Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1903-11-19
Terms of Rail Pool Agreement
Seem Unfair to American
Railroads
CANADIAN ROADS ADVANTAGE
American Mills Can Take Orders From
the Canadian Pacific at s1s Per Ton
But Must Charge American Railroads
%, Because Former is a Foreign
Corporation and Rails Are for
Export.

New York Nov. 19.-The Canadian
Pacific Is the only railroad that seems
to be in the market for any consld-
cradle amount OF steel rails. This
road wants 10000 tons or about enough
rails to lay $50 miles OF singletrack
road. The management specifies that
it wants these rails rolled under the
most severe tests and specifications
ever put in an order for rails. In
consequence of the severity OF these
tests, 1t Is very doubtful indeed whether
any rail- mill in the United States can
take the order. and 1t IL considered
probabla that large part Of the order
If not the whole Of 1t, will go to Ger
man mills.
More important than the matter of
test is the fact that the railroad wants
to get the rails at SIS or $40 per ton,
which Is about $40 under the price at
which the steel rail pool has agreed to
sell American rails to American rail-
roads. This creates a peculiar situa-
ton, ard one that Is not viewed with
complacency by the railroads OF the
United States that have paid % per
ton for their rails. Under the terms
OF the rail pool agreement, the mills
can take orders from the Canadian
Pacific at SIS per ton. but are compell-
ed to charge all American railroads
SIS. The reason Is that Canadian Pa
cific Is a foreign corporation, and the
rails are for export.
The United States Steel Company
recently published a figure of $40 per
ton on steel rails intended for Korea
and Japan. and will shade this price
II necessary The high tariff In Am
erica makes this procedure possible,
and 1t lis now in common usage in the
steel trade, just as 1t Is in the trade of
manufactured goods of all kinds.
Computes With United States Roads.
A prominent official of the Northern
Securities, In discussing this matter
says:
IF the steel mills yof the United
States sell steel rails to the Great
Northern at s2s and to the Canadian
Pacific, competitive line, at SIS
there certainly Is something the mat
lST Will SCOLOUIlC ColOlllOn0 ia tAiS
country. The Great Northern 10 pay
ing a pretty high tariff for the privi-
lege OF being IN American railroad
owned and operated by American cap
ital. AS matter of fact, OF course,
the Canadian Pacific is not strictly a
foreign corporation. because it is car
rying trafiic all the time that origi-
rates at American points and Is in
competition with American transport
tation lines just as much as It would
be II the Canadian Pacific were on
this side OF the Hne. OF course, ac-
cording to the letter OF the law the
steel rail people have a perfect right
to give rails to the Canadian Pacific
If they like, and we haven't any right
to object; but 1t seems rather peculiar
that st the very time the steel rail
people are asking the trunk line rail-
roads to make a cheap rate on steel
products intended for export, these
same steel rail people are talking
about selling rails to the Canadian
Pacific at SIS per ton. I suppose II
is in order that the runkline may trans
port these rails for the Canadian Pa
cific from Pittsburg to Montreal at
good cheap rates in order that thu
steel mills may deliver them to the
Canadian Pacific as cheaply as pos
sible. This looks a little like rubbing
1t in, when one considers that the cost
Of ma nufacturing steel rails is about
s12 per ton and that all the American
railroads have paid $2s for the last
year or two without kicking"
The Canadian Pacific wants the rails
for use on some local lines now planned
to be built in Ontario. These lines
will compete with similarly situated
lines Of Grand Trunk, but will in no
way affect the trade Of any American
New York-Mrs. Blanche Cheese
brough Scott. who got divorce from