The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1894-01-20
A PRACTICAL SPEECH.
Congressman Tom L. Johnson, of
Ohio, on Manufactures of Steel.
Manufacturer HIMSELF He Speaks
from Absolute knowledge.

Congressman Tom l.. johnson. OF Ohio,
last week delivered speech on the Tariff IN
The House Of Representatives, that WAS one
Of the most practical speeches delivered dur
inc the debate. Mr.. .Iohnson is a manuiac-
turer of steel rails, aud he gives some valua-
BILE and interesting facts concerning the man
ufactures of steel. Here is a part of his
speech
Take steel rails, of which happen TO know
something, as | am manufacturer OF steel
rails. / appeal to the Democrats of the House
10 ioin me ia putting steel rails ON the free
list. The present duty on steel rails is Si3.14
per TON, which is estimated TO be equivalent
10 50.44 per cent ad valorem. The commit
tee have reduced this to % per cent Tins
seems like a great reduction. But 1t is only
nominal.
Steel can be made here as cheaply as any
where else in the world, and would not now
he imported, save in exceptional cases. even
IL there were no duty: while the tendency oil
invention and improvement is IN favor OF the
United States AS against Europe. The steel
made into rails in this country is from native
ore. What pig metal, biilets, and blooms
are imported are used entirely in other iron
and steel manufactures. Now it costs less
than 81 a ton to make steel rails from blooms,
including Strengthening and punching On
tnday's market steel blooms are selling at
less than ST.; steel rails should therefore not
bring over $40. They did fall nearly to that
price a few weeks ago, during temporary
break in the steel rail pool. But the pool
was quickly reorganized, and the price OF
steel rails was put up and IS now maintained
at S2i "a ton; that by virtue OF the duty
winch keeps out foreign rails, the pool Is
compelling the users of steel rails TO pay them
25 per cent. more than a fair price
Nr. Dalzell. Does the gentleman speak
now from the attitude OF a steel rail manu-
facturer?
Mr.. johnson of Ohio. l do. My mill
makes about one thirtieth OF all that are pro
dnced in the United States.
This new steel rail pool is composed of
eeven manufacturers, headed by Carnegie,
who absolutely control the product of more
than one half of the rolled steel produced IN
the United States, and who have combined
together 10 pay other large manufacturers
heavy annual sums TO close their works, dis
charge their men. and make no steel.
Mr. Dalzell. Is the gentleman party 10
the steel rail trust?
Mr.. johnson of Ohio. am not; but whether
| am or not would make no difference. Out.
side of this Hall. as u steel manufacturer,
might be perfectly willing to enter trust.
but will not defend trusts here. Applause.
Mr.. Dalzell | want to ask the gentleman
whether he does not manufacture steel rails
under tie protection of one hundred and two
patents taken out in the name OF Arthur j.
Moxham2
Mr. johnson Of Ohio. am very glad the
gentleman gives me an opportunity TO answer
that question could not have brought the
matter in this debate otherwise. Our steel
rails are not protected bya single patent.
We had at one time several patents covering
steel rails Upon two of them the courts,
very wisely think, decided against us; and
the others relate to sections that have gone
ont of fashion. If steel rails were put on the
free list tomorrow, we would be open to the
competition of the world upon every pattern
we make.
Mr.. Dnlzell. is not Arthur j. Moxham
president of your company
Mr.. johnson of Ohio. he is.
Mr. Dalzell. Has not Mr. Arthur }. Mox-
han one hundred and two patents covering
the manufacture of steel rails and various APP
pliances in connection with steel rails
Mr.. johnson of Ohio. think the gentle
man underestimate the number of patents
that Mr. Moxham has taken out. think
they number nearer two hundred. Not one
of these on the process OF manufacturing
rails has been taken ont abroad, and conse-
auently would not interfere with the making
of rails in England or Germany, and so could
not interfere with English or German manu-
factureTs in bringing into this country rails
made in competition with us. will repeat,
that two concerns IN tins country lnir1nged on
several t,aients that We thought we had on
rails and in the Infringement suit we were
beaten--l think rightly.
Mr. Dalzell. Now, will the gentleman
answer another question?
Mr. johnson al Ohio. Certainly.
Mr. Dalzel is not the gentleman paying
his workmen today in scrip?
Mr. johnson OF Ohio. ] will answer that
question and as many more aa you may ask.
In Johnstown, where our mill is located. we
have been paying for years in wages 80 or ~
cents day more than our neighbors. do
not say this with the view of arousing any
sympathy or claiming any credit. We did it
not because we loved men better than
Others loved theirs, but for the plain bust
ness reason that it paid us to do this. We
had the pick OF the men. Today we are pay
ing for common labor $l.50 day, while our
neighbor, the Cambria Iron Company, mem
Der of the steelraii pool is paying 50 cents
a day. We do this because we believe that
we get better return by paying $l.50 day
than we would if we paid So cents.
Now, we are not paying our men in ''scrlp.
During this panic we found that our custom.
ers. the street railroad men, had plenty OF
bonds, hat no money. After consultation
with the Cambria Iron Company and others,
from whom we bought some of our materials,
We agreed to take our pay in bonds We then
called our men together and said. ''We have
this opportunity to make some rails By taxing
our pay in bonds We will do this If you will
lake two thirds of your pay in the same thing
we are paid in, and we will pay you one third
in cash Will you go on this way, or shall
we shut down y Our men, after we had
Withdrawn from the meeting, decided unani'
mously that they would like to go on at the
old rate of wages, taking one third of then
s)ay in money and the other two thirds IN that
form in which we took all Of our pay, namely,
in bonds Applause, and cries of GOOD -
IN the Democratic side. As result of this
arrangement we have issued to our men some
twenty or thirty thousand dollars of what you
call .Escrip. but what is really the evidence
of their interest in these bonds. The first
series of these certificates has already been
redeemed at par. [Applause on the Demo
cratic side.
Mr.. Dalzell. would like TO ask the gen
teman whether that scrip is not today at a
discount at Johnstown?
Mr.. johnson of Ohio. That can not be
possible, because the first series was redeemed
today at par.
Now. | want to ask the gentlemen CUES
ton. Does he deny the existence Of the
steel rail pool?
Mr.. Dalzel. do deny the existence of a
steel rail trust.
Mr. johnson of Ohio. Well; you make no
bubble on the word trust, or spool ~
Mr.. Dalzell. There was combination
between the steel rail manufacturers. APP
planse on the Democratic side.
Mr.. johnson of Ohio. 60 on, will wait
for you.
Mr. Dalzel There was aeombination be-
tween certain steel rail men, which was
broken up by the refusal Of IL large number of
firms to go into it, and it fell ofits own weight
There was no condition in it for keeping up
prices, and as a matter Of fact the prices con-
finued to fall from the time Of the formation
of the trust untilits termination. The prices
af rails sieadily fi.ll all the time; aud in addi
ton TO that 49,
Mr.. johnson of Ohio. Go on.
Mr., DalzeIl. large proportion of the
IL = 4 -. - -. IL. L.nda II ~