Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1901-02-07
NEITHER CARNEGIE NOR MORGAN
HAS THUS FAR GIVEN REPORTS
ANY CONFIRMATION,
THOUGH BOTH REFRAIN
FROM MAKING A DENIAL.
ONE SET OF REPORTS DENoMINATES
THE DEAL AS A BILLION
DOLLAR COMBINATION.
FIGURES PLACED TOO HIGH.
WOULD REQUIRE ABOUT $75O,UUO,-
900, U NOT NEARLY ALL
IN CASH.

NEW YORK, February 6.-The an
nouncement that Andrew Carnegie
had disposed of the control Of the
Carnegie company to ]. Pierpont Nor
gan and his associates attracted wide
spread attention. The entire COM
munity appeared deeply interested.
Local newspapers denominate it. a
Billion Dollar Steel Combine" AS
Messrs. Morgan and Carnegie de-
clined to confirm or deny the report.
The fact, however, that these men
permitted the reports to continue
without denial was generally regard
ed as proof that they were we'll found
ed. Numerous "semi-official' state
ments were put forward but those
could not be tracked back to the prin-
cipals. According to these reports ].
p. Morgan is at the head of a syndi-
cate which contemplates the organi-
cation of a mammoth steel combine
to include the Federal Steel Company,
the National Steel Company. the So
Hoop Company, the Sheet Steel Com
pany, the American Steel & Wire
Company and the American Tin Plate
Company.
The consensus of opinion is that
Carnegie has really signed a contract
to deliver his stock to J. P. Morgan &
Co, All statements as to price are idle
speculation. Some business men who
would not be friendly to a huge COM
bination of this character, call atten-
ton to the fact that in 1899 there were
positive rumors that the Carnegie in
terests were to be transferred, but the
deal fell through.
Ever since Mr.. Frick two years ago
secured the option on the Carnegie
properties, reports have been repeated
that Mr.. Carnegie expected in the near
future to retire. About three weeks
ago these rumors appeared in Wall
street with remarkable frequency.
Somehow the matter seemed to hang
FIRE, and it was not until within the
last twenty-four hours that detailed
reports seemed to indicate that Mr..
Frick formerly Mr.. Carnegie's right
hand man. was assisting Mr.. Morgan
In bringing about the combination.
In the steel and iron trade. where
a calm and conservative view Of the al
legged combination was taken, it was
the opinion that the course OF such
deal as that proposed would bring the
Carnegie, the Federal Steel and Ma
tional Steel companies and the billet
mill of the Steel G. Wire Company I'M
der one management. while the COM
panies turning out finished product.
would be looked after by another man
agement. The companies turning out
the finished product, could, by this
means, use billets, bars and other I'M
finished materials OF the Carnegies. the
Federal Steel and the National Steel
companies, thus enabling the combina-
ton of the steel interests to regulate
the output and prevent all possibilities
of cut throat competition. a CONSOLE
dation of all of these interests would
require a capitalization Of $3.50, GOO, 900,
although not more than one-fourth
would be required in cash.
Some of the more conservative steel
men declare the entire transaction is
being magniied; that no actual sale
of the Carnegie interest is contemplate
ed, but that what is aimed at is a trade
understanding; in other words, a unfit
cation of interest whereby prices will
me maintained and certain laws in re-
spect to territorial rights laid down.
Mr.. Morgan is at present largely con-
cerned in railroad combinations. re-
quiring an immense outlay. Hence the
community Of interest idea is the
more feasible.