New-York tribune., 1901-03-01
GARY MAY BE CRAIRMaN
FRICK. 1T is SAID. WOULD NOT
STEEI. EXECUTIVE COMMITTEES

The transactions in United States srs., 49,.
yesterday on the curb were in rnneh s's. s''ss'
volume than on Wednesday. and prices yxara
Inc flnal quotations for the common stocs -
issued were 81 bid. S7l2 asked as corrnarsa . sn
81 bid SS'a asked at the close on wsdnssaav - :.
preferred closed at 81 bid @1s asked axairs, :.
bid sS3e asked az Wednesdays Close O. ~
Stock Exchange the common stocks % N. sas
steel companies which are 10 go into the rs
states Steel Corporation suffered net aso,
ranging from q per cent in the case OF S.,ia"N
Steel to IA per cent in the case of Natona1 -.
Tue preferred shares also were weak
ME- Morgan is quoted saying that psr.,c,,.
rights in the underwriting syndicate carrs, =
. traded in because those rights cannot b. -
ferred He says on this point: You NAV -
some OF these subscription rights on ths ,,A .1s
and find that the man who sold them can,os -
liver, and then hold him (the broker) FOR ssr,s
short" eD'ns
IL is impossible yet to learn Just what ec,.
sarion is TO 90 to the underwriters for tbs 80
they take and the credit and cash they sunn,v a.
financing the new corporation. 1t is reportss b,. =
ever that the underwriting syndicate is 70 rscsr.
s25 100000 of preferred and SIS 5100e0 of cor,r.-
stock Of the United States Steel CORPORATION :.
which Mr.. Morgan's firm viii get as synd,c,,.
managers, & per cent, or S625o 900 each O. e,r,r,
and preferred stock
a representative Hf a prominent banking bou..
with extensive European connections wa, -.
authority for the statement yesterday that t,p,
% per cent Of the underwriting capital comes t,on
abroad, chiefly from London.
The syndicate agreement is said TO contain r..
clauses one OF which dealing with the question !,
transfer OF subscription rights, reads sonerb,,
like this:
J. p. Morgan & Co. shall issue to subser,A~,
suitable receipts in respect of payment made thera
under, and they may issue 10 the respective s,A
scribers certificates of interest of such terms ara
form as they may deem suitable Such certi.
hereunder may be made transferable in such
manner and such terms and conditions as y ,
Morgan & Co may prescribe
The syndicate agreement does not state IN term.
what the syndicate is to get for subscriptions no,
is IL stated what the total of the suhscri,
tions will be.
There are still reports that influential int teres,, A,
some of the companies which it is pIanned 70 ,on
soidate are dissatisfied with the terms Of ~,
change of stock announced by Mr.. Morgan th.,
they may try to prevent their companies from 4.
senting 70 the plan
good deal OF speculation is heard in Wal
Street 70 the men who 20 I'll the IeaciD.
executive Offices in the company. II was r.
ported yesterday that ex-Judge Gary. now presdsn,
of the Federal Steel Company had been decided
upon as chairman OF the Executive Comnittse n
has all along been understood that Henry c. Frcs
was 10 be chairman. but II was rumored yesterday
that Mr.. Frick had informed some Of his friends
that his other interests would not allow hin 70
give sufficient time 10 the duties Of that Iporsn,
post. There were also reports that Charles
Schwab would be elected president Of the United
States Steel Corporation II appears 10 be settles
that T. T. 2. Lovejoy. formerly Of the Canegis
company. Will be secretary
The probable effect OF the gigantic consoida1ioa
upon the business Of the socallsd independent stss
companies is a question which is being discusses
with natural earnestness among investors in thoss
corporations but the impression in the trade
10 be that the outside companies are in 10 pert
from the new company. The Iron Age In lis cur
rent issue says in regard TO this point:
Probably none have greater occasion to reiote a
the turn which affairs have taken than the outsds
interests The majority OF the latter express then
selves as well pleased with the formation OF ths
great consolidation Above all, they hold that
less aggressive policy Will be pursued than hs;
some of the constituent interests arr
that they Will be gamers from the greater stead
ness which is sure TO characterize the raarkss
They frankly admit, too. that they see increased
safety 10 their own interests n the fact thai hs
corporation must provide for large fixed charges
and will probably make efforts 70 earn q good r.
turn that part OF their capital which they pro.
noUnce water" That means that living prices
must be maintained-priCes which viii give then
a opportunity 10 make a preht on thar own r.
veStments.