Mower County transcript. [volume] (Lansing, Minn.) 1868-1915, 1889-03-20
a STEEL TRUST.
Ing Seven Rolling Mills, and Possessed
Of q Capital Of ssO,OOO.00O, to Com

Three Great Companies In the West, Own
ine seven Rolling Mills, and Possessed
OF q Capital Of S2O,OOO,OOO, to Com
bine. II -
CHICAGO, March 15.-The Herald says that
negotiations now pending do not fall the
three great steel companies of Chicago
the North Chicago, the Union and the Joliet
will be merged into single combine
don, which VIII have working capital of
1T least 420, OOO,0 600. The boards of directors
Of the three companies have held frequent
meetings during the past month to discuss
matters come oted with the deal, and their
discussions have been Of such character
that it only remains for the stockh )lders to
put tho seal of their approval on them to
effect one Of the greatest metal combina-
lions in the country, and the greatest in the
West. 49,.
II the plans OF the managers Of the scheme
do not fail and the combination ia effected
they will control seven Of the most exten-
sive rolling mills in the world. The North
Ohcago Company alone owns three-one at
Bay View, Wis, one on tho North branch
and another at South Chicago. The Union
Steel Company has two-one on the South
branch and one on the North branch The
Joliet Company has two-one at Joliet and
one near Ashland avenue bridge. Thou
sands OF men, laborers and skilled mechan-
les are employed in these mills.
The News says concerning the deal that
the name OF the new company has not vet
been decided upon, but it will be an en-
tirely new one. The capital will be $40. OOO.-
200, of which between $1,000, 600 and S.
OO0, 600 will be Issued for the cash now
In the treasures of the respective COM
panies and the balance will rer-
resent the valuation of the three plants,
Stock will be distributed to the STOCKHOLM
ers In old ones upon the basis agreed
upon in their consolidation. The combined
works will form the largest steel plant in
this country, and will probably rank second
only to the establishment Of Krupp in Ger
many.
Steel rails are the principal product of the
mills, and In rail-making the new company
will have no competitor In the West worth
speaking of. The rolling mills at St. Louis
and Springfield, ILL.,, are not running, and
the Cleveland mill is working On structural
shapes and agricultural Implements The
steel-rail output of the country is turned
out at nine mills, or at least so much of it
that the other concerns figure for very lit
tie. They are the North Chicago and the
Union at Chicago, the Joliet ut Joliet,
the Edgar Thomson at Pittsburgh, the
Cambria Iron Company at John town.
the Pennsylvania Steel Company at
Harrisburg, the Scranton & Lackawanna
mills at Scranton and the Bethlehem works
at Bethlehem. There is only one west of
Ch1cago-the Colorado Coal l. Iron Com
pany's mill at South Pueblo, Col, and
that is small concern. By the consolda-
ton Of the three Chicago concerns local
competition will be destroyed and better
price realized for rails
Already plans are being formed for secur-
Ing to the utmost the advantages of union.
The North Chicago works have a greater
converting capacity than its rolling
department can utilize, while the Union
and Joliet works are better provided
with rolls than converters By dividing
up the work among these three mills
every department of each can be run to the
best advantage. A reduction of expenses
In other directions, such as clerk hire, rent
and commissions to agents, will be affected,
and it is estimated that the cost of produc
Ing steel rails can be cut down one dollar a
ton. AS the combined works manufacture
one-third of the total output of the coun-
try and can turn out 100000 tons year
without much difficulty, besides 150, 900 tons
of other steel material, the saving is OF
great Importance to the stockholders
Inventories of the plant and assets Of the
three concerns are now being made. The
two iron furnaces Of the North Chicago
mill at Bay View, near Milwaukee, which
have capacity of $4,000 tons of
pig metal year, are included in the
deal All the companies are strong finan-
cially and their plant has been we'll kept
up. Some improvements and extensions
are in contemplation which will be made
at once. Although the stockholders of the
three mills have yet to approve the plan
there is no doubt it will go through, as the
largest stockholders in each are in favor of
the scheme.