The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1901-03-29
GREATEsT o. coMBINEs.
j. Pierpont Morgan's Billion-DoIla1
Steel Corporation.
(Kansas City Star.)

lkanSaS City starr
The climax OF trust building, up to
late. is J. Pierpont Morgans monster
= nited States Consolidated Steel corpora
ION. with a capital of 1854 million doiiars-
Ihe creation or this monster concern mas
yeen erected so smoothly that 80 per cent
81 the stock of the merged companies mas
Oeen deposited 10 De eNcnangeq AOr the
shares or the new corporation Such una
lsnlity among the stockholders " nose IN
.rresUs are involved shows how ShreWdly
he whOle matter has been handed, and it
indicates, too. that among the men inter-
ested in the great Industries of the coun-
ny there Is, little practical objection 10
he trust idea
This new steel combination is by far
he biggest piece of Ilnancter1ng ever I'M
dertaken- 1t uD4tes eight concerns, which
we're in themselves enormous. into one
dig company. that is greater in capItaliza-
Ion ana N earnings man the two biggest
! IalIrOad systems in the country combIaed,
and L Will proDab4y De Digger sun Detore
At gets through with the process OF con-
SOndaJiOn.
The companies that have been brought
eosether by Mr.. Morgan, with their cap
stanzaton, are as IoiOws:
Carnesie-Bonds, slvo,U0o,ooO; common
Fedora SteeI-Bonds of constituent
companies outstanding at the time OF the
organization of Fe0elal Steel. S-6S1&V0i
! preterred stock, SoS,261,U40; common stock,
Am rlean steel & Wire-Pre- erred stock,
S4G.loC,uvG, common stock, $4,000 0e0.
National TuDe-Preferred stock, $f0oee,-
zoe; common stock, S40,U90V00.
National Steel-Preferred stock, S27OoO,-
Tin Plate-Preferred stock SIS, 30, 600;
common stock SIS. 10000.
American Steel HOop-Preferred stock
S14UvO.Vt0; common stock, SO, O00, 600.
American Sheet Steei-Prererred stock,
so 0Ue,5OO; common stock, Sz4-oO1Od0-
Total - Bonds. 6SO2, 90, preferred
stock, $zSI,oS9,oO0; common stock, 1885, 49,
Grand total capiraIizat ton, $50, 77I, GOO
Besides the above companies, II has been
announced that the Rockefeller iron
millions of capital, and the American
Bridge company, with a capital of 81 mil
lions. Will probably be absorbed.
There are thirty big companies. with an
aggregate of 500 millions of capital be-
sides scores OF smaller concerns engaged
in the manufacture of iron and steel prod
ucts that are not included IN the cOmDl-
taken in, and il is not unlikely that, be
fore Mr. Morgan Is through, ne VIII add
few hundred millions more TO the CAPT
! tailzation OF TINS, .g!ganuc corporation
which he has Gained into BENG.
I5~=e is statement from the New York
Financial Chronicle, giving some notion
of the vast interests involved in the COM
bination:
Profits in 1900 .......-..........S 107, 900 600
Men employed 80 .--..-...-..-..- 1880
Iron mines, last years produc-
I Capacity Of finished products. -,
Capacity sp5s OF = blast furnaces. 1921
Steel works and finishing plants l55
Biast furnaces -.-.-. -.---------. Is
coke ovens ..-.-..---..---.-. 1880
Coal lands, acres ----------------- 1880
acres .''.' - - $1,000
Lake vessels &c., --.------.-..-.. rs
In addition to the above, the company
will own several small railroads ems aged
4 in carrying ore and the products Of the
fur " ceS and factories.
| This greatest consolidation of the iron
and steel industries was forced by the
threat OF Carnegie and several OF the
other big concerns to encroach on each
oeheT special NEEDS and lnauS urate an
. era OF competition by increasing the ag-
! gregate producing capacity OF the coun-
/ Try 5 steel plants.
! Tt is conceded that Carnegie got the
4 best of the deal The United States Con-
tso4-daled steel corporations capitalization
+ consis $ OF 3o4 Millions OF per cent bonus,
! 40 nl1iiions OF per cent p4eterIed stock
and 40 millions OF common stock All OF
1 the bonds and a considerable block or the
stocks were used 10 secure the Carnegie
/ works, and Mr.. Carnegie PEI sonaiIy re-
ceived, il is understood, some Jn4ng more
/ than 10 mlifions o. these bonds Ills m
| come on them Will De 10 mlli4on ootars a
year and he will have 10 give thsm no
more thought than il they were govern
ment bOnds. 1t is PROBABLY the biggest
single block of bonds ever held Dy an in
/ diVlduai X marks the climax or an in
! crease in capitalization in the case OF the
-
I out parallel
! Ten years ago the entire Carnegie inter
/ ests were Incorporated in two companies
I OF five millions each. About eight years
1 ago they were consolidated in one COM
/ pany with . millions or capital. Just a
I year ago there was another reOrganiza ton
/ with lao Millions Of Capf-al and I6g mi. Ions
of bonds, SIC millions in ali. Now. IN the
merging OF the Carnegie concern into the
| Consolidated corporation, an aggregate or
more than 40 millions of capitalization is
! involved. Here is an increase OF capiIali-
cation from 10 millions to over 400 millions
/ in less than ten years o. course the
! lirst ten millions eOf capital and later the
/ p millions of the Carnegie works did not
! represent their luli vatue. for these vast
/ industries have been built up by turning
! their profits back into the business. The
! Carnegie works are said to have made 43
mlatOns OF net profit IN 1900, and the new
stock and bonds required to purchase
| them represent smaller proportion OF
matter than in the case OF The other
merged companies.
| Of the total OF 1.154 million of capital in
| the new company. considerably more than
half is water. The entire properly CON
trolled could probably be duplicated TO-
day for less than $50 millions 1t is no.