New-York tribune., 1901-01-20
MUST BUY OUT OR FIGHT.
CARNEGIES REPORTED ULTIMATUM TO
MORGAN AND ROCKEFELLER.
FIFTEEN DAYS TO CHOOSE BETWEEN WAR
AND THE PURCHASE OF HIS EN-
TIRE PLANT FOR s2OOoOOOO0
Icy TELEGRAPH TO THE TRIBUNE. !

lBF TELEGRAPH TO THE TRIBUNE
Cleveland, Jan. 19.-AccOrding to a story which
told to-day in this city Andrew Carnegie
has presented his ultimatum 10 his competitors
in the manufacture of steel. In 1t he insists It
is said. that they either confine their operations
to the line of work they engage in, else
purchase his entire plant for the Of 500.
100000
If neither of these conditions is complied with
a runous between great corporations is
threatened. by which prices of finished steel will
be lowered to a point which they have not
reached for years. and mill products will be sold
upon about the same basis that the raw material
Is now bringing in the open market.
The movement is gigantic that To many
contemplation of II appears ah-U &. y "a an
other matter growing QUO OF the recent an
nouncement of the Carnegie steel Company Of
its intention to build steel tube plant at It's
lake port and ship the product direct to foreign
countries by the all water route. When this
announcement was made the story was printed
that a part of Mr. Carnegie's plan was 10 com
pei the railroads to reduce their freight rates
from Pittsburg to tidewater, and another idea
was to compel the steel concerns to keep to
their own lines of trade and refrain from poaCh-
ing upon his territory.
THE WARNING NOT NEEDED.
This warning was not needed, for since this
statement
Steel Company and the American Steel and
Wire Company to build mills for the manufact-
ure Of structural steel has been made known.
Mr. Carnegie however. is not anxious to fight
anv more than they and will prevent a
conflict If possible.
In line with this theory he is reported 10 have
suggested either selling his plant to them OF
else making an agreement in the nature or a
pool of the territory that will be binding. This
determination is taken accounting for the
rumors thai have been flying that j. Pierpont
Morgan intends to buy IN the Carnegie plant
Mr. Morgan is virtually the head of the Fed
eral Steel Company, or at least most or the
money invested in it went through his house
and the combination was financed by him. In
this manner he has virtually gained control
Of the company.
John D.. Rockefeller and Mr.. Morgan have
been working together in railroad transactions
and are said 10 be associated in the newest en-
terprses Mr. Rockefeller is also interested in
the manufacture OF steel being a producer and
carrier OF tn material and being Interested
in several steel companies.
Messrs. Morgan and Rockefeller said to
have received the proposition OF Mr.. Carnegie
to sell out his plant and to have at once acted In
such a manner that if anything comes of the
plan, OF the greatest Industrial combiha-
tiOnS TINS country mas ever seen VIII result ia
order that the project may be of any effect 1t
must have the cooperation of all of the other
large 81 eel plants in the country.
WORKING TO TAKE THE OPTION.
To carry out this idea the heads of the Fed
eral Steel Company are reported to have ap-
preached the heads of the American Steel and
Wire Company the Republic Steel and Iron
Company, the National Steel Company and the
National Tube Company, with the result that 1t
Is now said that the combined forces have taken
a fifteen-day option upon the entire Carnegie
plants and all of Mr.. Carnegies interests, the
consideration to be $20000O00O Just when
this option expires is not told, but it is said that
it has run now for several days. In fact the
story has 1t that some of the chief financial
hackers of the various plants mentioned, who
live in this city, were approached yesterday as
to their Willingness to enter the project and
stand their share of the obligation which will ba
incurred If the purchase is made.
The plan of operating the Carnegie plant In
case It changes hands has already been figured
out According to the story independent
management will be provided by Mr.. Morgan
and Mr. Rockefeller, with a Board Of Directors
chosen from each OF the concerns having money
cordance with the amount of money expended
by bond issues of the various concerns,
Continued page six.
NEW WORK AND FTnRIDA limited