Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1896-09-27

Rockefeller Trying to Consolidate
Ohio and Pennsylvania Furnaces.
CNew York JournaD

(NeW York JOurnal)
John D. Rockefeller has been in Cleve-
land almost continually for the last six
weeks in consultation with representa-
tives OF the largest pig-iron furnaces in
Ohio and Pennsylvania. The object is to
form pig-iron pool similar to the steel
billet pool, which has proved success.
Mr.. Rockefeller, by controlling the iron
ore of the Mesaba range in Minnesota.
and all the Lake Superior mines through
Michigan and Wisconsin, has IN his pos
session the ore necessary for use in
manufacturing steel.
Ii Is not practicable to establish the
furnaces at the mines as there is no
coking coal in that vicinity. The only
course open for Mr.. Rockefeller then
was 20 compel the Independent makers
of pig-iron to agree TO maintain prices,
and by that means help along not only
the sales OF his ores, but also increase
the profits of some OF the furnaces in
which he is interested.
Most Of the large companies have
agreed TO the proposed pool. not always
because they desired to do so, but from
fear that If they refused 10 do so Mr..
Rockefeller might shut down on their
ore supply. The trouble at present is
with the little fellows who desire TO re-
main Independent. According TO a relia-
bic report. however even these DIRECTORS
are gradually being drawn into the COM
binaton.
Altogether, i'm that part Of the country,
which Is the centre OF steel and IRON
production OF the United States there
are now working more than eighty sepa-
nj mi nj 10 q.
claimed that there Is not enough business
TO keep all the furnaces at work at a
profit. Many Of them, therefore work
for a few months and then remain idle
for a similar period.
Mr. ROckefellers plan Is to ultimately
consolidate all Of these companies some
what on the line followed by the Standard
oil Company. the present owners
taking either Dash or stock in the new
concern in exchange for their plants.
Several parcels OF land occupied by these
furnaces on lake fronts or in desirable
sections of various cities are extremely
valuable.
To do away with unnecessary furnaces,
these plots Of land can be sold and be
used q sinking fund by the new con-
sOlidated company. and the manufacture
OF iron or steel In the locality stopped.
This would keep other furnaces owned by
the trust constantly busy. and cause a
great saving in carrying on the business.
This further plan is however, only in It's
inception, and will not be put into effect
until the financial affairs Of the country
have been Strengthened out. Manufac-
turers OF steel. who buy pig-iron
from these various producers. do not feel
at all comfortable over the prospect or
being compelled TO buy pig-iTon at a
price dictated by Rockefeller. Visions
OF Standard OIL methods appear before
'.them, but. Ike the producers OF crude or
refined petroleum. they will have to pay
tribute 10 the Rockefellers.
Since the purchase OF the Lake Superior
iron mines Mr.. Rockefeller has been per-
fccting a system OF steamboats, on
the lakes for the transportation OF his
ores TO all points along our lake border.
He Will have. with the completion or his
pig-lron pool, a practical monopoly OF
the trade Ia this section OF the country.