The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1894-10-06
INDUSTRIAL, FINANCIAL, COMMERCIAL.


A Pittsburg dispatch says: Breakers
are in the path of the steel rail trust.
It's monopoly Of the mills and markets
east of the Mississippi is serious threat
ened. Down from the Mahoning val
ley in Ohio comes the danger. Iu the
outskirts Of the iron town of YOungs-
town big iron plant has been quietly
erected by the OHIO Steel company at n
cost of 81, 500. 600. and on January
next it will be started and will run day
ard night The plant will be capable
of turning out 600 tons Of steel rails
every day, and by reason of many i'm
provements it is stated that the new
mill will turn out the rails at IL cost
less than that entailed ut the Eigar
Thomp pson plant of the Carnegie Steel
company. The new development in
the steel rail situation and the danger
it threatens to the colossal pool which
now virtually controls steel rail pre-
duction in the United States is all the
talk in iron and steel circles What
the combine will do to offset the new
competitor is yet problematical
but it seems certain that steel
rails will be cheaper in a few months
than ever before in America A strong
possibility is tearing TO pieces of the
pool and price war among the giants
The present pool was formed late last
year and went into effect Jan. l, 1894.
1t includes the Carnegie, Illinois, Cam
bria, Lackswanna and Bethlehem
Steel companies. The pool secured
control Of the Pennsylvania Steel COM
pauy's fine plant at Sparrows' Point,
Nd, and closed it down. thus shutting
OF all competition in the east. The
price of rails was reduced to $?l par
ton. They havo been sold at $23
recently however. The agreement
was to last one year, with the tacit
understanding that it was to be con-
tinued.
The mills in the blahoning Valley
have for years been getting their sup
ply Of steel billets from Pittsburg
manufacturers Last year the Youngs'
town manufacturers decided to build
a billet mill of their own A compan Y
WAS organized, nearly every plant in
tho Mahoning Valley being stock
boluer. Henry Wick was elected presi
dent; Joseph G. Butler, vice president /;
W. II. Baldwin, secretary. The capl
tai was at first 81 100000 Subs quent-
ly this figure was increased. Several
hundred acres Of land were purchased
outside OF Youngstown and big plant
was projected The Mahoning Valley
manufacturers did not wish to depend
upon an outside source for their billeis.
They wanted billet mill under their
own direct control and the only way
to get one was to build it,
But their pllus nave grown
OH them. The original idea Of the val.
ley manufacturers has bean widened
and the mill now approaching compile.
tiou. although not originally attended
as such. will be powerful competitor
In the billet market as soon as opera
tions begin in January, and in the rail
market as soon thereafter as the own
ers WISH The plant has been built
The finishing touches are being put
upon it, lis general uperintendent,
Thomas Mcdonald, says iE will be put
into operation the first of the year.
But the company is prepared to turn
out much more besides the Oillets that
will be required by the Youngstown
mills. 1t Will ba able to make half of
its product steel rails without unduly
decreasing the billet output.
Secretary Baldwin of the new COM
pany says: 1T is the calculation of the
company to make steel rails here. AS
matter OF policy they do not wish
that feature TO be talked about just
now, 1t is q little too early Why,
this plant can turn out twice rs many
billets as will be used by the Mahouing
Valley mills. 1t can turn out billets
and rails both. The machinery here
beats that Of any rail mill in the coun
try. The mill is attracting universal
attention among steel men, aud has
been inspected by some prominent en-
gineers who declare that it can make
rails even more cheaply than they are
now manufactured. Is the company
lillely TO 20 into the steel rail pool
Well, not likely, in view Of the fac.
that IL can make rails cheaper than the
pool. The company will be able to
discount the pool on rails and billets
We have four hydraulic saws that will
cut rails like paper. In short, this
mill can compete with any esta OlisE-
II mt i'll the counEry on either rails or
billets. it makes no difference which.
If the market offers opportunity the
Ohio Steel company will undoubtedly
go to making rails. 1t would be a
foolish thing to leave million dollar
plant lie lille or partly so if it could
sell rails which may be made in this
mill just as readily ana Cheaply as ti-
les. The mill has such capacity
that additions to tie finishing OF roll.
ing department may be made withou
trouble. The start in January will b.
on billots, but it will not bs long be-
fore rails are shipped from here"
The main building Of the plant con-
tOins long rolling tables which
have been placed partially. This part
is $50 feet long. There are two 10.ton
ssemer converters. The machinl
shop has been in operation for som,
weeks The first set of rolls has al
ready been twined and is in shape tC
be put into position. The converting
house is completed. Tracks have been
laid on trestles above the stock yard;
and the delivery of coke has begun,
Two big boiler houses are fully equip
ped TO start Everything has beer
done to put the plant in shape for q
start except the placing of some rolling
ts6les and allied machinery In the maiu
building. Crews of workmen havt
been formed for many departments.
number Of old Homestead men. some oI
whom were in the strike of 1892. will
work for the new company. Other
mon have been engaged in Chicago
The new plant covers several acres ant
is supplied with large electric cranes
and system Of narrow gauge locomo-
tives to haul the metal from one de-
pertinent to another. In the minds oI
steel men no doubt exists that the new
Youngstown will make steel rails. The
intentions of the companies in the
present pool is an important factor il
the case One thing ia certain, ant
that ia atae1 rails will hecoma chea nar