New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-10-10
RATE CUTTING RUMoRS.
OFFICIALS DENY. HOWEVER. THE PROB
ABILITY THAT STEEL RAIL PRICE
AGREEMENT WILL BE BROKEN

Vague rumors of a coming rupture Of the steel
rail manufacturers price agreement in the
shape Of rate cutting by one or other of the
corporations parties to that agreement DON
tinued to be heard in Wall Street yesterday
despite denials from official sources that any
trouble impending President Gary of the
Federal Steel Company yesterday afternoon is
sued this statement:
There is and has been disagreement among
the unanimous opinion that SIC a ton is fair and
reasonable No manufacturer has intrnated that
fa3turers cannot afford to sell at lower price Ge
dnsd 4, raw j IA raiiT6S 0resdegt has com
planned me of the price Many have expressed
being placed one railroad president telephoned this
morning he should promptly place an order Tor
10000 tons at S26
Judge Gary is quoted having said also IN
a conversation on the subject:
saw six railroad presidents before the S2s rate
made. and all hut one said they would be sat
dent said that SIC would suit him. Since the fixing
Of this price have seen many railroad pIeslaehhts
Not word OF dissatis faction has come from
the rail manufacturers and all stories as to dis
agreement among them are made out OF "hole
am in almost daily consultation with Presi-
dent Schwab Of the Carnegie company. mere s naS
that source over prices or anything else. In
word we cannot make rails at less thah the Pii0'
who was here on Monday. left town on that
night. He VIII be in New-YoTk again to-mor-
row. il is understood.
The president of leading Eastern road said
yesterday, as quoted:
It happens that my order this year is just half
what it was year. but that is due TO the 1act
that the track is in such good condition that dld
Tot need much rails Price did not enter me Ii
the extent of the order OF course shoulo hAts
TO pay a lower figure. but l content to pay SO
q ton. 1 think a good deal more is being made OF
this question than is warranted. I have not found
1oiiev as to buTing rails by It's Individual needs
opinion the point of the price certainly there
is no reason to expect that the ran1ike[s VII ~
the year when all the important contracts
have been awarded Another considera ton is that
specifications 10 get better and harder rails: Many
companies have found that rails purchased at re-
ing out rapidly under the heavy equipment and
loads This consideration makes many raIroad
men hesitate 10 make too close bargains with the
railmakeTs
Another railroad president is quoted as say
ing:
It is not known that any steel manufactures has
publicly stated what is the margin OF cost be-
tween steel billets and steel rails There is gen
eral impression, however that it costs about 81 TO
convert pig iron into steel blets and an addltonal
s. TO produce steel rails from billets. If this is
true. with Bessemer pig iron at SO, Steels rails
should sell in the neighborhood of from 81 TO S24
The reports Of dissensions among the steel rail
men had little or no effect on the steel stocks
yesterday. Federal Steel common weak
early in the day, but closed at a net advance of
u per cent. the preferred declining q per cent.
National Steel common gained IA per cent. Re
while the preferred had a loss of similar amount.
Colorado Fuel and Iron advanced Is per cent.