The daily morning journal and courier., 1901-02-26
STEEL COMPANY FORMED.
ARTICLES OF INCORPORATION
 FILED IN JERSEY CITY.
Present Capital Only S3,000-C. M. schwab to he President-Arrange- menfs for Underwriting Cash Trnns- feIs of About S5O,0OO,OO0.

ments for Underwriting Cash Trans
 feIs of About S5O,0OO,OO0.
 New York, Feb. 25.-Articles of incor- poration of the United States Steel cor
 poration were filed in Jersey City this
 morning with the county clerk of Hud-
 son county. This concern is the Mor-
 gan-Carnegie union. Its objects are
 stated to be to manufacture steel, iron,
 copper, and other products, and to own,
 occupy and develop mines and means
 of transportation. The provision is
 made that the corporation shall not own
 a railroad in the state of New Jersey. The incorporators are Charles c. | Cuff, William J. Curtis and Charles
 MacVeagh. The total authorized capi- tai stock is S3,000. divided into thirty
 shares of $1oO each. The provision is
 made that the stock may be increased
 at any time. The papers were prepared
 by Stetson, Jennings & Russell of this
 city, and were witnessed by Francis Lynde Stetson and Vicar Morawetz.
 The papers filed in Jersey City this
 morning are brief, and give few details,
 but it is understood that the union 1n-
 cludes the Carnegie plants, the Ameri-
 can Steel and Wire company, the Amer
 ican Steel Hoop company the National
 Tube company, the American Sheet
 ton1 tIn in, tn company, the National Steel company and the Federal Steel company,
 Charles M. Schwab will be president and general manager of the new corpo- ration.
 The articles further say that the pre- ferred stock and the common stock may increased according to law from time to time. The number of directors is also still to be fixed. If the number of directors is more than three it shall be multiplied by three. The directors shall be divided into three classes, and the term of one third shall expire every year. Unless authorized by the votes of two-third of the corporation, the di- rectors shall not be allowed to mort gage any part of the property. The board of directors shall appoint an ex- ecutive.
 The directors shall have power from time to time to fix and determine any vary the amount of working capital of the company, and to direct and deter mine the use and disposition of any surplus or net profits over and above the capital stock paid in: and in it's | discretion, the board of directors may | use and apply any such surplus or &C., profits in purchasing or ac- quiring its bonds or other obligations or shares of its own capital stock to such extent and in such manner as shall be deemed expedient. Such shares or cap- tal stock so acquired may. be retired for of decreasing the capital stock.
 The preferred stock shall be entitled to receive a yearly dividend of z per cent, and no more, payable quarterly, the rates to be fixed by the laws of the company. Dividends on the preferred stock shall be cumulative and payable before any dividend on the common stock is paid.
 The steel combines principal office is 70 be at the Hudson Trust company, which will be the steel company's agent. The Hudson Trust company last year became closely identified with the Nor gan interests, and MT. Morgan has been transacting much of his New Jer- 'ey business through that corporation. He is represented in the board of di- 'ectors. The steel combine will have m entire floor of the Hudson Trust new building in Hoboken.
 Much hinges now on the arrangement with the underwriting syndicate While general plans are known, 1t is tated positively to-day that the form ll agreement had not yet been entered nto. That Is to say the bankers the 'ankers know what to look forward to ut have not reduced their expectations Q dollar-and- cents agreement basis. When this is done the deal will be prac- ically completed.
 Fifty million dollars were quoted to- ay by a syndicate banker as the max ( mum amount Of cash transfer which. he undertaking would immediately in- , olve. In his judgment the fund might ome well within that amount, although 1 I nforseen requirements might involve lrger expenditures and would have to e provided for. A we'll known bank r connected with the deal said that he ould easily underwrite s10O 900 of . 1e securities to-day, if he had the f nance. This emphasized the demand $ 'om out of town institutions which ' hich would readily absorb it was said, ',
 large amount of the securities of a l, enture which had received the en- Q orsement of those financing the deal. G s to the probability of finding a arket abroad, it was intimated that le local demand for the securities to- " was really in excess of the supply fered by the underwriters. However, ! blocks could. in all prob ha v1o ol1, I