Arizona republican., 1899-06-04
Facts and Figures Regarding the
 Great Tube Trust.
BANKS LOOK AT 1T ASKANCE
It Is Believed 10 Be She Last Great ThIna of lis Kind In Iron and If Hardly Probable Thai lis SeCuFI- ties Will Be FiOafed Before Next Fall If Ever FIOafed at All.

New York, June 3-(Specia1)-
 What purports to be an accurate state
 ment of the present capitalization of
 the tube companies in the new trust
 does not place the figures at mora th9 |
 $21, ,5S0, ,0OO: on the other hand, the to-
 tai capitalization is announced in
 Wall street to be $S0,00O, ,00O The
 figures, which, however, are strictly
 unofficial, confirm the opinion of most
 of the great banks that this company
 starts with prospects not of the very
 best. In addition to over-capitaliza-
 tion it is a blind pool of managers,
 the name of the banking house of J.
 P. Morgan & Co. being all that gives it
 financial standing. The over-capi tali-
 zation and this management have been
 so much in question that it was three
 long months before finally the pro
 moters succeeded in getting the banks
 10 take an interest in the stock. Even
 then the national banks decided as a
 class to hold out. Private banking
 houses intend to take up the stock and
 to unload it gradually and slowly upon
 those willing to buy. Necessarily the
 nsks are very great for these houses
 but they are not such fools as to go
 into the enterprise without securing
 themselves. The financial manage
 ment of the new trust is to remain with them and of the total capitaliza-
 ton, considerable part will never be placed on the market by them, but will be used for the acquisition of more plants.
 The tube trust is the last great thing of the kind, and it is to he followed by no more of them, so far as the finan- cia1 Cistrict knows. Of the unfinished plans for combinations the majority are in trades othe- than iron, steel. metal and machinery industries. The screw trust remains, also the horse shoe trust, but parties outside of New York have both these enterprises h hand They have bsen told of the time being about over for anything of the kind, but their last advices were that they were going right ahead ID their purchase of plants and good wills. Nevertheless the feeling is that they must put off the floating of their securities until the ccming fall. By that time a little of the present over supply of steel and iron trust stocks will be taken up and the banks will have an opportunity to consider other new securities as collateral. At that i time, also, the spectators will be on the lookout for new deals and promis- | ing bargains. It is not impossible that i there may be another and second fever ! of industrial continuation and capital ] ization, but the best informed men i'll [ the Street think otherwise. It is be- | lieved that the iron and steel trades have been too badly spltt by the stocl: | watering of the Federal, Steel and | Wire, Carnegie and Moore combina- tions. It will not be until some Of these companies have gone to p.eces or have sold out to others that the way it is judged, will be opened for fur ther operations of the kind. One very thoughtful banker thinks that after the flood of new enterprises there is com ing a period of selection and assimila- ton, not by the public alone. but by the trusts and combinations them selves. There is no denying that q great deal Of dead wood was picked up by each trust. Some combinations were formed in a month. though the plants taken in were scattered all over the country. The woolen trust was formed in comparatively short time. and is among those which are said here to have long period before il during which undesirable branches must be cut off and the waste of un- profitable labor stopped. The maD- agers of the combinations. where there are actual working managers and not stock spectators, all say they have only just begun to accomplish any thing They had promised at the out set that that there would be an in- s;ant saving in the cost of production all around, but now they say that things cannot be Gone in a hurry, and that it will be several years before an actual new organization has replaced , the old system of work. In the Federal Steel company the working managers have been six months at the simple labor of concentrating and organizing the work ot the mines, mills and rail- ways. They say they are still far from z realizing the ideal, and that for the present there must necessarily be q great deal of waste The scarcity of i labor is one cause and the enormous pressure on the mills for finished work 1 Is another. Tte same story is told by the steei and wire managers Tie banker, who thinks that the coming