'Cbe Conservative *
fortify ourselves that we are practically
independent , or , if you pleaae , to put
ourselves in a position to take the ore
from our own mines , transport it in our
own vessels , convert it into pig iron in
our own furnaces , roll it into steel
billets in our own steel mills , roll it into
iron rods in our own rod mills , and
finish it in our own mills into plain and
barbed wire and all the different kinds
of wire used not only in the United
States , but all other countries where
wire is used. In this way we have
succeeded , as wo own one of the best ,
ore mines in the Mesuba range. We
have our own coke mines and coke
furnaces ; so that you will see that wo
start at the bottom and have all the
profits that there are from ore to
finished material. Our business is
entirely satisfactory and the company
is doing very well. "
The trust has a monopoly of the drawn
and barb wire business but has con
siderable competition in woven fence
wire. It also does a large business in
copper wire and copper electrical goods
aud in fencing , poultry netting , baling
wire aud bale tires.
The actual output , in 1898 , of all the
plants now in the trust was :
Wire rods 820,840 net tons.
Drawn wire . . .1,180,124 " "
Barbed wire 275,018 " "
Wire nails 0,551,737 kegs.
Woven wire fencing 10,000 miles.
Prices.
The effect of this trust upon prices
has been almost marvelous. The fol
lowing tables of average monthly prices
are from the Iron Age of January 4 ,
1900 :
It should bo noticed that these are the
base prices of wire nails in carload lots.
Because of "extras , " due to sizes , the
average price per keg is fully 00 cents
more than those quoted above. Of
course the prices of small lots are still
higher aud the retail prices , especially
in remote districts , very much higher
than for carload lots. The base price is
fixed at Pittsburg'and freights are added
to all points of delivery. The Pittsburg
price is now 88 cents lower than Chicago
and New York prices , which are 5 cents
below St. Louis prices. Wire nails
have almost entirely replaced out nails ,
which now sell for about 70 conta per
keg less than wire nails.
The duty on wire nails from 1890 to
1894 was from 2 to 4 cents per pound ;
from 1894 to 1897 , 25 per cent ; since
1897 } to 1 cent per pound.
The duty on barb wire from 1890 to
1894 was G 10 of a cent per pound ; since
1894 4 10 of a cent per pound.
The duties on other products of this
trust are generally higher than those on
wire nails.
Trust Prollts.
In April one of the directors estimated
the yearly net earnings at $12,000,000.
The statement of the earnings to June
80 , 1899 , showed a net profit of $4,892-
000 , for the first six mouths. Judging
from the prices of wire and wire nails
the profits for the second six months
should be at least $8,000,000 the in
crease in prices being nearly all profit ,
because the trust owns its own mines
and furnaces aud the actual cost of
making iron , steel and wire is not much
greater than when prices were less than
half present prices. While it is unlikely
that the present excessive profits will
( ami New York ) Wire Null "Base" Prices.
Average for year $2.(50 ( $145 $1.40 $254 ? 1.0S % 1.1 % $150
Chicago ( anil New York ) Ilurbccl Wire "Huso" Prices.
Average per year. $8.17 $1.85 $1.80 $1.90 $2.25 $2.18 $2.55
continue for many months it is difficult
to see how'tho profits from July , 1899 to
July , 1900 , can fall below $15,000,000.
Trust Theories.
It may be noted that when this trust
was first formed wo hoard a great deal
from the trust theorists about the eco
nomic advantages and savings of great
combinations. Thus Mr. Qarrit H. Ten
Broek , of St. Louis , as counsel for the
company announced that "the only 1
effect on the market that I can see , will
be a possible slight lowering of prices
because of this economy and also a
steadiness of prices for the future. "
There are still numerous pro-trusts
theorists prating about the blessings
of trusts as if nearly all of the trusts
had not , in practice , actually
demonstrated that they are , under
present conditions , all around curses.
The blessings , so far , are enjoyed only
by those who got into the trusts on the
"groundfloor. "
If the wire trnat lowers prices it will
do so only because of the removal or
threatened removal of tariff duties or
because prices are too high to yield
maximum profits. The Iron Age of
November 80 , 1899 , contains six columns
of interviews with hardware men in 25
states on "the effect of high prices on
the demand for goods. " Many dealers
say that they expect to sell 25 or 80 per
cent less goods in 1900 because of ad
vanced prices. Many farmers are re
fusing to build fences with wire at
high prices. A Maryland farmer said :
"The price of wire is prohibitive. I
shall go home and put the hands to work
and make rail fence. " The farmers are
deferring the building of houses because
of the increased prices of lumber , nails ,
glass , etc. They are buying nails by
the pound instead of by the keg.
Very Low Export Prices.
Mr , Gates neglected to tell the Indus
trial Commission how much export
prices were below the home market
prices.
It will make these farmers feel happy
to know that this same trust which
charges them at a "basis" of $3.58 per
keg for nails ( about $4.50 at retail ) ex
ports these nails and sells them to Euro
peans at $2.14 "basis" per keg and that
it exported about 70,000,000 pounds in
1899 to all parts of the earth. The exports -
ports for the fiscal years 1898 to 1899 of
wire and wire nails were as follows :
Export of Wire Nails unil Wire.