The enterprise. [volume] (Wellington, Ohio) 188?-1899, 1897-02-17
THE STEEL RAIL WAR.

The Carnegie Co. Makes a @17 Rate ut
Chicago and Undersells the Illinois Steel
Co.-Iron Ore Mine Owners Pool Ready
to Break.
PITTsBURG, Feb lathe situation
in the steel rail business shows that
the cutting of prices has resolved itself
into bitter war for supremacy. The
Carnegie Steel Co. is meeting all COM
petition of the Illinois Steel Co., and
has instructed it's representatives in
Chicago to sell steel rails at SIT in Chi
cago, or SLABS in Pittsburg, lower
figure than has been quoted in any re-
ports printed.
When the pool went to pieces at the
meeting on Monday, an agreement is
said to have been made between the
two big concerns operating west of the
mountains to maintain prices, which
were then fixed at 500 for Pittsburg
and $21 at Chicago. Each firm was to
go after any business that it could OBJ
tain. President Gates, of the Illinois
Steel Co., it is alleged, went direct to
Chicago, and within two hours the
wires were burdened with messages to
all the railroads of the west quoting
rails at $lS.
The Carnegie Co. at once issued or
ders to their agents to meet all cuts
that might be made, and as result
to-day the Carnegie Co., at Chicago, is
selling rails at SLABS per ton, which
with the freight from Pitt4burg added
makes rate of SIT, and the war, it is
said, is to be waged to the bitter end.
Andrew Carnegie arrived in Pitts
burg Wednesday evening and held a
conference yesterday with the officials
of his company. Mr.. Carnegie, it is
understood. is personally directing the
policy of the company in the war now
on.
CHICAGO, Feb. 12.-The Tribune says:
The Iron Ore association, which has
controlled prices and fixed the output
of Lake Superior iron mines, stands
directly in the track of the cyclone
which has swept away every combina-
tion and pool in the iron and steel
trade for the division OF business and
maintenance of prices.
What the Rockefeller-Carnegie com
bination will do in the ore pool will be
come manifest within fortnight. The
first announcement will be in the shape
of large sales of ore for delivery durina
the coming season of navigation with.
out regard to the pool.
Even more important than the col
lapse of the steel rail pool will be the
termination of the ore pool 1t will
mean terrific war on prices by all
the iron mining companies of northern
Michigan and Minnesota.
Towns now prosperous in these re-
gions will be affected. Mines which
have made millionaires may be given
over to rotting timbers and rusty
pumps, The population of the iron
mining regions of the north will be
shifted in the migration of miners to
new fields. The stories of suffering
which the iron districts of the north
have several times given to the world
since the panic of four years ago, may
be retold in the working out of the
changes which must come with free
competition between the great mining
companies
While the end of the steel rail poo
brings reduction of wages, it also
brings more work. There is serious
question if the iron ore pool has no
already gone. In previous winters thC
production of every important mine il
the Lake Superior region had beer
allotted and prices fixed long before
this time in February. AS yet no allot
ment has been made and prices fixec
for the coming season. Meetings have
been held at Cleveland, but they hav'
been fruitless in reaching an agree
ment. The larger companies, believ
ing gigantic war cannot be averted
appear to be Indifferent over the re
suits of these sessions.