New-York tribune., 1901-01-19
NAY BE PEACE OR WAR.
WALL STREET STILL UNCERTAIN AS TO
THE OUTCOME OF STEEL
NEGOTIATIONS.
NEGOTIATIONS.

Wall Street has not yet made up its mind
whether il is TO be peace war between the
Carnegie Company and the several steel COM
panies and groups Of companies which the
natural competitors of that vast corporation,
although il incllnes to the idea of peace. Or
one point there is agreement-that Mr.. Carnegie
is willing. and probably now a trifie more than
passively willing, TO dispose of his controlling
interest in the stock Of the Carnegie Company.
But widely divergent views are expressed as to
the attitude in the matter of Mr.. Morgan and
his associates. one man, who should be ac-
quainted with the situation gave it his
opinion yesterday that the persistent rumors Of
combination would prove to be only "a flash III
the pam" Another. who is in touch With the
Morgan interests. while conceding that it would
be of mutual advantage that there should be a
close alliance between the Carnegie Company
and the Federal Steel Company, insisted that
Mr.. Morgan had no serious intention Of seeking
10 purchase Mr.. Carnegie's stock in the inter
est of the Federal Steel Company giving as the
reason that the sum of money involved was SO
vast as 10 make it impossible for Mr.. Nor
gan to finance the operation. Other financiers
also recognize the magnitude Of the transaction
but say that there is one man who could swing
the DEAL" and that that man is the head Of the
banking house of j. P. Morgan & Co.
1t is not yet fully apparent that the directors
OF the Federal Steel Company themselves know
just where they stand how far the Carnegie
company is prepared TO go. The Carnegie COM
pany has in the past been one of the most
reticent of corporations. In rapid succession
within the last few days. however, have come
a whole series of announcements and intima-
tions as to its purposed moves in various direc-
tions-the report that the independent Carnegie
railroad to tidewateI would be soon begun, the
news that $12000o00 steel tube plant would
be constructed at Conneaut Ohio the announce
ment that a sheet steel plant would be installed
at Duquesne. and the report that a big snip
yard and drydock would be established at
Conneaut not TO speak Of references TO projects
for entering fresh fields Of steel manufacture.
The carrying out of these plans, il is felt,
would result in arraying all the other steel COM
panies against the Carnegie company and
plunging the steel industry into a which
would prove disastrous TO some of the weaker
combatants. and costly and wearing TO the
strongest. So in tie financial district and in the
steel trade the present policy Of the Carnegie
company is freely characterized "bluf-"
The Federal Steel Company, the largest and
most powerful of the steel companies apart from
the Carnegie company, is the corporation which
10y common consent would be the most likely 20
take over the control of the latter property and
the observers who believe that Mr.. Carnegie has
and the sheet steel plant also believe that the
Federal Steel Company's reported purpose of
constructing a great structural steel plant near
Chicago viii not be carried into execution. their
theory being that the Federal Steel mana cement
Will decide TO intrust to Mr.. Morgan. who is IN
fluential in the National Tube Company as well
as interested in the Federal Steel Company, the
task Of permanently "harmonlZing the carnegie
company, through arranging for the acquisition
of Andrew Carnegie's % per cent OF the STOCK
of that corporation. The Moore properties
also il is SAID may figure in this operation
The American Tin Plate Company On Tuesday
astonished Wall Street by declaring an ; per
cent dividend on its common STOCK ana an
nouncing that its net earnings Tor lJOO hau been
largely in excess Of the amount represented by
this dividend figure; and the theory was ad-
Vanced that this big company, too, was put
ting its best foot forward, with the eXpecta-
tion or the hope of being included in scheme
of virtual consolidation with the Carnegie COM
Pany and the Federal Steel Company. The four
Moore properties-the Tin Plate company the
National Steel Company, the American Steel
Hoop Company and the American Sheet Steel
Ccmpany-are operated substantially a unit,
although each is distinct from the others
organization, and the bringing OF the American
Tin Plate Company, for example, into the Fed
eral Steel fold would be practically the bringing
OF all four into alignment with the Federal Steel
Company and the Carnegie company. Ex-Judge
William II Moore, il may be remembered was
M associated with Henry c. Frick in the unsuc-
III cessful effort year and a half ago to carry
out the agreement whereby Mr.. Carnegie was to
dispose Of his stock holdings to Mr.. Frick, and
it is thought that Judge Moore would readily
cooperate with Mr. Morgan in carrying out the
present rumored plans for unfying the most in
hnential Of the steel corporations
There were conferences downtown Yesterday
OF Federal Steel interests, and conferences up
town OF Carnegie interests President Schwab
OF the Carnegie Company, who has been in town
for two or three days. spent most of the day
yesterday in consultation with Mr. Carnegie and
az $50 o'clock at night started for Pittsburg
Mr.. Carnegie could not be seen last night.