New-York tribune., 1901-02-15
STEEL COUNSEL CONFER.
MORE RUMORS AS TO THE AMOUNT MR.
CARNEGIE WILL GET FOR
HIS STOCK.

The negotiations preliminary TO the consolida-
ton Of the leading steel companies of the United
states into a single corporation of vast capital
are still in progress with apparently every pros
pect Of a successful outcome. The legal repre-
sentatves of the leading interests in the pro-
posed consolidation. it is understood. including
Francis Lynde Stetson. representing MI Nor
gan and allied interests; Max Pam. general
counsel of the American Steel and Wire Com
pany. and ex-Judge Gary. president and gen
eral counsel of the Federal Steel Company. were
in conference nearly all day yesterday formu-
latins the final details.
a formal announcement of some degree Of
completeness regarding the matter is expected
from ]. p Morgan & Co. by the end of the
week but meanwhile those who are charged
with the heavy task of working out the details
of the plan preserve strict silence as does
Mr.. Morgan himself. II may be said with
confidence. however. that no obstacle will be
interposed by the minority shareholders of the
Carnegie company to the transfer of that prop
erty to the proposed new company, and it is as
sumed there will be resort TO litigation on
the part of the minority interests in the other
companies to he combined
There were rumors yesterday that Mr.. Car
negie was to receive as high as 80, or S2,Jeb
for each 81 900 share for his S6319 shares; and
also that S25.O000O0 in cash had just been paid
him There is good authority. however, for be
eving that S1.5O0 share is the figure at
which he sold his holdings to Mr.. Morgan, and
also that the cash payment made or to be made
to him will prove to be much nearer S5.O0o,O0o
than $4,000 600
According to the present understanding or the
situation the interests which to be united
in the new corporation the Carnegie
company the Federal Steel Company. the
American Steel and Wire Company, the
American Bridge Company, the National
Tube Company. the Rockefeller ore and trans
portation interests and the four Moore prop
erties-the National Steel. American Tin Plate,
American Sheet steel and American Steel Hoop
companies II is said. however that the Moore
companies may not be included at the outset.
by their charters the written consent OF
holders of two-thirds of the stock OF both classes
is necessary for authorizing the placing of
mortgages upon the properties. and it may not
be possible to secure such authorization within
a very short period No such obstacle exists
in the case OF the Federal Steel Company. for
example the directors of which may make a
mortgage without the assent or vote of the
stockholders.
The Iron Age" usually we'll informed, in it's
current issue says in part, under the heading
Of The Great Consolidation"
er 5 far than ,s the the PTSP0
uOn Is largely blind pool. 1t has been claimed
that the fairest basis would be take the
prices the Exchange OF the common and
preferred stocks for a series of months prior TO
the recent movements created by the starting of
negotiations II is understood that the capital
stock Of the new company will be in the neigh
bOrhOod Of Ss1te0.W0. but 10 is doubtful whether,
TO begin with. ali uf the companies named will be
taken in II may be considered more eXpedient To
arrange for their entry later on. this referring
particularly 10 those which at the finishing
end. The negotiations at critical point.
and II IS possible that one more Of the CDncerns
invited 20 enter the new consolidation may not
accept the terms offered The conviction Is
pressed by those in a position know
the facts that the valuations will be a close
basis. and that there will not be deluge of
Alfred Clifford, chairman of the Board OF the
American Steel and Wire Company. was quoted
yesterday saying:
There has been hitch In the steel deal. FAR
a our company Is concerned / do not wish TO go
into particulars but will state that the Street
NOR OF hitch is altogether wrong, far 1t
relates To our company l expect an announcement
OF the contamination Of whatever deal IS be
made within the next few days. This may take
place this week but II is impossible predict the
precise time in A matter Of so much Importance.