New-York tribune., 1901-01-13
TO BUY CARNEGIE OUT.
REPORTED Plan OF J PIER.
POINT MORGAN.
SAID To BE NEGOTIATING FOR CONTROL
OF THE CARNEGIE COMPANY
WHAT MAY FOLLOW.
IBr TELEGRAPH TO THE rRIBUNB.I

Philadelphia, Jan. lit was learned TO-
day from credible sources that negotiations are
under way looking to the purchase o. control
of the Carnegie Company by ]. PierpOnt Nor
gan and his associates. This was said TO be
the first step in an extensive plan of virtual
consolidation in the industrial field along the
lines recently carried out in the railroad world IN
bringing various roads under the so-caled com
munity of interest control The present plan,
according 10 the report, contempates the bring
ing of all the great steel companies under the
control of a small group of capitalists. While
an actual merger of the properties may not be
brought about, the scheme considered provides
| that the control of all the big properties shall
be vested in the same hands. and that the com
| panies shall be economically and carefully op-
Grated and rate cutting and ruinous competition
done away with.
No step in this direction could be made with
| out first considering the Carnegie Company. by
| far the largest. most powerful and most re-
sourceful Of all the steel companies. This cor
poration is capitalized at $3.50 100000, and there
is outside of this an equal amount of bonds
Andrew Carnegie owns absolute majority OF
the stock and Of the bonds. He has personally
more than So per cent of this enormous amount
and the remaining interest is owned by his
thirty-two partners and few other holders.
Recently according to sources generally
| regarded as well informed negotiations have
Il
resenting pool of capitalists and Mr.. Carnegie
looking to the purchase Of Mr. Carnegie's en-
tire stock holdings If this transaction be ef-
| fected Mr.. Morgan WILL through his interests in
other big steel properties and the newly acquired
control OF the Carnegie company, be in a po-
siton practically to dictate to every other steel
company in the country; and, with this done, ii
| is believed that the few independent organiza-
tions would be easily persuaded to come into the
combination. 1t is understood that the plan of
taking over Mr.. Carnegie's stock in the Car
| negie company does not contemplate any change
in the ownership of the bonds. as their acquisi-
ton is not necessary for control. The stxk
alone is to be transferred. but what price will
be paid for it cannot be learned The stock is
not listed any exchange, but it has been
quoted as high as S1,5OO share in the market
| The shares are $1,000 each.
EXTENT OF THE COMPANY.
The Carnegie company is the biggest steel
| company in this country in the world. Its
! affiliations are of the widest and broadest char
/ acter. extending TO railroads. steamship lines
/ iron and coal mines. coking ovens and other
properties. Its resources are great and its power
/ is almost unlimited. The acquisition OF control
! OF this company by Alr. Morgan ard his asso-
/ ciates. added 10 their great holdings now In the
Federal Steel Company and other companies.
would make them absolute masters of the situa-
t tion.
| Next 10 the Carnegie company. the Federal
/ Steel Company is probably the largest steel
| company in the country This is looked upon
! as nominallIy Morgan property. 1t is con-
! troIled by Mr. Morgan and his associates. II
/ owns extensive plants and has done enor-
/ nous business. and has been the most energetic
competitor of the Carnegie company.
/ Control of these two properties vested in one
/
! dertaking, but it is said that the plans do not
| stop here The next steel company in relative
Importance is the American Steel and Wire Com
| pany, which is controlled by John w. Gates and
| capitalists allied with him. and il is reported
| that this corporation also may in time be
/ brought into line with the Carnegie and Federal
/ Steel companies. Ex-Judge William H Moore
| and his associates in Chicago and New-York
| control a number of important steel companies.
| and il is understood here that the development
| OF Mr.. Morgan's plans for unifying the steel in
dustry will include these so-called Moore prop
| critics.: The National Steel Company. the Amer
| lean Tin Plate Company, the American Steel
/ Hoop Company and the American Sheet Steel
| Company Then too. there are the Republic
| Iron and Steel Company. the Pennsylvania Steel
| Company. the Empire Steel and Iron Company.
/ and others which it is thought will be brought
/ into the community of interest if the project
/ for unifying the Carnegie and Federal Steel IN
| terests shall be put through. The National Tube
| Company is already classed as a Morgan prop
erty The American Car and Foundry Company
and the Pressed Steel Car Company, it's rival.
may be harmonized along with the rest
ENORMOUS PROFITS MADE.
These companies have all for the last three
wears been doing an exceptionally good business.
and profts everywhere have been enormous.
The far sighted fnanciers who. it is said, have
undertaken the task of harmOnizing all these in
terests and bringing them under the community
| of interest control have looked ahead and see
time when there must be closer operation and
smaller margin Of profit. Their plans more
for the future than for the present, as all the
companies are doing well just now. OF course.
no union of interests could be effected without
the control of the Carnegie company. 1t is for
this reason that it was deemed advisable 70 open
negotiations with Mr.. Carnegie it is said here,
and upon the successful termination OF these
negotiations depends largely the development
of the rest of the plan
saved by this harmOniZIng and bringing INTO
community control of the steel companies MT
Morgan and MS associates, II rs saia, haes
looked at the matter from the point of view OF
railroad men. They practically control the rall-
road situation now. company as rich ana
powerful as the Carnegie Company. however,
could built railroad almost any time it de-
sired TO parallel almost any line in the country
/ It was in a way remove the steel companies
| from this field that the present plan was under
taken it is said, the outcome or Whlch Will De- II
/ is believed here that all the great steel com
/ panies OF the country Will be welded tosethef
| under commE nifty control and that TINS com
| uunitv control will be the same dominating
| the railroads so that the same hands VIII cop-
/ troll both
/ The Carnegie company, as noted above. has
/