The new dominion. [volume] (Morgantown, W. Va.) 1876-1904, 1894-03-24
ABOUT STEEL RAILS.
TON JOHNSON EXPOSES SOME I'M.
P0RTANT TRADE SECRETS.
Why Carnegie Is Satisfied With a 25
Per Cent Ad Valorem Duty-The Pro-
posed Reduction In the Wilson Bill
Makes No Change in Prices.

Congressman Tom L. johnson OF
Ohio is perhaps the most radical
free trader in congress, and yet no
speech of the session has been listen
ed to by more members and more
literally applauded by all. Repaid
iicans applauded him for his logic,
courage and frank nonpartlsan criti-
cisms; Democrats, for his clear pre-.
sentatlon OF sound economic and
Democratic doctrine. As a manu-
tacturer of steel rails, Mr., johnson
produced indisputable evidence of a
new steel rail trust or pool which
viii have In the Wilson bill all oil the
protection it will care to use We
quote part of Mr.. Johuson's speech
referring to steel rails:
Take steel rails, of which | happen
to know something, as | am manu-
factnrer OF steel rails. appeal to
the Democrats of the home To join
me in putting steel rails on the free
list. The present duty on steel rails
IS $I3.44 per ton, which is estimated
to be equivalent to 50.44 per cent ad
vaiorem. The committee have re
duced this to 20 per cent. This
seems like great reduction. But
1t is only nominal, for 25 per cent is
all the Steel Rail trust wants. 1t is
as good to them as 1000 per cent,
Tor u Is practically a prohibitery
duty.
Steel can be made here as sheaply
as anywere eles IN the world and
would not now be imported, save in
exceptional cases even il there were
no duty, while the tendency of in
vention and improvement is in favor
of the United States as against Eu-
rope. The steel made into rails in
this country is from native ore.
What pig metal, billets and blooms
ars imported are used entirely in
other iron and steel manufactures.
Now 1t costs less than ~ ton to
make steel rails from blooms, includ-
ing Strengthening and punching On
to days market steel blooms are sell
ing at less than $l7; steel rails
should, therefore, not bring over $40
They did fall nearly to that price a
few weeks ago, during temporary
break 10 the steel rail pool But
that pool was quickly recognized,
and the price of steel rails was put
up and Is now maintained at 1924
ton, so that by virtue of the duty
which keeps out foreign rails the
pool is compelling the users of steel
rails to pay them 20 per cent more
than fair price.
Mr. Dalzell-Does the gentleman
speak now from the attitude Of
steel rail manufacturer?
Mr. Johnson do. Our mill
makes about one thirtieth ofall that
are produced in the United States.
This new steel rail pool is com
posed of seven manufacturers, head
ed by Carnegie, who absolutely con
troll the product of more than one
half OF the rolled steel produced in
the United States, and who have
combined together to pay other large
manufacturers heavy annual sums
10 close their works, discharge their
men and make no steel.
Now, observe, the 25per cent duty
of the committee's bill is just as good
to the steel rail pool as the greater
nominal duty Of the existing law
and will enable the pool to keep the
price mp to the highest point that
they deem safe, for with duty of
25 per cent ad valorem, steel rails
cannot be imported from Europe and
sold in competition with the pool at
x24 a ton the highest ,.rica II NOM