The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1902-08-03
RAILROADS SAVE
P|TISBIJRG
BY Discriminating in Her
Favor In Rates.
LOCATION NOT RIGHT
For an Economical Use of the
Raw Materials.
LOCATION NOT RIGHT


rumors which have reached this city are
true, Pittsburg, one of the most thriving
and rapidly growing cities on the Aneri-
can continent, is holding its place on
the industrial map by the fat of the
great railroad managers. Upon their
decree its future rests. 1t seems that
when Mr.. Cassatt came into control Of
the pennsylvania system he determined
to put = stop TO all secret and perferen-
tial 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 materially less than the pub
lished schedule. An interview between
the two men followed, at which it is said
that Mr.. Carnegie convinced Mr. Cassatt
thar the products affected by the rates
could not be proftably manufactured in
Pittsburg If the existing schedule of the
Pennsylvania Railroad were to be ad-
bered 10. At all events. the rates were
materially reduced on iron and steel and
their products. from the Pittsburgh re-
gion to all eastern points. This was not
to be considered as very reason
able and occasioned surprise at q time
when the principal lines between Chicago
and New York City had begun to do bust
ness upon such terms Of friendly inter
est that they did not compete with each
other as in the days before the present
era Of railroad combina ton.
Pittsburg evidently needed the reduc-
ton in rates if it was to hold its place
as manufacturing center. The main en-
ergy OF modern business is now directed
r ~
these conditions the far-seeing business
man is impatient of any waste Of effort
1t may be set down as a rule that the
ideal place for the manufacture of any
article, as far as transportation is con-
cerned. IS where the raw materials can
ne assembled and the manufactured pro-
duct sent to the great markets at the
least aggregate cost. In the iron and
steel industry, that point is not Pitts
burgh.
The enormous industries which Pitts
burgh leads are dependent upon heavy
and low-class raw materials; the freight
charge on which is a very important
matter. While nominally the ores OF the
Lake Superior region are sent TO meet
the coal at Pittsburgh. in point of fact
most all of the coal, or rather the coke,
used in the Pittsburgh furnaces is ship
ped by rail to that point from points in
the region Of which it is the center. Con-
nensville. sixty miles away, is the real
center Of the coking center. Since coke
and the ores each have to be carried or
the cars for some distance the question
crises whether the meeting-p place could
not be best made where the water haul
reduction IN rates at a time when reduc-
Great Lakes? Then the coke. once load
ed on the cars at Connellsville, or towns
(which it Is type would be carried on
right through Pittsburgh to the lakes;
the difference IN cost between the length
of the old haul and the new would be
comparatively slight. Loading and I'M
loading is the important factor All the
water-borne ore which comes down from
the Lake Superior region must no wbe
loaded on the GERS and sent by rail over
to Pittsburgh. Cleveland. or some point
en- the great lakes. would apparently be
the natural iron and steel center of the
United States.
But Mr. Cassett. 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 extension OF
the vast manufacturing industries Of that
region The Pennsylvania Railroad could
not afford to have any Northern competi- +
tor OF that region. or TO have another /
Pittsburgh established on Lake Erie. So
as a matter of railroad policy. TO pre-
serve the supremacy Of Pittsburgh as |
manufacturing center. to protect the es-
adjustments 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.
Pittsburgh has thus been decrced the cap +
ital of the iron and steel industry BY
the railroad interests Of America This
IS the real significance OF the substantial
reduction in rates at time when reduc-
tions were not generally in order.
With articles Of large bulk and weight,
where the transportation cost has a good
deal TO do with the selling price. it Is a
general rule that the nearer the rates on
the "a wmaterial and the manufactured
product come together. the greater will
be the tendency 10 manufacture where
the raw materials are produced: while on
the other hand. the more the freight rate
on the manufactured product exceeds
that on the raw material, the greater viii
be the tendency 10 manufacture near
the place OF consumption. Wheat and
our afford a sod Illustration OF this.
From almost the beginning Of the mill
ing industry IN the United Staes the
declared policy OF the railroads has been
60 make substantially the same rate on
-four as on wheat Generally the publish
ed tariffs have shown the same rate
on the two articles.
IN point OF fact however. wheat has
frequently been carried much cheaper
than -four. Water transportation com
petes much more vigorously with the
raw material than with the finished pro
duct Wheat may be shoveIle6 BY ma
chinery. while a barrel OF -four Is Us
uaIly rolled by hand. The risk IS sreat-
CT on the -four. and for a number Of
reasons a good deal Of rate-cuttiug has
developed in the wheat. with results that
are OF national Importance.
1t is hardly too much TO say that the
continued supremacy OF Minneapolis as
q milling center depends on the railroads
charging the same rates on -four as on
wheat If they should make difference