Year: 1866




IRON HOrES, JOhnStOurH, Pa. to the Sec


retdTY Of the american Iron and Steel


Association.


JoHNsTowN, P, Aug. 19, 1865.


DEAR SIR: Your letter of 18th inst,
Is received, in which you ask me to
furnish statement of the taxes, direct
and indirect, apOn ton of manufac
tured iron, and to give you such views
as the subject may suggest to my
mind.


In considering any topic connected
with, or bearing upon, the great man
utacturing interests Of the country, it
Is necessary in the outset to dsabuse
the mind OF the popular but erroneous
impression, that the subject is agitated
for the sole benefit of capitalists Iron
masters write and speak and memoir
aIlze on the subject Of protection they
meet TO discuss it, and combine to Sc
cure it, and it would seem, at a super
fetal view, to be question solely be
tween them and the Government. 1t
is not so. They are mouthpiece for
lnnumerable wOrkingmen, who, thro
them, demand the right to labor and
TO live. The industry Of these men
has sustained, perhaps saved, the Gov
ernment. They pay it directly and
indirectly large portion of their wa
ges. By their aid the national credit
has been maintained, and adequate
protection will enable them to repair
the waste Of war,sand to insure the
liquidation of the national indebted
ness The Government is in partner
ship with them. and dependent upon
their prosperity. 1t must protect
them, if it would protect itself Does
it do SO?


In answer to your letter, I propose
to show what proportion Of its value
every ton Of American manufactured
iron pays into the public treasury, and
how much Of this is tax upon the la
borer; and shall contrast this with the
duty upon imported iron, to show the
comparative regard of the Government
for its own citizens, Iaboring for its
support, and foreigners who have arm
ed and aided a rebellion for its over
throw.


l shall endeavor, partially at least,
to analyze a tor of iron, to show what
it represents, and how its elements af
feet the common veal and are affected
by the laws Of the land


1t has been usual for ironmasters, in
estimating the cost Of a gross ton of
ordinary bar iron, TO consider it equiv
aent to the value offfty days average
labor, and my observations have con-
vinced me that this calculation is ap-
proximately correct.


Ny experience in the manufacture
OF rails shows that an average of about
thirty two days labor is expended di-
rectly in the production of a gross ton
of railroad bars-in taking the ore and
coal from the mines, and delivering
the finished iron from the mill ready
for shipment. Add to this the wear
and tear of furnaces. machinery,
buildings, &c, interest "a "a pital, and
royalty for the minerals consumed, and
it will appear that the estimate of fifty
days labor is not much too great. even
upon a ton of rails, when a fair margin
is allowed Tor profit.


Claiming no profit, and making no
charge for interest on capital or for
minerals, the net cost of a ton of rails
may be fairly stated at forty days la
bOr. The natural advantages or dis
advantages of location will vary this
estimate somewhat; but as labor is
generally less productive or more cost
ly, where Nature has most lavished
her tavOrs, the actual cost of produc-
tion remains nearly the same Hence
the cost of iron. in dollars and cents,
depends upon the wages paid for the
labor which produces it, and the value
of the wages received by the work
men depends upon the cost of such ar.
ticles as he needs to purchase for him
self and family. These articles are now
high in price, and wages must there
tore be high. The exigencies of Gov
ernment affecting the currency have
enhanced the cost of the necessaries of
life, in the supply of which there is no
competition from abroad. The price
of the product Of the workingman' la
Dor should be proportionally enhanced,
and thus an equilibrium maintained !;
and this would be the case if there was
no outside interference Unfortunate-
ly for him, foreign labor, unaffected by
the exigencies Of our Government and
bearing none of his indirect burdens,
enters into competition with him and
threatens his destruction. 1t should
also be remembered in this connection,
especially by the lawmakers Of the
land, upon whose enlightened action
the welfare of the toiling millions OF
our people depends, that the working
man of America aims to save some
thing, and rightfulIy claims that be
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