FREIGHT RATES AND MANUFACTURES IN COLORADO 23 



Aside from any interference on the part of the railroads, the natural 

 situation of the state of Colorado and the nature of the industry that was 

 first developed in the state, namely, mining, are conditions that would 

 of necessity have started the iron industry at an early date. Heavy iron 

 machinery was greatly needed in working the mines. Such machinery 

 is expensive to bring in from points 1,000 miles distant as its weight adds 

 greatly to the difficulty in transporting it and freight rates must of neces- 

 sity be very high. In 1881-82, just after the great mining successes at 

 Leadville, there was a great influx of mining machinery. It was shipped 

 from points beyond the Missouri River, much of it from places as far 

 distant as Pittsburgh, and the average rate of freight was said to have 

 been ten cents a pound. 1 This was an enormous tax on the mining 

 industry of the state. There can be little doubt that this great demand 

 for the products of iron manufacture would have stimulated the develop- 

 ment of that industry very rapidly, had it not been for the discriminating 

 freight rates. 



The foundry business was started in Denver in 187 1. It was handi- 

 capped by the rates for the shipment of its products. The freight rates 

 from Denver to points in Arizona, Montana and southern California 

 were the same as from Missouri River points. The foundry shipped in 

 pig iron and coke from the East as these were superior in quality to any 

 made in Colorado at that time. The freight rate on these products was 

 fifteen dollars a ton. 2 



The freight rates were not favorable to the manufacturer of foundry 

 products then nor did they become so soon. The discrimination in 

 favor of the places on the Missouri River continued. The rates were 

 kept as high on the raw material needed for use in iron manufacture as 

 on the manufactured product. It cost as much in every case except that 

 of pig iron to bring in the raw materials as it did the manufactured 

 machines. This is especially illustrated by the rate on boilers. On 

 30 per cent, of the material in boilers, the rate was higher than the rate 

 on the manufactured boiler. The rate on the boiler tubes was $1.15; 

 on the finished boiler, the rate was $1 .oo. 3 Six firms were engaged in 

 the manufacture of boilers in 1884. The price of boilers was high enough 



1 Ibid., p. 166. * Ibid., p. 51. 3 Ibid., p. 166. 



