Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1899-11-20
MANUFACTURERS TESTIMONY
Exports Of Machinery vs.. Tariff Bonus
to Trusts.
A TEST QUESTION ASKED BY AN
EMINENT MANUFACTURER OF
AGRICULTURAL IMPLEMENTS.
A VERY IMPORTANT AND IN
TERESTING STEEL TRUST EPI-
SODE.
BY A. b. Farquhar.


Probably the great majority Of our
citizens altogether overlooked a recent
announcement that two cargoes of steel
rails Zone brought from Scotland and
one from Germany had just been land
ed on our shores to fill orders from a
number OF street railway lines various
ly located in our eastern cities; and OF
the few that did not overlook it, prob
ably a majority passed 1t by as mat
ter in which they had but slight con-
Germ. They were not paying the money
and why should they trouble them
selves where this or that corporation
procured its supplies, or whether at
nigh or low cost?
Yet, leaving out of view the likeli-
hood that for any extra expense borne
by a corporation to-day it will have 10
he reimbursed by the public to-mor-
row. every citizen has reason TO be in
terested in incidents such as this, be-
cause he here sees a curious instance
of the working of a Trust. The object
of the Trust, to be sure, is not to cause
the purchase abroad of goods that could
very easily have beeen made in this
country, but as that result does some
times follow from its methods, the case
is worthy OF some study. Though ii
may be only a corporation that suffer
ed by the Trusts squeezing in this
case. the same kind OF squeezing is
pincning our own fingers in many
other cases.
STEEL RAILS BOTH EXPORTED
AND IMPORTED.
The peculiar feature about this i'm
portation is that it occurs not only in
the face OF a rigorous import duty OF
sI.S4 a ton, but also in the face of a
strong current of steel manufactures
exported from our own seaboard. Rails
are included among other steel exports.
A few months ago one mill shipped
10000 tons for the North China Rail-
way, and it is understood a much larger
amount has been engaged Tor future de-
livery. Nevertheless, in the case of
the two cargoes mentioned, imports Of
the same kind of product were made at
a saving of fully % per cent in cost
These imports were what are known as
guard rails constructed especially
10 avoid derailing of trolley cars at
curves and switches. 1t seems that
only three or four steel mills in this
country, all Of them in Pennsylvania,
are provided with the appliances re-
quired for the rolling of such rails; that
the rroprietors of these mills are tightly
combined into pool and exact a pro-
fit exceeding 100 per cent on every ton
furnished under such special orders;
that American competition in this line
Of production is practically out OF the
question; and that it was therefore
cheaper to buy from Scotland or Ger
many and pay the s7s4 duty.
THE EXCEPTION THAT PROVES
THE RULE.
In this case 1t is plain that the pool,
Or trust. has oyer-reached itself.
some years ago compared protection
grabbing to the behavior Of pigs at
their feeding; the eagernsss with which
the corn is seized results in the waste
Of more than is eaten. The trust could
have kept all the trade in guard-rails
and cleared at least SO per cent. profit
by putting the price lower. Though
its eagerness may carry it too far in
special lines where the demand is net
very large, it makes no such mistakes
with steel rails of ordinary construc-
ton. For these il carefully keeps the
price just low enough to escape impor-
tations, the amount Of the duty being
realized by it as added profit ian I'M
warrantable tax upon home consumers
as is proved by its exportations)
and so We hear nothing Of imports
OF ordinary rails. In fact. such ex-
ceptional cases are 10 be taken not as