Union County courier. [volume] (Elk Point, Union County, D.T. [S.D.]) 187?-1913, 1897-02-18
THE LESSON OF THE STEEL POOL.

Twenty-four years ago the price Of
ton. Within few days contracts have
been entered into for the sale of great
quantities of steel rails at 81 ton.
This is one example in hundreds OF the
swift and enormous fall in prices which
has taken place in the last few years
~ the result of the improved machin-
eny and processes OF production. To
arrest this dissent in prices on parallel
lines with the decreased cost of pro-
duction trusts and combinations and
pools OF all sorts have been formed
Legislation OF ali sorts has been in
voked for the suppression of these COM
binations to regulate prices. Congress,
some years ago, enacted law on this
subject which it was said would put an
end to them If Attorney General Onley
had undertaken with proper zeal and
vigOr to enforce it. But his successor.
Attorney Genera. Harmon, attempted
TO enforce it and recent decision of
the supreme court has made it evident
that the Sherman antitrust law is
an eneffectual remedy for the evil.
There is a consequent demand for
Legislation that will prove more eff
fectual. But, meanwhile, forces far
more powerful than statutory enact
ments are at work undermining all
combinations to fix prices. Experience
has shown that all these artificial ar
rangements to arrest the natural fall Of
prices are ephemeral In their nature.
One after another Of these so-c;alled
trusts have gone to pieces under the
play Of economic lava, forcing into
activity that principal OF individual
competition they were organized to
hold in check.
The explosion OF the steel pool is one
more example of the inadcaue OF COM
NnatiOus or agreements to restrain
competition. when competition is arm
ed with and stimulated by the new
powers Of production. The break up
Of that pool was the direct result OF the
recent acquisition by the Carnegie
Steel company of greatly improved
machinery and processes, which enable
them TO produce steel rails at lower
cost than most of their competitors
and, perhaps Of arrangements with
Rockefeller for the purchase of the
cheap iron ore produced
In Minnesota without the Intervention
Of middlemen. The immense reduce
ton In the cost of converting them into
steel are the two chief factors in this
great fall In the prices OF steel rails.
These results could only have been
achieved under the stimulus OF pro-
tective tariff. It was protection which
encouraged capital to make the in
vestments and undertake the expert
ments and enterprises which have re-
suited in placing the United States at
the head OF the steel industry of the
world. But protection, SO far at this
SAsS00Vsy SOaCCtAC0s l1uS AOW tApe
parently accomplished its perfect work.
It has enabled our manufacturers to SO
cheaper the cost Of production that
they can now compete on equal terms
with England and all the world. II
this Is true there is no longer any
necessity for continuing even the small
duties on steel rails or on any of the
steel fabrics to which this truth APP
plies which were left by the Wilson
bill. The true republican theory OF
protection requires that they be swept
away when not needed either for pro-
lection or revenue, and not retained as
= shelter for new combinations 10 raise
prices beyond the limit fixed by the
free competition OF the home pro-
dncers Pioneer Press.
#.