The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-04-06
US. STEEL INDICATES
RAISE IN RAIL PRICES
Will Take No Contracts at
Present Rates After
This Month.

The most interesting and important
development In h steel trade yesterday
~as tho announcement made by Judge
Gary. president Of the United states
Steel Corporation. that tho subsidiary
companies OF the United States steel
Corporation which manufacture rails
have decided TO maintain the present
prices until May I. 1915. AS 10 rails
sold for delivery UP TO May !, 1917.
hut will make no commitments beyond
that date" This being interpreted ac-
cording 10 tho trade understanding Is
that the policy 10 sell rails at a uniform
pricc which WAS entered Into In 1902
ny all tho manufacturers Of steel rail
will he abandoned OF May I. The rSil-
road companies. however. will have am
ple time In tho next six weeks to place
contracts at S?s a gross ton for hs-
serner and $40 4 gross ton for p
ton Of advancing prices Of steel rats
has been aGitated for several weeks
and this fact Ia responsible for the heavy
tcunaSes ordered for 1851 delivery
during March.
Under the circumstances IL ma he
we'll 10 reiteratc some Ut the arguments
made BY tho independent manufacturers
Of steel rails favoring an advance In
OFFICES OF bIlb bTi'itlpAi b8GVi
assigned Ia that the cost Of manufacture
ing rails In the last six months has ad-
vanced from $3.50 to 1925 a OF be-
cause of tho higher prices commanded
by ferromanganese, which Is an essential
ingredient IN the manufacture OF steel.
especially IN tho manufacture OF rails
which nav a 3 per cent content OF man
gairesc. n has also been pointed out that
PRICES of all other rolled steel products
have advanced from SIG to $36 a ton. The
advance has been even greater on some
lines Of speciality since the low point
in 1914. Another point Is the advance
in wages Of mill operatives. For the rail
mills to assume tho increased cost OF
manufacturing rails under present ondi-
lions is maiifestly unfair. according to
the independent rail mills.
In 1915 the railroads placed contracts
for approximately 3.oo0.0oo tons OF
standard and light section rails. Since
the FIRST " January this year the rail.
roads have ordered 1.473.000 tons OF
rails. which al All increased cost of $3.50
a ton means a gift TO the railroads OF
about S3.6s2. 600. Ordinarily the rail-
roads place annual contracts for about
$500, 900 to 5000. 900 tons. In lean
years such as 1918 and 1914 the rail-
roads ordered hut little over 1000, 900
tpns. The production Ut rails since 1896
has been from i.i2s.0I0 tons In 1896 to
3.971.sSI tons In 1906. Since that time
the yearly tonnage rolled has ranged
ffolu l,921,oij to S.S36.03l tons.
The United States steel Cooperation
and the Pennsylvania steel Company
were ~forehanded In securing ample sup
piles OF ferromanRanese. ores and spie-
geleiseD. After the declaration of war In
Europe On July IL. 1914. other steel
companies made the effort. but were less
fortunate In being able to cover their
requirements for ferrO alloys except at
sharp advances in prices and for delivery
over a period of six to eight months.
The severe pinch IN alloys will probably
come next summer. Consequently the
present ac,ion taken on rail prices IL
doubtless taken as a protective measure
or tie smaller companies. acQuicsced In
BY the Steel Corporation.
American mills have taken some addi-
tSonAl large contracts for hillets. blooms
and round steel bars to be used in tho
manufacture of war munitions for the
allied Governments. II Is estimated that
total sales sinre the first OF April have
amounted TO approximately 200. 900 tons
OF which the largest proportion WAS