The Minneapolis journal., 1902-07-29

that when Mr.. Cassatt came into control
of the Pennsylvania system he deter
mined to put stop to all secret and pre-
ferential rates and to- apply an equal
tariff to all shippers. He learned, so the
story goes, that Mr. Carnegie had for a
long time been receiving a confidential
rate which was mat erialiy less than the
published schedule. An interview between
the two men followed at which 1t Is said
that Mr.. Carnegie convinced President
Cassatt that the products affected by, the
rates in question could not be profitably
manufactured in Pittsburg II the pub
lished schedule of the Pennsylvania rail-
road were to be adhered to. At all events
the rates were materially reduced on
iron and steel and their products, from
the Pittsburg region to all eastern points
Pittsburg evidently needed the reduc-
tion in rates If it was to hold it's place
as manufacturing center. The main
energy Of modern business is now directed
toward the search for economies. Under
these condit ions the far-seeing business
man Is impatient of any waste Of effort.
1t may be set down as rule that the ideal
place for the manufacture Of any article
so far as transportation is concerned, is
where the raw materials can be assem-
bled and the manufactured product sent
to it's great markets at the least aggre
gate cost. In the iron and steel indus
try, that point Is not Pittsburg. In the
ory, at least, Cleveland or some other
city on the great lakes would approx
mato ideal conditions of coal and ore
transportation. -
The enormous industries in which Pitts
burg leads are dependent upon the heavy
and low class raw materials; the freight
charge on them is avery important mat
ter. While nominally the ores of the
Lake Superior region are sent to meet the
coal at Pittsburg, in point of fact, most
Of the coal, or rather the coke, used In
the Pittsburg furnaces is shipped by rail
to that city from points in the region of
which 1t is the center. ConneHsville,
sixty miles away, is the real center OF the
coking region. Since coke and the ores
each have to be carried on, the cars for
some distance, the question arises wheth-
er the meeting place could not be best
made where the water haul, of the ore
ends, or at some point on the great lakes?
Then the coke, once loaded on the cars at
Connellsville, or towns Of which It Is
type, would be carried. on right through
Pitt sburg to the lakes; the difference in
cost between the length Of the old haul
and the new would be comparatively
slight Loading and unloading is the i'm
portant factor. All the water borne ore
which comes down from the Lake Superior
region must now be loaded on the cars
and sent by rail over to Pittsburg. Cleve-
land or some point on the, great lakes
should seemingly then be the iron and
steel center of the United States. H..
But Mr.. Cassatt, with his rare sagacity
and breadth of view. saw that the future
prosperity Of the Pennsylvania railroad
system depended greatly upon the main
tenance of Pittsburg, and the extern
sion of the vast manufacturing Industries
Of that region. The Pennsylvania rail-
road could not afford to have any north
ern competitor of that region, or to have
anot her Pittsburg established on Lake
Erie. So, as a matter of railroad policy,
to preserve the supremacy of Pittsburg
as a manufacturing center, to protect the
establishments already in operation there,
and to invite Others the railroads pro-
posed to make a rate which would hold
business at that point. They did so. Pitts
burg has thus been decreed the capital Of
the iron and steel industry by the rail-
road interests of America. This is what
the substantial reduction in rates at a
time when reductions were not generally
in order really signifed:
w. w. Jermane.