New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-11-24
THE STEEL RAIL POOL.
MORE COMPLETE THAN WAS AT FIRST
SUPPOSED.
PLANTS IN MARYLAND AND PENNSYLVANIA EN-
PLOYING SIX THOUSAND MEN LEASED
AND TO BE CLOsED-DETAILS OF
THE COMBINATIoN
IpY TELEGRAPH TO THE TRIBUNE

(BY TELEGRAPH TO THE TRiBuNE.J
pittsburg Nov 2S-Addtional information
about the new steel rail pool shows 1t to be more
complete than was at first suspected. In addi-
ton to leasing the steel rail plant at Sparrows
Point Md, the new pool has also leased the
PENNSYLVANIA Steel Company's plant at Steel
ton. Penn. These two plants will be kept closed
indefinitely the Carnegie and Illinois companies
having the Western trade allotted to them. and
the Bethlehem. Cambria and Lackawanna firms
the Eastern In contrast to the statement made
made by Secretary Lovejoy of the Carnegie
Company that the combine has no legal exist
ence. and that there never had been an agree
ment on prices, the following statement from a
man who knows Is made tonight:
when Andrew Carnegie some years ago made
his debut in the steel rail market II was said
that he desired to cause change In the method
Of handling II. This was not an easy task, ana
with go strong competitor as the Illinois steer
Company 1t was necessary to reach an amicaple
understanding with this and other strong con-
Germs. This was done. and nothing OF much
consequence occurred for years to mar the
serenity OF affairs. Then Mr.. Carnegie in
creased the size OF his steel rail mill at Brad
dock and this meant increased production.
Slowly but surely his position in the steel rail-
market was becoming stronger and stronger.
AZ n flnal move MT. CdTHtBle dDOut ioui ycotS
or so ago surprised every one. even his COM
petltors. by announcing that he had purchased
the steel plant OF the Allegheny Bessemer Com
pany at Duquesne. This addition proved an
other big card. and Carnegie stock. so far as
steel rails were concerned went above par.
AT the same time the Illinois Steel Company
kept agog with the times. and II was nip-and-
tuck affair You must remember ina, ,,na,e tne
South Chicago Steel rail mill Of the Illinois
Company is still ahead Of Carnegie's Braddock
plant. The South Chicago plant has record
of 5000 tons month while the highest al
Brnddock was 1000 When the other manu-
facturers became aware OF Carnegies power IN
the market a close combine was formed ana
although what am about to say may be de-
MED II IL true that there was an Understanding
that each firm figure in the division OF pronts
on orders for steel rails. For instance II the
Carnegie Company secured big order tne
prof; sharing scheme had to be carried out.
and so It was when the other firms secured
the orders II was this arrangement that kept
the rates for steel rails so high. Not firm
in the combine would underbid another
knowing that the orders would necessarily nave
to be placed with some one OF them. know
of an instance where a railroad company ie' ~
an immense contract for steel rails TO the IL
linois Company, and In the contract there was
a special clause that the entire order be worked
at the South Chicago plant This stpuiation
was made for several reasons, prominent among
them being that the inspection there Is more
strict and, secondly. that the railway oHlcias
did not want the Illinois COMPANY TO aV'ue
its work with other firms in the combine
The production of the pool for the first SIX
months of 1893 was 57i.SSi tons OF steel rails,
dvided as follows: Bethlehem Iron Company,
az lse tons; Cambria Iron and Steel Company.
1896 Carneg.e Steel Company: Limited. H.
545: Illinois Steel Company. l56. 49, Lackawanna
Iron and Steel Company 66,O23 Pennsylvania
Steel Company, 21.5O9. me new Ieaseu col-
Germs which will be slut down by the pool. EN-,
ploy about G.OO0 lien. Under the new pool
there will be n radical change from the allot-
mcnt system wr,ch was In vogue under the
Stool Rail Associ ,ton which was formed in
1887: at least such is the general beliei oi prok
ers who have inside information In 1880 win
a total production of 13sS 1856 tons Of rails. the
oIlotment was as follows: Bethlehem Cam
bra. Lackawanna. Scranton and MARYLAND, 5
per cent each: Carnegie and LIMOS colnpineu;
= nor cent II will be seen that the new pool
differs in fixing minimum price OF $1i ton
AT present and IL is stated that penalty mas
been fixed for rate-cutting. The new aiiot-
ment Of the pool will be more territorial than
was the former 1t Is understood that the
BOARD of Control will regulate the production
as well None OF the officials of the Carnegie
steel Company will discuss the pool