The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-02-26
Four Hundred Millions of Per Cent
Preferred stock and the same
Amount Of Common stock.
STILL LACKI
DETAILS
PROMOTERS NOT YET READY TO
MAKE FORMAL ANNOUNCEMENT.
Conference Last Nieht-Filina
of Papers Hastened I'm Order TO
Safeguard Validity of Title.

NEW YORK. Feb. 25.-Oficial announce
ment of the United States Steel Corporation
will probably be made tomorrow. Ii war
incorporated at Trenton, n. j., to-day. u
to late hour this evening IL was expected
the statement would be made I'm time fot
to-morrows newspapers But after pro-
tracted conference at the office OF J. p
Morgan & Co., Robert Bacon, membcp
Of that firm, declared that the official newt
would have to be withheld for another day
The nominal capitalization of $4,000 OF the
United States Steel Corporation is under
stood TO mean that the incorporators had
simply taken the precaution TO file papers
before anyone else might have chance 10
the name. The incorporators include
ex-Judge Curtiss, who is a partner OF Will
liam Nelson Cromwell. of the law firm OK
Sullivan & Cromwell. Mr.. Cromwell. Presi-
dent Gary OF Federal Steel Company Max
Pam. representing the American Steel and
Wire Company, and Francis Lyde Stettson.
who is one of Mr.. Morgan's confidential
legal advisers, were in conference the
greater part of the day. With these gentles
men. from time TO time, were representa-
tives of the various concerns which are tli
form the great combination.
There were unconfirmed statements that
committees representing these companies
had prepared circular letters TO be sent to
their stockholders; that these letters gave
exact terms and all details and that the
shareholders would be urged TO accept the
terms set forth. A director Of the Ameri<
can Steel and Wire Company said OF this;
II don't know what the directors OF the
other companies interested may have dones
but can say that as yet We have pre-
pared no letter for our shareholders
Another bit of gossip was TO the effecS
that both the American Bridge Companss
and the National Tube Company would be
left out Of the combination. These concern
are credited with being dominated by Mor~
gan interests, so that the rumor that they
were not 20 go in was accepted with much
reservation. None Of the principals OF
officers Of the companies would discuss the
matter at ALL Morgan & Co. are declares
TO have made all arrangements for financing
the combination. They have also. accord
ing TO reports, completed the details neces-
sary to the exchanging Of old securities for
new.
AS to the fiotation OF the company,
prominent bank officer was quoted as say
ing that not more than $l5,ooo,000 OF actual
cash would be necessary. and that this sum
had already been put aside by the under
writing syndicate. Speedy application will
be made. IL is said. TO list the shares of the
company here and on the London Stock
Exchange. The underwriting syndicate Ia n
said TO have offers for the shares OF the
new company aggregating about 500, 90
1t is reported that London. Paris, BerIir.
and Frankfort bankers have taken kindly
to the advances Of the underwriters.
From well-informed source comes the
statement that the United States Steel Cor
poration will have $l.l0o.cooOo0 OF capital
stock. or this $500, 100000 will be per cent.
general mortgage bonds. $4000o0.0o0 OF per
cent. preferred stocks and si00.0oo.000 Of
common stocks. The corporation will take
over the Carnegie, Federal Steel. Steel and
Wire and other companies named by an ex-
change of stock. The valuation OF the SUBJ
sidiary concerns has been arrived at by
close examination OF their assets. well
of their earning power. Mr.. Morgan is said
TO have declared that without a combina-
ton, the companies TO be absorbed I'm one
would have spent for betterments at least
s5O,O0000 year for the next five years
With the element OF competition eliminated.
il is figured that all, or nearly all. OF this
will he saved.