New-York tribune., 1901-02-09

l
banking house of ]. P. Morgan & Co. are un-
doubtedly close:
j. J: p Morgan & Co are undoubtedly consider.
ing plans for the acquisition OF the properties OF
this country PTesumaby a't they viii not make
OF authorize any official statement until after
feet and permanent harmony in the larger lines
OF this industry. 1t is intended however, to
OBTAIN control OF any line of business or TO create
any Prncpe or pocy of the he ANY ANY T TRe mehod to
6e ADOPTED IN seagirns properties viii not permit
stockholder were so disposed. which is not proba-
otherwise He will be fully protected in any event
Ine success OF the enterprise viii result in great
and the workingmen or employees Little if any
t @-;ai a. % ,;,ii. In ailt . lhs rt5
statement is made solely my responsibility.
EFFECT OF THE STATEMENT.
This statement naturally set at rest the re-
rorts that hitch mad occurred in the negotia-
tions affecting the various large steel compa-
MES and promptly checked the decline in steel
shares which had begun in the stock market.
A reference to the charters of the more i'm
portant companies. however. would seem 70
indicate that the 'harmonizing" of the minor
ity stockholders in the several companies will
not call for as much diplomacy as might be in
ferred from Judge Gary's statement Article
~ OF the charter of the Carnegie company. for
example. in which corporation Mr.. Carnegie
holds clear majority of the capital stock. reads
in part:
In furtherancs and not in limitation OF the
powers conferred by statute. the Board OF Directors
IN w1ting and pursuant also to the affirmative
sued and outstanding. at a stockholders meeting
duly called for that purpose. 10 sell assign, trans
company as an entrety. provided always that t
majority Of the whole Board concur therein.
The charter Of the Federal Steel Company. one
Of the so called Morgan steel properties" con-
tains this provision. which makes unnecessary
any ratification by the stockholders of a sale
by the directors:
out the assent or vote Of the stockholders
from time 10 time 10 sell. assign. transfer or
Otherwise dispose OF or all OF the property OF
the corporation. but such sale OF ali OF the
vote OF at least two-thirds OF the board Of
Directors
The directors Of the Federal Steel Company
are J. Pierpont Morgan and Robert Bacon, OF
the firm OF J. p. Morgan & Co.: Samuel Spencer.
president OF the Southern Railway Company
which is controlled by the same banking In
terests; II. H. Rogers. Of the Standard OIL Com
pany; Arson R Flower. D. O. Mills. Marshall
Field. Norman p. Ream. II. H Porter. E H.
Gary. Nathaniel Thayer. c. c. Cuyler Samuel
Mather. James Sim and Charles AacVeagh
The charters of the American Steel and Wire
Company (Which there is every reason 70 be
leve is OF the properties referred 20 by
President Gary about 10 he acquired by J. p
Morgan & Coz. the National Steel Company
the American Tin Plate Company and the other
Moore companies"-at least one Of which cor
porations Il is generally agreed will sooner or
later be included in the arrangement now under
negotiation-irnpose restrictions on their face
little difficult than are set forth in the
/ Carnegie company's charter.
The provision in the American Steel and Wire
Company's charter. from which the correspond
ing clauses in the charters Of the Moore compa-
nies differ only in phraseology. is as follows:
With the assent in writing or pursuant the
vote OF the holders OF two-thrds OF the capital
stock issued and outstanding. the directors shan
have power and authority 10 sell assign transfer
convey or otherwise dispose OF the property and
terms and conditions as the directors shall deem
/ it, right and just
NO OBSTACLE AS ENTIRETIEs.
So it would appear that obstacle would
stand in the way Of the transfer OF the Carnegie
company and the Federal Steel company as
entireties to a new and larger corporation, and
little difficulty would be experienced in taking
over the other large properties. Such a corpora
ton it was said yesterday excellent author
! ity was the probable solution OF the problem
/ now engaging the attention Of Mr.. Morgan and
! his associates. This new corporation would
/ take over on some basis Of exchange the secur-
/ itics OF the several existing companies which IT
| might be deemed desirable TO bring into unity
and would issue its bonds in payment for
| much the larger part of Mr.. Carnegie's holdings
! Of Carnegie company stock. Mr.. Carnegie. it
/ was further said was to receive 81 800 a share
for his S6319 shares (par value $1,000. but asked
! only a relatively small amount in actual cash
/ But a relatively small percentage Of S130.000OOo
| represents good many millions of dollars, the
raising of which in cash necessarily calls for the
! formation Of strong syndicate. In this syndi-
cate. 1t is understood. the National City Bank
| and other powerful interests will be associated
/ with J. P Morgan & Co.
/ It has been commonly known for a good while
1 that Mr.. Carnegie has considered the freight
rates OF the Pennsylvania Railroad Company
| steel products excessive. and there have been
| more or less definite rumors OF his intention 10
/ construct a railway of his from Pittsburg
TO tideWater near Baltimore Only the other
/ night in a speech al the Arkwright Club dinner.
| he said:
! The State Of Pennsylvania enjoys a grand
| monopoly Of railroads pennsylvania says 10 the
portation; that he shall not own railroad
/ ships. but that he must conhne himself 70 manu-
I featuring. Now, ] want 10 own a railroad: want
| 10 a ship.
The policy of Mr.. Morgan has been one Of
Cancellation in railroad affairs it is not i'm
| possible that even Mr.. Morgans views as to
| freight rates on steel may not coincide with
| those of the Pennsylvania Railroad Company
| after the pending unification Of stee! interests
shall have been effected. In that event. it seems
| from glance at the railway map Mr. Morgan
] could obtain relief from alleged oppression at a
! less cost than would have been possible for Mr.
| Carnegie. With the acquisition of the Carnegie
! COMPANY the Morgan interests secure also the
! GFlrlrn RRGSGTlRF Erfa DoiIr nd