New-York tribune., 1901-10-23
ENGLISH STEEL TRUST.
ONE FORMING WITH $40, ,0OO.-
900 CAPITAL.
A NEw.YoRK PROMOTER HAS AR
RANGED IT, AND THE LARGEST BRIT
IsH MANUFACTURERS ARE NOW
SERIOUSLY CONSIDER
ING THE PLAN.
ING THE PLAN
Copyright, ieoli BY The New-York Trioune.)
fBY CABLE TO THE TRrBuEE.l


TBg CABLE TO THE TRTBrSEl
Loncon Oct %. / a m.-The English press
bristles with paragraphs about the tobacco war
between the American and British trusts. but a
kr more important movement. which has been
IN progress since the spring. escapes observa-
ton This is the projected anlalgamation Of the
business interests Of the largest iron and steel
manufacturers in the United Kingdom.
The formation Of the United States Steel Cor
poration was the signal for similar concentra-
tons Of capital in Europe. The German ironmas-
ters and steel manufacturers, under the leader
ship OF the Krupps have been endeavoring to or
ganize an industrial combination. and the Bel
ssn mine owners and iron and steel manufact-
urer have been moving In the same direction.
The interests Of both those countries are cen
tired in a few hands. and these combinations,
while not yet effected, are easy IN comparison
with the amalgamatfon OF British iron and steel
manufacturers. whose interests here are Of tre-
mendous magnitude and inertia British con-
servatism has obstructed the application OF new
principles 10 the concentration of capital and
the iessening OF industrial competition.
AN AMERICAN ORGANIZER
Protracted negotiations have been required
but a. combination Is being arranged by group
Of the largest iron and steel manufacturers Of
the North and South, with the help Of an Amer
lean organizer. This combination will control
the manufacture Of rails in the United King
dom. and will have cash capital Of f2OOcoOOO,
without drop Of water: and when another
group Of large manufacturers OF iron and steel.
with whom negotiations now in progress Is
drawn in. the capital will be increased to
100000.
The American organizer is John r. Bartlett.
who effected not long ago a combination in the
oil manufacturing trade and won the confidence
OF large group OF English capitalists by his
skill and practical intelligence in conducting
financial operations He visited during the
spring nearly all the important iron and steel
works Of the United Kingdom, and after looking
over the ground and meeting the masters Oh
this enormous industry he submitted to them
plan for effecting a combination OF their busi-
ness interests.
CAUSES OF DEPRESSION.
He attributed the depression OF the iron and
steel trade TO three general causes; first oio
machinery and old methods Of doing business.
with lack OF any systematic department Tor
keeping those in the trade informed regarding
the organization and methods OF their principal
competitors; second. Injurious competition by
which manufacturers were bidding against one
another for the purchase OF supplies and the
Production and the expenses OF management
and Of marketing; third. aggressive competition
from the United States and Germany In the
home and foreign markets, for which British
manufacturers were themselves TO blame in al
lowing the Americans and Germans to surpass
them in technical skill and in Industrial organi-
ration He suggested remedy consohdation
d the iron and steel industry OF the United
Kingdom into single corporation FOR mutuai
protection and defence against overwhelming
foreign competition.
The benefits which would be derived from the
substitution OF a single corporation for thirty
of forty different nanagements he described IN
Detail. Amalgamation, he urged. could involve
phe Capitalization Of management by which the
work would be done most chsaply for the mar
ket' home foreign. TO be supplied. 1t would
eliminate hurtful competition in the purchase
OF supplies and the sale OF products. and would
bring about the adoption Of the best and most
economical methods Of manufacture. thereby
improving the quality and reducing the cost and
increasing the profits without raising the prices
Tor Consumers. II would secure for the benefit
OF the whole trade the practical knowledge OF
me leading men IN IL. II would reduce expenses.
lessen risks and secure the adoption OF a uni
iorin system of accounting. II would increase
'he morale Of the business and make the Sc
cuflties OF the consolidated company a more
pfohtable investment than the existing secur-
aies OF the separate concerns
DETAILS OF FINANCE
THESE proposals were accompanied by a pre-
urinary memorandum of the scheme OF com
pihauon worked out with precision and pains
taxing care. showing that financial syndicate
~ouio be formed to underwrite and furnish all
INC cash required for the successful organiza-
u'h of the amalgamated company. each vendor
-'ns The privilege OF joining it. The value