The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1901-02-19
SOME DETAILS OF THE HUGE
MERGER ENGINEERED BY
j. p. MORGAN
THE FIGURES ARE ENORMOUS
CAPITALIZATION OFF THE NEW
TRUST PLACED AT A TOTAL OF
$1,1OO,OOO,OOO
FRICK IS TO BE CHAIRMAN
And According to the Latest Slate
MIR. Schwab VIII BE the ~
President of the New
Company.

NEW YORK, Feb. 1S.-The Mail and
Express says:
1t was reported in Wall street today
that the final papers in the new steel
consolidation would be signed at meet
ing at the Metropolitan club this even
ing at which ]. Pierpont Morgan would
be present. The capital will consist of
C0,GOO,0 900 per cent preferred stock, and
$400, 600 common stock, besides which
$780, 900 per cent first mortgage bonds
will be issued. All the present stock and
bonds of the constituent companies are
to be Cancelled if the plans now in pros
pect are carried through. This depends
upon the stockholders of the constituent
companies If they should oppose the
consolidation the plans first broaehed
for a company of relatively, small capt.
tai to absorb the Carnegie company will
be carried out. Bondholders of the Car
negie company are to receive bonds of
the new company, bond for bond, as Mr.
Carnegie himself is to receive bonds in
exchange for eco stock at $50, Civ
ing him Sl24,500 900, and leaving about
S15,O0O,OQ0 Of bonds to be used for organi-
zation and bankers commissions Mr.
Carnegie will have no stock in the new
company, but will hold $207 ZOO worth
OF bonds. Those minority stockholders,
who have not been paid cash, are to
receive $3.50 for their holdings in the
preferred stock of the company and
bonus of an equal amount of common
stock This would take $3.50, COO pre-
ferred stock and an equal amount of
common stock Of the new company, leav-
ing $2S9,5C00OO preferred and 1924, 500. 900
common to be divided among the other
companies. 1t is the apportionment of
this division that has taken so much
time.
WHAT'S IN A NAME.
1t is still a question whether the new
company can be called the United Steel
company, because a concern of that
name has just been Incorporated under
that name in Maine by Boston parties.
The earnings of the constituent COM
pan1es last year amounted to $9S, COO 900
The interest on the new issue of bonds
VIII be $l5,OO0,0O0 and other charges will
increase this to $iSG00,900. Add this to
the $45,GG0OG0 due per annum on the pre-
ferred stock and there remains Is per
cent possible to be paid as dividends on
the common stock. If last years earnings
should be maintained.
The following paragraph in the charter
OF the new corporation has never been
used before in the charter of any similar
corporation and is arousing the interest
of lawyers:
The title of any property or business
may ma pc acquired or remain in the name
OF any individual or any other company
Or manager for this company, or the
company may take over and carry on the
business OF any other company, without
thereDy acquiring shares of stock or anv
security controlled by mortgage or 9th
erWlse and exercise all the powers of
holders of shares of stock thereof man
age Its affairs, elect it's officers and hold
IT'S control and as well receive and dis
tribute as profits the dividends or inter
est, as the case may be on such stock
or security, or distribute them as diyi-
dends on the stock of this company"
FRICK FOR CHAIRMAN.
PITTSBURG, Feb. 18-It was init
mated that Mr. Frick has been offered
the craftsmanship of the big concern and
Will work in harmony with President
Schwab, should he accept.
This office, it is said, has been offered
to him, and if he accepts he will be
almost identically in the same position
he was before his resignation was hand
ed to Mr.. Carnegie. Former Secretary
Lovejoy's interests are being cared for
by Mr.. Frick and both have been re-
quested to accept places in the giant
corporation. j. Pierpont Morgan has
held several conferences with Mr.. Frick
and it is said that he has informed Mr.
F'rick that his assistance is necessary in
operating the combine. Mr.. Lovejoy will
probably go to New York between now
and Wednesday if the announcement is
not made, but as to there being any
dissenSiOn among the minority stock
holders, this is denied. All are anxious
to know where they are going to land
and will look after their interests until
the matter is finally settled upon. A
financial man stated today that he had
advices from New York to the effect that
J. Pierpont Morgan had postponed his
vacation for several weeks. This is
taken to mean that there have appeared
distractions that are regarded as prob
able The same advices indicated that
one or two of the companies proposed
to be included, may be finally omitted
because of the fact that the directors
proffered. They may be included later.