The Middleburgh post. [volume] (Middleburgh, Snyder Co., Pa.) 1883-1916, 1901-02-28
Steel CONSOLIDATION.
Tho Monster Combine Files Arti-
clos Of Incorporation.
FOREIGN BANKERS NAY INVEST.

viii Nave F1,1OO,OOO, 900 of Capital
stocL-Morgnn Predicts Big Saving.
New York, Feb. 26.--OfIicial an
rouncement Of the Morgan steel COM
bine will probably be made this after
noon. Up to a late hour yesterday az
ternoon 1t was expected that the state
ment would be made public In time
for this mornings newspapers. but
after a protracted conference at the
office of J. p. Morgan & Co. Robert
Bacon, a member of that firm, declared
that the official news would have to be
withheld for another day.
Articles Of incorporation Of the Uni
ted States Steel corporation were filed
yesterday at Trenton, the incorporators
being Charles C. Cluff, William j.
Curtiss and Charles MacVeagh, all OF
Hoboken, N. J.
The nominal capitalization Of $4,000
Is understood to mean that the incor-
poratois had simply taken the pre-
caution to file papers before anyone
else might have chance to use the
name. The incorporators include ex-
Judge Curtiss, who Is partner OF
William Nelson Cromwell, Of the law
firm OF Sullivan & Cromwell.
Mr.. Cromwell, President Gary, Of the
Federal Steel company; Max Pam
representing the American Steel and
Wire company, and Francis Lynde
Stetson, who is one of Mr.. Morgan's
confidential legal advisers. were in con-
ference the greater part Of the day.
With these gentlemen from time to
time were representatives Of the vari-
Gus concerns which are to form the
great combine. There were uncon-
firmed statements that committees
representing these companies had pre-
pared 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 di
rector OF the American Steel and Wire
company said Of this:
81 don't know what the directors of
the other companies interested may
have done, but can say that as yet We
have prepared no letter for our share
holders"
Another bit of gossip was to the ef-
feet that both the American Bridge
company and the National Tube COM
pany would be left out of the combina
tion. These concerns are credited with
being dominated by Morgan interests,
so that the rumor that they were not
to 60 in was accepted with much reser-
walton. None OF the principals or af-
fcers Of the companies would discuss
the matter at all. "'.'
Morgan & Co. are declared to have
made all arrangements for financing
the combination. They have also, ac-
cording to reports, Tt ipleted the de-
tails necessary to the exchanging of
old securities for new. As to the flota-
tion Of the company, prominent bank
officer was quoted as saying that not
more than $l5,000,000 of actual cash
would be necessary. and that this sum
had already been put aside by the un-
derwriting syndicate. Speedy appli-
cation will be made, It is said to list
the shares Of the company here and on
the London Stock Exchange. The un-
derwriting syndicate is said to have Of
fers for the shares of the new COM
pany aggregating about 500, ,000,0 900. 1t
is reported that London, Paris. Ber-
lin and Frankfort bankers have taken
kindly to the advances of the under
writer's.
From well informed source comes
the statement that the United States
Steel corporation will have$1 100 900, 900
OF capital stock. or this $500 900 ,OOO
will be per cent general mortgage
bonds, $400 900 900 of Z per cent pre-
ferred stock and $4O0,O00,OO0 of COM
mon stock.
The corporation will take over the
Carnegie, Federal Steel. Steel and Wire
and other companies by an exchange
of stock. The value OF the subsidiary
concerns has been arrived at by a close
examination Of their assets, as well as
Of their earning power. Mr. Morgan is
said to have declared that without q
combination the companies to be alb.
sorbed in one would have spent fol
betterments at least s50,0O0,OO a yeal
for the next five years. With the ele.
ment Of competition eliminated it is
figured that all or nearly ali of this
will be saved.
The objects Of the corporation are tc
manufacture steel, iron, copper ant
other materials, and to own, operate
and develop mines. and to own lines
Of transportation. The provision /.
made that the corporation shall no
own a railroad in the state Of New
Jersey.