Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1891-01-03
RAIL MAKERS READY
For Much Increased Trade and a
Keen Struggle for Business.
SOME PRICES AND ORDERS FIXED,
Knights of Laber Preparing for the
Quarterly Meeting.
THE ADAMS PROCESS AND ITS CLAIMS

The new year presents indications of being
in some respects an important one in the
history of the steel rail trade. 1t opens
with prices lower than were reached during
the past IL months, and without any i'm
mediate prospects of better being obtained
or larger supply of rails going into use
than would be due to the steady growth Of
the country. Despite this. however, rail
manufacturers are overhauling their plants,
putting in more modern machinery, and in
one or two cases very considerably enlarging
capacities.
This would indicate either very great
degree of sanguineness in the prospects for
the years business on their part, or grid
ling up of the loins for struggle in the di-
rection OF more economic production of
rails because Of the greater keenness in COM
petition.
IMPROVEMENTS IN PROSPECT.
With regard to the question of produc-
tion, very active preparations are on way in
three of the largest plants for extensive en-
largement The Edgar Thomson capacity
will be increased by 5000 tons per month,
and it is understood that devices which will
still further reduce the cost than at present
obtains will be introduced.
Additions and improvements are also
being effected in the Illinois Steel Com
panv's plants. The Pennsylvania Steel
Company are making the most extensive
improvements and additions to their works.
At Sparrow Point they are erecting mill
which will turn out lengths of finished rails
simultaneously, equivalent to an output of
nla,, ne
will increase the annual capacity of the seven
principal steel rail works from $500, 900
tons to over 100000.
Such preparations would warrant the as
sumption that the railmakers were arming
themselves for a keen struggle for business,
If it were not for the fact, that an organiza-
tion known as the Steel Railmakers Asso-
citation is in existence. The purpose of this
organization is to regulate prices and the
proportion which each maker shall receive
of any business doing. The orders are ap-
portioned according to the capacity of the
mill, and it is understood that no mill shall
make more than its allotment of rails. This
regulation, it is stated, is generally adhered
to. 1t is not so, however, with prices.
SORT OF A PUZZLE.
While the Association is reported as set
ting a uniform rate, below which orders
shall not be accepted, it is charged that
manufacturers disregard the rule and shade
prices considerably. Why they should do
so, when, by holding their quota of the bus
mess until the demand should force up the
price to fair level, they would obtain good
returns, it Is difficult to say, but that such
undertaking obtains is stated to be the
case.
Railmakers are now discussing the years
prospects and making the usual allotment.
From reports that reach the city not much
harmony seems to obtain among them on
his point, each manufacturer claiming he
ought to have a larger share than ne re-
ceives. In face of this it is possible that a
renewed combination with closer cohesion
NAV be formed among the rail manufac-
turers. 1t is said that it may 60 the length
Of a solid organization, such as is frequently
expressed by the term trust" The pur-
chase of the only mill which was not in the
Association, namely, the Allegheny Besse-
mer, by the Carnegie Association would
serve to smooth the way. 1t is stated, on
the other hand, that total disruption OF the
organization now existing is possible. Lat
est accounts are to the effect that the makers
have fixed $50 as the price in Pennsylvania
mills. But there is no certainty that the
rate will be observed.