The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1897-02-12

"a war for business is being waged
with savage competition between the
Carnegie Steel company, limited, OF
Pittsburg, and the Illinois Steel com
pany, of Chicago" says yesterday $
Pittsburg Times.
"The fight began in Chicago Monday,
after the break of the steel rail pool,
when the Illinois concern charged that
the Pittsburg firm was invading its
territory and was shading prices. To
meet the competition, it met the prices
offered by the Carnegie company's
agents, and the latter came back with
still lower prices. The railroad buy
ers played the two firms until open
quotations yesterday were $l7, Pitts
burg, and SIS, Chicago, for rails of
standard section, which means actual
selling prices of SIS and $40 respective
ly. Just what roads placed orders with
the Carnegie company are not given,
but it is not denied that orders aggre-
eating a large tonnage have been
booked for delivery the coming spring.
1t is estimated that orders aggregating
100000 tons have been placed during
the week by western and southern
railroads.
"The companies east of the noun
tains are strong and have close rail-
way connections. The owners of the
two mills at Scranton, the LackaWan-
ma Steel company, are closely allied
with the coal carrying roads, particu-
larly the Delaware, Lackawanna and
Western, and the Delaware and Hud-
son Canal and Railway company,
which are largely owned by the Van
derbilts. This is thought to give the
Lackawanna company an advantage
over it's neighbors, the Pennsylvania
and the Bethlehem Steel companies,
as we'll as with the Maryland Steel
company. The Maryland Steel COM
pany is closely allied with the Balti-
more and Ohio interests, the Pennsyl-
vania Steel company with the Pennsyl-
vana railroad, and the Bethlehem with
the Erie, Lehigh Valley and Reading
railroads.
HOW THE TROUBLE STARTED.
Because the steel companies furnish
large freight tonnage on raw materials
to the railroads along which their
plants are situated, preference is al
ways given to the companies which
furnish freight when orders for rails
are placed For this reason the Penn
tonnage between the Pennsylvania
Cambria and Carnegie Steel companies
and placed an order for $4,000 tons
among those companies last month
1t is stated that it was because of the
placing of this order that the trouble
began in the pool. The Carnegie com
pany is charged with having offered q
low price for the entire tonnage, fore
ing the other companies to meet the
price.
Regarding the story from Chicago
that an alliance. offensive and defen-
sive, has been entered into by the Car
negie and Rockefeller interests, little
credenCe is given the report in Pitts
burg, At the offices of the Carnegie
| Steel company no expression of opin-
| ion could be obtained regarding it.
| Brokers close to the inside of what is
| going on pronounce the story absurd,
and say it arose out of the fact that the
Carnegie and Oliver Steel companies
| have jointly contracted for the ores in
the Massabi region with the Rockefel-
Ter interest, and the latter has secured
for it's lake vessels a guarantee of the
| exclusive tonnage of the coal which is
| to be shipped from the Conneaut docks,
| giving freight both ways, and a profit
| for inves tments in lake vessels, of
which there are eighteen 4,OOO-ton
freighters, and two more building.
| Another reason cited for disbeliev-
| ing the story is that neither Andrew
| Carnegie nor John ID. Rockefeller would
consent to play second fiddle to any
| other man in their respective lines of
| business. 1t was also stated that the
| command of raw materials which the
| Carnegie Steel company now has per-
mits it to carry out plans which have
long been in contemplation and for
| which the head of the company has
long been directing efforts, namely
to become the recognized leader of stee
manufacture in the world, and to in
wade the large and profitable markets
which British manufacturers have sc
long controlled.
EXPECT TO EXPORT RAILS.
1T is claimed that it is expected by
the Carnegie Steel company to do &
large export business in all forms Of
steel products which it makes and thai
agencies have been or are being estab.
lished in the great importing cities o.
South America, Asia and Europe, two
having already been established il
England, with Millard +. Hunsicker il
, charge as general agent.
/ Andrew Carnegie arrived in Pitts
> burg last night from New York anC
| left the limited at Homewood station
| He will be the guest of H. C. Fricl
during his stay in the city. An effor
was made to get from him an expires
sion regarding the rumors from Chi
cago connecting his name and that o
5 John ID. Rockefeller in a combination
5 to, regulate the production of iron ant
2 | steel, but he declined to say anythin!
: at this time. 1t is understood that MI
Carnegies visit is to confer with hi
partners regarding the policy of tn
company as to steel rail prices, and tn
fight for business going on between tn
seven companies which manufactur
5 rails. 1t was said last night that tn
! sales of rails contracted for during tn
= week exceed all records for a simila
time, and the tonnage already booke,
= by several companies is very large, in
: dicating that the railways intend t
4, spend large sums of money in better
r ments this year.
e The Philadelphia Ledger of yesterda,
= has this to say concerning the situa
2 ton:
e Much reticence was observed yester
! day by the representatives of the stee
companies which formed the broke
rail pool, and information regardin
. the probable result of the cut in price
I on the steel and iron business was diff
dcult to secure. Inquiry among lro
and steel merchants and manufactur
ers of iron and steel products othe
than rails developed the fact that