The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1897-02-17
THE MARX EFT.
steel Rail Pool Gone 20 Snash-Prospccts
Brighter.
from Iron Trade Review. !


rail market has for the time dwarfed
any considerations that relate to the
ore outlook for 1897. A further meet
ing OF ore men is appointed for next
week. In one aspect OF the case the
rail pool collapse is favorable to ore
interests; because 1t means the early
consumption of a large amount of
steel, of Bessemer pig and consequent
ly of Bessemer ore that is an incubus
on the lS9. situation. The probability
of low prices-perhaps as low as have
been seeD-has emphasized, with some
of the strong interests, the desirable
ity of on agreement on some basis,
even though the Mesabi range be not
included. The rail pool collapse may
even strengthen the conviction with
some companies that their salvation
lies in sticking together. A serious
phase of the situation AID one likely
to grow more serious is the reduction
of wages at the Norrie, and the
preparations making by other COM
panies to take like action, so as to be
in shape to give the steel interea
that buy ores from them, the same
advantage in price, so far as possible,
as the recent ckefeller-Carnegie
move has secured for the leading
Pittsburg interest. 1t is understood
that the Carnegie Steel Go. will have
its own ore handling arrangements
this year, both for the Mountain Iron
and the Oliver ores, and that this
part of the business will be managed
through the companyss Cleveland
offices.
Though not like a bolt of clear
sky--for the clouds have been plenti-
full of late-the announcement that
the steel rail pool had gone to pieces
shook the iron trade profoundly. 1t
meant the sweeping away OF the chief
bulwark of the steel manufacturers
against protitless struggle for supre-
macy, and the belief that the giants
are now willing to try conclusions in
an open field excites tie liveliest
speculation as to the outcome. The
first effect Of $40 quotation by an
Eastern mill was to make that the
agreed price at the adjournment OF
Mondays Pittsburg meeting: with S21
as the Chicago basis. But on Tues
day it was evident that continued
agreement was impossible and in the
past two days quotations have gone
as low as SIT Pennsylvania mill. in
response to low quotations in the
Chicago district. That the railroads
will appreciate that the present
opportunity warrants the Straining
of point to make the necessary
financial arrangements to buy now, is
a natural inference. Some sales have
been made already: and it may be ex
pected that in measure a repetition
will come of the experience in the
billet market in late December and
early January, when large tonnage
was closed at prices known to be
highly advantageous to buyers. what
ever the turn taken by raw materials.
Two sales already reported are Of
Il, 900 tons to Illinois Central by the
Illinois Steel Co., and 10 600 tons to
the Santa Fe, by the Carnegie Steel
Co, both reported at about ST. mill.
The extent of the complaint by rail-
roads at the S25 basis would indicate
a desire to buy, but for the price; and
with the stimulus the market will
receive from the placing of rail orders,
and the accompanying tonnage Of
track supplies, it is only a reasonable
expectation that the start will come
which has been SO long delayed.
Another effect is also to be looked for.
The profits in steel rails at SIS and
500 ton in 1896 gave rail mills a lee
way on other material, which had an
open market. Cuts were made with
impunity on products which must
now make their own pr0ht, IT there
is to be any, for rails on the present
basis little more than pay for them
selves with the best equipped But
for the rail upheaval the market for
the week has been void of interest
The sale in the East of 10000 tons of
basic iron from Pittsburg caused
something of furry: but the attitude
Of the trade is more and more that
of preparation for the unusual. In
deed certain sense of relief from the
long monotony comes even with the
announcement of events calculated to
upset prices for the time being. The
Merchant Bar Iron Association held
its annual meeting at Chicago, Tues
day, reelected officers and did moth
u