Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1897-02-11
sTEEL-RAM POOL RUPTURE.
"Ses mat PrecIpitated It-EGec,
on the MnrLct

NEW YORK February lo.-The Eve
n'hs Post of this evening prints the
ioiio"ing: An interesting account NJ tho
'"ec' causes which preclpitated the
'up'ure IN the steel-rail pool, announced
'' FHtsburg yesterday. was given
''-uay by person familiar with the
s''uatioh' Representatives of two of the
."' sos' mills met I'm Chicago on Monday
70 agree upon rates governing business
"i particular section of the country.
anu decided upon $40 as a basis price for
certain transactions. Just at that time
some large contracts came into the
market, and one of the concerns inte-
rested was offered profitable business
at a lower figure. Rumors of cutting
III various directions were current at the
ume' so the tempting offer was accepted,
ana an order aggregating many thou
sahd tons was taken at price
SAID TO be in the neighborhood of S17 a
ton. This necessitated, of course the
Withdrawal Of one concern from the pool.
ana hostilities We're at once begun as
soon as the transaction became generally
known.
Orders were taken in this city yesterday
at a basic price of $50 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 pos
sible while an open market prevails.
1t is not possible at this time to tell
just what effect the prevailing prices will
have upon outstanding contracts. Within
the last few weeks contracts amount
ing to more than 81 100000 have been
made by some Of the railways, at
prices averaging SO or s27 a ton, and
although some of them are binding at
those figures, IL is thought likely that
many orders will be delivered at a lower
rate by mills anxious to hold the pat
ronage of good customers. Whatever
settlement is reached. however, losses
are inevitable.
The present situation, it is thought
will not disturb Immediately the market
for street-car rails, and the large con-
tracts recently given by local companies
are not likely to be affected.
INCREASE OF BUSINESS.
PHILADELPHIA, PA, February 10
The dissolution Of the steel-raf pool
was the dominant theme of discussion in
the iron and steel trade to-day. Luther
5. Bent, chairman Of the Executive Com
mittee of the Board Of Directors of the
Pennsylvania Steel Company said this
afternoon that the first result of the
break in prices had been to abnormally
increase business, and that orders for
nearly 10000 tons Of steel rails at the
$40 rate had been received by eastern
companies since Friday last the con-
tracts being divided between the Pennsyl-
vania Steel Company, the Lackawanna,
the Cambria, and the Bethlehem compa-
nies. The contracts. Mr.. Bent believed.
would not have been executed before
Iune or July If the cut had not taken
place. Asked whether he thought the
cut would extend beyond the $50 basis,
Mr.. Bent said: "That is a question that
will largely depend upon the attitude as
sumed to-day by the Illinois Steel Com
pany. If it fails to adjust matters. 1t
will be no surprise to me if rates further
decline"
ILLINOIS STEEL co. BORROWS.
NEW YORK, February 1O.-It was an
nounced to-day that the Illinois Steel
COMPANY had borrowed 81 100000 from
the United States Trust Company. Tho
loan was made for six months, with
3G 900 shares Of stock in the Connellsville
Coke Company, controlled by the Illi-
nois Steel Company as collateral. 1t is
tbe intention of the Illinois Steel Com
many to pay off the loan at the end OF
six months by issuing $35OOOO deben-
lures. of which the balance VIII be USED
fer the purposes Of the company.