The San Francisco call., 1897-02-11
PLACING LARGE CONTRA CTS.
Railroads Take Advantage of the Re
ductiofs Ira Prices.

hdttT0duS Iu6e Adr0nfnQe OF tne ne
duction in Prices.
CHICAGO, ILL, Feb. 10.-The develop
ments to-day in railroad and steel rail
making circles indicate that the first big
cut in the price of rails was made secretly
some time ago by the Illinois Steel Com
pany; that contracts were made for sew
eral million dollars worth of rails by the
illinois concern with various railroads,
and 1t was the knowledge of these con-
tracts around S21 ton in Chicago, when
the Pittsburg price was SIS, which resulted
in the hasty dissolution of the Railmakers'
Association, of which the Illinois com.
pany has never been a member. The
price of steel rails in Chicago yesterday
made by the Illinois corporation was $21 a
ton. To-day the price was cut TO SIS to
meet the competition of the Carnegie
Rockefeller combination especially and
the new price made by other railmakers
who were members of the disrupted asso-
ciation.
The report that SIS, 900, 600 of contra cts
under $21 ton have been made recently
with much secrecy by the Illinois Steel
Company with halt dozen railroads is
substantially corro borated by the fact that
big orders have been placed by the Illi-
nois Central, Lake Shore and Santa Fe
railroads among others.
The Illinois Central contracts lead, so
far as known, and it to-day announced
that it had taken advantage of the recent
break in prices and had placed orders
with different firms for so 900 tons for de-
livery in 1897. OF these orders As, 900 tons
went to the Illinois Steel Company.
Second Vice President Harahan of the
Illinois Central, in commenting tonight
on this big order, said: "If the other rail-
roads would only come forward with pro-
portionately large orders the wheels of
commerce would be set in motion all over
the land"
The Atchison, Topeka and Santa Fe
placed large order with the Illinois Com
pany, the bulk of the material, it is under
stood, being for use in improving the road
bed of the Atlantic and Pacific branch of
the system. The Lake Shore and Michi-
gan Southern ROAD gave an order to the
illinois Company for 5000 tons at S21.
In an interview to-day with President
Gales of the Illinois Steel Company, held
after the annual meeting of the corpora
tion's stockholders, he said: "The Illinois
Steel Company's price for steel rails to-
day is SIS in Chicago. We have made
sales since the dissolution of the rail
makers association. We are getting
orders to- day at the reduced price. Jeal-
ousies and distrust broke up the steel.
rail pool"
What do you expect will be the effect
of the Carnegie Roc kefeller com bination
against your company
81 rather think we will be making steel
rails for some time to come. We will stay
in this fight as long as they do. We were
not mem bers OF the ail-makers' Asso-
citation and always refused to join the
pool. Prices of steel rails Will take big
drop during this year. The reduction will
probably represent a loss of SIS, O00 600.
1t will certainly be $40, 600, 00O and NAV
be $4,000, 600. The starting of this cut
price move is piece of vandalism on the
part of certain competitors. 1t was the
work of agents who were intrusted with
millions worth of property without the
knowledge of the owners of this vast prop.
erty."
"Will there be any change in the man.
agement or policy of the Illinois Steel
Com pany during the year2"
There will be none that I know of.
There will be considerable trimming of
expenses to meet the decreased revenue
from the low price of rails, but our general
policy of retrenchment on account of
trade depression has been in operation for
some time.
I'm the matter of reducing wages as a
means OF offsetting reduced revenue it is
announced that the Metropolitan Iron
and Land Company, of which the Illinois
Steel Company is the chief stockholder,
to-day cut the wages of all employe, 10
per cent at their mines in the Geogebic