The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1901-02-07

{ properties" National steel com
F pany, the American Tin Plate company,
/ the steel Hoop company and the Amer
+ lean Sheet Steel cOmpany--have shown
/ a tendency TO work in harmony with
l the other corporations named. The car
/ negie company has offered position of
/ splendid isolation" and has pursued
+ general policy OF en- ire independence,
a policy which has been felt by compel
ing interests. and has involved che con-
/ slant possibility of the outbreak of hos
tiliti5s in some quarters or other, with
results probably disastrous TO the
/ weaker companies involved.
May Be Community Policy"
The policy of great financial in
+ terests e represented by the name and
/ ngure of j. PierpOnt Morgan has, in
the railroad field, been one of harmon
ling its guiding principle being that
/ ot the community of control, says
the Tribune, and It is possible that that
. policy VIII be adhered to in the steel
situation.
In other words. it is not assured that
the often rumoUed billion dt IT steel
{ combination" viii follow upon he ac-
J QUESTION of the control Of the { -negie
company, there being a possibility that
/ the Carnegie company may continue TO
{ De operated as d separate organization
/ but in complete harmony henCefOTth
. with the other great steel corporations.
. the policy of which is shaped by the
powerful interests which have now
/ come into possession of the majority of
. its capital stock.
Important economies can, of course,
/ be instituted by the bringing of the
/ Carnegie company into line with its
| former competitors, both in operating
/ expenses AMI through the practical
Z pooling of manufacturing work and of
/ output, but the "harmOnizing' of the
nv fol
/ its greatest effect in the future, when
the demand for steel products falls OF
/ and the margin of profit decreases
Prick Loses 100000.
1t has long been an understood fact
/ that Mr.. Carnegie was DESTROYS Of re-
| firing from active business, and in the
I spring of 1899 it was authOriJatiVely
I stated that he had sold his interest in
the Carnegie Steel company, but II. C.
Prick, to whom he had given the op-
Z ton found Il impossible TO carry
/ through the operation, and he and his
associates forfeited s1,9o0.000 70 Mr.
+ Ca-neSie.
But conditions have materially
. changed i'm the last two years. The men
p now i'm control 0f the Carnegie interests
4, are vastly stronger in the world OF
z finance than the men who planned the
q srear steel combine two years ago. All
be reports seem To indicate that Mr.. Car
uegie has obtained a higher price for
IS his stock than was indicated in the
De- proposed great steel combination Of
Do 1893. Railroad and steel experts ac-
counted for this in two ways. First
p that the price of stock in general and
- steel stocks in particular. had advanced
Is during the two years. second. that Mr..
p Carnegie, having built an important
railroad line from his plants i'm western
Pennsylvania 20 Lake Eri-. and having
. InIaTrg ken large HrUa.-a in
q Ion with the town and harb0t of Con-
I uau, AshtabUla county. Ohio. and nav
I ing planned an independent railroad
throughout Pennsylvania To- tidewater
as well, was in "a position To ask from
the men associated with J. p. Morgan
a higher price than ne could have OBJ
talned two years ago.
Companies Involved in Deal.
The Carnegie company has $3.50. coo. 0Oa
stock and S160 100000 bonds The COM
pauies in which NJ. Morgan is inter
esteG are capitalized as follows: Federal
Steel company, S1G0 600 600 common
stock, and S1ug.G00,000 preferred. of this
S4o-+S+-abJ common, and S53.26 500 pre-
1erTed stock. are outstanding American
Steel d. Wire company. 500 600. 900 COM
mon and S49O00,0JO preferred stock. all
. outstanding National Tube company,
. Stluluulu each of common and pre-
/ LeTte1 stock all issued. and the Ameri-
4 can Bridge company, S35, 600 each Of
/ common and preferred stock of which
/ S5u-7-t-el0 of each has been issued.
/ The Morgan group includes the In
/ IeFnatonal Steel company, with S32,-
/ 100000 OF common stock and So, O0O. 900
/ preferred, all issued. The American
+ Tin Plate company. $40. 900 900 common
and S2J,OJ8.t00 preferred, with S28 O00,-
600 common and S1S.115. 600 preferred
stock issued. the American Steel Hoop
. company Sls.O0J-000 common and s14.-
F 100000 preferred stock, all issued, and
. the American Sheet Steel COMPANY. SO
/ u1luO0 common. and $4,000. 600 preferred
stock, with S24.500,O00 of each issued.
Among the companies outside Of these
/ TWO groups are American Car q FOun-
/ dry company S3O.009O00 common. and
S39l000,000 preferred stock all issued;
/ the Pressed Steel Car company. with
SlZ,50o.0o each of common and preferred
+ stock, all issued. and the Republic Iron
/ q Steel company. with $50. 600. 600 com
mon and $25.oGU000 preferred stock. Of
. which S-I19L0oJ common. and $40. 206,-
. 500 preferred stock, are outstanding.
Denied in Some Quarters.
Some of the more conservative steel
men claim that the entire transaction
. IS very much like the so-CaIIed st
. Paul deal and that the significance of
/ she present negotiations are being
greatly magnified. In these quarters the
. contention is that no actual sale or
I transfer of the control Of Mr.. Carnegie's
. Immediate interest is even contemplate
I ed but that what is aimed at is q per
] feet trade understanding. or. in other
. words, unihCation of interests. where
/ by prices viii be maintained and Ger
I tam laws IN respect TO territorial rights