The age-herald., 1901-11-11
Special Report of Industrial Commission Shows Cost
 and Selling Prices
LOSSES ARE MADE LAST YEAR
Steady Improvements in the Methods of Manufacture Have Been Made Tending to Reduce
 the Cost of Product.

Washington, November 10.-The indus trial commission today issued a special report on an investigation conducted by the commission regarding the cost and selling prices of iron and steel products from 1890 to 1901.
 The statement shows that in 1890 the cost of steel rails ranged from $25.93 to $34 .52; in 1891 from SPA. .15 to $256s; in 1892 from $22. .65 to s24S2; in 1893 from $19.25 to $22. @; in 1894 from $17.79 to S21.29; in 1895 from s166S to $25.47; in 1896 from $17. .72 to s2O. .69; in 1897 from $17.91 to $1s.62; in 1898 from $16.67 to $17S1; in 1899 from SIS. Il in January to $35.52 in December; in 1900 from $36.12 in February to $21.S3 in Oc- tober, and in 1901 from $21.54 to $25.9S.
 According to the showing made there was a margin in the selling price over the cost price for every year from 1890 up to July of 1898. In 1890 the margin ran from 7S cents to sS5O per ton; in 1891 from $3S9 to $5.S5; in 1893 from $4.6S to $7 7.35; in 1893 from 4.75 to $S49; in 1894 from $2.71 to S6. .21 in 1895 from $1.1O to $9.O6 in 1896 from $731 to s1O.2S; in 1897 from Al cents to $7 S6; In 1898 the highest margin was $1 3S in January. In July a loss of cents per ton is noted, the cost price being $15 05 as against a selling price of $17. Again in June of 1899 when the cost price was $27 .62, there was loss of 37 cents. In July of that year the loss was $1. on a cost price of $2976; $1.15 on a cost price of $32. f5, and in September $1.4S on cost price of S33.9S.
 Losses During 1900.
 A loss of about $tsper ton is also re- ported for the months of January, Feb ruary, March, April and May of 1900. when the cost price ranged over $S6 per ton. Losses also are claimed on steel billets for most of the year 1900 and for the first four months of 1901. A loss Is recorded for every month in 1898 on bill let's Losses are recorded for the last three months of 1900 on pig iron.
 The lowest cost of production for pig iron was recorded in 1894 when it was $S.65 per ton; in 1900 the cost of pig iron was $15.35.
 Commenting in a general way the com mission says:
 Beyond question there have been steady improvements in the methods of manu- facture tending to reduce the cost of la bor and incidentals per unit of product. On the other hand the advance of wages from 1899 to 1901 especially as compared with the years immediately preceding no regard to which has been given in mak- ing up the figures, may, in part, have offset the reduction through such i'm provements
 Probably the most conspicuous fact is the very rapid and wide variations in the prices of all three of the products compared and most of all in the prices of pig iron. During 1899 the price of pig iron rose from $l0 to $25 and the price of rails from SIT to $35. Almost equally sudden and very great. however was the decline in the prices of these products, especially billets and pig iror during the latter part of 1900.
 Many Violent Fluctuations.
 "These often sudden and violent fuc. tuations show, among other indications the great changes in demand for iror and steel products from time to time and the marked sensitiveness of prices to such changes in demand. No very large stock of iron and steel is usually held in advance and when a period oi | prosperity causes a great extension oi the use of these products, the mills of. ten find themselves temporarily unable | to keep pace with the demand, while buyers under certain conditions are will. ing to pay almost any price.
 A noteworthy featurs Is the fact that the selling prices of rails for considera. ble periods of time throughout the de. cade covered by the figures have beer held uniform. Thus through most of 1s9. | and 1892 the uniform price named wa. s3O per ton; through 1894 it was S24 pel ton. and through the latter part of 1s9, and 1896 1t was BPS per ton. This uniform. ity in prices Is doubtless due to the ex. istence of pools from time to time among the manufacturers and the sudden changes following the periods of uniform ity are probably applicable by either the breaking of pools or the determination on the part of their managers that the previously fixed prices were too high or too low. It is very commonly stated in the trade journals that the nominal prices quoted for steel rails are not al- ways maintained in practice but that se- cretly or openly. sales are being made below the quoted rates"