The Duluth rip-saw. [volume] (Duluth, Minn.) 1917-19??, 1918-06-29

cent of the smaller plants failed.
Company after company went into
the hands of a receiver.
Brought Better Conditions.
l"During periods of depression
prices were very low. When trade
was good runaway market resulted.
This condition was not only detri-
mental to the small manufacturers,
but to the jobbers and consumers as
we'll. ... -.
"Then the steel corporation came
into the field and change for the
batter Immediately became evident.
The Steel corporation was fortunate
in having a man like Judge Gary as
leader. He has been at the helm
ever since the corporation was organ
lied. His policy has been one of
fairness to all. Through his prac-
tees the small dealer can purchase
corporation goods as cheaply as can
! was the center of the steel industry
when the corporation was formed,
and in order to insure one price to all
the prices of primary steel products
were made f. o. b. Pittsburgh. Then
purchasers knew before investing any
capital just exactly what ground they
were standing on. The steel and iron
! industries were satisfied because
they were protected. They naturally
were accorded preference as regards
the disposal Of their products in their
own territory. I believe the trade
! feels the present Arrangement is sat
isfactory. No price decline is posi-
BILE under the present system.
What About Manufacturers?
''Have you heard complaints from
the manufacturers? Have the agi-
tators interviewed Mr.. McDougall,
Mr.. Luster or the Marshall-Wells
company officials? Don't you think,
you men who have had this fight for
/ Pittsburgh plus in charge, don't
you think you should have ascer-
tanned the attitude of the manufac-
turers before you started the cam
paign? I feel that great mistake
has been made.
81 do not doubt the sincerity or
purpose of Mr.. Craig, the chairman
of the steel committee. 1 believe
that perhaps he lacks the knowledge
and business experience which would
have led him to look into this mat
ter more thoroughly before beginning
the war on Pittsburgh plus I be-
lieve that had a thorough investiga-
] ton been made the matter would
{ have appeared in different light"
Mr.. Marshall cited the case of a
banker who had entered into an ar
gument with him regarding the steel
corporations policy of selling abroad
| were disposed of in the United States
and how the banker had only been
| convinced after Mr.. Marshall had
pointed out to him that the situation
was analogous to a banks loaning
/ money at home for 6 and per cent
| while the surplus was put out at 3
per cent interest at points distant.
Demand Real Factor.
"Demand brings manufacturing to
! any city. 1t can't be forced to come"
! Mr.. Marshall commended. He reviewed
the history of several Duluth plants
! to bear out his assertion that "Pitts-
burgh plus" is aiding rather than
hindering the development of local
| industry. He pointed to the Duluth
| Boiler works as a notable example.
saying that the protection afforded
| by the pittsburgh plus" rate had en-
abled the works to compete with fac
tories in Erie, Pa.
1.-THE Zenith Furnace company"
he continued, paid no dividends for
10 years. Now the company is pros
pering, largely through the sale of
by-products, but the prosperity is
mainly due to the existence of Pitts
burgh plus"
Cites Postage Stamp Rate.
Mr.. Marshall outlined the history
of the postage stamp rate" point
ing out the difference between that
rate and the Pittsburgh plus charge.
"That rate was designed to pro-
tect wholesalers on the coast from
competition with those in the Mid
die West" the speaker pointed out
1T was inaugurated by the South
ern Pacific for the benefit of it's GUS
toners on the Pacific coast. It was
an unjust discrimination against Du-
luth and it was the hardware manu-
facturers who brought about it's abol-
ishment after years of campaigning
"Now what would be the result if
Pittsburgh base were established in
| DULUTH" he continued, reverting to
! the present steel controversy. "In
those places where they could pro-
cure coal and other. things necessary
to the manufacture of steel would
! capital sit supine? Would Chicago
ans not see the advantage they would
have over this city?
Covert Threats Work Harm?
''The covert threat to keep goods
within the state by means of taxa
tion can work nothing but HARM"
Mr.. Marshall asserted. "It cannot
but antagonize those interests which
have done much for Duluth. Pitts
burgh plus is stabilizer Of prices
and as such stands as the reason of
| plants being started where there is
a demand for them. 1 believe a wire
! and rod plant can be procured for
| this city in time unless we antagon-
lie the Steel corporation. In a con-
versation had with Judge Gary he
told me that he would be glad to
| meet with committee with view
| to discussing the matter. He was not
in q position to make definite prom
Uses at this time, but he believed
that in time the building of a plant
here would be justified. I have no
oh Lot l.