Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1885-07-02
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ORE AND STEEL COMPANY.
Probable Lease Of the Vulcan Works.

The leasing of the Ore and Ste'
| company's works to syndicate {
Youngstown, o.. capitalists, althoug
almost certainty, has not yet bee
finally arranged. Receiver F.. A
Hitchcock appeared i'm the Unite
States circuit court yesterday anu sta
ed that the parties to the lease ha
come to an agreement, but for want q
formal authority on the part Of one q
the capitalists to sign the papers fe'
days. longer time would have to b
asked. Judge Treat granted the re
| quest. and instructed the receiver t,
| report as soon as possible. The part.
| who was waiting for the authority t
sign the lease was, it is understood
| Richard Bro ~n of the Brown, Bonnel
u Co. Rolling Mill company. MI
| Brown left last night tor Youngstown
o., to lay the matter before the boart
of directors of his company for thei
| consideration and consent. The boart
will meet July 5, and until that tim,
no further action in the matter will
probably be taken.
Mr.. ii. q. Bnnneil and Mr.. Richart
Brown, who figure as the real princi
pals III the present negotiations, vii
be remembered in connection with ths
failure of the Brown-Bonnell Iron com
pany in Pittsburg less than year ago
This failure was an overwhelming sur
prise to the entire iron trade, and .
number of other failures followed in it,
train. Receiver Hitchcock, in speak.
ing on this subject yesterday, saiu that
while it was true that Mr.. Brown and
Mr.. Bonnell had been corrected with
the Pittsburg firm yet these gentlemen
had retired from the concern fully q
year before the collapse. They with
drew their capital and were to-day men
of great wealth, and were fully able to
undertake an enterprise OF such mag
nitude as the present one.
Mr.. Hitchcock refused to furnish any
figures, either as t. the rental specified
in the lease or the term of years for
which it was to run. He said there
were about fifteen parties connected
with the lease, all of them enliliently
solid men. They would manufacture
billits on which there would be more
profit than on steel rails, and for which
they would be able to lind u ready
market. In fact, the output would be
used in the other factories belonging to
the syndicate.
From other parties it was learned
that Mr.. Bonnell and Mr.. Brown ,each
drew out 100000 from the Pittsburg
firm and now possess an excellent cred
it. After their withdrawal from the
firm they permitted their name to be
used, but that was all. A straw CON-
Germ was all that remained; the capital
having been withdrawn the company
soon went to the wall.
Wick Bros. & Co. of Youngstown,
bankers, are quoted as being worth
Ii;
credit.
Bonnell. .Botsford d Go. (J. M. Bon
nell & Co.l of Youngstown, iron and
nail manufacturers, are wOrti $500 900
to $500, 900
Brown, Brnnell & Co., rolling mill,
are not quoted.
It.is said that Youngstown is making
vigorous efforts to retain her capitalists
and will offer them great
The rental will certainly not exceed
$50, 900 per annum, There are 81 ,OOO,-
100 worth of bonds on the works bear
ng per cent. interest. The rental
will not pay the.interest on the bonds
therefore, and the interest rate will in
Ill pro ba bility be scaled down to 6 per
cent. The Ore and Steel company
nave an eleventh interest In the Bes-
;emer process, and if :he iron business
'evives at all the pool will pay very
handsome sum of money into Receiver
hands. The parties con-
lected with the proposed lease throw
IN air of intense mystery around their
and maintain u silence on
he subject that would do credit to a
Blue Point oyster; they one and all de-
lined to utter q syllable. Mr.. Stewart
# Cleveland, o., Receiver Hitchcock
nd Messrs. Bonnell Cochran, Wick
md Nelson will visit the works in
Iarondeiet this morning again and
AXE a general survey of the premises.
of June 25th.
From the Globe Democrat Of 18th.
1t was learned yesterday that before
he departure of Mr.. Brown, of the
Youngstown, O., syndicate, which |
proposes to lease and operate the Vul-
an Iron works, a contract was entered |
nto between the syndicate and Mr.. |
ioldstein, for long time chemist of |
he Vulcan works, by which Mr.. Gold
tein will he confined in that position,
howing conclusively that the Ohio
'arties have no other idea than that
hey will secure the lease. The posi-
ion, it seems, is u difficult one TO fill,
nd before leasing the works the MEM
,ers of the syndicate were anxious to
ecure man who would be able t., do
he work. They preferred Mr.. Gold
tein. but he had offers from other
,laces, and could give tIem only few
lours to decide. At that point the
)hio pnrties were confronted with the
echnical difficulties in the Way of at
nee signing the lease, but felt so GER
ain that everything could be nrrang-
d that they entere | into the contract
with Mr.. Goldstein, and he gave up
he other positions which had been
ffered him. 1t was also learned yes
er that the only obstacle in the way
f closing the lease was the discovery
f the fact, which, had strangely been
that the charter and by
avs Of the Brown-Bonneil Company
equire that a certain proportion of the
tOck holder indorse lease before it is
made. Mr.. Brown and the gentlemen
7ith him did not represent quite
nough stock to comply with this, and
ot wishing to run any risk Of vitiat-
ng their charter asked for the post
onement, anticipating no trouble in
ecuring the requisite Endorsement of
heir stockholders. The Ohio gentle
1en privately expressed desire to get
he matter closed tt as early a day as
ossible, as clause in the lease allows
o many days i'm which they must
make all Improvements or repairs
ecessary or desired, the rent not to
ommence until the expiration of that
ime.
A private meeting of the holders of
he first mortgage bonds of the Vulcan
Works was neld during the visit of
he syndicate, and it was developed
hat none of the holders present would |
,art with the bonds for less than IS |
ents on the dollar. The terms of the