The herald., 1897-02-27
A GRIP OF STEEL

1t is an economic fact that the sub
structure of industrial and commercial
prosperity is iron. In some form the
product of iron enters into every chan
| mel and avenue of commodity produc-
ton and interchange, and when that ar
ticle of trade is forced upon consumers
at price that makes it burden goods
and wares as we'll as human skill ard
| labor are placed at disadvantage. Not
every one takes the trouble to think of
the intimate relation that the products
of iron ore sustain to every phase of
trade and traffic, and how impossible it
would be to carry forward any busi-
ness enterprise Independent of iron in
some form. Were the people to think
more about the question of the influence
of the iron industry upon their business
operations no doubt they would take a
livelier interest in the schemes of the
producers of iron articles of merchan-
disc to make all other merchantable
commodities pay tribute to them.
The bursting of the steel combine re-
veals things which afford the people the
clearest and most comprehensive OBJ
| ject lesson in industrial greed and av-
arice, and the more they study it the
more should they be amazed that such an
atrocious conspiracy against their bus
int onn11 hat ;c+a
a form of government like that of the
United States. When the combine went
to pieces a fortnight ago it was given
out that the capacity of the several
plants for production was so much in
excess of the demand that some of the
smaller concerns thought they could Go
better on their own account, and there
fore they had withdrawn from the pool
But it transpires that the compact was
broken hy the Carnegie company to
give it an opportunity to enter into an
other conspiracy which would give it the
mastery in the entire field of steel pro-
duction in this country and in Europe.
When the combine went to pieces steel
rails We're quoted at s25 a ton against
s2S a year ago. Carnegie Immediately
began to take orders at $15 but he has
since advanced the price to ST. The
smaller concerns We're amazed at such
a cut, but they consoled themselves with
the belief that the price would soon
go back to $25, which is 81 above the
price in England. Now, however, the
Carnegie corporation admits that it has
so improved its machinery that it can
produce steel rails al cost of S12 ton
and can sell at even SIS and make good
profit, and the other rail makers are be-
ginning to understand why the combine
was broken up. Not one of the other
mills can produce rails at profit much
below SIS, because, for one reason,
Rockefeller, who owns the iron mines of
Michigan is now partner in the Car
negie concern, and he will not supply
ore at prices that will enable them TO
compete with his firm.
The plan of the Carnegie company is
to bankrupt every other steel rail plant
in the country, and to that end orders
have been booked for over 10000 tons,
enough to lay 10000 miles of new rail-
way. The question might be asked why
does the Carnegie company want to
bankrupt the either plants when it can
produce rails at a cost at least So per
ton less than it's competitors?
1t is for this reason: The combine
was protected by tariff duty of over
81 ton, which Carnegie now wants the
Dingley committee to raise to about 81,