The Worcester spy. [volume] (Worcester, Mass.) 1898-1904, 1899-01-08
THE TRUST.
1t Comes to Terms
at Last.
WASHBURN & MOEN
Go Into Big Wire and Steel
Combine.


placed yesterday upon the reported
absorption by the American Wire and
Steel Company of the Washburn &
Moen Manufacturing Company and the
Worcester Wire Company of this city.
The deal was practically consumma-
ted several days ago and the announce
ment that the local companies had en-
tered into it, as made in yesterdays
Spy, forestalled the official announce
ment, which was issued yesterday from
the New York headquarters of the big
deal. Acting under Instructions from
headquarters, the officials of the To-
cal companies concerned, who have all
along pleaded ignorance of the local
erect Of the movement, admitted that
the story as given by The Spy was true
and that the Worcester concerns had
entered the big combine.
One reason for the backwardness of
local officials in admitting the facts was
tnata premature statement relative to
the dig movement might have serious
ly nserfered with a successful transfer
or majority Of the stock in the local
companies, and thus give rise to no
end Of complications. Silently and sure
ly the work of securing a control of the
stock was pushed forward. and when
all plans had been perfected the official
announcement of the transfer was
made. Friday, when William E. Rioe
and Philip w. Moen Of the Washburn
&Moen Manufacturing Company went
to New York, the finishing touches were
applied to the big deal, and yesterday
official announcement Of the big deal
was made simultaneously in New York
and this city. Following is the official
statement given out by William E. Rice
and Philip w. Moen, respectively presi-
dent and treasurer of the Washburn &
Moen Company:
An arrangement has been concluded
under which a controlling interest in
the stock of the Washburn & Moen
Manufacturing Company will change
ownership. Each stakeholder will be
given an opportunity of participating
in this arrangement on exactly the
same terms, the details of which will
be communicated to them by circular
during the coming week. The transfer
books of the company have been closed,
thus protecting the interests of the
present shareholders. 1t is understood
that the price to be realized is some
thing over 5000 share"
Mr.. Moen, when seen yesterday by
q Spy reporter, after the official an
nouncement of the consolidation, stated
that all the local concern cared to give
out was contained in the statement
they had issued
When asked how soon the details Of
the big deal could be worked out and
put into practical effect, Mr.. Moen
stated that he thought it would take
about three months. AS far as he knew,
1t had not been decided where the
headquarters of the new concern would
be located, and he stated that he had
keard of no steps being taken toward
the selection Of officers, although hs
thought there was no doubt that the
present organization of the American
Steel and Wire Company would be re-
vised to allow for representation of the
other companies represented in the
combine
Asked concerning the selling price of
the WashbGrn & Mcen stock, Mr.. Moen
replied that it would surely sell above
$500 per share He stated that he mad
just received a telephone message
which enabled him to form a definite
idea of just how much above that sum
shares would bring, but this price he
refused to disclose. 1t is probable that
the price paid may run to $225 per
share.
he total capitalization of the Wash
burn & Moen Company is $4,000, 900, and
the majority of the stock is held in this
city. Just how much there is in local
fc'dirgs, Mr.. Mc'en could not say last
evening, but it will probably amount to
two-thirds if not more Of the total cap
italization. At the high price per share
Under which the transfer takes place,
the magnitude of the transaction is
apparent at a glance.
In addition to the Washburn e Moon
transfer, the absorption of the Wor-
cester Wire Company, of which Mr..
Rice, president Of the Washburn
& Moen Company, is president, treas
urer and general manager, is no small
item. The capitalization of this com
pany is 100000 and the new deal Will
prove an especially good thing for this
concern.
The companies entering the deal are
the present American Steel & Wire
Company, Washburn & Moen Wanufac-
turing Company of Worcester, Mass,
and Waukegan, H., Worcester Wire
Company Of Worcester, Mass, Cleve-
land Rolling Company of Cleveland
O., Newcastle Wire Nail Company Of
Newcastle. Pa, Pittsburg Wire Com
pany of Pittsburg, Cincinnati T5arbed
Wire Fence Company of Cincinnati o..
l<ehipltAN lDetAG c. lie 1OuIDdllN VI JOhfLs
ILL.,, and Kansas City, Mo-, Consolils-
ted Barb Wire Company of Lawrence,
Kan, and Joliet, ILL.,. Newburgh Wire
& Nail Company Of Newburgh, N. y,
Oliver G. Snyder Steel Company Of
Pittsburg, Pa. Oliver Wire Company
OF Pittsburg, Pa, and other compan-
les.
The capital stock Of the mammoth
combine has been fixed at 100000 900
preferred Z per cent cumulative, hav-
ing lien on assets prior to common
stock, and $50.000000 common stock.
Under the agreement Of organization, the
present officers and holders of stock in
the American Steel and Wire Company
can exchange their holdings for those
of the new company. The basis Of ex-
change will be that the preferred stock
is to receive 100 Der cent in new pre-
ferred, and 60 per cent in common
stock, and the common stock will re-
ceive II per cent in new common
stock. To complete the deal, an IN
derwriting syndicate will furnish s2S,
900 900.
The new concern will incorporate I'M
der the New Jersey laws, and is to be
known as the American Steel and Wire
Company of New Jersey. 1t is probab BILE
that the headquarters or main office
will be located in New York. but in
view Of the excellent facilities Of the