The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-02-11
STEEL RAIL POOLS SMASH.
ORDERS REPORTED TAKEN As LOW
As S17 PER TON.


Contracts Tor at Least 100000 Tons
Reported Made Since Friday-The
Illinois Central Alone Makes ~
Deal For 10000 Tons-Thc Cut in
Prices sprung While Negotiations
For a Renewal of the Pooling
Agreement Were in Progress.
New York. Feb. 1O-The Evening Post
of this evening prints the following: An
interesting account of the direct cause
which precipitated the rupture In tho
steel rail pool, announced at Pittsburg
yesterday, was given to-day by person
familiar with the situation. Representa-
tives of two OF the largest mills met in
Chicago on Monday TO agree upon rates
governing business in particular section
of the country and decided upon so as
a basis price for certain transactions.
just at that time some large contracts
came into the market and one of the
concerns interested was offered profitable
business at a lower figure. Rumors OF
cutting in various directions we're cur
rent at that time, so the tempting offer
was taken and an order aggregrating
many thousand tons was accepted at ~
price said to be In the neighborhood of SIT
a ton. This necessitated, of course, tha
withdrawal OF one concern from the pool
and hostiities were at once begun a.
cObll as NLS u dliHoSNiOtt PNNdhS
known.
ORDERS were taken in this city yester-
day al a basic price of $40 for rails at the
mill, and local agents of some OF the larg-
est concerns are said to be anxious TO do
as much business as possible while an open
market prevails. 1t is not possible at this
time to tell just what effect prevailing
prices VIII have upon outstanding con-
tracts, Within the last few weeks con-
tracts amounting to more than $l:0O0OOO
have been made by some OF the railways
at prices averaging S23 or $21 ton, and
although some OF them are binding at those
figures, Il IS thought likely that many or
ders Will be delivered at a lower rate by
mills anxious to hold the patronage OF
good customers. Whenever settlement
Is reached, however, losses are inevitable.
1.-THE present situation, Ii is thought, Will
not disturb Immediately the market for
street car rails, and the large contracts re-
Gently given by local companies not likely
II was announced to-day that the III
nois Steel Company had borrowed $780,
600 from the United States Trust Company.
The loan was made for six months with
5000 shares of stock in the Connellsville
Coke Company, as collateral. IL is the
intention of the Illinois Steel Company to
pay off the loan at the end Of six months.
by issuing 100000 debentures, of which
the balance will be used for purposes OF
the company.
! Philadelphia, Pa, Feb. 10.-The dissolu-
ton Of the steel rail pool was the domi-
nant theme OF discussion in the iron and
| steel trade to-day. Luther S. Bent. chair
man of the executive committee of the
board of directors OF the Pennsylvania
Steel Company, said this afternoon that
the first effect Of the break in prices had
been to abnormally increase business, and
| that orders for nearly 100000 tons of steel
rails at the $40 rate had been received by
! eastern companies since Friday last, the
! contracts being divided between the Penn
sylvania Steel Company, the Lackawanna.
| Cambria and Bethlehem companies. The
| contracts, Mr.. Bent believed, would not
| have been executed before June or July,
| IL the cut had not taken place. Asked
whether he thought the cut would extend
beyond the 500 basis, MIR. Bent said:
"That is question that will largely de-
pend upon the attitude assumed to-day
! by the Illinois Steel Company. II 1t fails
to adjust matters II will not surprise me
If rates further declines"
New York. Feb. 10.-The Illinois Central
Railroad Company, taking advantage OF
| 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 under
stood 1900 went TO the Illinois Steel Com
pany.