The Iowa plain dealer. [volume] (New Oregon, Howard County, Iowa) 1867-1895, 1889-03-21
A STEEL TRUST.

Three Great Companies In the West, Own.
Ing Seven Rolling Mills, and Possessed
Of Capital Of $4,000 900, to Com.
bine.
CHICAGO, March 1i-The Herald says that
II negotiations now pending do not fail the
three great steel companies Of Chicago
the North Chicago the Union and the Joliet
will be merged into . single combina-
ton, which W II have working capital Of
ut least 80, 900, 600. The boards Of directors
OF the three companies have held frequent
meetings during the past month to discuss
matters come ted with the deal, and theiH
discussions have been OF such q character
that it only remains for the stockh .lders to
put the seal Of their approval on them to
effect one of the greatest metal combina-
tions In the country, and the greatest In the
West
II the plans Of the managers Of the scheme
do not fail and the combination Is effected
they will control seven OF the most exten-
sive rolling mills in the world The North
Chicago Company alone owns three lone at
Bay View, Wis, one on the North branch
and another at South Chicago. The Union
Steel Company has two-one on the South
branch and one on the North branch Tho
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 yct
been decided upon, but it will be an en-
tirely new one. The capital will be 40, ,0OO, i
OO0, OF which between $5,0uU,O0O and 20 :
OOO, 600 will be issued for the cash now
in the treasures Of the respective COM
panies and the balance will rep
resent the valuation Of the three plants.
Stock will be distributed to the stOckhold-
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 N structural
shapes and agricultural Implements The
steelrail output Of the country is turned
out ut nine mills. or ut least SO much OF 1t
that the other concerns figure for very lit
tie. They are the North Chicago and the
Union ut Chicago, the Joliet at Joliet,
the Edgar Thomson at Pittsburgh the
Cambria Iron Company at John town,
the Pennsylvania Steel Company at
Harrisburg, the Scranton 4 Lackawanna
mills at Scranton and the Bethlehem works
at Bethlehem. There is only one west OF
Chicago-thc Colorado Coal 4 Iron Com
pany's mill at South Pueblo, Col, and
that is q small concern. BY the consolida-
tion 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 greater
converting capacity than its rolling
department can utilize, while the Union
and 10 let works are better provided
with rolls than converterR By dividing
mp the work among these three milll
every department of each can be run to the
best advantage. 4 reduction Of expenses
in other directions such as clerk hire, rent
and commissions to agents, will be affected
and 1t is estimated that the cost of produc
ing steel rails can be cut down one dollar q
ton. As the comhined works manufacture
one third Of the total ort put of the conn
try anl can tuln out s@n,saA tons Il gaai
without much difficulty. besides I,u,vvv tom
of Other steel material, the saving is oi
great Importance to the stockholders
Inyen; sries OF the plant and assets of til,
three cor ,.rns are now being made. The
two iro; furnaces OF the North Chicago
mill at lay View, near Milwaukee. which
have capacity Of $1,000 tons OF
pig metal year. are included in the
deal All the companies are strong finan.
cially and their plant has been well KEEP,
up. Some improvements and extension,
are in contemplation which will be made
at once. Although the stockholders OF the
three mills have yet to approve the plar
there is no doubt it will go through, as ths
largest stockholders in each are in favor o.
| the scheme