New-York tribune., 1912-01-11
CARNEGIE SAYS lie
BEAT ROCKEFELLER;
WARON STEEL TRUST
Southern Independents Threaten
War if Alleged DiSCrimina-
tion in Railroad Rates
Continues.
CONSUMERS JOIN THEM
Northern Buyers, Now Kept Out
of Market by Excessive Freight
Charges, Help Movement to
Bring Case Before Inter-
state Commission.

Id ing SdcS pSlSlC Y 4hbSi-
state Commission.
The harmony which was long evil
denced in the steel industry by the gen.
eral attendance of steel masters at the
Gary dinners. but was disturbed year
or so ago. when the representatives Of
the Republic Iron and Steel Company
absented themselves from the dinners,
and at about the same time beginning
the price cutting which they believed
the depressed state of the business re-
quircd. is now in danger of much more
serious disturbance
A virtual coalition Of Southern steel
manufacturing concerns has been formed
TO take determined measures to end a
situation which these companies feel is
charGeable TO the United States Steel
Corporation. These conditions must be
rectifed If they are TO continue to carry
on their business, these companies as
sert.
There are in Alabama and Tennessee
about fifteen independent iron and steel
manufacturing companies, all of which
are said to be acting together in the
present movement, which has for its
chief object the obtaining Of a reduc-
tion in railroad rates for their products
TO Ohio River points.
Among these companies are the Wood
ward Iron Company, the Southern Iron
and Steel Company, the Alabama Con-
solidated Coal and Iron Company, the
Republic Iron and Steel Company, the
Sloss- Sheffield Steel and Iron Company,
the Birmingham Iron Company and the
Dayton Malleable Iron Company, all of
which are in the Birmingham district.
Conferences With Railroads Fail.
Negotiations with the traffic managers
Of railroads operating i'm the Birming-
ham district, particularly the Southern
Railway and the Louisville e. Nashville,
which handle most Of the iron and steel
traffic. having failed of the desired result.
the iron and steel independents rave
now decided TO take their case TO the
Interstate Commerce Commission. pre-
ferring against the railroads charges Of
| discrimination in favor of the Enhed
/, States Steel Corporation.
conference was held a few weeks
ago in Birmingham, at which ali Uf the
Alabama and Tennessee manufacturers
were represented, except the tennessee
Coal, Iron & Railroad Company. which
had not accepted an invitation. 10 be
present, and is the only company ia the
two states which is controlled by tho
United States Steel Corporation. AT
that conference the topic Of discussion
was the necessity for lower freight rates
and the means by which they could be
obtained. Taking part in the conference
also were representatives. of the Found
ers' Association of Illinois, an orsaniza-
tion of consumers who formerly were
heavy purchasers of Birmingham iron,
but are now kept out Of that market
because of the high freight rate or iron.
The railroads in 1906, when the iron
and steel industry was beginning to be
highly prosperous and when the price Of
iron had risen to SO ton Birmingham.
advanced their rates to Ohio River points
% cents ton, ana IN the lollOWlnB year,
when the quotation for iron had mounted
to $50 a ton, another 50-cent increase in
the freight rates was ordered Iron is
now selling at SO a ton Birmingham,
and in large lots as low as 50 %. and the
independents are urging a reduction of
81 a ton in the freight rate to Ohio River
points. bringing the rate to the level
prior TO 1906
Railroads Refuse Petition.
week ago a conference was held be-
tween the steel and iron independents
and the traffic men Of the Southern
Railway Louisville & Nashville, Frisco
and Illinois Central, the manufacturers
arguments for the necessity
of rate reduction. Information has just
been received by them that the rail-
roads have refused their petition, and
the iron and steel men will
now proceed to present their case before
the Interstate Commerce Commission.
7 ha aSSictanNa