The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1889-03-23
A GREAT SHHHL DEAL,
Combine of the Union and
Joliet Steel Companies
INTO ONE GIGANTIC CONCERN
To Compete with Wheeling, Pitts,
burgh aRd Other PoIpts-A Total
Capital Stock of SOS, 100000
President Potter Talks,

CHICAGO, March 22,-Uirculafs 10 the
stockholders Of the North Chicago Roll
ing Mil Company, the Union Steel
Company and the Joliet Steel Company,
calling q special meeting for May, with
ayiew to their consolidation into one
concern, have been issued,
Mr.. o. w. Potter, President Of the
first named company, gave some adj
ditional particulars about the matter to
q reporter. He said the consolidation
was practically effected; that 1t had re-
Ceived the assent of the holders Of a
majority Of the stock OF all OF the COM
panies and that the prellminaries were
so well forwarded that within two days
after the formal vote TO consolidate the
three concerns would be working as one.
"Will 1t be really a consolidation or a
purchase Of the Union aud Joliet com.
panies by the North ChiCagoP" asked
the reporter.
"The Joliet will be bought. In all
likelihood the Union will also be bought.
The purchaser will not be North Chica.
so, but the new concern, which Is to. re-
place all three. OF course the North
Chicago stockholders will be the princi.
pal owners OF the new concern"
"How will the capital stock OF the new
company be represented?"
Fifteen million dollars OF 1t will rep.
resent the combined plants OF the three
companies. Five million dollars will be
in cash as a working capital. Five mil.
lion dollars will remain unissued in the
hands OF the treasurer TO be used In
making such changes as occasion may
require. The total capital stock will
thus be $5000,00O.
"Does the amount allow any water.
ingEP' -. m,. ,..,.., !, .....,. -,
be based on q strict valuation OF the
plants OF the companies. 1t is 10 be IN
honest reorganization and is backed by |
the best men In America"
"But are the plants Of the three COM
panies worth Sl5,0O0,000?"
ayes, when you include all their
For instance, the North |
Chicago has a capital Of SG,0O0,000, but
II has accumulated various valuable In.
terests which are not covered by this
figure. The North Chicago will surren.
derits plant on the north branch OF the
Chicago river, its plant In South Chicago,
It's plant In Milwaukee aud It's mines In
Dodge county, Wis. The Union and
Joliet likewise, In addition to the saleof
their plants on the south branch Of the
Chicago river and at Joliet will, aided
by the North Chicago, put into the con-
troll Of tho ne company interests which
will enable 1t to command everything
from the raw material to the finished
product"
"What is the moving purpose Of this
proposed Combinationp
ECONOMY. Itis q self.evident propo-
sition that one management will be
cheaper than three. Certain improved
In the supply OF raw material |
will also bring about large savings. The
main economy, however, will be effect.
ed by new departure Of a somewhat
radical nature"
"What Is it2"
Nothing less than the diversifcation |
Of the output of the plants. The three
concerns as now fixed are adapted al
most exclusively to tue manufacture Of
steel rails. Jointly, they have a capacity |
OF 5000 tons day in this product. Rum
ming at full blast every day they could |
supply all the steel rails which will be |
used in tho United States this year.
Necessarily, since they cannot monopol- |
ize the market, they must lie idle large
part OF the time. The seriousness Of |
idleness to the capital interested will be
understood when say that the contin-
gent expenses Of an iron and steel plant
arc twice as heavy when not as when
running. Limitation OF product to steel
rails Is further, a preCarious matter
owing to the extreme iuCtuation in their
consumption.
"Now 1t Is proposed to obyiate this
great danger by multiplying the number
OF products. There Is no reason why
1t should not make all classes Of iron
and steel work now sent here and over
the northwest generally from Pitts.
burgh, Wheeling and other points. Iron
and steel ships can be built at South
Chicago or Milwaukee as well as at
Cleveland, Buffalo or Detroit, and con-
tldently expect the ablishment Of such
an industry at one or the other Of the
former points as consequence Of the
consolidation. The enormous amount
Of boiler and tank plate now imported
TO this market may unquestionably be
made here. Another result OF the con-
solidation l do not hesitate TO predict ls
the manufacture in Chicago Of tin.
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