Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1901-02-18
ENORMOUS COMBINE.
Great Steel Trust viii Represent $500 OOo
600 Of Capital

-''" ioIk, ftD. I,-Arrangerner, j
t"r the organization NJ tn. s,aaI ,,.','S
lnG concerns Of the United State. n
now $" far advanced that the ircor,' -.
atIon papers are being drawn nm IT,
VI capitalization Ut the conuanv ,,.nt
iar M excess pf any company evar
I"r" Incorporated in this rpIntry !.
viii be fully $500, 900. 900. aIthongb d,
exact amount could not be posjtjvalv
leaned. ''''F'
" la likely that the compaDy utIl !.
called the United States Steel Ca.D
baEy. As result Of its formation An
ore" Carnegie viii be eliminated ,ro..
~" steel business entirely. selling III
interest IN ID W the hnanciers who bava
projected the great transaction
The companies that are 70 % inc
the cobination. with the amount -
their capital stock outstanding 81 ssr
aE known are the following.
Carnegie Steel Company sIe0 66o Gfa
Federal Steel Company sgg 7-4o1a
American Steel and Wire Coronany
$se.o"0ole, National Tube Comnany
SsH.buo.Np0. American Bridge CornDanv
$1,000, 001, National Steel COMPANY ia
100000, American Sheet Steel Cornnarv
$40 0ou.0J0, American Tin Plate Com.
rdny Si6.S25,o0e, American Steel Hoop
Company S33 O00 nnG Total ssS- 0-o nm
The Carnegie Steel Company aIyo HI
bond issue MI $3.50 0gu U00. The Fad.
erai Steel Company has no bonded debt
but It's constituent companies have
i issues outstanding aggregating s26 sOs-
/ 900. This cUmpany's authorized cant
| tal stock amounts To Szuu. g00 O0O. But a.
| the above table shows. little less than
! on--half the authorized amount is is
sued. The American Steel and Wire
/ Company has guaranteed an issue Of
$3.50. oo0 of bonds, based upon a mort
| gag on the boats of the American
Steamship Company.
| OF thu other companies. s3G75.0G0 Of
/ the authorized capital stock Of the
| American Tin Plate Company ~ stir
unissu-d. ana $2.000,0e0 of the authori-
Zed capital stock Of the American Sheet
/ Steel Company has also not yet been
/ issued. Regarding the manner in
which securities Of thu old companies
yiiN be exchanged for those Of the new
company, information could not be Oh
tanned yesterday and it was said that
exact details Of exchange had not vet
been settled upon.
The exchange. however. will ~ made
upon a basis fair ID am the important
interests concerned.
The natural result OF the combination
viii b. d cutting down Of expenses all
round There viii be nv shutting down
ur abandonment vet Of any Of thr
plants involved ana il is even believed
that Tho demands arising from the
growth If general businesE will con-
tiuun I'D absorb THU fun productive ca-
pagity VI the combined plants.
TIE iron ana steel business is in ex-
cellent shape, as is shown by the fol-
lowing dispatch from Pittshurg Friday:
since the purchase Of 150 000 tons Of
Brss-mer Zig iron from the valley fur
naoes by the Carnegie Steel Company
al $l2.5u per ton. the price has been ad-
vanced to S1375. The Carnegie Com
pany is now negotiating for an addi-
tional 25.010 tons The purchase is sig
nificant. as it indicates the business
now being done by the steel mills. With
the furnaces making 400 tons of iron
day. they cannot make 50 much as
the Steel mills convert each day,
Pres SchWab NJ the Carnegie Steel
Company said. yesterday, that !, was
still impossible 10 say when official an
nouncement Of the merger would be
made.
THE stv.l j. oh,em. With which J.
ri. VI, Morgan. John d. Rockefeller
ttlir associates have been Wresl-
ms. has been all but solved. Not only
has Andrew Carnegie been paid sum
HI money Slightly i'll excess Of $2aVp,-
uoo far his SSG.379 600 worth Of Carnegie
stock. the balance to be paid in bonaS
of the new company. but the minority
interests in the same company mas
hron plaCated.
some 81 the minority stockholders
have agreed to receive stock OF ule
new company at the rate OF thIe5
hares for one of the old. TO be diVlue,'
EQUALLY into common ana preierrea'
Uhirh WAS the original proposition I
few viii get bonds on the same pasis "a
Nil Carnegie. and the rest, VINO "out1
he satisfied with nothing less than cas-.
have been paid in cash. These '''
payments aggregate many milliohs