The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-02-09
Aggregate Price VIII Reach the Tre-
mendOus Total of Nearly One
Hundred and Thirty Millions.
PROBABLY PAID. FOR IN BONDS
CASH PAYMENT WOULD DISTURB
MONEY MARKET CONDITIONS.
Minority stockholders Will Receive
the Same Terms, Swelling the
Total to About $24O, O,OOO,OOO

NEW YORK, Feb. s.-The new develop
ments in connection with the negotiations
touching the transfer of the control of the
Carnegie Steel Company to j. Pierpont
Morgan and his associates to-day were:
First. that Mr.. Carnegie is to receive N.5OO
for each $1,000 share of his stock; second.
that minority holders who desire to sell
will receive the same terms as those given
to Mr.. Carnegie; third, that the present
stage of the negotiations contemplates the
formation of a new corporation, whose
bonds will play large part in the price
to be paid Mr. Carnegie; fourth, the first
public announcement in connection with
the pending negotiations of an official char
acter consisting of a statement by E. III.
Gary. president Of the Federal Steel Com
pany, confirming the news that ]. P. Nor
gan is planning the acquisition of the prop
critics of some of the largest iron and steel
companies of this country.
The statement bv Judge Gary. however.
threw little light upon the details of the
great transaction that is now in progress.
and it is probable that actual official in
formation in this respect will not be OBJ
tainable until the deal is really completed
The statement was, however, the subject of
much guessing. 1t apparently confirms the
general impression that all the Morgan
companies are actively interested in the
transaction, and, while nothing was said
as to the American Steel and Wire Com
pany. the fact that counsel of that COM
pany attended conferences between Presi-
dent Gary and Mr. Morgan seems to leave
little doubt that the negotia tions under way
include the steel and wire consolidation.
The Moore companies are not generally
supposed to have any interest in the finan-
cial side of the new deal, but it is believed
they will be disposed to work in harmony
with the Morgan interests. at least while
the market continues favorable. 1t appears
not unlikely, however, that the Pennsyl-
vania Steel Company may be included in
"the munity-of-ownership' plans, a
theory that gains some color from the re-
port that Pennsylvania Railroad capitalists
are to have an interest in the financing Of
the current deal
feature suggesting that Mr.. Carnegie
had in mind the sale of his company at the
time it was chartered in New Jersey is the
peculiar clause in the charter providing
that the directors of the company may dis
pose of the property of the company as an
entirety. 1t is this clause In the charter
that the men who are at present engaged
in financing the deal are taking advantage
of. If, as now seems certain, Mr.. Carnegie
is to receive Sl,500 for each $1,000 share of
his stock. the transfers in his case alone
will be the equivalent Of nearly $50 0O0, ,OO0,
inasmuch as the great steel magnate's
holdings at present amount to $500 900.
If, as seems probable, the minority hold
ers are to be looked after by Mr.. Morgan's
syndicate, the financiering will involve the
equivalent of $240Oo0.0o0. This is certainly
beyond Mr. Morgan's ability to provide in
cash, on a short notice. for a single trans
action. without seriously affecting the mon
ey market, and no surprise was felt when
Judge Gary made the statement that the
actual transfers of cash would be small.
Mr.. Carnegie is not likely to give up such
gilt-edged securities as the shares Of his
own company for anything less attractive,
and no surprise was expressed in financial
circles to-day when 1t became known that
the financial plan contemplated either the
reorganization on a greatly enlarged capt.
tai basis of one OF the existing steel COM
panies or the formation Of an entirely new
corporation to hold the controlling stock
OF the various component companies. and
especially the stock acquired by the Car
negie Company, all OF such stock TO con-
stitute the collateral OF the new bonds
which shall be issued TO Mr.. Carnegie and
to such other OF the present Carnegie Com
pany stockholders as may wish TO sell out
with him.
Whatever the exact shape that the finan-
cai transactions might take. there Is little
doubt whatever that it represents the ter
mination af a battle royal between modern
financial giants The contest itself may be
said to have grown out Of the community
of interests idea. or policy. which Il now
controlling tha railroads