Evening star. [volume] (Washington, D.C.) 1854-1972, 1899-05-05
BIG STEEL COMBINE
John ". Gates Declares 1t is an
Assured Fact.
GIVES ALL DETAILS OF DEAL
It VIII Have Capital Stock of
Nearly a Billion.
ANDREW CARNEGIE RETIRES

CHICAGO. May The Times-Herald
saws John W. Gates has confirmed the
rumor regarding the combine of all the
large steel companies of the country, and
made the assertion that the deal was as far
reaching as the ingenuity of the minds
making it could conceive MIR. Gates has
Just returned from New York, whore re-
cent conference OF the steel magn&tes was
held for the purpose Of arranging the de
tails tn, president Of the American Steel
and Wiz. Company said that all the dIrft-
cUltfes IN the way of the combine had been
removed. and the financing Of the great
combine which could control the steel and
wire product OF the country had been sue
cessfulGy carried to a conclusion. The head
quarters will b. in New York. ard the capt.
tai stock from SJiD.'Oo.ooo to sS@,@a.of',
The president of the new company. he said.
would be II. G. Prick OF Pittsburg, who has
been so closely identified with Andrew
Carnegie Regarding the other officers he
professed ignorance.
Mr. Cnrnegie'S Retirement.
Not the least interesting phase of the
deal will he the complete retirement Of Mr..
Carnegie from the steel industry and the
placing of his mantle upon Mr.. Frick- In
speaking of this, Mr.. Gates said that Mr..
Carnegie would positively have no interest
In the new concern. provided that the
terms he proposed to the new combine were
accepted.
Il suppose they have been he con-
Guided else the combine would not now
be an assured fact"
Mr. Gates company the American Steel
and Wire. vas one Of the two concerns THAI
held out gainst the combine until recently.
The other is said to have been tine Federal
Steel ('0rDa0T When asked about this
Mr.. Gates said the difficulty really
small one, and intimated that ii was a
matter of price. The new company will be
ready for operation July l. when, II she
present plans followed offices will be
opened. Mr. Gates objects to having it
called a trust. and maintains that not
single element ri trust enters into the
matter.
Far-ReachinE Combination.
Continuing Mr.. Gates said:
This IS simply d combination of all the
big steel companies into one concern. which
purchases the various plants outright at
figures that have been agreed upon and ac-
copied II will be a splendid thing for the
industry. ard the concern win begin bus
mess about July l at New York. with Mr..
Prick a. president. AS TO the capital stock.
i cannot say definitely. but it will be over
E'0.o".o0o. and may reach twice that
sum
How many companies will he taken in?''
the comtir alton will be far-reachug-very
far-reachiug. In fact. l guess it VIII take
In all thu companies worth having
What Were the trade conditions that led
10 the combination or made il seem adj
yiSIbIr2''
AS a matter of fact did not attend the
New YORK conference. and do not know
what the IDEAS on the subject We're. Speak
is.S for myself. l should say that it would
NJ a splendid thing. because there will be
enc di4trii utor."
viii any Of the factories he shut down
or the output curtail-d?
---ts,, means. There is business enough
for all OF them.
VIII there bc rise in prices?'
Prices VIII Rise.
Mr.. Gates considered a moment before
aEsw ring. and then said: Would it not b.
natural with but on distributor where
formerly there Were many. that business
would DE better and that prices wouId also
Dee h-tJer2-'
When asked what effect the continuation
would have upon his company. Mr.. Cas-
replied that tho effect would be good. but
declined To specify in what way particu-
larIy-
4 really Do not know the inside Of the
affair n ieclar ii. and Will be bett.r
able To- Tell more about it when l hear from
Nv York. / know in general way that
All the drrargements have been mad. for
The consolidation.
Mr.. Gates was shown a list Of thu con-
Germs said u have been sold TO the new
company, and said he guessed the list as
al right. so far il w-nt. but minated
tnat II was incomplete The list, together
with their capital stock. is AZ follows: Car
u-Gi- Steel and Iron Company. S1GOTD. Ut3;
National Steel Corapany. $JH.nn.O0O. Auaeri-
can Steel Hoop Company. S}3,pH.'ssj. Amer
lean Tin Plate Company. S4e,"AlEr9. Fed
eral St-el Company S3.251 ;rD: AmeI- an
Steel and Wire Company Sgo.otU.UOD.
In addition - the above. the Rockefal
Mrsaia iron interest was admitted to the
combine. but their capitalization was not
given
An Outright Purchase.
Mr. Gates laughed the report that in
stead Of a combine Of the usual sort the
combination might take tn. form of an
agreement to work in harmony after hav-
ing obtained a controlling interest in tn,
capital stock Of the various companies HI
a serted that there was no harmony
Business, but an out-and-Ouc combination
with capital stock large enough TO af-
fright any man unaCcustomed 20 the wavs
Of Wall street.