New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-02-11
GIANTS OF INDUSTRY AT WAR
HISTORY OF THE DOWNFALL OF THE STEEL RAIL
POoI--JoFN y. ROCKEFELLER's NAPoLEoNlc
CAMPAIGN AND ALLIANCE WITH
CAPNEGIES

POO1%-JOHN d Ro'hEf MAJ 'hO-''O
CAMPAIGN AND ALLIANCE WITH
THE cARNEG1Es.
Chicago Feb Io-Regarding the collapse OF the
Steel Rail Pool 1.-The Tribune" says: Out OF the
ruins Of the combination has arisen a two-men'
trust which wants the steel-rail business or tno
whole world. Carnegie and Rockefeller are the
men, Steel rails offered 10 several Chicago
railroads yesterday at 81 per ton by the Carnegie
representatives These offers quickly Followed
others at 500 a ton which had brought no contracts.
The pool price for steel rails was s25 and the Car
neee interests the head and front Of the pool
The news that the Steel Rail Pool had collapsed
at a meeting In New-Ycrk. on Monday. spread
rapidlv through the iron trade and caused grave
anxiety for 1t taken TO mean that the Carnegie
Rockefeller combination was at last ready TO strike.
and struggle of tho survival of the fttest, such,
perhaps as never before has been seen in the In
dustral world. had begun. With all the care and
foresight of of the greatest captains Of industry
America has produced. backed by boundless capital.
the combination finally in position to sell steel
against all the world 1T was to be the old story of
Standard Oil over again. Mastery was to be gained
by producing at a lower cost than competition.
American markets too limited a field for the
ambition Of the combination. II figured out by
the master minds who planned II that its product
could be sold against the mills of England and Ger
many wherever lines Of transportation might reach.
The drop from s25 10 81, without stop at 500 gave
ample indication of the purposes of the combination
10 strike hard and fast when II ready. The
Steel Pool having been kept alive for several months
pending that time cutting Of prices was wlnked at
by the combination. which not prepared TO be-
gin its general onslaught The smaller interests
in the Mahoning Valley and at Cleveland were al
lowed considerable latitude in getting business at
cut prices, pending the inevitable collapse of the
pool.
While the announcement of the combination came
as a shock the trade, the plan laid in the
fertile brain Of John D. Rockefeller many years ago.
lie began buying up Lake Superior iron mines. He
secured control of the vast deposits in the Mesaba
Range, above Duluth Then the world saw what he
had long known that he could mine iron ore cheaper
than any else in the entire region. While com
petitors sinking deep shafts and going TO large
expense. all the Rockefeller companies had 10 do
was TO dig off the surface soil and the scoops to
work. Large numbers of mines which had paid
fabulous dividends in the past were abandoned. for
they could not compete with scoops hoVels and
dumpcars. They succumbed in the struggle Of the
ttest Mr. Rockefeller owned the mines and railroad
TO the AXE and the docks. There he had 10 depend
the vessels he could charter carry the output TO
the ports the furnaces In the fall Of 1925 Mr.
Rockefeller clearly he never would control the
situatio unless he had vessels Of his own 10 carry
his ore. Then he began letting contracts for new
boats He did not vary his thoroughgoing tactics
lie built his boats carry freight cheaper than HE
competitors The twenty-foot channel was nearing
completion and his vessels were built for the full
depth of water. Large numbers OF smaller craft
will not fiji ont at all next spring They cannot
compete with Rockefeller boats, which now control
the situation for in water transportation rates are
made for all by those which carry the cheapest
So strong is the feeling that the Rockefeller in
tcrests will control directly or indirectly the
rying charges the lakes next season that vessel
owners have been in state OF sempanic all
winter
When Rockefeller built his boats he was ready
10 lay down iron ore on the docks of Lake Erie at
a lower price than competitors. But the magnate
not able to make his cheap ore into steel and
TAn
people and the Ro kefeller interests 10 join hands
in offensive and defensive alliance They, re-
suited in the celebrated combination which
brought the manufacture Of steel from the iron
mines OF Lake Superior TO the cars containing the
final product under one head with every expense
reduced the lowest notch.
Then the steel Rail Pool was let go. and the
combination was ready for all corners.
combination can make steel al a price which VIII
allow II to sell its product IN South America, Aus
ton had no thought or maintaining the pool after
ii was ready 10 begin its onslaught on the trade
is the prevalent opinion among iron mining com
President j. w. Gates of the Illinois Steel Com
pany. last night declared the lowering of prices
NAMES was simply due to the collapse of the pool
known as tn Rail Makers Association" a..
''This Ra..makvrs' Association" he said. "has
been in existence for twelve thirteen years, but
Inc Illinois Steel Compaoy-at least, while have
been presldent-has never been member OF ~,
rs prices OF rails. and we have always aimed TO
maintain about the same price. TINT II did The
t1astern mills We thought ought TO get an
a1ditionaI price held all our rails up TO
Monday At SIS a ton This morning we reduced the
ph nWe made las, year about one,thrd of all the
rails in the United states ana ,s hen kn, nm
&c 10Th good and bad years Some Of the Eastern
nompsnies may make lower prices Put IL I" not
necessary for us closely to follow suit