The Washington herald., 1909-04-02

sowing OF iron. OF the S3,OO0000,OOO the
war cost the United States government
a goodly share went 10 the iron men.
During the twenty-five years following
the civil war the American iron manu-
facturer found the government ready 10
give him about all the protection asked
for. And he flOurishec under IL. Andrew
Carnegie once had 2 quarrel with his
partners, and during that period OF bad
blood the people were for the first time
given an opportunity 10 see what the
profits had been. In 1881 their profits
We're 20 per cent. In 1888 they were %
per cent. IN 1857 they were SO per cent.
During the eight years beginning with
1881 the statement shows that the profits
were Sle,0o000O. on an investment OF So
o00.0O0 approximately 70 per cent a year.
In 1880 Carroll d. Wright investigated
the cost OF making steel rails. He found
that the cost averaged S1l27 a ton. At
that time they were selling az $3L7s per
ton. In 1855. when steel rails reached the
lowest price in the history OF their man.
ufacture-an average OF $l762 per ton
the Carnegie Company still managed to
clear eleven and a half million dollars.
In 1899 It cleared over SIS O00, ,OO0-more
than the capital stock OF the company
had been UP to the previous year. In
1900 Andrew Carnegie was getting ready
to retire. and ne ordered every man in
his service TO get down 10 the last pos
sible ounce Of energy in him. The orders
were obeyed, the price OF rails advanced
to So. and the year profits footed up
$40. 060,0O0 The profits Of this one corpo-
rot 10 ri he Ia mt ~ 90
Of the nineteenth century reached the
enormous total OF S1S3OOO0oG. And most
OF II was made in the way described by
II. c. Frick 90 illsutrate Henry Phipps'
part in the steel business Frick said a
boy had been out Of work for while. he
went 10 a neighbor's hennery and sur
reptitiously borrowed one OF his laying
hens. He soon had a setting of fresh
eggs, and in three weeks a lot OF little
chickens After :he hen had raised the
brood and began 10 lay again. the boy re-
tUrred her and the dozen eggs. 10 the
neighbor's poultry yard, so that he was
on a firm business basis now, and the
neighbor had lost nothing more than the
use OF a hen for q short time. Phipps
was taken into the Carnegie Company
and his share Of the earnings allowed TO
pay for his share OF the stock. In twen-
cleared an amount equal 10 500 times its
first investment
there are those who assert that the
WHson-Corman tariff law was the in
direct result OF the Homestead strike.
They declare that the shouting OF the
Democratic press that Slavery had its
Legree: Protection its Frick," did much
to elect Grover Cleveland in 1892. The day
before the Homestead mills closed down
in 1892 the Carnegie properties were or
ganized into the Carnegie Steel Company,
with a capitalization OF S2000o, ,ooo-dOubie
its former capitalization. The men de-
ciared II was Millions for them. and
Pinkertons for US. referring 10 the Pink
erton detective force that was employed
against them.
Can iron stand alone2 Carnegie SAYS Il
can. Schwab once wrote a letter 70
Frick, IN which he said he could make
rails for less than Sl2 a ton. while the
best England could do was sic a ton
Recently he said he was driving a bar
gain when he made that statement. SEN
ator Stephen 3. Elkins is a heavy buyer
Of steel rails. He says he would rather
paw a home enterprise S2S ton than 10
get foreign rails at $20-that 4 meant
more work for everybody and better bust
ness for everybody. Congress viii hardly
take the view that the Industry can stand
alone Its voice Will probably be the voice
OF Elkins.
Copyright. 1909. by Frederic J. Haskin.l
TO-mOrrOvv-Amerfca Tariff Laws
Xx-The TinpIate Industry.