Daily inter mountain., 1899-05-05
THE RUMOR HAS
BEEN CONFIRMED
ALL THE STEEL AND IRON CON-
GERMS HAVE ENTERED THE
COMBINATION.

Chicago, May 5.--The Times Herald
says: John w. Gates has confirmed the
rumor regarding the combination OF the
iron and steel industries of the country.
Mr. Gates has just returned from New
York, where a recent conference Of the
steel magnates was held for the purpose
of arranging the details. The president
of the American Steel and Wire company
said that all the difficulties in the way
of the combination had been removed
and that the financing of the great COM
bination which will control the entire
steel industry of the country. has been
successfully carried to n conclusion.
The headquarters of the new company
will be In New York, ana according to
Mr.. Gates, the capital stock will be be-
tween $5OOOOOOOO and $S00.O0O,000 and he
coolly remarked that the figure might
reach $1,000, 100000 The president of the
new company, he remarked, will be II. G..
Frick of Pittsburg, who has been so close
ly identified with Andrew Carnegie. Re-
garding the other officers he professed
ignorance.
Not the least item in the deal will be
the retirement of Mr. Carnegie from the
steel industry and the placing of his
mantle upon the shoulders of Mr.. Frick
In speaking Of this, Mr.. Gates said that
Mr. Carnegie would positively have no
interest in the new concern, providing
the terms he proposed to the combina-
ton, were accepted. "And l suppose
they have BEEN" he concluded, 'else the
combine would not now be an assured
fact"
Mr.. Gates company. the American
Steel and Wire company, was one of two
concerns that held out against the COM
bne until recently. The other is said to
have been the Federal Steel company.
When asked about this, MIR. Gates said
the difficulty was only a small one and
intimated that it was a matter of price.
The new company will be ready for OPP
GRAFTON by July I, when, If present plans
are followed, offices will be opened Mr.
Gates objects to having 1t called trust
and maintains that not single element
of a trust enters into the matter Con-
tinuing, Mr.. Gates said:
This is simply a combination of all the
big steel companies into one concern,
which purchases the various plants out
right at figures that have been agreed
upon and accepted. 1t will be splendid
thing for the industry and the concern
will begin business about July l, at New
York with Mr.. Frick as president. AS
to the capital stock, ] cannot say def
nitely, but it will be over $5000oo,OoO, and
may reach twice that sum-
How many companies Will be taken
in?"
II don't know the exact number, but
the combination will be far-reachng. In
fact, guess it will take in all the COM
panies worth having
what were the trade conditions that
led to the combination or made it seem
advisable?"
"As a matter of fact, ! did not attend
the New York conference and don't know
what the ideas on the subject Wee.
Speaking Of myself, ! say that it should
be a splendid thing, because there will be
but one distributor"
"Will any of the factories be shut down
or the output curtailed?"
"By no means. There is business
enough for all Of them."
"WIll there be a rise in prices?'
Mr.. Gates considered a moment before
answering and then said: would 1t not
be natural thing with but one dis
trjbutor where formerly there were many
that business would be better and that
prices would be also better"
When asked what effect the combna-
ton would have upon his company, Mr..
Gates replied that the effect would be
good but declined to specify in what
particular II really don't know the in
side of the affair."" he declared, land will
be better able to tell more about it when
l hear from New York. ! know in a gen.
eral way that all the arrangements have
been completed for the consolidation"
Mr. Gates was shown list of the con-
Germs said to have been sold to the new
company and said he guessed the list was
all right so far as it went, but intimated
that it was incomplete. The list shown,
together with the capital stock, is as fol-
lows: Carnegie Steel and Iron company,
500 900, 600; National Steel company, $780,
900, 900; American Steel Hoop company,
s33, ,OOG, 600: American Tinplate company,
$40, ,O00, 600; Federal Steel company $685.
291, 900; American Steel and Wire COM
pany, 800, 600 900. In addition to thu above
Rockefeller Mesaba iron interests were
admitted to be in the combine, but their
capitalization was not given.
Mr. Gates laughed at the report that
instead of combination of the usual
sort the combination might take the form
of an agreement to work In harmony
after having obtained a controlling in
terest in the capital stock of the various
companies. He asserted that there was
no "harmony" business in 1t, but an out
and-out combination with a capital stock
large enough to alright any man unac-
customed to the ways Of Wall street.