The times. [volume] (Richmond, Va.) 1890-1903, 1897-02-11
THE STEEL RAIL POOL.
4 BTG CONTRACT WAS roo TEMPT
ING ron ONE CONCERN
Agreed Figurc-The Illinois Central
Places "A Largo Order.


NEW YORK, Feb. lo.-rhe Evening
Post OF this evening prints the following:
AN interesting account OF the direct
causes which precptated the rupture IN
the steel rail pool, announced at Pits
burg yesterday. was given today by a
person familiar with the situation. Rep
resentatiyes OF two Of the largest
mills met in Chicago on Monday 70 agree
upon rates governing bus ness in par
ticular section Of the country, and de-
clded upon $50 as basis price for certain
transactions. Just at that time some
large contracts came into the market
ana one Of the concerns interested was
offered profitable business at a lower
figure.
TOO TEMPTING.
Rumors Of cutting in various directions
We're current at the time, so the tempting
offer was accepted, and an order aggre-
eating many thousand tons was taken at
a price said to De in the neighborhood OF
81 a ton. This necessitated, OF course, the
withdrawal Of one concern from the pool
and hostiiities were 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 az the
mill. and local agents Of some Of the
largest concerns are said 10 be anxious
TO do as much business as possible while
an open market prevails.
LOSSES INEVITABLE.
1T Is not possible at this time 10 tell
Just what effect prevailing prices will
have upon outstanding contracts. Within
tho last few weeks contracts amounting
TO more than Sl.000Oc have been made
by some Of the railways at prices ayerag-
ing SO or 81 q ton, and. although some
H.. a.
thought likely that many orders will be
delivered ac n lower rate by mills anxious
10 hold the patronage OF good customers.
Whatever settlement is reached, how
ever losses are inevitable.
THE present situation. IL Is thought
will not disturb Immediately the market
for street-csr rails, and the large contracts
recently given by local companies are
not likely TO be affected"
EFFECT or THE BREAK.
PHILADELPHIA. PA. Feb l0.-The
dissolution of the steel rail pool was the
dominant theme OF discussion in the iron
and steel trade to-day.
Luther 5. Bent chairman Of the Execu-
tive Committee OF the Board Of Directors
OF the Pennsylvania Steel CO.. said this
afternoon that the first effect OF the break
In prices had been to abnOrmaly increase
business. and that orders for nearly
100000 tons OF steel rails at the $50 rate
had been received by Eastern companies
since Friday last. the contract being d.
vided between the Pennsylvania Steel
Company, the Lackawanna, Cambria and
Bethlehem companies. The contracts.
Mr.. Bent believed. would not have been
executed before June or July. If the cut
had not tnken place. Asked whether ne
thought the cut would extend beyond the
so basis, Mr.. Bent said. THAT is
question that will largely depend upon
the attitude assumed to-day by the III
nois steel Company. II it fails to adjust
matters, II will De- no surprise TO me II
rates further decline"
BIG ORDER FOR RAILS
NEW YORK. Feb. 10.-'he Illinois Cen
trai Railroad Company. taking advantage
or the recent break In the price Of steel
rails. has placed orders with different
mills for 5000 tons OF rails for delivery
during the year 1897. OF these orders IL
is understood 5000 went 10 the Illinois
Steel Company.
IL was announced to-day that the lii
nois steel Company had borrowed ti.5O00oa
from Tho United States Trust COMPANY
The loan was made for six months. with
obuVJ shares OF stock in the Connellgvilie
COKE Company. controlled by Illinois
steel "a collateral IT Is the Intention Of
me limos steel Company 10 pay OF the
loan al the end Of six months by issuing
~..NV'Wv debentures. Of which the balance
VIII be used for purposes of the COM
pany.
THE ILLINOIS STEEL COMPANY.
CHICAGO, ILL. Feb. l0.-The annual
meeting of the stockholders OF tho -u
nos Steel Company was held to-day M
the general Offices in the Rookery. INC
financial statement showed 4 deficit for
lIaf.u1 lg fuf of ly.f
Tho convertible assets were 81 l5G .N9.
cash ON hand s65i, 46l.
President Gates in his annual report.
stated.
The last year has been a very nm
satisfactory one in iron and steel manu-
lectures. as We'll as 70 business generally.
The opening of the year showed a oGndi-
ton Of general Generalization At every
industrial centre, largely caused BY the
Venezuelan message. This. coming AZ 4
period OF general business revival. Gre
atCd Widespread financial PAM. and all
most helpless industrial confusion. the
serious Effects Of which were felt for
months"
After laying most Of the trouble at the
door of the Chicago Convention. Presi-
dent Gates adds.
I'VE tad fully 600 900 tons Of product
sold for prompt delivery at that time
but the financial conditions which pre-
vailed throughout the country rendered II
impossible for our customers 10 accom-
phsh Payment FOR the goods contracted
for. and as consequence our concern
being thus obliged 10 carry much mate
rial and locking up large amount OF
money. our accounts and bills payable
have been abpormally high
All the directors and officers were re-
elected. a n. Crane was appointed gem
oral sales agent. succeeding J. i. Yale.