The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-11-18
AMERICAN ROADS
GET WORST OF IT
Steel Rail Pool Quotes Foreigners
Low Prices on Its
Product.
Americans Must Pay $2S Ton
While Japs Pay
but $40.
Possibilities of the Situation EN-.
phasized by Position of the
Canadian Pacific.
Special to The Journal.

Special to The Journal
New York, Nov. 1S.--The Canadian
Pacific is the only railroad that seems
to be in the market for any consider
able amount of steel rails. This road
wants 10000 tons or about enough
rails to lay $50 miles of single-track
road. The management specifies that
1t 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. it is very doubtful indeed wheth-
er any rail mill in the United States
can take the order, and 1t is consld-
cred probable that a large part of the
order, if not the whole of it, will go
to German mills. 'a
More important than the matter of
test is the fact that the railroad wants
to get the rails at SIS or SO per ton,
which is about $40 under the price at
which the steel rail pool has agreed
to sell American rails to American
railroads. This creates a peculiar sit
uation. and one that is not viewed
with complacency by the railroads OF
the United States that have paid $2S
per ton for their rails. Under the
terms of the rail pool agreement, the
mills can take orders from the Ca
madam Pacific at SIS per ton, but are
compelled to charge all American rail-
dian Pacific is foreign corporation
md the rails are for export.
The United States Steel company
recently published a figure of $50 pei
ton on steel rails intended for Korea
and Japan, and will shade this price
If necessary. The highitariff in Amer
lea makes this procedure possible, and
1t is now In common usage In the
steel trade, just as it is in the trade
of manufactured goods of all kinds.
Completes with United States Roads
A prominent official of the North
ern Securities, in discussing this mat
ter, says:
eff the steel rail mills of the United
States sell steel, rails to the Great
Northern at $2S and to the Canadian
Pacific, a competitive line, at SIS
there certainly is something the mat
ter with economic conditions i'll this
country. The Great Northern is pay.
Ing a pretty high tariff for the privi-
lege of being an American railroad,
owned and operated by American cap
ital. AS a matter of fact, of course.
the Cs nadtaii Pacific is, not strictly a
foreign corporation, because it is ear
rying traffic all the time that !origi-
mates at American points and is i'll
competition with American transpor-
tation lines Just as much rs it would
De IL Tue .NdlduIdll dOllllrt& z vi
this side of the line. 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
jf they like, and we haven't any right
to object; but it seems rather peculiar
that at the very time the steel rail
people are asking the trunk line rail
roads to make 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. / suppose ii
is in order that the trunk line trans
port these rails for the Canadian Pa
ciffc from Pittsburg to Montreal at
good cheap rates in order that the
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 manufacturing steel rails is about
So per ton and that all the American
railroads have paid $28 for the last
year or two without kicking.
To Build Local Lines.
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 nc
way affect the trade of any American
railroads. zzfs
President Shaughnessy of the Cana.
dian Pacific has been in New York anc
out thru Pennsylvania for the pas
week. He went with a party of Penn
sylvania railroad officials on tril
over that railroad and an inspection
of the Ellsworth Coal company neal
Pittsburg from which company thu
Canadian Pacific buys about 100000
tons Of coal every year. He says there
is nothing significant In his trip, blu
that it was merely a social visit made
both pleasant and profitable thru the
courtesy of the Pennsylvania people.