Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1889-11-05
MILLIONS INVOLVED,
a Barbed Wire and Nail Trust
An Assured Fact.
OPTIONS ON LOCAL MILLS
And the Eighth Floor of the Lewis
Block for Offices.
KNOWN As THEFEDERAL STEEL co.
"A Gigantic Combination Of Western Wire
Manufacturers.
-NOWN As THEFEDERAL STEEL co.
wGSHBURN & MOEN ARE EXCLUDED

WAgHBURN & MOEN ARE EXCLUDED
William J. Lewis, proprietor of the
Lewis block, yesterday gave an option to
the Federal Steel Company for the whole
eighth floor Of his building, corner Smith
field street and Sixth avenue. The Federal
Steel COMPANY is the new Barb Wire Trust
which was organized in this city over two
weeks ago. The fact that they asked for an
option on the rooms indicates that they will
make this city the general headquarters Of
the combination, and will locate their office
here The work on the organization Of the
syndicate is still progressing, and a meeting
will probably be held within the next two
weeks. A conference was held in Chicago
last week, and a number of details about
7he organization of the company completed.
On Saturday, October 19, THE DISPATCH
exclusively published an account OF three
DAYS meeting of number of barb wire
and wire nail manufacturers from all over
the country In this city. 1t was known at
the time that a company was to be formed
to purchase the large plants in the United
States and run them under one manage
snent
KEPT THE SCHEME QUIET.
At the solicitation of those engaged in the
formation OF the company nothing was said
about the gigantic combination. The
scheme was written up as a kind of an
agreement to advance the price of finished
product so as to enable the manufacturers to
make q small margin of profit. No perma-
nent organization was formed at the
time. 1t was given out by those
who were interested in the matter
that the publication would interfere with
the completion of the organization, and for
that reason it was not described as a combi-
nation. Since then the syndicate has so far
progressed that the details can be given
out
The Oliver & Roberts Wire Company, of
this city. Carnegie, Phipps & Co., of Beaver
Falls, the Gautier Steel Department at
Johnstown and the Braddock Wire Com
pany at Brsddock are now engaged in
taking stock in their plants preparatory to
selling out to the new combination. The
latter will be known as the Federal Steel
Company and will be chartered corpora
tion.
ANEW JERSEY CHARTER.
1t is proposed to have it chartered either
nnder the laws of New Jersey or Illinois,
but this point has not yet been settled.
Some of those forming the company say the
laws Oh l4llUOls Will give NuCW STCdhCE du-
vautages than any other State, while others
hold a New Jersey charter would be the
best. IN conversation with George 7. Oliver
Yesterday the gentleman stated that they
had put q price upon their plant and would
turn it over to the new company. The
plan of the latter is to pay either in cash or
stock for every large wire mill in the coun-
try they wish TO control The Pittsburg
concern will go in and take stock in the
II. IL. 4 l.
not favor the combination will be paid cash
for what they now own in the companies.
As soon as permanent officers are elected
the company will open offices in this city,
and the clerical forces in the other Offices
will be dispensed with. This matter of
economy was the chief cause of the lorna
tion of the combination. 1t is very prob
able that John W. Gates, of st. Louis, Vice
President of the Braddock Wire Company,
will be the president
THE PLANS IN DETAIL.
In speaking Of the matter yesterday, Mr..
George Oliver was loath to give the real ma
ture of the combination. When asked If it
was not true that he and others in this
vicinity were taking stock to sell out to
1.-THE Federal Steel Company, he said:
eyes, it is true that there is a scheme on
foot to buv up all the large wire plants in
the business and tn is reduce expenses. We
have gone SO far as to place valuation on
our mills and will be paid in cash, or we
can take stock in the general concern. The
new company for which there will be a
charter issued in few DAYS will buy out
right any large concern in the United
States which may be thought advisable to
purchase 1t is not intended to have all the
wire manufacturers in the company, and for
k,F nhpro of fhn III
will be left out. There is sufficient capital
behind the scheme to buy up all the mills in
the country if necessary. There will be no
effort made to squeeze anybody out of the
business.
NOT FORCING ANYBODY.
'Those who do not wish to come in can 90
along doing business as usual, and we will
not NEEDLE with them. Ii is not our inten-
ton to build up monopoly, but find that
1t is to the best interest of the business to GO
into the combination. When the subject
was first broached to our company we re-
fused to 90 in. We were afterward con-
WINGED that it would pay us to do so and are
now ready to sell out. We were averse to
going into any pool. The others showed
that 1t was TO our advantage, and as it is
straight business transaction we are going
in. ] do not know anything about the
other plants about here, but think they viii
also join
"Will washburn & Moen, the large con-
cern that fought everybody about infringing
their patent, be in the new company" was
asked.
"No. They were not asked to come in.
1t was the intention to confne the combina-
tion to Western companies. The concern
Won mention is in Massachusetts,. No. it is
not vet settled what the capital stock will
be. but it will run into millions. A confer
ence was held in Chicago last week, but this
was not determined.
HEADQUARTERS HERE.
'I do not know whether the headquarters
of the company will be here or not, and do not
care to speculate on the matter. 1t is little
premature to say that they will be in this
civ. but I think il would be advantageous
10 locate their officers here. Since the first
meeting was held prices have stifened con-
siderably, but the advance in the price of
biIlets was the main cause"
From another source it was learned that
there was considerable opposition to the new
coupanv, and there is a strong probability
that the manufacturers will also form a
combination to compete with the large mill
owners. Il was stated that Wsshburn &
Moeu would 90 in with the others and try
70 break the Federal company. The small
producers of wire and nails who were not
taken in the large combination expect that
thew will be forced to sell their plants to
the big concern. 1t is also understood that
fhe latter have offered them what they con-
slider a low price for their works.
This has been refused and the owners
think that sooner or later they will
have TO accept them. To Offset the effects of
IL.