The evening times., 1900-10-09
WAR Tn l'EE RAIL POOL
Carnegie May CHt Under the Trust
Price of $26.
Refusal of the Railways to Pay the
Rate Fixed-Assertfons That the
OyercapitaHzed New Concerns
Must Make Inequitabie Charges
to Enable Them 10 Pay Dividends.

The determination of the Railway Trust
not to accept the new price in steel rails
recently adopted by the Steel Trust, 9TH
erwise known as the steel rail pool, is
growing more positive and finding public
utterance more strenuously every day
1t is now believed to be probable that this
determination on the part of the com
bined railways VIII result in break OF
the new price and perhaps even in dis
solution of the Rail Trust. There are
whispers in New York that the Carnegie
Company is about to cut the price of
rails from $26 to $23 a ton.
The railways contend that the S26 trust
price is an unjust one, in comparison
with that of steel billets. During the past
year the price OF billets was fixed at $32
a ton, and rails were only So a ton high
er, or S35 At the present time blliets are
selling for $3.50, and yet the Steel Trust
wishes to charge the railways $26 for the
millions of tons OF rails that will be con-
sumed during the coming year.
There have been several conferences at
the Waidorf-Astoria and the Holland
House within the last four days among
prominent railroad men, and the decision
has been reached to withhold orders for
SISeI F3llS as late DIS pOS5ipAS, Will tiiS
view of taking advantage OF whatever cut
may be made between now and January /.
Very few, ii any, orders have been placed
with the steel companies at present prices.
The big, overcapitalized concerns are the
ones that are trying to force the high
prices upon the railroads. These concerns
are the Federal Steel and the American
Steel and Wire Company, both of which
are making a supreme effort to pay divi-
dend on their enormous capitalization.
The Carnegie Company, it is said, can
sell rails at s21 ton and make fair profit.
The other companies cannot sell at less
than s25 ton ard earn dividend on their
common stock 1t is said that Mr.. Carne-
gle is determined to force the big compa-
nies to the wall II possible.
President Schwab, of the Carnegie Steel
Company, was in Wall Street yesterday in
consultation with some OF his partners, and,
it IS said, had several talks with railroad
Presidents about the exorbitant prices
charged.
Meanwhile officers of the other steel COM
panies are declaring that they know OF no
dissatisfaction among the railroad presi-
dents over the price charged. President
Gary OF the Federal Steel Company, said
today: u have not heard a single railroad
president intimate or suggest that the
price of rails should be less than s25 a
ton.
Inc EEIlI aSGlpSl the steer companies OIi
the part of the railroads is being led, it
is said, by James J. Hill, President of the
Great Northern. Mr. Hill said yesterday,
however, as he has before: Great North
era is not il the market for steel rails. l
think we shall need none the current year.
Of course, I think the price is too high.
l believe that $24 should be the limit.
The president of another large Western
road said: Steel rails at s26 ton are
too high. The maximum price should be
S2S. Our roads will require next year
20, 600 tons, but at the price demanded
by the steel rail manufacturers We shall
not be able to purchase over half this
amount"
The following statement was given out
yesterday by a gentleman high in the
councils Of the Carnegie Company:
According to press despatch dissent
mated throughout the country. the Car
negie Steel Company, at it's recent meet
ing at Pittsburg, was announced as having
decided to sustain the full price of s26 for
rails. This was aid to have been brought
about by information to the effect that
al a conference of railroad officials at the
Waldorf-Astoria the railroads had decided
they would not pay more than S22.
The facts, as stated in the despatch,
were not only shoEFn TO be without foun-
dation, but we are in possession of def
mite information TO the effect that such a
| course antagonistic to the railroad inter
ests is against the announced policy OF
the Carnegie Steel Company.
.'0n the contrary. the purpose of the
company is to sell it's product. as hereto
fore announced by Mr.. Carnegie himself
at fair manufacturers profit, the com
pany not being obliged by reason of its
capital to take any question of dividends
| on watered stock into account in fixing
such price