The evening times., 1899-05-06
CARNEGIE GIVES UP
] His Steel PLANTS
Sells His Allied Interests in
: Metal Productions. -.
Biggest Combine on Earth to Fol-
low His FOrsaken Track.
Seven Immense Concerns Succeed In
Charge of the Manufacturing
Potentate's POssessions.

New York. May 6.-Andrew Carnegie.
the greatest manufacturer in the world,
has sold out to allied steel interests. This
removes the last obstacle to a consolida-
tion OF practically all the steel-producing
companies OF the United States.
This will be not only the greatest trust
but the greatest combination OF capital and
manufacturing plants in Christendom.
1t will have a capital of $500, COO, 600 Of
which. 500. 600 will be in first mort
gage 5 per cent gold bonds, $3.50, COZ, 900 in
preferred stock. and $250.0O0, 900 in COM
mon stock.
Mr.. Carnegie is to retire from business
permanently, turning over the controlling
interest i'll his vast steel-making concerns
to his partners and receiving in payment
the entire issue Of $1G0, ,000, 900 in gold
bonds, which become a mortgage not only
upon the Carnegie mills but upon all the
other steel mills owned by the new COM
pany, with $500, 200, 900 of stock back of
them.
The president of the new company is to
be Henry Clay Frick, formerly the part
ner OF Andrew Carnegie, and the actual
manager OF the works at Homestead Pa,
where the great strike of 1893 occurred.
Mr- Frick is one of the biggest coke manu-
Iacturers IN the world several times a
millionaire. an expert in all branches of
steel making, and man of iron will.
The concerns which are to be taken into
the trust, according to President Gates, Of
the Steel and Wire Company, are as fol-
lows:
Carnegie Steel and Iron Co. ..... 500 Ooo, 900
National Steel Co. .................... 50OoO.OoO
American Steel Hoop Co. .... $1,000 900
American Tin Plate Co. ..-......... 4G0JO,Ooo
American Steel and Wire Co. ......... 9o,090,OO
aoueiat s'eei 20. -.......-......-... 0J,25l, ,0oJ
The Rockefeller Plant .......Capital not given
Mr.. Carnegie's late partner. Henry c.
FLICK. said last night, on the contrary:
The current report that the Carnegie
Steel Company Uimited) and the II. c.
FLICK Coke Company contemplated COM
bination with other steel interests is who'll
ly unfouuded. What was in contemplation
and what is now practically consummated
is the amalgaTation under one corporate
organization OF ali OF the properties and
interests of the Carnegie Steel Company
uimited), the II. c. Frick Coke Company.
and their subsidiary and allied organiza-
tions. Practically the only change in the
SITUATION will be the retirement of Mr..
Andrew Carnegie from the organization.
he having sold to his partners his entire
interest, Mr.. Carnegie's intention being to
give his ehtire time IN the future to the
prosecution of his philanthropic works.
with reference TO the charters which
nave been obtained in Pennsylvania and
New Jersey, there is nothing to say at
present, but it should be well understood
that there will be no change in the man
agement OF the various companies"
When Mr. Frick was shown President
Gates interview. Mr.. Frick said, although
the statements contradicted his own:
c a rpCnn
knows what he is talking about and
speaks with authority
IL transpired that all the details were
settled, as far as the Carnegie works were
concerned. ten days ago, before Mr. Car
negie sailed for Europe. He agreed to
make his retirement from business :ibso-
Lutte and complete. He will hold a first
mortgage on the greatest manufacturing
industry Of the greatest manufacturing
nation on earth. That is all,
In accepting as payment for his compa-
mics s100,c00,000 in first mortgage per
cent gold bonds he viii get a security
worth about S120, 600 600 in the stock mar
ket any day of the week. He will get an
income Of s5,o00,O00 annually which will
be as sure as death and taxes. and he viii!
be free OF all care and responsibility
By this operation Mr.. Carnegie becomes
at once the second richest man in the
world. John d. Rockefeller being the only
human helnS r1cner.
Forty-seven years ago Mr.. Carnegie was
telegraph operator without family,
friends or fortune. He rose from the
smallest beginnings, being first railroad
employe at $40 month, then an iron mill
foreman, then superintendent, then junior
partner, and finally head of one of the
many Pittsburg mills.
The growth of his business has been en-
tirely due to his own genius and to the
farr h1l Ist:-
manufacturing.
Steel manufacturers say that the most
remarkable thing about Mr.. Carnegie has
been his absolute control of prices For
many years he had a monopoly of scores of
patents and secret processes in the making
OF steel. But he never used these patents
as he could easily have done, to ruin his
competitors by low prices or to exasperate
his customers by charging exorbitant
prices.
His prices were stiff The armor-plate
contracts for the Government are we'll
known instances, but Carnegie always
knew just how far to put the screws on
and when to STOP
1t is understood that Carnegie was Of
fered by the trust S125 OOO, 900 in cash for
his interest, payment to be made in money.
He refused this offer because, he said, he
could not possibly invest proftably SO
much money. He was willing to take $25,-
O0o,0OO less if it were given to him in first
mortgage bonds, and his promise to re-
tire had only one condition. that the name
OF the new trust should include the name
of Carnegie in some part of its title
The first step in the legal creation of the
new trust was the Incorporation at Tren-
ton, N. j., on Thursday OF the Carnegie
Steel Company with preliminary CAPT
talization OF s., 900.
RACES ON THE ENGLISH TURF