The St. Louis Republic., 1901-01-20
Federal Steel Company Dislikes the
Entrance of the ScOtchman in
Raw Material Making.
COMBINATION NOT IMPOSSIBLE.
1t Is Possible That New Issue of
Federal Steel Bonds Is Intend
ed To Provide Funds for
Purchase.
REPTRI-I,. SPECIAL

I
New York. Jan. ls-while men in tn
steel trade are anxiously specializing as Il
what Mr.. Carnegie will do and what thei
/ may have TO face i'm the way OF big com
bination. the Federal Steel Company. th'
leader Of the steel properties with which j
Pierpont Morgan Is Identified and the con
cern which brings the backing of Standard
Oil interests into the field of steel competl
1 tiion. IL quietly laying plans to strengthen
its resources. The proposed new issue OF
I Federal Steel bonds To the value OF sl5.-
| 10000 To $H9o,00. which. 1t was reported
| would be utilized in the acquisition of the
American Steel and Wire Company-a cor
poratlon which endures the mlsfOrtunes IN
cident 10 being speculative FOOTBALL With
| out much loss of compOsure-has really a
very different object.
steel Company. man OF broad interests
ana conservative views. not only an au-
thorilaii'e denial Of any plan TO acquire
the wire company was obtained to-day, but
a statement as to what this bond issue Is
for.
THE matter has not come before the
Board of Directors" said he. 1T mas not
passed out of the hands OF the Executive
Committee. but the project simply Is to
use the bonds to get new plants. II IL Just
such case that of man who wants
10 build a new house on lot adjoining one
he already owns and mortgages his real
estate TO do so. We have for long time
been intending TO make important improve
ments and enlargements in the plant OF the
company to enable II 70 take up various
pany already has the land for such addi-
tions. The construction OF new mills. IL Is
believed. would best be financed by bond
issue"
Purpose of Their Plans.
1t Is generally believed in the steel trade
that the proposed enlargements in the busi-
ness OF the Federal Steel Company mean
that II intends to begin the making of
structural steel. an Industry Of which Mr.
Carnegie is thoroughly willing to take en-
tire care In this country. But Mr.. Car
Regie, having not confined himself to the
manufacture OF raw material. has naturally
provoked the men dominant in the field OF
finished products to entertain the notion Of
making raw material Tor themselves in the
effort TO Offset the aggressive competition
of the Scotchman. which steel men regard
with no approving eye When Mr.. Carne-
gle announced his Intention OF building a
Sl2OtD,W0 tube plant at Conneaut Harbor,
on the shores Of Lake Erie with the pros
pect OF admirable waterway transportation
Tor the tubes he would produce there. the
National Tube Company felt in very
practical way how tnconvenient his spirit
of enterprise could become. Morgan in
terests are dominant IN that concern and
Morgan interests are. therefore. preparing.
through the Federal Steel Company, TO give
MIR. Carnegie a Roland for his Oliver II
efforts now being made fail TO effect a
truce.
With the organization of the Carnegie
company to succeed the old company, and
worth of stock. OF an equal amount of bonds
no part OF which has yet been issued
no one certainly believes that there has
entered any element OF weakness which Is
likely to decrease the earnings of the prop
critics concerned. Those earnings alone and
the fact that Mr., Carnegie can command a
buyers of his plant throw up an optioa
which he has given them. shed some light
on the tremendous power which he has at
wouId BE a Formidable War.
The average Wall street man 10 disin-
clined to believe that the big interests who
share in the steel trade can look con-
tenteoly on any prospect OF such a war
lare there as has made sugar the most
erratic feature of the stock market In re-
cent tines Such war would be far
more formidable matter than any sugar or
gas hostilities which have heretofore trou-
oled investors and made stock speculation
active Just how Ear the plans go for enter |
ng into peaceful arrangement with the |
carnegie company. the men whose property
3 concerned decline to let the public know. |
Many think that the price question is
or big consolidation such as has been /
ndicated can possibly go through. II IL /
'oes. say they. there Is nothing to prevent |
he establishment of a harmonious working Il
agreement which will correspond to q rail- |
oao agreement to cut rLtes and which Il
nigss ,ags in involve h es Mt casneses keeping hi.
'eing compensated by the gift of Virtually
ndisputed sway I'm that of raw materials
. Whatever bargain OF tnat sort may be |
TRUCK, II Is pretty safe wager that Mr.
larnegfe Will get his due. The contract
Which his company made with the Amerj- |
an Bridge Company when the latter con-
ern was allowed to absorb the keystone l
ridge works at Pittsburg was thought al
ne tine TO be pretty good thing for Mr. |
;arnegfe, but when he decided that he was |
ot getting his proper returns from IL things |
we're made very unpleasant for the subor- |
mates who put IL through. IL h safe to |
ay that. IL he personally strikes a bargain |
the present Case he will get ample COM |
ensation for being agreeable.
While steel manufacturers were discuss |
1g the possibilities OF new gigantic COM |
nation. Andrew Carnegie was knocking |
red ball over the St Andrews golf links
Westchester County, though the
nought OF such a deal never entered his
cad, Mr.. Carnegie spent the entire day at
L Andrews. and came back to his Fifty |
rst street residence tonight to laugh NJ
le question Of selling out. He denied en-
nducaliy that he was considering any |
roposition for the transfer of the Carnegie
teel company property TO outside inter- |
sts he said further that no such propo-
ton had been made. and that all spec
aton regarding one was mere wild news |
apers talk" Mr.. Carnegie did not deny
lat he is willing 10 sell.