The times. [volume] (Washington [D.C.]) 1897-1901, 1901-02-27
ADROP In TEE STEEL GROUP
Heavy Selling Follows the First
Official Announcement.

Prices Fall Under the News of Terms
on which shares Are to Be EN-
changed for Those of the New Con-
Germ Rest of the Market Heavy.
NEW YORK. Feb. 26.-What might be
called the guesswork stage of the steel
deal. so far as the pubic is concerned,
was terminated this morning when def
mite announcement was made in regard
to the terms in which the securities of
the existing companies will be exchanged
for those of the United States Steel Cor
poration
The managers of the amalgamation
scneme commercially decided that the
public and the stockholders in the vari-
Gus companies were entitled to know as
early as possible the basis on which
the old securities would be converted into
the new, and accordingly they made pub
lie the schedules setting forth the terms.
AT the same time off cial announcement
Of tine conclusion of the negotiations and
of the consunmation thereof was still
withheld. Ii was at once recognized, on
examination of the schedules. that the
common and preferred stocks of the
American Steel Hoop Company could be
taken as the units in calculation IF the
into the combination.
Steel Hoop stocks are TO be exchanged.
both common and preferred. dollar for
dollar, for the common and preferred
shares OF the consolidated concerns,
hence their market value WAS assumed
To indicate the prices at which The new
stocks will sell. allowing, OF course. for
Intervening fluctuations. Considerations
based thereupon led to heavy selling of
all the steel industrials. under which
some severe declines We're scored.
The Steel Hoop shares We're. indeed,
comparatively firm, but it was at once
recognized that accepting those stocks
as measures of valIe for the others con
cerned in the deal, the latter were sell
ing at excessive market valuations. This
circumstance furnished most profitable
opportunities for arbitrage operations,
and. indeed. the professional traders Of
tie room gave most of their time during
the business session TO utilizing these
chances for quick and fairly assured
profits
1t goes without saying that the terms
of the merger, as announced. did not meet
with universal satisfaction. and. in fact,
the proffers Of exchange in various in
stances were severely criticised.
Apart from the stocks concerned in the
pending amaigama ton, other striking fea-
lures of the industrial quarter were the
further advances scored in American and
Continental Tobacco. on the expectation
that changes favorable to the tobacco in
dustry would be effected in the revision of
the Internal revenue laws, and American
Smelling. which declined further on SELL
ing specifically based on the pending liti-
CATION in the companys affairs. but which
in fact, appears TO partaKe of the nature
of an organized bear campaign.
No other movement OF particular conse-
quence appeared I'm the industrial quarter
of the market. The so-called specialties
were generally heavy. Particularly sharp
Iron and Tennessee Coal and Iron Trac-
ton shares were not conspicuous in to-
days market
A welcomed feature of the DAYS mar
ket was the revival Of favorable activity
in the railway list. The most of the in
the forthcoming action IF the management
she dividend on the stock. which will
be decided on March II
There have been few more interesting
questions confronting managemeuts than
that which the St Paul directors will have
have refused a most advantageous offer
from interests amply able to make good
any guarantees they might offer and. in
the parlance Of the day, il is now up to-
the st Paul management 10 say what they
shall do for the benefit of the sharehold-
ers Of the company.
Other strong features of the railway list
were Burlington and Quincy. Delaware
and Hudson. Rock Island. Southern Rail-
way, and Texas and Pacific. The London
market for American stocks was again
very strong, but the dealings here for for
eign account. while the buying side,
were limited to the pure hase of only a few
thousand shares of stock.