New-York tribune., 1901-02-06
CARNEGIE STOCK SOLD.
NEGOTIATE WITH j. p
MORGAN COMPLETED.
VAST DEAL cONsUSINIATED ON MONDAY
PEACE NOW LIKELY IN THE
GREAT STEEL INDUSTRY.
MAJ-GEN. A. MACARTHUR

GREAT STEEL INDUSTRY.
The negotiations for the purchase of Andrew
Carnegies controlling interest in the stock OF the
Carnegie company by ]. Pierpont Morgan and his
associates announcement OF the tendency OF
which exclusively made in The Tribune
on January IL. were brought 10 a successful
conclusion on Monday. The terms OF the trans
fer cannot at this time be announced but the
operation surpasses in magnitude the colossal
transaction by which control Of the Southern
Pacific company only few days ago passed
10 a syndicate If Union Pacific interests; for
Mr.. Carnegie held nearly ~ per cent Of the
$4,000. 900 stock OF the Carnegie company
, This stock Is not listed any exchange. but
has been quoted as high $500 in the open
market for $1,000 share that assuming
that Nj. Carnegie has disposed OF his holdings
at par only. he Will receive fully $S5.OOOOOO for
them. while retaining his IS or a per cent In
terest in the $160OOO.OOO bond issue OF the
Carnegie company
The object aimed at by Mr.. Morgan and the
interests allied with him IN treating with
Mr Carnegie for the purchase Of control Of the
Carnegie company the assurance OF peace
and enduring peace. in the vast steel industry OF
the United States. and this ideal condition ap-
pears to be virtually an accomplished fact
Mr.. Morgan has been an influential factor in
the Federal Steel Company the National Tube
Company and the American Bridge Company
and latterly. 1t Is understood I'm the American
Steel and Wire Company also. while the
Moore prOperties"-the National Steel Com
pany the American Tin Plate Company, the
American Steel Hoop Company and the Ameri-
can Sheet Steel Company-have shown a ten
dency 10 work in harmony with the other corpo-
rations named. The Carnegie company has
occupied position Of splendid isolation" and
has pursued general policy Of entire independ-
ence policy which It has been felt by compet-
ing interests has involved the constant possi-
bility OF he outbreak Of hosiities in some quar-
ter other. with results probably disastrous
TO the weaker companies involved.
The Carnegie company not only owns vast
ore beds, coal and coke lands. extensive coke
furnaces great manufacturing plants equipped
with the most modern machinery. a fleet OF
lake steamships and railroad of its own. but
It's cash resources are enormous that its in
timation that It might build $12OoOO00 steel
tube plant or construct a trunk line OF its own
to tidewater or erect a great sheet steel plant.
has been recognized to be far from an idle
threat The policy of the great financial in
terests represented by the name and figure OF
]. Pierpont Morgan has in the railroad field been
one of harmonizing it's guiding principle being
that Of the community of control; and 1t IS
probable that that policy will be adhered
TO in the steel situation In other words, II
is not assured that the often rumored billion
dollar steel combination will follow upon the
acquisition OF the control OF the Carnegie COM
pany. the probability rather being that the Car
negie company may continue TO be operated as Il
separate organization but in complete harmony
| henceforth with the other great steel corpora
tions the policy of which is shaped by the
nowerfuI interests which have now come into
nossession OF the majority of its capital stock.
Inportant economies can. of course, be insti-
tuted by the bringing Of the Carnegie company
into line with it's former competitors. both in
onerating expenses and through the practical
pooling OF manufacturing work and OF output,
but the 'harmonizing' of the Carnegie cosl-
many il is felt. will show it's greatest value in
the future. when the demand for steel products
falls off and the margin of profit decreases.
Mr. Carnegie could not be seen last evening.
A reporter also tried to c. NJ Schwab. who
is at the Holland Houes, but he sent word that
he had nothing to say.
1t has long been an understood fact that Mr..
Carnegie was desrous of retiring from active
business and in the spring of 1899 it was au-
thoritatively stated that he had sold his interest
in the Carnegie Steel Company. but II. c. Frick,
TO whom he had given the option, found it i'm
possible to carry through the operation. and
he and his associates forfeited SlWOOOO to Mr..
Carnegie. The latter was in Europe at the time
and in an interview in London paper thus
gave his reasons for selling his controlling in
Continued on sixth page.