The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-02-13

me steer OF the W GRID
If our steel rail manufacturers can sell
steel rails al $l7 ton and make a profit
they can control the steel trade o. the
world AS announced in our dispatches a
day or two ago. the steel billet pool has
been dissolved and the steel rail manu-
facturers are cutting the price of steel
rails at a lively rate. a few days ago
the price was SIS ton, then It dropped to
$23 then TO $50 and now 1t is down TO ST.
Railroad companies are taking advantage
of the remarkably low price to make con-
tracts for steel rails
It is evident that if steel rails can be
manufactured in this country at a profit
for ST a ton, or even $50 ton, there is
no ground on which steel rail manufac-
turers can demand tariff on steel
rails. They can control the steel rail mar
ket of the entire world
1t is said that it is the purpose of John
D. Rockefeller and Andrew Carnegie to
undertake to make the price of steel rails
throughout the world That is an ambi-
tious undertaking. but they have a vast
amount of capital. great steel making
plants and immense mines of rich iron
ore. With the advantages which they
have it would not be surprising If they
have decided to be satisfied with smaller
profits. but to increase their net earn
ings by greatly increasing the volume Of
their output. 1t is announced that since
the cut in the price of steel rails there
have been numerous inquiries regarding
prices for export.
II is pretty well understood that there
will not be a great deal of railroad build
ing in this country for some years All
the great trunk lines that are needed are
built. There is not much demand for short
lines to connect with the trunk lines just
at present Railroad building has been
overdone in this country. Many of the
roads are Improbable, and it will be
years before the development of the coun-
try will be sufficient to enable them TO
earn dividends on the money invested in
them. There will be some railroad build
ing all the time, but not nearly enough,
with improvements on existing roads, to
make the demand for steel rails sufficient
to keep the steel rail mills busy. There
fore. If the mills are to be kept in opera
ton a foreign market must be sought
Railroads are being projected in South
America, China Japan and Russia. Why
shouldn't this country furnish the rails
the locomotives and the cars for these
roads in foreign countries? The great cut
in the prices Of steei rails may mean that
it will at least furnish the rails.
One of the alleged reasons for the cut
in the price of steel rails is the purpose
to forestall the construction of steel rails
plants in the south and on the Pacific
coast. 1t is doubtful if such a reason ex-
lists. Capitalists thinking of investing
money in new steel rail pants might be
deferred from doing so for little while
by the reduction of .he price Of the product
of such plants, but if they were satisfied
that steel rails could be manufactured in
the south more cheaply than in the east
or the west they would not hesitate long
about investing money in steel making
plants in the south.
And why cannot steel be manufactured
in the south at a less cost than in the east
or the west? Iron is manufactured in
the south more cheaply than elsewhere in
the world and we predict the time is not
distant when steei will be.
If the worlds supply Of steel and iron
is to be obtained from this country it is
safe TO assume that the south will con
tribute a fair share of it.