New-York tribune., 1901-02-07
MORGAN'S STEEL PLANS.
4 GIGANTIC NEW CORPORA
TON RUNORED.
CARNEGIE COMPANY MAY BE COM
RTNED WITH FEDERAL STEEL AND
OTHERS STEEL STOCKS
ACTIVE.

Not for many years has there been an occur
renee of such Importance to the industrial and
financial interests OF the country the sale OF
Andrew Carnegie's controlling stock holdings in
the Carnegie company to J. Pierpont Morgan
and his associates authoritatively and exclusive
" announced by The Tribune yesterday. In
deed viewed in the light of the expansion of the
export trade in steel products which it is ex-
pected will result from the virtual unifcation
OF the steel manufacturing companies and the
consequent assurance against price cutting. the
transaction OF Monday is estimated by Wall
Street as Of international Importance, apart
from the fact that in point Of the amount Of
money involved IT is the largest operation of it's
kind ever consummated in the United States.
The principals IN this vast transaction yes
terday declined TO say a single word regarding
the subject. Mr.. Morgan answering all inquiries
with the words, "I have nothing 10 say" and
Mr.. Carnegie who did not come downtown,
denying himself to callers at his home But
from other well informed sources came conflr-
nation OF the story. If indeed confirmation were
needed. The details OF the plan conceived by
Mr. Morgan and hts associates for the future
Of the great steel companies In the councils OF
which they now influential. and for the
alignment combination Of those corporations
so as to carry out most effectively the central
Of ownership and control. could not be ascer-
tained yesterday. One prominent fuancier de-
olared that it was purposed to form gigantic
corporation which should absorb the Carnegie
company. with its S16OOOOOOO stock and
its SI6OOOOOOO bonds: the Federal Steel
Company with its total authorized capital
stock Of 500 100000; the American Steel
and Wire Company. capitalized at 100000
600. and the National Steel Company. cap
itaI $59OOO.OOO The capitalization OF this
vast corporation. he continued had not been
decided upon. but II might be placed az the
astounding figure Of $1.OOOOOOOOO Charles NJ.
Srhwab. president OF the Carnegie com
pany. this authority declared. had been selected
as the executive head OF the new company and
not Henry C. Frick. formerly chairman Of the
Board OF the Carnegie Steel Company as Wall
Street rumor had It. He added that Mr. Car
nep,ie was 10 receive par for his stock. OF which
he had SS6.3T9 900 worth at the time OF the
formation OF the present Carnegie company. and
that Mr. Carnegie's holdings were TO be paid for
partly in cash and partly in bonds Of the new
company.
AS OUTLINED IN THE TRIBUNE,
The suggested composition OF the new consoli-
dated corporation. given by the authority just
quoted is substantially that outlined in The
Tribune n few days after its announcement that
Mr. Morgan was treating with Mr.. Carnegie for
the acquisition Of control OF the Carnegie com
pany The Carnegie company. like the Federal
Steel Company. l. now controlled by the interests
represented by NIr MorEan's name. The Amer
lean Steel and Wire Company. IT Is understood
on good authority. has recently come to an i'm
portant extent under the same Influences. The
National Tube Company and the American
Bridge Company I'm the general class Of
Morgan companies" and as such would with
out doubt be operated in harmony with the vast
corporation which II Is understood Mr. Morgan
han I'm contemplation. The Moore propertes'-
the National St eI Company, American Tin Plate
Company American Sheet Steel Company and
American steel Hoop Company-are, although
operated independently. so closely related TO one
another in ownership and In management
that the inclusion Of the National Steel
Company or as has also been suggested the
American Tin Plate Company. in the big new
corporation, would place all the Moore COM
panies in alignment with that corporation. domi-
mated as il would be by Morgan interests
As to Mr.. Carnegie's ~ to - per cent holdings
in the Carnegie company's bonds, which amount
to SSG. $40 600 par value. IL was said yesterday
that he would retain his holdings and that the
company to be formed would guarantee payment
of the interest on this issue of bonds thus main
tanning their priority of lien
The financing Of corporation such as that
which is said to he in view. with capitalization
Of several hundred millions of dollars would be
an undert aking far surpassing in magnitude any
hitherto achieved or attempted in this coun-
try. hut confidence is expressed by bankers that
il can be accomplished the actual cash
necessary to be provided would probably be less
than a quarter of the total capitalization. and
the operation would have the backing of the
practically unlimited resources of the Morgan.
Standard Oil and Carnegie interests.
TWO COMBINATIONS POSSIBLE.
II was reported yesterday. and accepted by the
street as "A reasonable and practicable belief
that il might he found desirable by Mr.. Morgan
To form two great combinations of steel COM
panies the one embracing the companies pro-
ducing the raw material and the other the COM
panles manufacturing the finished products. in
which case the latter corporation would be the
sole customer of the former and the sole dis
tributer of manufactured steel products. This
company. by the formation OF which. already
said the cutting of prices on both domestic and
foreign orders would be effectually prevented.
would by that fact make the United States a
much more formidable figure in the steel mar
Continued second page.
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