Cameron County press. [volume] (Emporium, Cameron County, Pa.) 1866-1922, 1901-02-14
It's Bonds Will be Given to
Mr.. Carnegie.
FOR GILT-EDGED STOCK.
Plans of the Morgan Syndicate
Gradually Develop.
END OF A BATTLE ROYAL.
Everything Goes 10 show that In His
struggle with Other Financial Giants
the Pittsbur. IrOnmaster Has Won
Most Notable Victory,

| "ost NOtable victory.
New York, Feb. 9.-The new de-
velopments Friay in connection with
the negotiations touching the trans
fer of the control of the Carnegie
Steel Co. to j. Pierpont Morgan and
his associates were: First, that Mr.
| Carnegie is to receive 81 800 for
each $1,000 share of his stock; sec
ond, 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 negotia-
| tions contemplates the formation of
a new corporation whose bonds will
play a large part in the price to be
| paid Mr.. Carnegie; fourth, the first
| public announcement in connection
with the pending negotia tions of an
official character, consisting of
statement by f. H. Gary, president
of the Federal Steel Co., confirming
the news that Pierpont Morgan is
planning the acquisition of the prop
critics of some of the largest iron and
steel companies of this country.
If Mr.. Carnegie is to receive 81 800
for each $1,000 share of his stock. the
transfers in his case alone will be
the equivalent of nearly $13O,OO0,OOO
inasmuch as the great steel mag
mates holdings at present amount to
SS6,000,O00. IT, as seems probable,
the minority holders are to be looked
after by Mr.. Morgan's syndicate, the
financiering will involve the equiva-
lent of $24O, 100000.
This In,.D.1 NJ, NJ.
gan's ability to provide in cash on
short notice for single transaction
without seriously affecting the
money markets, and no surprise was
therefore felt when Judge Gary
made the statement that the actual
transfers of cash would be small
Mr.. Carnegie is not likely 70 give up
such gilt-edged security as the shares
of his own company for anything
less attractive, and no surprise was
expressed in financial circles when it
became known that the financial plan
contemplated either the reorganiza-
tion on a greatly enlarged capital
basis of one of the existing steel
companies, or the formation of an
entirely new corporation to hold the
controlling stock of the various com
ponent companies, end especially the
stock acquired by the Carnegie CO.,
all of such stock to constitute the
collateral of the new bonds which
shall be issued to Mr.. Carnegie and
to such other of the present Carne-
gle Co. stockholders as may wish to
sell out with him.
Whatever the exact shape that the
financial transactions may take,
there is little doubt that it represents
the termination of a battle royal be-
tween modern financial giants. The
contest may be said TO have grown
out of the community of interests"
idea which is now controlling the
railroads. 1t started as a result of
the Pennsylvania railroads policy, in
stituted in a radical form by Presi-
dent Cassatt of refusing cut rates in
all directions, regardless of whether
the shippers we're large 4r small.
Mr.. Carnegie had been used to re-
ceiving favorable rates because of
the immensity of his shipments, and
he objected to the policy instituted
by President Cassatt. The latter.
however, refused to renew the old
contract. Mr.. Carnegie then ap-
pealed to Mr.. Morgan without success
and thus found himself 'bottled up"
in Pittsburg with transportation
facilities no more advantageous than
his smallest competitors.
This was situation to which a
man of his capital, nerve and energy
could not submit and the next thing
heard was that he had purchased
thousands of acres on the Lake Erie
front and that he had made plans to
compete with Mr.. Morgan's steel in
terests at the most vulnerable point,
namely. by building an enormous
tube plant. Not only did Mr.. Car
negie do this, but he went about it in
a practical way, acquiring control of
railroad property with the apparent
determination of securing his own
road to tidewater. 1t then became
apparent that war of rates in rail
roads, as well as in steel, would mean
the loss of millions.
President Cassatt about 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 OF his competitive policy
and appears to have convinced Mr..
Morgan's associates in the steel busi-
ness that the only way he could be
"harmonized" was TO be bought out.
Mr.. Carnegie was perfectly willing to
sell at his own valuation of his prop
erty and he has apparently convinced
Mr.. Morgan and his friends that his
valuation of his interests in the Car
negie Co. was not excessive.
The acquisition of the control of
the Carnegie Co. in the interest of
other large consoli? tions is of vast
Importance, inasmuch as there will
now be no reason for the carrying
out of some of the new competitive
projects of that company which have
caused so much concern.
Death of millionaire.
New York, Feb. 9.-Dayid Hunter
Np Anime the millionaire tobon