The times. [volume] (Washington [D.C.]) 1897-1901, 1901-03-03
THE STEEL TRUST FIGURES
Official Statements Give Greater
Sum Than Expected.
The Capital stock to BE $50. OOO.-
900, With Gold Bond issue of
S3Of,OOO.oOO-0the Details of the
Huge Consolidation of Interests.

NEW YORK, March 2,-ofeial an
nouncement of the organization of the
United States Steel Corporation was made
today by j. 2. Morgan & Co, managers
of the underwriting syndicate. to all the
stockholders of the companies in the COM
bine, except the Carnegie Company.
Among the first facts disclosed regard
ing the great enterprise Is that the au-
thorized issue of capital stock of the
United States Steel Corporation will be
$3.50, 900, or sj0.6O0OOO more than had
been understood 1t will be equally di-
vided into per cent cumulative preferred
stock and common stock.
The company will also issue its per
cent gold bonds to an aggregate amount
not exceeding s304, 90 This amount is
100000 more than previously reported
The bonds are to be used only to &C
quire bonds and 80 per cent of the stock
of the Carnegie Company.
The underwriting syndicate, which. as
has been previously stated, is for $780,
o9,OD9 has made a contract with the
United States Steel Corporation under
which the latter is to Issue and deliver to
the syndicate its preferred stock and its
common stock and its per cent gold
bonds IN consideration for the stocks of
the combined companies and the bonds OF
the Carnegie Company and the sum of
S25,OCJ,O0. This last-named amount, to be
provided by the syndicate, il is under
stood, VIII be additional working capital
for the new company
The list of depositaries for the stocks
OF the combining companies includes
eight OF the most prominent local trust
companies Deposits must be made on or
before March 20, after which date no de-
post will be received except in the dis
erection of the syndicate managers, and on
oh
basis Of the exchange Of the stocks Of
the United States Steel Corporation for
the stocks of the various companies has
already been published.
The syndicate managers state that at
any time prior to the deposit of two-th birds
IN amount of all outstanding shares Of the
capital stock OF any one or more of the
companies to whose stockholders the an
nouncement is addressed-which two
thirds in each instance shall include two
thirds of the outstanding preferred stock
discretion, may Withdraw the offer made
to depositors Of shares of any such COM
pany Of whose capital stock two-thirds
shall not have been deposited
In such case no act or notice of with
drawal shall be required other than ad-
vertisement thereof at least once in each
of two daily newspapers OF this city. De
! posted common stocks must carry all
dividends or rights to dividends declared
| or payable on and after March ], 1901, and
| no adjustment or allowance will be made
In the case of preferred stocks, how
| ever, as has previously been stated prop
er adjustment will be made in respect of
| dividends on all the shares deposited. so
| that the registered holders of receipts
for such preferred stocks will receive
the equivalent of dividends thereon, with
the rates therein provided from the last
dividend period up to April l. 1901, from
which date dividends on the preferred
stock Of the United States Steel Corpora
ton are to begin to accrue. The an
nouncement says, further, regarding diyi-
dends and the new corporations earn
ing power:
For the purpose of avoiding the neces-
sity Of interruption in the declaration and
payment OF dividends when earned upon
the common stock, concurrently with the
payment Of dividends upon the preferred
stock, there has been inserted I'm the
charter of the United States Steel Cor
poration provision to the effect that
whenever all quarterly dividends accrued
upon the preferred stock for previous
quarters shall have been paid. the board
of directors may declare dividends on the
common stock out of any remaining sur-
plus or net profits.
Statements furnished to us by officers
of the several companies above named
and OF the Carnegie Company. show that
the aggregate of the net earnings OF all
the companies for the calendar year 1900
was amply sufficient to pay dividends on
both classes of the new stocks, besides
making provision for sinking funds and
maintenance of properties II is expected
that by the contamination of the proposed
arrangement, the necessity of large de
auctions heretofore made on account OF
expenditures for improvements will be
avoided, the amount of earnings appli-
cable to dividends will be substantially
increased and greater stability of invc st
ment viii be assured, without necessarily
increasing the prices OF manufactured
products"
Certain wild rumors about the compen-
sation that the syndicate manag gers were
to get for their work set at rest by
this concluding paragraph OF the an
nouncement:
1T is proper to state that J. p. Morgan
& Co. are to receive no compensation for
their services syndicate managers be
yond share In any sum which ultimate
ly may be realized by the syndicate.