The times. [volume] (Washington [D.C.]) 1897-1901, 1901-01-10
CARNEGIE AND THE TUBE TRUST
Stockholders in the Monopoly
Alarmed mt the New RiynI.

NEW YORK. Jan. 9-No announcement
OF recent months respecting the forma-
ton of an Industrial enterprise has ex-
cited such general discussion in financial
circles as that made in Pittsburg last
night. and confirmed here today touching
the erection by the Carnegie Steel Com
pany of $12 100000 tube making plant on
the shores OF Lake Erie National Tube
stocks, at the possibility of competition.
opened very weak on the stock exchange,
the preferred declining IL IL points and
the common 4 points. though they later
recovered some of this loss.
Although rumors concerning the extern
sion of the Carnegie business have been
frequent of late. President Schwab's state
ment was everywhere recognized as CIV
ing the outline of a carefully formulated
plan. Whether the Carnegies. as a result
Of the move. would reach some under
standing with the National Tube Company,
which now practically controls the trade.
and thus prevent ruinous competition,
was the subject of chief interest to all
concerned with the welfare of both cor
porations.
Edmund C.. Converse, President of the
National Tube Company would say noth-
ing for publication. But a gentleman who
was instrumental in bringing about the
the National Tube Company, and who is
thoroughly familiar with its present his
tory and negotiations, intimated that
there would be no serious strife between
the separate concerns.
Anyway, the Carnegie project is a long
way OFF, he continued 1T will take two
years to equip the proposed plant and get
ready for business. Many things may hap
pen before then We have always main
nj Ia
people. purchasing from them some of our
supplies. and II seems scarcely possible
that Mr.. Carnegie would now run counter
to us in everything
Then some understanding has been
reached respecting division Of business. or
avoidance of complications incident to dis
asterOus competition.
We'll there is nothing for stockholders
Of either company to be alarmed about.
Has there been any sort OF an agree
ment reached?"
II cannot enter into details
a similar inference was drawn from the
remark of banker in close association
with representatives, of both interests. He
thought there was greater profit in peace
than in war" Both companies know
that" he added land while it is too early
to discuss the outcome of negotiations
now under way. 1t is reasonable to sup
pose that two such powerful corporations
will not ignore the advantages of concen-
tration and mutual concessions
Whether an agreement is reached or not,
the incident is regarded of first significance
in showing that no corporation is secure
in monopoly, and that none can con-
troll the market for a product in the face
OF weIl-organized outside competition
With the Lake Erie plant in operation,
Just east Of the Conneaut harbor docks.
the Carnegies will be enabled to rush
shipments while navigation is open, re-
sulting in an economy in transportation
charges Of from one-third to one-fourth
the rates asked for rail shipments. This
will give the plant an enormous advan-
tage over conditions governing present
deliveries. and will make available for
coke carrying purposes hundreds of emp
ty cars now returned daily to ore-ship
ping points. From Conneaut. water COM
munication with Eastern ports can be
had by the canals. and with Chicago. MIL
waukee. Cleveland. and Pttsburg. by the
lakes.
The National Tube Company has it's
largest ant AT Pittsburg Others are
located at Cohoes, " Y, Versailles. Pa.
Syracuse, ~ Y, Warren, Ohio, Philedel-
phia. Pa, New Castle, Del. Chester, Pa.
Youngstown. Ohio, Mlddletown. Pa, and
Wheeling, " Va. The company manu-
features tubular goods for the production
and utilization OF light. heat and water,
as well as many specialties. such as
shrapnel cases. projectile forgings, and
other forms of war material. It's CAPT al
stock is $50, geo, 600, one-half common and
one-half preferred. 1t pays dividend of
per cent. on the common and per cent
on the preferred. but has earned consid-
erably more. It has large cash surplus.