The Worcester spy. [volume] (Worcester, Mass.) 1898-1904, 1899-05-08
BROKERS ARE MAD.
Declare the Steel
Combine Talk is
a Trick.
AMERICAN DROPS.
Interest of Worcester In
vestors at Fever
Heat.

New York, May S.-Wall street was
much nettled Saturday by H. c. Tricks
assertion that the Carnegie Steel Com
pany, with proposed capitalization of
$500 1000, 900, would have nothing to do
with other steel concerns, and that
nothing in the nature of a trust was
contemplated.
Chairman Gates of the American
Steel & Wire Company, was quoted as
saying that the Carnegie Steel Com
pany, National Steel Company, Ameri-
can Steel Hoop Company, American
Tin Plate Company and the American
Steel & Wire Company would without
much doubt be in the combine and that
probably the Federal Steel Company
would follow later.
The denial by Mr.. Frick produced a
sensation, and much criticism was
levelled at officials of certain steel
companies. The rumors were declared
to have been started for stock-jobbing
purposes, and traders fastened to
throw over their holdings when they
learned the facts. Federal Steel and
American Steel and Wire stock both
declined a couple of points.
The starting of these rumors has
greatly aroused some of the officials of
the various steel companies, and it is
feared that there is now practically no
likelihood whatever of coming to any
agreement.
The unlikelihood of the Carnegie
company ever entering a combination
is said to be proved by the strained
time Y
listed between the Carnegie interests
and the companies in which John w.
Gates has been interested.
An agreement was entered into sew
eral years ago between j. G. A. Teish
mann of the Carnegie company and
Mr.. Gates of the Illinois Steel Compa-
ny, for the regulation of western ship
ments, and it is alleged that soon after
cutting of prices was detected
A large quantity OF pig iron was 'un-
loaded" on the Carnegie company at
an advanced rate, after which there
was a severe break. The Carnegie
company is reported to have lost about
100000 by this experience.
Following this the price of steel rails
was put down to SIT, and the Carnegie
company is reported to have got even
by selling large quantities for SIS a
ton, in order to teach somebody a les
son. Inc incident is related as snow
ing that the relations between Mr..
Gates and the Carnegie interests have
not been entirely cordial.
1t is believed to be true that over
lures had been made for the acquisi
ton of the Carnegie company by GER
tain of the other steel interest, thought
to be Mr.. Gates and his associates,
but the negotiations may have fallen
through, and in Pittsburg it is sus-
pected that Mr.. Gates may be piqued
at the result
Further details became public yes
terday in regard to the launching of
the big new Carnegie Steel Company.
Andrew Carnegie, who is in London,
has furnished the following statement:
Mr.. Carnegie has given his young
partners the terms on which he would
be willing to sell and retire from bust
ness. He has no definite information
as yet whether they are going to buy
or not, but he thinks that they will"
Mr. Carnegie is to receive $780, O00, 900
of first mortgage 5 per cent bonds and
besides this S5O0,OOO,O00 of stock to be
issued, equally divided between COM
mon and preferred.
1t was reported in Wall street yester-
day that the new common stock was to
be put upon the market at about $40
share. The new Federal Steel com
mon stock was started at less than $50
and the American Steel & Wire stock
at little more than $40.