The Wilmington daily Republican. (Wilmington, Del.) 1890-1902, 1897-02-11
R0CKEFELLER'S SCHEME
To Capture the Steel Rail Busi-
ness Of the World.
IN OOLLUsIoN WITH CARNEGIE.
It Is Said They Propose to Force Prices
Down to Level That VIII Kill or All
Competition-The Scheme Much Like
Standard Oil Methods.

1t Is Said They Propose to Force Prices
Down to Level That VIII XIII OF All
Competition-The Scheme Much Like
Standard Oil Methods.
Chicago, Feb 11.-An interesting ac-
count of the direct cause which pre-
cipitated the rupture in the steel rail
pool was given yesterday by person
familiar with the situation. Repre-
sentatives of two of the largest mills
in Chicago met on Monday to agree
upon rates governing business In
particular part of the country and de-
cided 500 as a basis price for certain
transactions. Just at that time some
large contracts came into the market
and one of the concerns interested was
offered profitable business at lower
figure. Rumors of cutting in various
directions were current at the time,
so the tempting offer was accepted and
an order aggregating many thousands
of tons was taken at price said to
be in the neighborhood of SIT ton.
This necessitated, Of course, the with
drawal Of one large concern from the
pool, and hostilities were at once be-
gun as soon as the transaction became
generally known.
Orders were taken In New York on
Wednesday at basis price of $40 for
rails at the mill, and local agents of
some of the largest concerns are said
to be anxious to do as much business
as possible while an open market pre-
walls.
1t is not possible at this time to tell
just what effect prevailing prices will
have upon outstanding contracts.
Within the last few weeks contracts
amounting to more than 81, 900 900 have
been made by some of the railways at
prices averaging $23 or $25 ton, and
although some Of them are binding at
those figures 1t Is thought likely that
many orders will be delivered at a
lower rate by mills anxious to hold ths
patronage of good customers. What
ever settlement is reached. however.
losses are inevitable.
The Tribune says: "The great steel
pool is smashed, and out Of the ruins
of the combination has arisen a two
man trust. which wants the steel rail
business of the whole world. Carnegie
and Rockefeller are the men. Steel
rails were offered to several railroads
at ST per ton by the Carnegie repre-
sentatives. These offers quickly fol-
lowed others at $50 ton, which had
brought no contracts The pool price
for steel rails was $25. and the Car
negie interests were the head and
front Of the pool.
THE news that the steel rail pool
had collapsed spread rapidly through
the iron trade. and caused grave anx-
iety, for it was taken to mean that the
Carnegie Rockefeller combination was
at last ready to strike, and a struggle
of the survival Of the fittest, such per-
haps never before seen in the indus
trial world, had begun. With all the
care and foresight of two of the great
est captains of industry America has
produced, backed by boundless cap
ital, the combination was finally in
position to sell steel against the world.
"It was to be the old story of Stand
ard Oil over again. Mastery was to
be gained by producing at lower cost
than competition. American markets
were too limited a field for the ambi-
tion of the combination. 1t was fig
ured out by the master minds who
planned II that it's product could be
sold against the mills of England and
Germany, wherever lines of transpor-
taton might reach. The plan was
laid in the fertile brain of John D.
Rockefeller, whose every enterprise
has succeeded"