New-York tribune., 1901-02-08
HOW CARNEGIE'S TO BEPAID
PROBABLY MOSTLY IN NOTES or THE
PURCHASING SYNDICATE.
COMMUNITY OF OWNERSHIP REGARDED AS
MORE LIKELY THAN THE ABSORPTION
OF OTHER STEEL PROPERTIES.

| COMMUNITY OF OWNERSHIP REGARDED AS
MORE LIKELY THAN THE ABSORPTION
OF OTHER STEEL PROPERTIES.
/ A vast operation like that of providing the
/ sum necessary TO pay for Andrew Carnegies
controlling interest in the stock OF the Carnegie
company. and deciding upon the details OF the
Encouragement of the relations OF that company
and the big steel corporations represented by
| the purchasing interest, cannot be carried
through in a day or a few days. and the men
who conduct negotiations of that magnitude
are always men who have the saving business
grace Of absolute reticence until the time comes
| for public announcement. So it is not 10 be
wondered at that almost no authenticated de-
tails Of the plans which Mr.. Morgan and his
associates are working out in connection with
their ACQUISITION Of Mr. Carnegie's stock be-
came public property yesterday. All that Is
definitely known. indeed. is that MI Morgan
Is forming syndicate, 10 include various pow
erfu financial interests which is to finance the
nurchase Of the Carnegie stock holdings The
amount of capital 10 be provided by this syndi-
cate could not he ascertained. although II was
rumored TO be as much s2oo0oo0oO; nor has
II yet been learned at what price Mr.. Carnegie
has contracted 10 dispose Of his s6,3IS sl'OoV
shares Of stock II is said however. that he
relatively small percentage Of the purchase
money will be paid him in cash. payment for
the rest being made in notes of the syndicate,
these notes being. perhaps in the nature Of
temporary obligation. for which corporation
bonds may subsequently be substituted.
The report that a billion dollar company
would be formed 10 take over the Carnegie COM
pany the Federal Steel Company. the American
Steel and Wire Company and one Of the Moore
companies has been received with incredulity
by Wall Street. The prevailing opinion appears
70 be that the existing companies are not to be
merged. but rather that. through a community
Of ownership, there may be established a concert
of operation as effective for the prevention Of
competitive production as would be an actual
consolidation.
Through such arrangement, too, H. is urged,
the companies party it, other than the Car
negie company. might issue bonds 10 be turned
over TO Mr.. Carnegie in part payment such
bonds being first lien on the various properties
except in the Of the Federal Steel Com
pany which already has underlying bonds 10
the amount Of several million dollars The
bonds, ii is added. would be additionally safe
guarded by the fact that the issuing companies
would he under community Of control
on the other hand, there were not few VINO
believed that a consolidation was beyond the
limits Of possibility. The Carnegie company.
they pointed out. simply corporation own
ing the securities Of the Carnegie Steel Company
and certain other subsidiary corporations. all
operated independently Of one another. but. of
course, under one general control: and it might
be found feasible. it was added. to extend the
application Of the same principle include some
OF the steel companies controlled by or in SYM
pathy with the Morgan interests
There were rumors yesterday that a hitch had
occurred IN the working out Of the plan for
! taking over Mr.. Carnegies stock, opposition 10
the agreement having been manifested by
some az the minority stockholders Of the
1 Carnegie company. who feared that they
would receive terms less advantageous than
those arranged with Mr.. Carnegie; but these
reports We're not generally credited al
though they had a serious effect upon the
stock market one Of the minority shareholders
rumored 20 be dissatisfied with the present out
look Henry .. Frick who holds II 4Si
shares Of the stock. The run1ors are lining in
positveness in the Street that Mr. Frck who
has always been understood 70 he on the most
friendly terms with Mr.. Morgan viii OCCUPY a
conspicuous place. If not the most conspicuous
as executive officer OF the Carnegie company
or II the possibly larger corporation when the
purposes of Mr.. Morgan shall he formally an
nOunced
advances over Wednesdays final prices and con
tinued strong. although with occa sional reces-
sions due 10 heavy realization selling, until the
last hour. when sharp break occurred followed
almost al the very close by partial rally. Fed
eral Steel common sold between 80 and 55Ii
closing At 5l7-. net loss Of 2i per cent for the
day. The preferred sold 1SIa and as high as
81 the closing quotation. SOL. being 1le per
cent lower than the preceding days close
American Steel and Wire common ranged be
tween ASie and -; closing At 5O24 net decline
Us points, while the preferred host only Il per
suffered a I Tvint decline. National Steel com
mon lost IL points. National Tube common
Ia and Republic Iron and Steel common IL.
Tin Plate common advanced H. points
There Was story current in Wall Street
thar tho idea of buying out Mr. Carnegie's in
terests originated about month ago at a din
ner at the University Club given by i. Edward
simmons. president Of the Fourth National
Bank, among whose guests were Mr.. Carnegie
c NJ. Sch~ap, president of the Carnegie Com
pany. J. j. Morgan and score of other prom
inent finanCiers.
II was said Yesterday. upon what was declared
10 ne competent authority, that a few days ago
MI Carnegie asked a prominent investment
house Tor its list Of offerings Of guaranteed
stocks and other investments Of the highest or
der. After a brief calculation with pencil on the
margin Of the circular lists he bought the entire
amounts OF everything offered.
ARTICLES OF AGREEMENT SIGNED