The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1891-03-09
TIE GREAT c0KH C0MBINArnN.
Eject of tho Out In Western RateS-It
Helps Southern Furnaces.


Eject of tho Out in Western Rates-It
Helps Southern Furnaces.
CHICAGO, March 8.-The reduction Of
p cents per 100 pounds in the freight
rates on iron between Pittsburgh and
the Mahoning Valley and Chicago, which
has Just been agreed to by the Central
Traffic Association, 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,
tho tariff from Pittsburgh to Chicago
will be fifteen cents for 100 pounds in
carloads and seventeen and q half centa
In less than carloads, and from the Ma.
honing Valley and Chicago the tariff
will be thirteen centsin carloads and If
teen cents in less than carloads; and ON
pig iron from the Maboning Valley the
rate will be cut down from 81 20 to So
per gross ton,
THE MAHoNISa VALLEY MEN PRoFGrRD.
While Pittsburgh shippers of manu-.
factured iron will greatly profit by this
change, the chief beneficiaries Of II are
the Mahoning Valley who, during the
past year or two, have suffered severely
from the competition in Western mar.
kets Of Southern furnaces, which, with
cheap coal and coke and limestone at
their doors, have been able to manufac-
ture iron AZ aa low a figure as $ll per ton,
whereas in the Mahoning Valley and
Pittsburgh tho cost OF manufacture Ia
nearer SIC.
The Mahoning Valley men wanted a
very much greater reduction and pleaded
long aud earnestly for II at the numerous
conferences which have been held be-
tween manufacturers and representa-
tives OF the trunk lines.
ONLY TEMPORARY RELIEF EFFEcrHD.
"The present cut" one OF them said
this morning, Twill afford US only tenn.
po.ary relief, for the Southern men with
their superior facilities will undoubtedly
make a reduction In prices which we
shall be unable to meet. They have
made large hole in our trade in the
Western market, and they will do every.
thing In their power to hold on 10 what
they have got The new railroad rate IN
reasonable, though we should like TO sse
1t lower; tho real difficulty with us Ia
the cost OF coke. Four or five years ago
coke cost us from 90 cents to a 81 10 mar
ton, and when 1t got up to 81 25 The
coke manufacturers considered that thew
were doinga very prosperous business.
Now the price ranges from g 25 to Sc 40
per ton.
THE COST OF coKING COAL rHR SANE.
The cost OF the coal from which cots
is made has not increased. The process
OF making coke has perhaps been cbean.
ened somewhat because It is maie ~
such large scale, aud the only reaaoa
for the increase in the price ia in The
greed Of the combination OF canjtalists
represented by Il. @. Frick, OF Pits.
burgh, who own three.fourthB Of thA
ovens in the Oonnellsville region and
fixes the price, The Southern mRnniac,
turer Of pig iron pays perhaps 81 for Hin
coke, we pay s. 25, and yet are exnscted
TO compete with him for the Western
market. Mr. Frick, and Mr.. CaTnegia
bshind him, are the men who ara rails
responsible for the serious insnadS
which havObeen made on our trade hv
the furnaces in the South, Il tatsS an.
proTlmately ton and half OF coke 10
produce ton OF pigiron.
REDUCTION IN THR COST OF COKE.
The reduction Of twenty cents per ten
in the iteigh. rate is, therefore. eouivs.
lent TO a reduction OF sbout fonrto.,
cents per ton in the cost OF coke; that Il
all. II the grip Of the coke combine
could be broken II would be 4 preat ~
10 the iron Industries Of Western Penn.
sylyania, and Ohio Southern oomnstf.
ton would not trouble US then"
but there is no prospect OF its beinO
broken?" '''Hs
"No, it has a firm grip, and ia li,s,v
to keep itfora long time. The csn;ts
liSts believe Fdck owns three. ionTt5s os
the ovens, the balance being distributed
among number OF other owners. Frick
fxes the price. He Is In position n
say to the others, Gentlemen, thls 4
my price, '1i' -
PRICK ON THE INSIDE TRACK.
"You may sell at that figure and make
twice as much profit as you otherwiae
could, or you may cut rates, and n von
do l have tho power 10 cut below sn1
agIre you can reach aud drive Won ont
OF tho market. The other manuiSeinr.
sts oil coke know that he has the power
to carry out his threat, and tbsv ~
course agree 70 sell at tho rate HIe3 by M
Nc. trick. But the profit d "a Sysst
that 1t IL only aquesIion Of time When
s3. s2ne competitor, strong enough 10 meet
the combine, shall appear on the field.
/ That m h
us eau tell Just now" --'-''S-