The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-02-10

PRICES LOWER THAN EVER
Quoted AT S1S IN ILLINOIS ANT
S13.22 IN PENNSYLVANIA.

CHICAGO, Feb. 9.-Steel rails are being
sold at the lowest price ever known in
America. The steel rail pool has collapsed
and SIS a ton was asked for rails i'm Chi
cago to-day and in Pittsburg the rate was
$l5.25 a ton. Monday the price in Chicago
was $26 and in Pittsburg it was SIS. The
sensational break of s. a ton within twenty
four hours is the result of a secret meeting
of the rail pool, held i'm Pittsburg Monday
All the members were present. No agree
ment could be reached, and, President j. w
Gates of the Illinois Steel Company hastily
returned to Chicago and called a meeting
of the directors of that company. AS IA
result of their deliberations he notified H.
c. Frick, chairman of the Carnegie Steel
Company. that the Illinois Steel Company
was unable to come TO q conclusion and
postponed action until after the annual
election of officers to be held Tomorrow
Two hours after the message reached Pitts
burg the prices quoted were being asked
in Chicago.
Rumors were current all day that the
Carnegie Company was Offering anything
at any price in Chicago. but owing 10 the
fact that the Illinois Steel Company was
to hold its annual meeting tomorrow, the
rumors were classed as being made for
stock-jObbing purposes, and had little ef-
feet. 1t was not until the prices had been
quoted by numerous Eastern concerns that
the trade really took cognZance of them
1t then announced that the Scranton
Steel Company had formally Withdrawn
from the pool and that prices were on a
wide-open basis.
Western railroads undoubtedly have an
inkling of the collapse of the giant pool
had pIaced any orders for rails. despite
the 50 a ton reduction made by the pool
at the opening of the year. In the trade
dissolution of the pool is taken to mean
that Carnegie & Co. in this way make it
known that they can sell rails cheaper than
anybody else and that they will not hence
forth be hampered by an agreement which
is to their disadvantage.
The steel-rail pool was the longest-Iived
and most successful trade organization
ever formed in this country. The organi-
cation included only the mills making
standard sections and not those rolling
street-car and lighter rails, and presuma-
bly, heavier forfeits were on deposit to pre-
vent violations of agreements. The eleven
concerns popularity believed TO be members
of the pool were the Carnegie Steel Com
pany. Pittsburg; the Scranton Steel Com
pany, Scranton, Pa; the Pennsylvania
Steel Company, Steelton, Pa: the Mary
land Steel Company, Sparrow's Point Nd.
the Cambria Iron Company, Johnstown
Pa. The Lackawanna Iron and Steel Com
pany. Philadelphia; Bethlehem Iron Com
pany, Bethlehem. Pa; the Johnson Com
pany, Lorraine. o.; the Cleveland Rolling
mill Company. Cleveland; the Illinois Steel
Company. Chicago. and the Union Iron and
Steel Company Youngstown, o.
The basis of prices which the pool main
| tanned for many years was SIS a ton at
| Pittsburg and $29 at Chicago. A reduction
of s. ton was made at the opening of the
| year in order to conciiate customers and
| conform in a measure to the lower basis
of prices brought about by the collapse OF
| the billet pools. This did not bring the
| orders expected and trouble began.
II. II. Porter, chairman of the Chicago
| & Eastern Illinois Railroad Company and
| "a former director of the Illinois Steel Com
| pany said tonight that he heard of the
| breakup of the pool and presumed that it
| meant general cut of prices of steel rails
| Judging from past experience" he said
| Il should say that the dissolution of the
! pool will open the door for each mill to
| make its own territory. There can be no
profit in the prices so obtained and the
| consequence will be that men will be
| thrown out of work and only the mills with
| large capital and exclusive territory can
| keep in operation. There will be cutting
| OF prices possibly until an actual loss on
the product takes places and the industry
is paralyzed."
| John w Gates president of the Illinois
| Steel Company, refused TO admit that there
| was any trouble in the pool or 10 announce
| the policy of his company if such was the
| fact.
| 1t is expected that several changes will
| be made i'm the list of officers of the Ili-
| nois Steel Company at its meeting to-day.