The sun. [volume] (New York [N.Y.]) 1833-1916, 1897-08-20
STEINWAYS %REORGANIzE.
ENGLISH CAPITAL TAKEN INTO nj
PIANO CONCERN.

II Is Now Stetnwny a some. lintted, with =
Capital or CT. ESQ. OOO-Partners In the ola
Firm Co Retain 81, 200, 900 In stock-one
OF Them Unwilling to sell his Interest.
The story which was In circulation yesterday
10 the effect that the piano manufacturing firm
Of steinway & Sons had been purchased by an
English syndicate is based upon the reorgAniza.
ton OF the company with English capital, the
complete details OF which reached this country
yesterday with the arrival Of the English mails
containing copies OF the London papers OF the
date Of Aug. 3. On that date there appeared in
the London dnilies a complete prospectus of tho
reorganization and an offer for sale Of shares in
the new company to the amount OF 81, 155,6 800.
The negotiations which have finally led up TO
this eventuality have been in progress some
time. This has been known in tho piano manu-.
featuring world. and at the meeting OF piano
manufacturers at Manhattan Beach on Wednes-
day it was discussed, and, with the limited in.
formation then in possession OF those in.
terested, took the form of an outright
sale. Judging from the London prospectus,
however, this is hardly the case, inasmuch as tho
steinways stipulate that they shall have the
right to retain 81. 900. 900 worth OF the entire
capitalization, which Is 81. 25O, 900. or about
"a. 900. 900. AS q further proof Of their position
in this matter. Charles H. Steinway, Fred T.
Steinway. Henry Ziegler, and Nahum Stetson,
members Of the present firm. will remain In the
Board Of Directors Of the new organization,
Charles II. %steinway being the Chairman.
The prospectus states that the new company
has been incorporated under the British law 40
Steinway & Sons. limited. with a capital stock
Of Ell, 100000 divided into $4,000 5 per cent.
cumulative preference shares OF s10 each, and
1905 900 ordinary shares of IS each. The pres
ent issue OF shares. however, Is for only 10000
] of the preference and 81. 100 ordinary shares. 1t
is explained that the reason the company cannot
acquire all the stock. there being a little less
than one-tenth of 1t not offered for sale. is that
is Presumed 10 be Henry ". steinway. a cousin
# ch Is Ties II dM s'sln of sii4 hse 3 Of w thf o oi s s9ocS.
and has persistently been a stumbling block to
part With his holdings. The prospectus says
further:
fixed by the vendors at 1850. 500. out Of which
they will pay all expenses, whether Of %registrs-
ton. promotion. or otherwise. up TO and includ-
ing the first allotment of shares. and the differ
ence between this amount and the total share
capital now offered to the public will. when paid
up. provide an addition Of a75, 900 to the present
working capital.
~ material change is contemplated in the
directors and managers have agreed 10 act as
directors of the new company.
but the venners make 1t n condition that they
shall have the right to subscribe and pay for at
least 100000 Of preference or ordinary shares.
I'm the allotment, Of shares a fair and judi:
e c,Dao pseset ths trade %e q and sH the empl IS sasG who 90
will thus acquire a direct interest in increasing
the prosperity of the business
1t Is also explained that the SIS, 600 unissued
capital mentioned will be available for the pur-
chase of the interest not now for sale should ar
ranGements for its acquisition be made hereafter.
Particular attention is called TO the profits of
the concern for the last eleven years. The pros
lin the year 1896 the net earnings in London
and Hamburg showed an Increase, and the
the trade is returning 10 its previous level. IL
is a matter Of, general knowledge that in Amer
altogether lost. and the vendors are so satisfied
that the reduction in tn American. profits OF
sion caused by the crisis on the silver question
that they have agreed to deposit f100.0 600 in
the hands Of independent trustees 70 be invested
In British Government securities for three years
and made available in case the profits for that
period should in any one year 10 insufficient 10
FLARES The %Venders are n5solu,e sIHe confdent.
that recourse to such fund will not be necessary"
Aug use . ant and D elo assn on Sas. ~ =, 50 sei 'hss G re sho Se
deal is now contaminated; The negotiations
don recently presumably for this purpose. al
larry communicative on the subject TO the Off
GERS of the company here in America.
said yesterday that, although negotiations had
been in progress for some time in London. he
not been advised 10 that effect by cable. For
the past ten years he said, " negotiations have
and its soi Business. II They haee ali i come e1 To- hoth.
ing heretofore. One member Of the firm is
obliged to go abroad every year to look after our
and Charles II. Steinway went over this year
with that as his primary purpose, not the sale Of
As l said. a London syndicate headed by
the London seligmans has been after our plant
offered the late William s%teinway aVS Who "sT was rs
then the head Of the compspy. 8, ooo. 600. He
refused i, on The ground that the sum was too
capital. our business has greatly increased, and,
therefore. it is quite natural TO assume that We
would not accept less than 100000
~ cannot imagine" continued Mr.. Stetson.
from what source This report came. for our
own Information on the subject has been too
meeting OF piano manufacturers yesterday. and
IL nay y have go, Soms irSm that iooE for SONS
or saturdays steamers. Whatever may be the
result OF the negotiations now going on in Lon.
don, even II the interests of this company are
sold to foreign parties. there will be absolutely
no change in the present policy and manage.
ment Of steinway x Sons. No sale whatevel
The house of Steinway & Sons was founded in
from fros e's see e. ns' sea az BBenrs steinw German mnU can Hs
was a skilled piano maker and started the bust,
ness in Noriek street with his three sons as
hrm prospered from the beginning, and in 1859
the construction Of the big factory in Park ave
same year Charles and Henry Steinway. Jr.
died. and their brother Theodore came on from
Germany and entered the hrm. steinway Hall
was founded. with its houses for working peopI,
corporation are Charles II. Steinway. President
Treasurer; directors. Charles H.. steinway
FREDERICK 7. SteinWay, George A. SIeinway
Fl af1 stSe a' /: =, 900 seS soG SrAnm s'e''0n' The CAPT