Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1896-04-03
COMBINE In STEEL.
Twenty.one Big Producers Con.
fer at New York.
OBJECT OF THE MEETING STATED.

oliver. Of Pittsburg, Says It Il to Elimi.
nste the Middleman and Deal Direct
with C0usumers-Explanati Of Market
Demoralixstion-No "Undue" Increase in
Prices Intended-Coac<h - That Con.
ferred-Carnegie's Rema<ks.
NEW YORK, April 3-Representatives
Of twenty-one leading manufacturers of
Bessemer steel in this country were in
session here yesterday. The following
were represented: Carnegie Steel COM
pany; Hainesworth Steel company, Pitts
burg; Jones & Laughlin company. Pitts
burg; Bethlehem Iron company, South
Bethlehem; Cambria Iron company,
YOUNGSTOWN, Pa; Schoenberger Iron and
Steel company, Pittsburg; johnson COM
pany, Cleveland, works at Lorraine, O.;
King, Gilbert & Warner company, Co.
lumbus, o.; Illinois Steel company
Chicago; Lackawanna Iron and
Steel company. Scranton; Pennsyl
vania Steel company, Steelton; Cleveland
Rolling Mill company, Cleveland: Otis
Steel company, Cleveland; Cleveland
Steel company, Youngstown; Belle Air
Steel company. Belle Air, o.; Union Steel
company, Alexandria, Ind; Shenandoah
Valley Steel company, New Castle; Mary
land Steel company, Sparrows Point;
Wheeling Steel and Iron company, Wheel
ing, and Ashland Steel company, Ash.
land, ny.
To Eliminate the Middleman.
At the conclusion of the meeting George
I. Oliver. president of the Hainesworth
Steal Of 10 h.
following statement: with the excep.
ton Of a few weeks last fall the manu-
facturcrs of Bessemer steel in the United
States have been conducting a losing
business for the past three years. This
has resulted more through the growing
influence of the middlcmen than on &C.
count Of competition between the manu-.
facturers themselves. With the purpose
in view Of eliminating such influences
and Of bringing about closer relations be-
tween buyer and seller, the steel men met
in session and have succeeded in agreeing
among themselves that in the future all
Negotiations shall be confined strictly to
the producer on the one hand and the
consumer on the other.
How the Market Is Demoralixed.
1T is not intended to restrict proiuc.
ton except SO far as such restriction will
be brought about by doing away with
fictitious transactions and the con.
filming Of business to the actual wants of
the country. In many instances a middle.
man will purchase steel in large quaint.
ties from manufacturer for which he
has no customer in sight. When the time
Of delivery arrives the man ufacturer will
naturally expect his customer to furnish
specifications for the steel His only
course is to dump it on the market at any
price it will bring. One such transaction
has in many instances resulted i'm the de-
moralization Of the entire mar.
ket, and even the business fol
the rest of the season. We hope
through the influence of this organization
and by frequent meetings and interchange
of views to do away with this evil. We
think we can do so.
No "UDdue" Advance in Prices.
1T Is not our intention to bring about
any undue advance in the price of steel.
The price which has been agaeed upon for
the present, SD per ton. is fully justified
place within the past two weeks in pig
iron and iron ore and it is really doubtful
whether in vic v of the existing conditions
manufacturers can make any profit at
that price" Oliver admitted with some
reluctance that another meeting would
be held this afternoon. He intimated that
organization would probably be perfected
at this meeting