Twice-a-week plain dealer. (Cresco, Howard County, Iowa) 1895-1913, 1899-11-03
Washburn on Trusts.


The following letter from general
w. d. WaShburn to the New York
Tribune is in reply to some comment
by that paper on his much discussed
interview touching the trust and
what shall be done with it:
To the editor of the Tribune.
Sir: On my return home from quite
a prolonged absence, my attention
has just been called to an editorial in
the Tribune of the 18th inst. in which
you criticise some of my statements
in the issue of the day before. 1t
seems to me that this article, in many
respects is hardly ingenious.
Speaking of my interview, you say:
Ellis sole example of the raising of
prices by trusts or corporations is that
steel rails yegr and a half ago sold
at SIT, and as a result of trust mani
pulation, steel rails now sell at $50 a
ton or thereabouts. or course the
profit is eXorbitant."
You 60 on to say:
"Mr. Washburn should surely know
that no trust or combination, no COR
poration or conspiracy of corporations.
controls the price of steel rails: that
the great producers are even now en-
gagged in turning out steel rails sold at
S1S ton, or thereabouts; that $50 a
ton is stated to have been obtained on
a contract for delivery next gear by
one of the entirely independent east
ern concerns, because the great west
ern producers are not anxious to bind
themselves so far ahead, and that the
emergency prices which people have
to pay for quick delivery of small
quantities cannot properly be treated
as the prevailing prices. etc.
This statement of yours if not abso-
lutely untrue is certainly very mis-
leading. Rail mills are, no doubt,
now engaged in turning out rails sold
SIS ton, but such rails were con-
tracted for from one to two years ago,
when the price was 81 or SIS ton.
l venture to say that no rails have
been sold in the last six months for
any such price: on the contrary the
price has ranged, as l understand,
from S27 to S32 ton. To day no con-
tract can be made, east or west, for
less than $50 a ton at Pittsburg or s3l
in Chicago. That is the price of rails
today, and the fact that rail mills are
filing old orders at SIS a ton has moth
ing whatever to do with the present
price.
Further on in your article you state:
Further the ex-senator should
surely be aware that rails at s1S a ton
last January were 1925 a ton higher
than Bessemer pig at Pittsburg, that
difference representing very narrow
for cost of conversion and for
profit, but at the price named, $50 a
ton or Whereabouts, steel rails would
be less than 81 ton higher
than Bessemer pig which
is now quoted at over 1928 a ton at
Pittsburg."
In making this statement: you seem
to lose sight entirely of the fact that
the interests furnishing at these adj
vanced rates are substantially the
same as those manufacturing the rails.
1t matters little whether this large
advance on the price of steel rails is
applied to the price of pig iron or to
the cost OF manufacturing the rails, as
precisely the same interests are in
volved. But still the fact confronts
us that the price of rails has been adj
vanced from s17 to $50 a ton. This,
while the demands for.steel rails has
been exceptionally large, could not
have been done except for the combi-
nation that has been entered into
the different steel rail mills of
the country.
do not expect every one to agree
with inf in the different positions |
take in connection with this trust
but certainly desire that al
paper which is always SO intelligent
and eminently fair in the treatment
of all questions should not put me in
false position.
Earlier in your article you say:
His own experience in connection
with the flour milling combination
will bs remembered and appreciated
as likely to influence his mind"
| really do not understand what you
refer to by this insinuation, as | have
never attempted, or have / had any.
thing to do with, the formation of
trust in connection with the Touring
mills or anything else. AS a matter
OF fact, l have never heen involved or
taken any interest in any OF these