Democratic Northwest. [volume] (Napoleon, Ohio) 1869-1894, 1893-08-31
STEEL BEAM TRUST.
A STUDY ON THE EFFECT OF PRO-
TEcTlvE TARIFF LEGISLATION.

Prices Were Net Reduced by Lowering the
Duty, bat Went Down When the Combi-
nation Was Dissolved-A Manufacturer
Opens His Mouth and Puts His Foot In II.
The New York Tribune publishes an
interview with F. A. Yeager of Pitts
burg, manufacturer and consulting
engineer" who would like to have peo-
pie believe that the prevailing stringency
has been caused in some way by the
promise of the Democratic party to re-
wise the tariff. There is no question
about it," he says. We infer from the
following remarks that he is manufsc-
turer of steel beams, and we quote them
in order that we may show his insin-
cerity or his ignorance:
"Any reduction affects us. There's
the Mckinley bill, against which arose
such a Democratic howl. 1t reduced
the tariff on beams, and the effect was
felt Immediately. That, added to the
present uncertainty, has shut us down,
Notwithstanding that we have one of the
very best equipped mills in the United
States"
And yet the price Of steel beams at
Pittsburg was the same in January, 1892.
one year and three months after the Nc.
Kinley tariff went into effect. as it had
been when the bill was passed and for
some time before that date. This manu-.
facturer knows that for more than one
year after the enactment of the McKin-
ley tariff the price of beams at Pittsburg,
as quoted by The Iron Age, a projections
ist trade journal of the first rank, the &C.
curacy of whose reports he will not ques.
ton, and by other authorities in the iron
and steel trade, was 1-10 cents per
pound, or $69.4 per ton, and that this
had been the price for some time before
the tariff wss changed. If "the effect
of the reduction of the duty twas fell
Immediately" why was there no change
of price for a year and three months?
We have something more to say about
his assertion, because the question in
volved is one of considerable interest
from the point of view Of those who
study the effect of protective tariff legis
lation. The duty, which had been $2(
per ton, was reduced to $20.16. This
change had no effect upon the price fol
at least one year and three. months. AL
the trade authorities continued to re
port every week $69.44 at Pittsburg, the
center of production.
This was the price fixed by close and
powerful combination Of all the manu-
facturers Of beams. The existence of such
o combination was not concealed. Il
was admitted by the manufacturer
themselves in their testimony before com
mittees in congress. The old duty haG
been prohibitory, and the new one wal
still so high that it had substantially
the same effect. The manufacturers hai
combined to suppress competition and te
exact from buyers in this country a.
much as the tariff would permit.
But this combination was dissolved
about yeT and half after the enact
ment of the Mckinley tariff, and "th'
effect" of this dissolution twas felt i'm
mediately." The trade authorities ceaset
to report every week this stereotypet
quotation: prices remain unchanged
as follows: Beams and channels, 3 Lit
cents" There was a sharp decline O.
more than 80 per cent. Competition hat
been restored. ir
Let us see what the price is now. Th'
Iron Age shows that it is from II to Gil
cents per pound. The average is 1.55, O.
just one-half of the old combinatio,
price, which was maintained withou
variation for several years and for on
year and three months after the enact
ment of the Mckinley tariff. Here ar
the figures:
Per Tor
| Combination price. ....."...............$69 4
difference. ce................. ....................$5 $54
The price was but little higher Of
April /, when it was 5000.
We do not think that any manufac
turer in Pittsburg can afford to say tha
the decline of $34.G2 per ton shown b
present quotations or the decline Q
$3O.A per ton shown by the price o.
April / has been caused by reductio
of $7.S4 per ton in the tariff duty. Tn
fall of price, SO far as it had taken plac
up to the early months of this year, wa
due to the restoration Of competition i
the industry, which was caused by tn
dissolution of a combination clearly III
lawful. We should add, however, ths
reduction in the price of pig iron, th
raw material, had some slight effect afte
that dissolution.
| Undoubtedly the price has been a
fected in the last two months by th
stringency which prevails, but by ia
the greater part Of the decline of 80 pc
cent. from the uniform price that Wa
exacted up to the spring of 1892 has bee
caused by the disintegration at ths
time of one of those unlawful combin:
tions which the supporters of a hig
tariff profess to abhor.--New' Yor
Times.
| Get Out Of the Mirei
The only just thing and the only sal
thing to do is to dig out the whole sy
tenn of protective favoritism by the roo
and frame a tariff, in fact as well as
name, for revenue only. That will har1
no important industry-not one that d
serves to survive. So far from that,
will lift burdens from some of our grea
est industries, now supposed to be pr
tected, and infuse new life into them /