The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1901-02-09
CARNEGIE'S
PROFIT HUGE
Parts With His Stock at
$1,000 a Share.
FIERCE FIGHT
Is AT AN END
DISPUTE Over Railroad Rates
Started War.

New York. Feb. S.-The new develop
I.lcnts today in connection with the
negotiations touching the transfer Of
The control OF the Carnegie Steel COM
uauy 20 j. j.. Morgan and has asso-
cIstes. were first. that MI Carnegie
is to receive S1,5O0 for each $1,000
share of his stock; second. that min
orff,- holders VINO desire to sell viii
receive the same terms as those given
10 Mr.. Carnegie; third, that the pres
ent stage of the negotiations contem-
plates the formation of a new corpor-
alton. the bonds of which viii play
large part i'm the price to be paid to
Mr.. Carnegie, and, fourth, the nrst
public announcement in connection
with pending negotiations of an Off
cial character, consisting of a state
ment by Z. II. Gary, president Of the
Federal Stell company, confirming the
news that j. =. Morgan is p aiming the
acquisition of the properties Of some
of the largest iron and steel companies
of this country
The statement by Judge Gary. how
ever. throws little light upon the de-
tails of the great transaction that IS
now in progress, and il is probable
that actual official information in this
respect viii not be obtGiuable until
the deal is really completed The state
ment was. however, the subject OF
much guessing.
Il was as follows
Statement by Gray.
y. p. Morgan & Co. are undoubtedly
considering plans for the acquisition of
the properties of some Of the largest
iron and steel companies of this cOun-
try. Presumably they VIII not make or
authorize any official statement until
after the plans are perfected and IL Is
probable that they will manage the
ownership or control so as to secure
perfect and permanent harmony in the
larger lines of this industry.
1T is not intended. however. to OBJ
tain control of any line of business or
a. create any monopoly or trust, or in
any way ntagonize any people. policy
acquiring property Will not permit any
minority stock interest TO interfere If
stockholders were so disposed, which is
not probable. as their Decuniary inter-
est would influence them otherwise. The
success of the enterprise Will result in
great benefit 10 investors in securities,
the consumers and working men or en-
piOyees- Little If any new cash, and
therefore. the present financial cOrdi-
ton viii not be disturbed"
The Mail and Express says.
A gentleman identified win the in
tereSts of one Of the greatest steel
companies under che MOrsaI Influence
said today that the contracts calling for
She sale of the - Tnegie holdings of
sock and the Jdymenr for them had
srtualIy been signed. Mr.. CoCneSls VIII
receive some cash, but we be paid
no. iIy in bonds
End of Grants Battle.
Whatever the exact shape that the
financial actions might take, there
is little doubt whatever that il
there is little doubt whatever that it
represents the termination of a battle
royal between modern financial giants.
The contest itself may be said TO
have grown out of the community of
interests" idea Of such a policy which
Is now controlling the railroads. 1t
started on its most serious stage as "a
result of the Pennsylvania railroads
pOlic., instituted in radical form by
President C9Ssatt of refusing cut rates
IN ali directions, regardless of whether
the shippers were large OF small. Mr..
Carnegie had been used To receiving
favorable rates under an Old contract
because of the immensely of his snip
nents and he objected it is said to
the policy instituted by President Gas
salt. The latter, however. refused to
renew the old contract. Mr.. Carnegie
then appealed to Mr.. Morgan without
success and thus found himself bot
IlCi up" Is IL Were. i'm PiuJsburg with
VautaEeOus than his smallest competi-
tors. This was situation TO which a
man of his capital. nerve and energy
could not be expected Jo submit. and
the next thing heard was that he had
purchased thousands of acres on the
Lake Erie front and that he had made
definite plans 10 compete with AR
Morgan steel interests at tine most
vulnerable point. namely by building
I'm enormous up-tO-date tube plant.
Builds His Own Railroad.
Not only did Mr. Carnegie do this.
but he went about iJ i'm practical
way. acquiring control of railroad prop
erJy with the apparent determination
of securing his own road 60 tidewater.
IT then became apparently question of
q contest with q determined man who
had ample capital and general re-
sources. and il was generally agreed
that var of rates in railroads as we'll
as in steel would mean the loss of mil
lions President CasSatt a. bout this
time decided TO make concessions in
the rates FOR large shippers such as
might have been satisfactory TO Mr.
Carnegie at the outset. but the latter
continued upon his competitive policy
and appears 10 have convinced Mr.
NOrgan's associates in the steel bust
ness that the only way they could be