New-York tribune., 1901-03-03

In case less than all OF the bonds and stock
of the Carnegie company or less than all Of the
stocks Of the other companies referred 10 shall
be acquired the circular continues the amounts
of bonds and stocks to be issued will be reduced
as provided in the contract made by the syndi-
cate with the new company. No estimate IN
figures is made as to the probable profits Of the
United States Steel Corporation but the syndi-
cate managers say on this point:
Statements furnished TO US by officers Of the sew
eral companies above named, and Of the Carnegie
ings OF all the companies tOr the calendar 1900
was amply sufficient to pay dividends both
classes Of The new stocks besides making provision
for sinking funds and maintenance OF properties
1t is expected that BY the consummation OF the
proposed arrangement the necessity Of large deduc
lions heretoIore made on account OF eXpendit1res
earnings applicable dividends will be substan-
W y be assured a whoa necessariy Increasing the
prices Of manufactured products.
The registered holders of receipts for depos-
tied preferred stocks are to receive the equiva-
lent of dividends thereon at the rates therein
provided. from the last dividend period up to
April l. 1901, from which date dividends the
preferred stock of the United States Steel Cor
poration are to begin to accrue. Deposited COM
mon stocks must carry all dividends or rights
to dividends declared payable on or after
March l. 1901.
The certificates for stocks so deposited will be
exchanged for transferable receipts issued by
the various trust companies which are to act
repositories. and application will be made
for listing these receipts on the New-York stock
Exchange. 1t is stipulated that j. p. Morgan
& Co. acting in behalf of the syndicate shall
have full control over the deposited certificates
including power to deliver the same under their
contract to the United States Steel Corporation
in consideration Of the issue of preferred stock
and common stock of that corporation.
The syndicate managers reserve the right at
any time prior 10 the deposit of two-thirds of
all the outstanding shares of each class of thc
stock Of any one or more Of the companies other
than the Carnegie company. to withdraw their
offer as to the stockholders of such company or
companies They are authorized to proceed with
the proposed transaction whenever in their sole
judgment a sufficient amount of the stocks of
the companies. or any Of them. shall have been
deposited. They reserve the right. however at
any time, in their discretion, wholly to abandon
the transaction and to withdraw their offer.
Deposits Of stock must be made on or before
March 20. After that date deposit will be
received except in the discretion of ]. P Nor
gan & Co, and such terms they may pre-
scribe and they reserve the right 10 terminate
the privilege of deposit at an earlier date, upon
two days notice. to be given by publication at
least once in two daily newspapers in New-York
City.
It Is further stipulated that the forms Of the
new bonds and of the indenture securing the
same and of the certificates for the new pre-
ferred and common shares, and the entire pIan
of organization and management of the United
States Steel Corporation. shall be determined by
]. p. Morgan & Co
on the interesting point of compensation for
the syndicate's services the circular says merely:
All shares Of the United States Steel Corporate
deliverable TO or for account of the syndicate which
shall not be required for the acquisition of the
stock OF the Carnegie company or for delivery 10
depositors under the terms of this circular are 10
be retained by and 10 belong to the syndicate
The circular closes with this note:
II is proper to state that ]. P. Morgan & Co are
10 receive no compensation for their services as
syndicate managers beyond a share in any sum
which ultimately may be realized by the syndicate
The boards of directors Of the various com
panies interested are expected to issue circular
letters to their stockholders early this week ad-
vising the acceptance Of the terms as announced
IN the official circular summarized above That
the plan Will be ratified by large majority of
the parties in interest is regarded in the finan-
cial district as a foregone conclusion.