad Operations
Yet in that time there has not only been no |
reduction in freights on iron and steel, but |
an actual advance, in some cases amounting |
TO so per cent and averaging over 20 in the |
rates charged from Pittsburg to the princi- |
pal points where she must look fora market
notably Chicago and st. Louis. 1 admit |
that some reductions have been granted but |
these have invariably been on partially |
manufactured articles, such as steel billets \
and wire rods, which torn the raw material |
of the Eastern or Western manufacturer
who is by these very reductions enabled to
compete more easily with Pittsburg, / con-
fess know nothing about raflroading, but |
from q common sense. non-professional |
standpoint it seems to me that it would be |
infinitely better for the railroads to so ad- |
lust rates as to encourage the working up OF 4
this material at home and thus secure for |
their own lines longer hauIs of finished |
articles at better rates.
Examples of Freight Determination.
will give one or two examples of how
the present system works. The rate on
steel billets from PittsDurg to Cleveland |
has lately been reduced to 81 per gross ton
To ship the product of these billets, in the
shape Of wire or nails, costs tie Pittsburg
manufacturer 81 Ii per ton. Wire rods are
carried from Pittsburg to Chicago for 50 20
per ton, while it costs 81 Is per ton to shin
wire nails over the same route. But the |
worst case is East st. Louis, to which point |
the IailrOa ds carry wire rods Tor 50 75 ner |
ton, while they charge So p per ton Tor nails |
4 give these instances because they come |
within the limits of my personal experi-
ence. have no doubt that manufacturers
in other lines suffer just as much.
When we attempt, therefore, to comnete
for Western business,we are confronted nv |
q dffferential of 81 20 per ton in favor of the |
Chicago ana 50 AZ per ton in favor of the 81 |
Louis manufacturer. Another insrance-a |
ton of steel billets can be transpor ted from |
Pittsburg to Anderson, Ind, conyerted |
into nails. and from there hauled to Louis
Vile at freigh charge OF IL cents per key |
less than if manufactured into nails in |
Pittsburg and shipped direct to Louisville.
As result of this outrageous policy we are
gradually losing the trade of the great |
Northwest and other losses will as surely |
follow. l have before me the records of
one Pfttsbury manufactory which five wears
via Chicago. During the present wear it
shipped but IL per cent in rhat df,.aoti.<,, |