The evening times. [volume] (Washington, D.C.) 1895-1902, 1901-01-10
cAREEcE AND THE TUBE TRUST
Stockholders in the Monopoly
Alarmed at the New Rival.

Alarmed at the New Rival
NEW YORK, Jan 10--No announcement
of recent months respecting the forma-
ton Of an industrial enterprise has ex-
cited such general discussion in financial
circles as that concerning the cree
ton by the Carnegie Steel Com
pany of a So, O00. eco tube-making plant on
the shores of Lake Erie National Tube
stocks, at the possibility Of competition.
opened very weak on the stock exchange,
the preferred declining II II points and
the com N + points, though they later
recovered some of this loss.
Although rumOrs concerning the extern
sion Of the Carnegie business have been
frequent of late, President Schwab's state
ment was everywhere recognized as Civ
ing the outline Of a carefully formulated
plan Whether the Carnegies, as result
of the move, would reach some under
standing with the National Tube Company,
which now practically controls the trade,
and thus prevent ruinOus competition,
was the subject of chief interest to all
concerned with the welfare Of both cor
porations.
Edmund c. Converse. President Of the
National Tube Company. would say moth
ing for publication But a gentleman who
was instrumental in bringing about the
consolidation of the properties owned by
the National Tube Company. and who is
thoroughly familiar with It's present his
tory and negotiations. intimated that
there would be no serious strife between
the separate concerns.
Anyway, the Carnegie project is q tong
way on, - he continued 1t Will take two
years TO equip the proposed plant and get
ready for business Many things may hap
pen before then. We have always main
talned pleasant relations with the Carnegie
people, purchasing from them some Of our
supplies. and il seems scarcely possible
that Mr.. Carnegie would now run counter
TO US in everything"
Then some understanding has been
reached respecting division Of business, or
avoidance of complications incident 10 dis
asterous competition
We'll. there Is noting for stockholders
Of either company TO be alarmed about"
Has there been any sort of an agree
ment reached"
Il cannot enter into details"
A similar inference was drawn from the
remark of a banker in close association
with representatives of both interests. He
thought there was greater profit in peace
than in var" Both companies know
that" he added and while il is too early
TO discuss the outcome OF negotiations
TOW under way, it is reasonable TO sup
pose that two such powerful corporations
will not ignore h advantages of concen-
tratiOn and mutual CONCESSIONS
Whether an agreement is reached or not
the incident is regarded of first significance
IL showing that no corporation is secure
in a monopoly. and that none can con-
troll the market for product in the face
Of wel-organized outside competition.
With the Lake Erie plant in operation,
just east of the ConneauJ harhor docks,
he will he la1 70 Oh
shipments while navigation i open, re
sulting in an economy in transportation
charges of from one-third 10 One-fourth
the rates asked for rail shipments. This
will give the plant an enormous advan-
tage over conditions governing present
deliveries, and will make available for
coke carrying purposes hundreds of emp
" cars now returned daily TO ore-ship-
ping points. From Conneaut. water com
munication with Eastern ports can be
had by the canals. and with Chicago, Mil
waukee. Cleveland, and Pittsburg, by the
lakes.
The National Tube Company has its
largest plant al Pittsburg Others are
located at CohJes, N Y, Versailles. Pa.
Syracuse, N Y, Warren Ohio. PhiIadeI-
phia, Pa. New Castle. Del. Chester, Pa
Youngstown, Ohio, Middletown, Pa, and
Wheeling, W. Va. The company manu-
features tubular goods for the production
and utilization of light, heat, and water,
as we'll as many specialties. such as
shrapnel cases, projectile forgings. and
other forms of war material Its capital
stock is $4,000 000, one-hRf common and
one-haI preferred It pays dividend Of
per cent, on the common and 7 per cent
on the preferred but has earned cousid-
erably more. 1t has large cash surplus.