The Temuka Leader. TUESDAY, NOVEMBER 23, 1886. THE RUIN OF AMERICA.

Temuka Leader, Issue 1516, 23 November 1886, Page 2

The Temuka Leader. TUESDAY, NOVEMBER 23, 1886. THE RUIN OF AMERICA.

Feiitraders frequently insist that Protection has mined -America, but we fail to see it„ Mr Blaine, the distinguiehed American statesman, who was a candidate for the Presidency recently, gave a death-blow te this cry in a speech delivered by him at a place called Farmington on the Bth of last September, He said :

"In 1869 there were about 37,000 to 38,000 miles of railroad in the whole of the United States. Not long before that time there had come across the waters the intelligence that England was beginning to use steel rails, and that they were very much more durable and better in every way than iron rails. Some of our people, anxious to get them, paid at the factory in England £22 per ton in gold •oin, HOdols per ton when tony added the duty and translated it into greenbacks. The first steel rails were laid in this •ountry at an average coot of 160dols to 170do!s per ton. This went on until 1870. The manufacturers of the country controlling the iron interests—there was practically no steel interests—said : ' If you will give us a Protective duty we can make steel rails in this country.' Against the united protest of the fleetrade element, and with the apprehension and timidity of many of the protective element of the country, Congress imposed a duty of 28dols in gold per ton on steel rails.

" The Freetraders complained bitterly that this would make the price so enormous that steel rails could not be used in this country. Nevertheless we imposed the duty. I had the honor of sharing in the legislation. Up to that time—July, 1870—there never had been made 50,000 tons of steels rails in this country. There never bad been made of ingot or other forms of steel over 110,000 tons. For the Bessemer steel we depended entirely upon Europe. That nas only 1870. What was the result? In fifteen years from that date the manufacturers of the United States had turned out 10,000,000 tons of steel rails, enough for 100,000 miles of railway. That so rapidly reduced the price that in this very 'ast year steel rails sold down to within fifty cents of the duty alone of 1870, so that rails were famished at the shop at 28.50d01s a too, where they had originally cost 160dol8 to 170dols a ton; und while we were doing this we increased the steel product of other kinds—every form of steel that was needed—until within the same period wa produced in this country 16,000,000 tons of ingots and other steel, at. shown by the official statistics. Ten million tons of steel rails, and 15,000,000 tons of ingot and other steel 1 If the cost of that ever be averaged it will be found to be about 50dols a ton. We started at a very high price and kept decreasing, so that the average was about 50dols. Therefore that product sold in th's country for 000.000.000d015, and the 15.000,000 tons of ingots and other steel at the same price sold for 750,000, OOOdols, so that the steal product from July, 1870, to July, 1880, amounted at the sellers' price in this country to 1,250,t0Q,000d015. "I want to say a word to the laboring men as to the cost of that steel. When labor put its hands to it it was nothing except iron ore in the mine. Labor met it there, where it was worth just ten cents per ton royalty. With the exception of that ten c«nts a ton every dollar of that 1,250,000,000d01s was the product of labor. What did labor get out of that 1 They say these steel manufacturers made a great sum ; no doubt they did. They went into an experiment which took enormous capital, and they had to make a great plant. Put it at the very outside and they made for themselves 250,000,000d015. Putting it at its extreme, I don't think that they actually made anything like that amount. But, for argument sake, it is admitted. They left, therefore, 1,000,000,0C0d01s to be distributed to the strong arms and the brawny hands of the skilled labor which made that steel. (Tremendous applause). Was it not better to have that steel made here and keep that 1,000,000,000d01s at home? (Voices, 'Yes, yes,' and ap-, plouse). Anl the other 250.000,000d01s too 1 We never would have bought that 25,000,000 tool of iteel at SOJols if i

England had been left with the monopoly of this market, as she had when that high duty was put on. She never would have reduced the price. It was competition in this country that did it. 80 that not only w»s 1,000,000,00CM018 paid out to the labor of the country, but the railroads of the country got their steels vastly cheaper than they ever could have got them if they had been left dependent on England. If that policy does not vindicate itself then it is impossible that any industrial policy can vindicace itself. Not only would we hat?e failed to get that steel at that price, but I can say with absolute confidence, aB every business man will join in saying, except for the protective po'iey which kept that 1,250,000,000i101ti «t borne we should not have had the vast extent of railroad, " It was not within the financial ability of this country to stand the drafts which the war made on us, and an outgo to foreign lands of 1,260,000,000d01s in coin. It could not have been done. It would have stood in the way of the development of the country, Now, that is the worst case they bring against us. (Laughter and applause). It has enabled the United States to have a larger mileage of railway to-day than all the rest of the world put together. It has bound the extreme North-east to the extreme South-west, so that yon can take a car here from under the shadow of Mount Blue, and go to the utmost bounds of the republic. It could not have been done except for a protective tariff. The ultimate cause lay in that2Bdols of duty. That brought the money from the pookets of capitalists; that started the energy and enterprise of the inventor, quickened the arm of labor, and led to results that have been the suri prise and admiration of the world. (Cheers)." People onght to reflect on these facte, [ for facts they must be. Mr Blaine occupies too high a position in America to give utterance to such statements if J they were not true. W hen the American people began importing steel rails from England they cost them 110 dollars per ton ; they put on a protective duty of 28 dollars—close on £7—per ton, and 1 commenced to manufacture steel in America. The result is that steel rails are produced now in America at 28 dollars and 50 cents. During ten years oDe billion dollars that is about £2oo,ooo,ooo—was paid in wages t.» working men. That would give £IOO to 20,000 men for 10 years. Working men would do well to reflect on this. Was it not better for America to pu> on protection and manufacture its own steel, than import it from England ?

THE FIEB AT THE TBMUKA LINSEED fIAOXOBY.

Thi fire by which the Temuka Liniead Company lose as much ai would pay a tan per eent dividend to the shareholder! ii a very regrettable matter. The industry has hitherto met with extraordinary difficulties and loiiei, and this coming on the top of other mishaps it not at all pleasant. It was an accident, certainly, but the Directors ought to hare been better prepared for inch a contingency. We do not blame them for ■ot insuring. The fact is, they could not have insured the burned building, for no Company would take a riik on it, and ai for the larger and more important part of thn works, the terms offered by the Insurance Companiei were prohibitory. The Insurance Companies offered to take a risk of £IOOO on the larger baildiog and plant at a premium of 5 per cent, which meant £SO a year. Now £IOOO would not be one-fifth of the value of the plant, buildings, and goods, and to pay £6O a year for this wai too much. When, however, the Direotow decided to take the risk themselves they ought alio to have taken measures to provide amply for such a contingency as that which destroyed their property last Saturday. They ought to have spent £6O on apparatus that would enable them to cope with a fire at a moment's notice. What they want to do is—and we truitthey will adopt the suggestion at once—to erect foree pumps, or some such machinery ai can be worked by their engines, to supply water in ease of acoident. Large tanks of water should be placed on top of the roof, and kept constantly filled, and from these pipes could be carried all round the most important pari of the buildings where the valuable machinery if. Here and there short lengths of hose could be fixed to the pipes, so that at a moment's notice the full force of the water oould be turned on. Sufficient lengths ot hose to go across the paddock should alio Im got, and the em. ployees trained to work systematically iu oaue of fire. Someone should also live on the premise! at night, and have poa/er to turn away swaggers or other people who might seek shelter there. Precautions like these ought to be taken, instead of placing dependence on a few buckets and hand grenades, and we truit the Directors will •ee their way to adopt our suggestions,