The sun., 1908-12-19

| AnE IhHAFEHUN 8IbEL Ah1A6
WARRINGTON, Dec u. Mr. 6chwab't
testimony before the Ways and Means
Committee was not remarkably illumi.
mating. Probably he did not Intend
that IL should be- The public remembers
that nearly ten years ago In letter to Mr.,
Frick he asserted that steel rails could be
made In this country for Si2 Q ton. and
that figure appears to have become fixed
In the public mind as tho last word In the
matter Of cost Of steel rail production,
Mr. Schwab now says that the actual cost
at the present time IL about $2i. so q ton
It 10 fair guess that the actual cost In
some mills 10 above that price and In
others somewhat below II.
Public interest In the reduction OF
schedules on iron and steel products ap-
pears TO centre on steel rails. which after
all represent less than 10 per cent. OF our
total iron tonnage. Up to date figures
are not complied. and In the statistios
reported by the Census Bureau for
1905 iron and steel products are % oom-
bined that their separation is quite i'm
possible. Table 45 OF that report gives
detailed summary Of the product OF
steel works and rolling mills. The out
put Of steel rails for 1905 10 given az 2.ies,
7os' tons and for 1900 as 2,2S1. .SS7 tons.
A New York financial newspaper recently
printed table Of production showing
the output Of 1900 az 2.Sa5. .6s2 tons and
that OF 1905 as 3,S7s. e2o tons. the latter
figures being about 1900. 900 tons in ex-
cess OF those given in the report OF the
Census Bureau. The Government re-
port does not include rails renewed or
rerolled. but those for that year repre-
sent only about 100. 600 tons. Table e6 Of
the Census Bureau report credits AS active
establishments with total output OF 49,
2le,e3a tons. including both iron and steel.
The steel rail output is about IL per cent,
OF the total.
Presumably the cost Of producing rails
could be fixed with reasonable accuracy;
but 1t would have to be obtained from
every producing mill. and each mill would
doubtless show figures differing from all
others. Presumably also the Steel Cor
poration can, by reason Of it's control Of
resources and it's special facilities, produce
rails at lower cost than any Of it's COM
petitors. The Steel Corporation may have
advantages in rail production, but II has
no monopoly Of the business. II the
result OF a heavy cut In the tariff on rails
should be what many suppose 1t would
be. II is by no means improbable that by
act OF Congress the Steel Corporation
would be converted into a monopoly,
be made unintentionally and unwillingly
a lawbreaker.
In an earlier comment on the tariff on
steel a doubt was intimated Of the ability
Of foreign mills to supply such a percentage
OF our demand for rails as would force AmeTi-
can producers to reduce prices by the nj m
Der Of dollars represented by the reduction
of the tariff. As the railway mileage Ct
the United States represents about 20 per
cent. Of the total mileage OF the world,
and as there are many foreignF lines
still equipped with and using cheap ircn
rails, it is fair to assume that the United
States produces for domestic use not far
from one-half OF all the steel rails that
are manufactured. In estimating the effect
OF any cut that might be made in the Ameri-
can tariff it would be necessary to ascer-
tain the maximum capacity Of British and
European mills and tho present and proba-
BILE future requirements OF England and
Europe for local supply and for export.
1t would also be necessary to ascertain
the cost OF production in such countries
as England. Germany and Belgium. A
comparison Of prices during the last two
or three years proves that British prices
OF rails average about 50 a ton higher
than American rails. although the cost OF
pig iron in England is probably
less than it is here. German quotations
on pig iron are not far from our own
These are elements in the question of Amer
lean prices Of steel rails under q reduced
tariff.
Considering the subject in its various
aspects there seems reason TO believe that
while q reduction in steel rail schedules
might affect prices here, there is more |
reason to believe that the controlling |
influence would be the inability OF other |
to supply our need A heavy |
cut in rates might result in a price war |
which would lead TO trade decentralization |
and wage reduction, both OF which are |
most undesirable. A similar argument |
would hold. though perhaps less strongly, |
in the matter OF bars. rods, sheets. plates /
and structural iron. 1t would appear
as factor in our use Of more than 1O, 900, =
700 kegs OF nails. 100000 tons OF wire,
nearly 800. 900 tons OF bolts, nuts. washers.
-ivets. &C., and 1, 600 tons of wrought
ron pipe The possible supply from
prices as much as tariff schedules do.