Daily new dominion. [volume] (Morgantown, W. Va.) 1897-1906, 1901-02-09
BIG sum FOR CARNEGIE
May Get $4,000 900 if Sale
Goes Through.
MUCH NAY BE IN BONDS OR NOTES.
Gary, In 0niciaI Statement, Admitted
Negotiations Had Been Begun-Likely
if Successful, to BE Consnmmated so
Not to Seriously Disturb Money Market.

New York, Feb. 9.-New develop
ments in connection with the negotia
tons touching the transfer of the con
troll Of the Carnegie Steel company to
J. Pierpont Morgan and his associ-
ates We're first that Mr.. Carnegie is
to receive LOO for each one thou
sand dollar 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 negotia-
lions contemplates the formation Of
new corporation, whose bonds will
play large part in the price to be
paid Mr.. Carnegie, and, fourth, the
first public announcement in connec-
ton with the pending negotiations OF
a public character, consisting of a
statement by Il. FL. Gary. president
of the Federal Steel company, con
firming the news that j. Pierpont
Morgan is planning the acquisition of
the properties of some of the largest
iron and steel companies of the coun-
try.
The statement of Judge Gary, how
ever, threw little light upon the de-
tails of the great transaction that
was in progress, and it was probable
that actual official information in this
respect will not be obtainable until
the deal is really completed The
statement was, however, the subject
of much guessing. 1t apparently con-
firmed the general impression that all
the Morgan companies were active
ly interested in the transaction, and
while nothing was said as to the
American Steel and Wire company,
the fact that counsel for that com
pany attended conference between
President Gary and Mr. Morgan
seemed to leave little doubt that the
negotiations under way included the
steel and wire consolidation. Incl
dentailly, it was limited that interest
ing developments might occur at the
annual meeting of that corporation
on Feb. 10. The Moore companies
were not generally supposed to have
any interest i'll the financial side of
the new deal, but it was believed that
they would be disposed to work in
harmony with the Morgan interests
at least while the market conditions
continued favorable. 1t appeared not
unlikely, however, that the Pennsyl
yania Steel company might be includ-
ed in the community of ownership
plans, theory that gained some
color from the report that Pennsylya-
mia railroad capitalists We're to have
an interest i'll the financiering of the
current deal.
A feature suggesting that Mr.. Car
negie had in mind the sale of his com
pany at the time it was chartered in
New Jersey is the peculiar clause in
the charter providing that the direc-
tors of the company may dispose of
the property of the company as an
entirety. 1t is this clause in the char
ter that the men who are at present
engaged in financing the deal are tax
ing advantage of.
If, as seemed certain, Mr. Car
negie is to receive 81, 800 for eacA
81 ZOO share of his stock, the trans
fers in his case alone will be the
equivalent of nearly $130,o00,o00 in-
asmuch as the great steel magnate's
holdings at present amount to about
$S6,000,000. If, as seems probable,
the minority holders are to be looked
after by Mr.. Morgans syndicate the
financiering will involve the equiva-
lent of about $240000,00O.
This is certainly beyond even Mr..
on a short notice for a single trans
acton without seriously effecting the
money market, and no surprise was
therefore felt when Judge Gary made
the statement that the actual trans
ferS of cash would be small Mr.
Carnegie is not likely to give up such
gilt-edged security as the shares of
his own company for anything less
attractive. and no surprise was ex-
pressed III financial circles when 1t
became known that the financial plan
contemplated either the reorganiza-
ton on a greatly enlarged capital
basis of one of the existing steel COM
panies or the formation of an entirely
new corporation to hold the con
trolling stock Of the various com
ponent companies, and especially the
stock acquired by the Carnegie com
pany, all of such stock to constitute
the collateral of the new bonds,
which shall be issued to Mr.. Car
negie and to such other Of the pres
ent Carnegie company stockholders
might wish to sell out with him.
1t may be stated on what is practi-
cally official authority that the full
details of the proposed scheme of
financing the big transfer had not
been completed up to late hour Fri
day afternoon, but the general out
lines of the plan, it was stated, do con-
template either the issue of bonds or
a system of notes guaranteed in the
manner already described.
Pension Bills Were Passed.