Gilpin observer., 1904-10-27
AMERICAN
CONSUMERS BILKED
Startling Dinsrsnc, Of Cost In Favor
Of Foreign Steel Rail Buyers.

OF the points made by Hon. John
Sharp Williams. in his powerful anti.
trust speeches, none is SO unanswer-
able as that which he emphasizes with
the undisputed fact that steel rails
manufactured in this country are sold
cheaper to foreign than to American
| Consumers.
Here is the way Mr.. Williams treat
| ed the subject in his Brooklyn speech
of October i:
Let me read you letter from Mr..
Roaul, President of the National Rail.
road Company of Mexico, a road which
operates both in Mexico and in Texas:
"In 1902 secured bids on steel rails
for Mexico from United States mills at
about $24 delivered at Tampico, while
the price paid at the same time for
rails for our road in Texas was $28 at
the mills"
Remember that these rails were laid
down at Tampico, Mexico, for $24. and
that the freight to TampicO was 81, SO
that the price at the mills for the rails
shipped to Tampico was $40. while, as
the writer states, the price at the mills
for that part of the order to be used
in Texas was $2S. The extortion in
this case was $S.
Let me read you part of another let
ter. addressed to Senator Bacon, OF
Georgia, and dated February %. 1904.
and written by Mr.. ]. 4. Wright. an
Indiana Republican,:
| "The extension of our road. some for
ty miles, was decided upon and cash
provided for it early in the spring of
1901. Owing to the demand at that
time for steel in all forms and the
probability of an advance in price, it
seemed wise to take up the matter OF
the purchase of the necessary rails at
once. Inquiries, therefore, were ad-
dressed and mailed to all the leading
steel rail manufacturers in the coun-
try, asking for tenders on sixty miles
of seventy-pound steel rails delivered
at Savannah or Macon. the Joint of de-
livery to be option:l with us.
..
"After endeavoriny In vain to obtain
better prices than those quoted. we
finally accepted the bid of the - Steel
Company. and placed our order with
them for the 561S tons Of rails at $2g
per ton. based upon delivery at tide
water. This would enable US to ar,
range our own freight rate to Savan,
nah and effect some saving In the cost
Of the rails. The order was declined
on these terms. the - Steel Company
refusing to make any price (. o. b. mill
but insisting upon delivered price.
II made one more effort. Som
friends Of mine were interested in
railroad project in Central America
and broached the subject to the rep
resentative Of the - Steel Compan
who had come here to close the matte
with me. told him that my friend
had made some inquiry Of me as to til
cost of construction In that countri
and should like to know at what pri{
he could sell me steel rails deliverd
at tidewater for shipment to Hondura
He promptly quoted me $50 per ton.
| "Allowing a liberal amount for co
Of delivery at tidewater, which, in til
particular case would have been vel
small, We American citizens paid
this American industry $4,000 In
cess of what foreigners would ha
been compelled to pay. And $3.50
would have put up very handsome
brary filed with standard books
protection.
"And this was very small transs
tion-only fifty miles Of railroad! Ps
ments were cash, and we neither nee
ed nor asked any concessions In 1
matter of time. Because we w
Americans interested In the devel
ment Of a small section of our count
involving faith and sacrifices. we W
compelled to pay out, as q bonus.
excess Of 5000 per mile"
|