The Progress. [volume] (White Earth, Minn.) 1886-1889, 1889-04-27
q STEEL TRUST.

a STEEL TRUST.
Three Great Companies in the West, own.
Ing Seven Rolling Mills, and Possessed
of Capital of $40 1000 900, to Com
bine.
4 CHICAGO, March 15.-The Herald SAYS that
If 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 a single combina-
tion, which w II have working capital OF
at least $50, 0OO, Goo The boards Of directors
OF the three companies have held frequent
meetings during the past month to discuss
matters come tied with the deal, and their
discussions have been Of such a character
That 1t only remains for the stockh olders to
put the seal OF their approval on them to
erect one OF the greatest metal combina-
lions in the country, and the greatest in the
Vest
If the plans of the managers Of the scheme
do not fail and the combination is effected
they will control seven of the most extern
sive rolling mills in the world. The North
Chicago Company alone owns three-one 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. 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 yet
been decided upon, but it will be an en-
hrely new one. The capital will be SIC, co.,
600, of which between S., 100000 and So
0O0, 900 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 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 at Joliet
the Edgar Thomson at Pittsburgh, the
Cambria Iron Company at John town,
the Pennsylvania Steel Company al
Harrisburg, the Scranton & Lackawanna
mills at Scranton and the Bethlehem works
at Bethlehem. There is only one west OF
Chicago-the Colorado Coal & Iron Com
pany's mill at South Pueblo, Col, and
that is a small concern. By the consolida-
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 it's 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. 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
ton. AS the combined works manufacture
one-third of the total output Of the coun-
try and can turn out 800, OOsi tons year
without much difficulty, besides $50, 600 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 a capacity of $4,000 tons of
pig metal a year, are included in the
deal All the companies are strong fnan-
cially and their plant has been well 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.