The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-02-10
PRODUCT FOR SALE AT THE Law
EST PRICE in AMERICAS HIS
TORY.
AN EIGHT-D0LLAR BREAK.
fEH TON REDUCED THAT
MUCH INSIDE OF TWENTY-FOUR
HOURS.
STRONGEST or so-CALLED TRUSTS
sensational Slump the Result oT tha
action Taken by the Carnegie
Company at Pittsburg.

CHICAGO, Feb. 9-SteeI rails are he
ing sold at the lowest price ever known
IN America. The steel rail pool has
collapsed and $18 a ton was asked for
rails IN Chicago today and in Pitts
purg the rate was $1525 a ton. Monday
the price in Chicago was $26 and in
P1ttsburg it was $25.
Ihe sensational break Of So a ton
within twenty-four hours is the result
OF secret meeting Of the rail pooJ.
heId in Pittsburg Monday. All the
members were present. No agreement
could be reached, and President Gates
OF the Illinois Steel company. hastily
returned to Chicago and called a meet
ing of the directors of that company.
AS result Of their deliberations he
notified H. c. Frick, chairman of the
carnegie Steel company, that the Illi-
hols Steel company was unable to
come to a conclusion and had post
poned action until after the annual
election Of officers to be held tomor-
row. Two hours after the message
reached Pittsburg the prices quoted
were being asked in Chicago.
RumOrs were current all day that
anything at any price in Chicago but
owing to the fact that the Illinois steel
company was to hold it's annual meet
ing tomorrow the rIlmors were classed
as being made for stock-jobbing pur-
poses and had little effect 1t was not
until the prices had been quoted by
numerous Eastern concerns that the
trade really took cognizance Of them.
1t was then announced that the Scran-
ton Steel company had formally with
drawn from the pool, and that prices
were on wide open basis.
Western railroads undoubtedly have
had an inkling Of the collapse of the
giant pool as, with a single exception.
none OF them had placed any orders for
ralls, despite the SO a ton reduction
mace by the pool at the opening of the
year. IN the trade the dissolution OF
the pool is taken to mean that Carnegie
az 20. IN this way make it known that
they sell rails cheaper than anybody
else, and that they will not henceforth
pe nampered by an agreement which s
to their disadvantage.
The steel rail pool was the longest
NVed ana most successful trade organiz-
etlon ever formed in this country. The
organization included only the mills
making standard sections and not those
rolling street car and lighter rails. and
presumably heavy forfeits were on de-
poslt TO prevent violations of agree
ment.
Eleven concerns peculiarly believed to
De members of the pool were known:
Ihe Carnegie Steel company, Pitts
burg; Scranton Steel company, Scran-
ton; Pennsylvania Steel company, Steel
ten, Pa; the Maryland Steel company.
SrarroW's Point, Md; Cambria Iron
10 l1T1cSf Sf|Nrr,
hon and Steel company, PHILADELPHIA:
Bethlehem Iron company, Bethlehem;
the Johnson company, Lorain O..
Cleveland Rolling Mill company, Cleve-
lard; Illinois Street company, Chicago:
Union Iron and Steel company,
Youngstown, 0.
The basis of prices which the pool
maintained for many years was S23
a ton at PfttSburg and $29 at Chicago.
A reduction of So a ton was made at
the opening of the year in order to
conciliate customers and to conform,
IN a measure. to the lower basis OF
Tices brought about by the collapse
the billet pool This did not bring
-e orders expected and trouble be-
H. H. Porter. chairman, of the Chi
cago & Eastern Illinois Railroad COM
pany and a former director of the
Illinois Steel company, said tonight
that he had heard Of the break up Of
the pool and presumed that it meant
a general cut in prices Of steel rails.
Judging from past experience" he
said, II should say that the dissolution
Of the pool will open the door for each
mill to make its own price on the pro-
duct and sell where it can in its own
territory. There can be no profit in the
prices so obtained and the consequence
will be that men will be thrown out Of
work and only the mills with large
capital ard exclusive territory can
keep in operation. There will be cut
ting Of prices possibly until an actual
loss on the product takes place. and
the industry is paralyzed."
John w. Gates, president of the
Illinois Steel company, refused to ad-
NIT that there was any trouble in the
pool or to announce the policy of his
company If such was the fact. 1t is eX-
pected that several changes will be
made in the list of officers of the
Illinois Steel company at its meeting
today.