Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1891-03-08
A BIG COKE COMBINE.
How 1t Helps Southern Furnaces in
the Western Markets.
CUT IN WESTERN FREIGHT RATES
Will Afford the Northern Manufacturer
Only Temporary Relief.
WHY MONOPOLY SHOULD BE CRUSHED
SPECIAL TELEGRAM TO THE DIsPArcH..

ESPECIAL TELEGRAM TO THE DISPATCH.
CHICAGO. March THE reduction of
2k cents per 100 pounds in the freight rates
on iron between Pittsburg and the Mahon-
ing Valley and Chicago, which has just
been agreed to by the Central Traffic Asso-
citation, is the outcome of long fight which
has been in progress since early last summer.
After March 30, when the new rate goes
into effect, the tariff from Pittsburg to Chi
cago will be Is cents for 100 pounds in car
loads and 1716 cents in less than carloads,
and from the Mahoning Valley and Chicago
the tariff will be Ii cents in carloads and Is
cents in less than carloads; and on pig iron
from the Mahoning Valley the rate will be
cut down from 50 20 to 50 per gross ton.
The Mahoning Valley Men Profited.
While Pittsburg shippers of manufactured
iron will greatly profit by this change,
the chief benefciaries of it are the
pig iron manufacturers of the Mahoning
Valley who, during the past year or two,
have suffered severely from the competition
in Western markets of Southern furnaces,
which, with cheap coal and coke and lime
stone at their doors, have been able to
manufacture iron at as low figure as S11
per ton, whereas in the Mahoning Valley
and Pittsburg the cost of manufacture is
nearer SIG
The Mahoning Valley men wanted very
much greater reduction and pleaded long
and earnestly for it at the numerous con-
ferences which have been held between
manufacturers and representatives of the
trunk lines.
Only Temporary Relief Effected.
'The present cut" one of them said this
morning, "will afford us only temporary
relief, for the Southern men with
their superior facilities will undoubt-
eyo ediy ina make o ,,i, n n;a reduction n .dt IN
They have made large hole in our trade in
the Western market, and they will
do everything in their power to
hold on to what they have got.
The new railroad rate is reasonable, though
we should like to see it lower; the real
difficulty with US is the cost of coke. Four
or five years ago coke cost US from 80 cents
to 81 10 per ton, and when it got up to 81 %
the coke manufacturers considered that they
were doing very prosperous business. Now
the price ranges from 81 % to 81 40 per ton.
The Cost of Coking Coal the Same.
The cost of the coal from which coke is
made has not increased. The process Of
making coke has perhaps been cheapened
somewhat because 1t is made on such large
scale, and the only reason for the in
crease in the price is in the
greed Of the combination Of capitalists rep
resented by H. c. Frick, of Pittsburg, who
own three fourths of the ovens in the Con-
nellsville region and fixes the price. The
Southern manufacturer OF pig iron pays
perhaps 81 for his coke, we pay
81 20. and yet are expected to compete
with him for the Western market. Mr..
Frick, and Mr.. Carnegie behind him, are
the men who are really responsible for the
serious inroads which have been made on
our trade by the furnaces in the South. 1t
takes approximately ton and half OF coke
to produce ton OF pig iron.
A Reduction in the Cost of Coke.
The reduct. on OF 20 cents per ton in the
frei hit rate is, therefore, equivalent to re-
ductlon of about II cents per ton in the
cost of coke; that is ali. If the grip of the
coke combine could be broken it would be
great aid to the iron industry Of West
ern Pennsylvania, and Ohio Southern COM
petition would not trouble US then
"But there is no prospect of its being
broken?"
"No, it has firm grip, and is likely to
keep it for long time. The capitalists be-
lieve Frick owns three-tourths OF the
ovens, the balance being distributed among
a number of other owners. Frick fixes the
price. He is in position to say to the
others, Gentlemen, this is my price.
Frick on the Inside Track.
"You may sell at that figure and make
twice as much profit as you otherwise could,
or you may cut rates, and if you do 1 have
the power to cut below any figure you can
reach and drive you out of the market.
The other manufacturers of coke
know that he has the power to
carry out his threat, and they of
course agree to sell at the rate fixed by Mr..
Frick. But the profit is so great that it is
only question of time when some competi-
tor, strong enough to meet the combine,
shall appear on the field. When that will
happen of course none of us can tell just
now