Arizona republican. [volume] (Phoenix, Ariz.) 1890-1930, 1899-11-12
THE STEEL TRADE
Views of Gentleman Connected with
The Federal Steel Company.

Mr.. Knox Kinney who has been en-
gagged in the executive department of
the recently organized Federal Steel
company of New York. is in Phoenix
on u vacation and is stopping at the
Ford. He says that the merits of this
climate and the promising prospects of
Phoenix are quite we'll known in New
York. This is Mr.. Kinrey's first period
OF recreation in four years and when
he determined to take a vacation he
studied for some time which section
in the United States would best suit
him. He read circulars Of the ap
preaching carnival in Phoenix and for
other reasons concluded to come here.
He has not been disappointed.
Three years ago Mr.. Kinney was a
newspaper man in Madison. Wis. He
was reporting for a local paper and
corresponding for the Chicago Tribune.
His last piece OF. newspaper work was
an interview with President Mckinley.
then congressman, who was in Madi-
son taking part in one OF the famous
tariff debates which occurred there an
nually. Mr.. Kinney was sort Of
Peter Dunno, who has since made him
self famous in his Dooley letters, and
these two men interviewed Mr..
Mckinley together. Mr. Dunno
sent his dispatch to the Chicago Times
Herald
Since Mr.. Kinney accepted a posi-
ton with the Federal Steel company
ne has changed ideas concerning the
effects of combining companies. He
does not claim to be an advocate of
combines. but one thing he is pretty
well satisfied about is. that the forma-
ton Of steel trusts has in no way hurt
the Iaboring men connected with the
steel industry, and he believes that the
trusts have not influenced the advance
OF steel. The steel trusts are in a
field OF competition. Each trust rep
resents the combination of certain steel
and ironAfactories which do business
along the same line. The different
trusts compete strongly with each
other and none of them are in posi-
ton to monopolize the STEEL business
When the trusts are making money
their employees are paid good salaries
this being found in the business world
to be a wise policy. Profits usually
represent 8 fair rate of interest On
money invested.
According to Mr.. Kinney the present
advanced price of steel and iron viii
obtain Tor at least a year. Orders have
been placed six months ahead of time.
and it does not seem that the demand
will decrease before the end of a year.
Mr. Kinney calls the present prices of
iron and steel, the steel mans prices
but he believes that they are abnormal
In the steel business this country is
now reaching out for foreign trade
It is attempting to introduce its pro-
duct ali over the world while steel is
in demand and when the prices are
ultimately lowered it will have a good
foothold in foreign countries. There
was Il great deal of talk q few months
ago about England capturing the steal
and pine trade of South American
countries. The United States formerly
shared in the trade, but when steel De
gan to advance it released its hold and
many persons felt alarmed and be-
lieved that the United States had en-
tirely lost its grip. Tt was pointed our
that the English pipes which were be-
ing used in South America were
threaded differently from those man
ufactured in this country and that IT
course of time. even though the South
American republics would rather buy
from this country, they would be COM
PEELED to buy pipes from England 10
preserve their system of threading.
1t is significant, says Mr.. kinney
that in England a tremendous ue-
n1and has been created for United
states steel and iron. England is now
unable to supply even the countries u
formerly traded with on the other side
of the ocean, and the United States
would be able at any time during
high price of iron products to contro
the South American trade. With TINS
in view the steel men are paying little
attention to the republics. aiming tc
establish a reputation in European
and Asiatic countries for the American
product. and when it becomes neces-
sarv they will direct their efforts to-
ward regainfng the trade in the west
ern continent.
Mr.. Kinney predicts a general ris~
shortly in railroad freight rates
There is a big demand for cars, and al
though the railroad companies
throughout the country are putting
forth every effort to accommodate
shipping they are unable to do it to
the satisfaction of shippers. While
the times are good the railroads will
raise the rates which they maintained
during hard times and will share III
the general prosperity. The advance
in steel and iron and the necessity OF
building more cars is another reason
for their determination to advance
rates.