The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1897-02-11


past few years the Carnegie and Illi-
nois companies mad been making most
of the rails in the country by purchas-
ing the allotments of minor concerns
The big companies did this at q profit
as they could make rails cheaper by
reason of superior equipments. Brok-
ers are delighted over the dissolution,
as 1t will enable them to again handle
rails. Speaking from an impersonal
standpoint, prominent Pittsburg steel
broker said yesterday:
THE PITTSBURG OPINION.
This smashup means prosperity for
the iron, steel, coke and ore Industries
Last year when the pool kept rails at
S2S a ton, railroads were prevented
from buying and production was far
below the normal. This, in turn, kept
idle many blast furnaces, coke plants
and oil fields which would have been
active had there been normal activity.
All this will be changed. Lower prices
that will come in an open rail market
Will undoubtedly induce the railroads
to buy more literally than they have
for years. There is not a branch Of
the iron and steel business that will
not gain a fresh impetus from the
dissolution. The rail pool has syste-
matically robbed the public" Con-
corning the breaking of the pool the
Philadelphia Ledger said yesterday:
The steel rail pool was organized with
the object of regulating the production
and preventing cutting below a profitable
price. The prices were maintained by
agreement between the companies in the
association, and up to last year ranged in
the neighborhood of $50 a ton down to S2S
An effort was made to overcome in some
degree the dullness of the trade by fixing
the price at $2S II ton for the present years
contracts. This decision was reached
some time last fall.
There are conflicting opinions as to the
result of the cut. on one hand it was
thought it will stimulate the sale of rails,
railroads Fastening to purchase before the
price stiffens again. 1t was pointed out
that extensions might now be made, owing
to the low price of rails which otherwise
would have been left alone, and there is a
feeling that perhaps the export trade will
be increased
on the other hand, it was asserted that
the cut in the price will certainly demor-
alize the steel rail market, and, following
the collapse of the steel billet pool and
the steel beam pool, probably have a
most depressing effect on the iron market
generally. The dissolution of the pool was
declared to be a mistake. as railroads will
buy the rails they need anyway, no matter
what the price is, and the cut could not
possibly have any beneficial effect.
PRICE IN ENGLAND.
Rails are selling in England at $24
ton. 1t is understood that the Carnegie
company proposes to ship rails to that
country 1t is stated on good authority
that the dissolution of the pool was
4 1Nx-t tic
company. When the LaCHawanna COM
pany heard of this it served notices Of
withdrawal Immediately, having expect
ed something of the sort.
At the first of the year the pool re-
duced rails from $2S to $25, expecting
that the lower prices would bring in
creased sales. 1t failed to do so, and
this circumstance caused tie members
to be ready for almost any change
Comparatively few orders for rails have
been placed this year.