The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1896-11-17
EFFECTS OF THE
NEW STEEL POOL
II Will Force Outsiders TO ManuiaCtur e
Their Own Billets.
DEBARRED FROM COMPETITION
Cleveland Companies Will Probably
Put Up New Mills in the Future.
Opinion of the Editor of the Iron
Age..ImpOssibie for the Outsiders
to Pay Billet Price and Keep Their
Heads Above Water.

New York, Nov. 16.-The agreement
which has just been entered into by the
companies forming the steel noOl has
practically driven those outsiders who
have heretofore been customers OF the
pool into a combination to manufacture
their own steel as the price charged
these rolling mills for the product is so
high that they will either be forced to
shut down or do their own manufac-
turing 1t is therefore considered more
than likely that the Cleveland compa-
nies will soon put up mills of their own,
as under the change they are debarred
from competition.
The new agreement was entered into
by the companies Friday night at
meeting I'm the Manhattan hotel, and
differs radically from the old. 1t takes
in both billets and crude steel and the
finished product. The former contract
only dealt with crude material. In
speaking of this agreement, Charles
Kirschoif, editor of the Iron Age, said
today:
II regard the proposal to put up mills
by the Cleveland companies as more
than possible, but II Is from sheer ne
cessity that they do so. They are prac-
tically forced into fight for their eX-
istence The Lake Erie Iron company
is the one which started the movement,
anu i btltNt lHut an but oil' vi 'ii'
manufacturing concerns have agreed to
enter. The company will put up anoth-
er hearth plant. The Union Rolling
mills will also stop buying billets of the
furnaces in the combination.
This matter has been in the wind
ever since the old agreement was en-
tered into. but it was delayed because
1t was not believed that the agreement
would last long. There We're too many
a. . I. Col loo, ,yf
as was expected, because 1t was un-
just to those who were in the pool and
who We're perforce customers of others
in the pool because they did not make
their own product. This injustice was
the allotment of production only dealt
with crude steel in the form of billets.
AT the last meeting, however, the
agreement was So changed as to take
I'm the finished product also. Under
the old system. rolling mills which
had plant capable of turning out
finished stuff sold this so cheaply that
it crowded out the finished product of
those who had no steel plants. AS the
agreement exists at present, everything
is included except steel rails, which
are in a pool of their own.
POSITION OF OUTSIDERS.
"The position Of the outsiders is sim
order of things buy billets from the
works in the pool, but the billet price
has been lifted so high that IL is i'm
possible for them to pay it and keep
their heads above water What is the
result? just this-They must make
themselves able to compete or so out
of business.
"a change in the percentage of ,pro-
duction to be allotted was also made
ha 40, Int ti,,,r i,l iL,
much more satisfactory to all members
of the pool than it was before. For
merly it was based on production Of
100000 tons q year of steel, but now
the basis is $4,000 tons.
"None knows what his percentage Ia
until the end of the month. when the
commissioner Of pool through whose
hands all the transactions must pass
has determined it. All mills can now
sell freely what they please and TO
whom they please, but II the commits
sioncr said that one has Overrun its
percentage ii must pay into the pool
81 per ton on the over products receiv-
ing g. per ton on all that 1t falls below
its allotted percentage. a penalty fund
of $1,000 has been deposited by every
company i'm the agreement to abide by
these conditions. The new agreement
had made no change in the price scale
ltS DdSlS, W NllCit
the charge Is $20.25 per tom
MR.. GRISCOM INTERVIEWED.
Pittsburg, Pa. Nov. 16.-Secretary
George s. Griscom, of the American
Bessemer Steel association. which Is
better known as the billet pool. was at
his office i'm the Carnegie building this
afternoon. having returned from the
meeting of the association in New York.
Mr.. Griscom said:
I'VE had a harmonious meeting last
ing four days. during which we changed
the specifications of the association to
include all articles manufactured from
billets instead of the billet basis. An
ingot basis was not adopted, the fin
ished product being deemed a better
method. OF course. the changes apply
only to the members of the pool who
are engaged i'm the production of bill
let's. The action was taken to make
the agreement more satisfactory and
for the purpose of forming q more solid
contract"
In answer to question Mr.. Griscom
said that the members were in har-
mony one with another, and that no
rupture occurred. .'The price of bill
let's" Mr.. Griscom said. Twill be not
changed. and they will be sold as here
tofore at S20.25 We think that price is
a fair one. 1t was held all during the
depression. and no billets. or not many,
wera sold at .hat figure. No more
would have been sold had the price
been lowered to SIS, while the price be-
ing kept UP steaded the market"
The only concern out of the pool, Mr..
Griscom said, is the Sheenberger com
pany. Another mills is being built at
Troy. n. Y. he added. but 1t is not a
factor in the market as yet and is not
IN ha ciIarad