The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1898-08-21
IRON COMPANIES UNITE
DEFINITE ASSENT GIVEN THE
CONSOLIDATION PLAN

Under the Agreement Fifty-Five Per
Cent of the Total Stock of the
New Company VIII BE Held by the
Minnesota Iron Holders and the
Rest by the Illinois Steel Share
Owners.
NEW YORK, Aug .2O.-As the re-
suit of meetings that have been in pro-
gress in this city for several days, the
consolidation Of the Minnesota Iron
company and the Illinois Steel COM
pany has been definitely agreed upon.
Conference committees of five directors
from each company were appointed
Wednesday, and following the meeting
in joint session, at which they failed
10 reacrh final understanding as to
the basis for consolidation, the matter
was referred to smaller committee.
This committee was made up Of Pres
i6ent D. II. Bacon, Of the Minnesota
Iron company; w. L. Brown, Of the
Illinois Steel company, and H. H. Rog-
ers, who is largely interested in both
companies. He was on the smaller
committee in the character of arbiter.
AS a result 1t was decided that the
new corporation shall be organized,
and that 10 per cent of the capital stock
of this new company shall go to the
stockholders of the Illinois Steel COM
pany and % per cent to the Stockhold-
ers of the Minnesota company The
stock of the old companies will be sur
rendered. The basis of consolidation
was formally agreed to by the repre-
sentatives of both companies The de-
tails of the Incorporation have not yet
been decided on, and may not be for
several days.
1t has also been practically decided,
In addition to the mills, mines, and
other extensive property interests Of
the Minnesota and Illinois companies,
that the new company will acquire the
Lorain Steel company, of Lorain, Ohio,
which owns the Johnson company, Of
JohnstOwn, Pa, and the Elgin, Joliet
& Eastern railway. The acquisition Of
the last named road will result in the
companys owning two railroads, the
Duluth & Iron Range railroad being
owned by the Minnesota company.
The capital stock of the new concern
is 500 100000 Roswell P. Flower, H. P.
Rogers, P. NJ. Flagler, H. P. Porter
and Marshall Field, Of Chicago, are
among those interested in the consoli-
dated concerns.
The aim Of the prospective combina-
ton is to develop an enormous export
trade. A further alleged purpose is
road rails. Nor is the ultimate scope
of the consolidation confined to the
companies already included. Eventu-
ally it is believed five companies will
be comprised in the new steel trust.
An idea Of the largeness of the enter
prise may be gained by looking at the
following table of the capital stock Of
the companies which are likely to be
included in the trust:
Illinois Steel company . . $50 900 ono
Minnesota Iron company .......... 16 800 900
Cambria Iron company ............ 20, 600 900
Lackawanna Iron and Steel COM
Lorain Iron company .............. IL, 900, 900
1Oldl -..-... OBSERVATION-DISCLOSURES. Sl2l ,oUU, UUO
It is predicted also that the Carnegie
Steel company, the Pennsylvania Steel
company and the Maryland Steel COM
pany will be invited to join, with sew
eral other concerns. The aggregate
capital Of these possibilities is placed
at $125, 100000. This means an iron and
steel trust with the enormous capital
of about $3.50, 900 ,0OO
The following table shows how the
stocks of the three leading corpora
lions talked of in connection with the
steel consolidation deal have expert
enced great appreciation in value since
Jan. l:
Gain since
Jan. /. July l. Aug 9. JAN l.
%Ti6nssots IRON ;;:5 s & Sc 81