The Birmingham age-herald., 1915-03-27
By "Hop''

timents expressed by Messrs. Jackson. Bewron and Shook in The Age-Herald are the same in the minds of many of the leading men connected with the iron and steel trade of the south
 The Louisville and Nashville railroad being situated as 1t is and having the advantages over other roads in hauling all of the raw material supplied the Ems ley works would, naturally, feel inclined to purchase rails from that mill In my opinion, this action is based on strict business principles, and not through any desire to sacrifice economy for the bene- fit of home industries The Illinois Cen tral and other roads not receiving any great amount of revenue from the opera tion of this mill will of course purchase their supplies with the view of the great est economy.
 I was connected with the Dominion Iron and Steel company at Sydney, Nova Scotia, for five years-from 1902 to 1901 At that time the Canadian railroads were receiving the greater part of their rails from the United States. When the rail mill at sydney was placed in operation the Canadian government placed a duty of s. 20 per ton on steel rails. I remember that Mir. Carnegie stated through the press that he would continue to ship rails into Canada regardless of this duty. He could not do this without loss to his Bethlehem plant, but stated that he would make up the deficit on his sales in the United States. He continued to supply the Great Northern railroad with rails until the Canadian Parliament was called in session and duty pls. ed on American rails amounting to $1.20 per ton, thereby forcing Canadian railroads to buy Canad-
 ian rails and compelling American manu- lecturers to abondon their policy. The same Parliament granted the Dominion Iron and Steel company a bonus of $l 20 per ton on pig iron and $2.20 per ton on all steel produced. This is the kind of protection the iron and steel manufae- turers in Canada received from their gov ernment.
 In the past five years the Sydney plant has grown from a plant consisting of four blost furnaces to one of eight fur naces with daily capacity of 400 tons each It is only in the past two or three years that the Canadian rail mills have developed to the extent whereby they are enabled to produce a surplus ton mage. This event, coupled with the re- moval of the tariff on steel by the Under- wood-Sinmons bill, made the invasion of the American market doubly possible
 1te Illinois Central took the initiative
 in placing their order with a Canadian concern. and other roads. recognizing the economical advantage offered in the low CT price, will, no doubt, follow suit The fact that the Illinois Central experienced saving of 8 per ton in the transaction removes all doubt in the minds of fair minded people that it was influenced through political reasons It, on the other hand, very clearly demonstrates that something is radically wrong, and that tie pla cling of this order in Canada at $3 below the American price would not have been possible previous to the enact- 1f 4I,1 hi
 All Should Practice Economy
 1t is customary for everyone to practice economy these days. and it is a railroad purchasing agents duty to do so l think everybody will appreciate the ability of the Illinois Central purchasing agent in this respect. It does not stand to son that this order would have been placed ir Canada while so many of our own mills are either shut down entirely or work ing on reduced time, had not the Under- wood- Simmons bill been the means of making it a practical source of economy.
 In regard to the Steel corporation re- fusing this order, l think that it is good thing that we have such broad minded business men at the head of our large manufacturing industries. The ac- ceptance of that order at the reduced price naturally meant reduction of wages This is a condition that our large manufacturers. and especially the United States Steel corporation, will not submit to. This policy has been maintained throughout the present panic, and has been in force for the past several years in the iron and steel trade. It is hoped that after a period of 20 years advance ment and increased wages we will not be compelled to fall back and again be forced to mount the ladder of higher prices and higher wages.
 The Algoma deal demonstrates the fact that wages will have to be reduced in or der to meet this competition. It does not take a business man to see that this con dition was produced by no other means than the revision of the tariff downward In my opinion. if such a policy is main tained long enough it will mean that the American laboring classes and educational standard of living, social and educational eoualities are to be placed upon the level with the low-bred ignorant classes of for eipu labor This is just what it will take to meet foreign competition; condition which the application of the low tariff policy invites and which has already man. ifested itself in the Algoma- illinois Gen. tral deal. and one which is bound to come under the policies of the present national administration.
 The advertising of the war in Europe and it's relation to present conditions by the democratic administration will not ef- feet fair minded and free-thinking peo-
 
 effect in keeping foreign products out of the American market
 Quoting Mir. Shook in this regard, In cidents like the Illinois Central order would be plentiful and the situation aris- ing from the democratic tariff act would only be that much more serious"
 The editor of the afternoon paper may rest assured that should American manufacturers he forced to reduce wages to meet foreign competition, it will be a permanent investment so long as the Urtderw ood- Simmons tariff act is permit ted to stand.
 F M. Jackson may depend that a large number of southern democrats are begin hing to think and very few will vote for a national administration which provides three and four workings days a week, and possibly no job at all, in connection with the present high cost of living. Thanking you. MT. Editor, for space, am, yours very truly,
 w. c. RATCLIFFE. l7Ia Second avenue. Bessemer. March 26. 1e1o.