The Savannah morning news., 1901-02-07
The STEEL COMBINE
THE NEW STEEL COMMUNITY A
RIG THING.
APPROACHES BILLION MARK
PROBABLY LARGEST DEAL OF IT'S
KIND EVER MADE.

Carnegie Gets Nearly $1OO,OOO,O0O
for His stock and Per Cent.
Guarantee ON $4,000, 900 of Bonds.
Not Consolidation, but "Harmony
Through Community of Interests"
Says j. Pierpont Morgan-WiIl
Drive Out Small Competitors and
Enable Americans to Control in
worlds Market.
New York. Feb. 6.-The Mail and Ex-
press and the Evening Post to-day an
nounce the sale of the Carnegie stock to
the ]. p. Morgan syndicate as an accom-
plished fact.
The Mail and Express says:
The only hitch that occurred in the ne
gotiations leading up to the transfer of
the control of the Carnegie Company was
in relation 90 the control of the bonds
held by Mr. Carnegie. The Morgan syn
dicate agreed yesterday to take the $780,.
$4,000 stock at something above its mar
ket value, but Mr.. Carnegie held out with
his usaI tenacity of purpose for a, guar
ante of the per cent income on his
$S6, 100000 of ffty-year bonds. This was
also conceded at a meeting held to-day, 1t
is understood.
There will be no consolidation. but har-
mony, through community of interests
and ownership will be applied in the man
ufacture of steel products of all kinds.
The Carnegie Company with its vast
supplies of coal and iron close at hand
will be the parent company to produce
the raw material for the various corpora
tions manufacturing finished products and
the economies that can be introduced
through cooperation and harmony will
make it possible for the great Industrial
corporations 10 manufacture goods so
cheap as to drive small corporations out
of business and to give to American man
ufacturers a very large place in the mar
kets of the world
THE companies included in this system
of harmonious steel industries, besides the
Carnegie Company, are the following:
Federal Steel Company 800, 100000
common stock, and $10O,OO0,OO0 preferred
(of this $46,4 300 common and $53, ,260. 800
preferred stock are oustanding); Ameri-
can Steel and Wire Company, SEC, ,000, 900
common, and 100000 preferred stock
all outstanding; National Tube Company
| $40,000,000 each of common and preferred
| stock. all issued, and the American
Bridge Company $35,000,000 each of com
mon and preferred stock of which $30
| 527 800 of each has been issued
The Moore group includes the Nation
al Steel Company, with $S2, 600 600 OF com
mon stock, and $27 O0O, 900 preferred, all
issued; the American Tin Plate Com
| pany, S30,000000 common, and $4,000, 900
| preferred stock, with SIS, 100000 common,
| and $1S, 1926 600 preferred stock issued the
American Steel Hoop Company, S19 900, 600
common and $14,O0000O preferred stock, all
issued, and the American Sheet Steel
Company. S26 00O,0 600 common, and $685.
100000 preferred stock, with $24, 800, 900 Of
each issued"
The Evening Post says:
'"The leaoit & participants in the deal,
on the purchasing side, was reported to
be c. M. Schwab, now president of the
Carnegie Company and a trusted friend
of Andrew Carnegie, and banking inter
ests represented by ]. p. Morgan & Co
1t is understood that the undert king has
the backing of Carnegie, Morgan and
Rockefeller interests"
A conference was held in the Morgan
offices to-day between Mr.. Morgan, Mr.
Bacon. President Gary Of the Federal
Steel Company, President Reid of the
American Tin Plate Company, and di-
rector in each of the National Steel,
American Sheet Steel and american Steel
Hoop Companies, In all of which Mr.
Morgan has interests.
Mr. Morgan declined to talk of the con-
ference.