New-York tribune., 1901-01-20
THE LOCAL SITUATION.
FEDERAL, sTEEL?s INTENTIONS TOWARD
STEEL AND WIRE-MORGAN AND
TIE CARNEGIE HOLDINGS.

FEDERAL STEEL'S INTENTIONS TOWARD
STEEL AND w1RE-MoRGAN AND
THE CARNEGIE HOLDINGS.
While men were to be found in Wall Street
yesterday who declared that the story from
Chicago Of prospective control Of the American
! Steel ard Wire Company by the Federal Steel
7 Company had been put out purely for specula-
tive purposes many careful observers were Of
.he opinion that there might be something in
it." Federal Steel interests declined TO COM
ment one way the other on the Chicago story,
the appearance Of which caused revival of the
Tumor that the request made several weeks ago
by a Wall Street brokerage house for American
Steel and Wire proxies in the interest of the
Federal Steel Company. The Steel and Wire
Company. at present is in an entirely inde-
pendent position, and il is argued that
its ''harmonization" would be a natural pre-
liminary to a final and permanent adjustment
of the rivalres Of the great steel companies such
as would be secured through the purchase in
the interest Of the Federal Steel Company Of
Andrew Carnegie's stock holdings in the Car
negie Company. That negotiations are still pro-
ceeding between J. Pierpont Morgan, acting for
the Federal Steel Company, and Mr.. Carnegie
for the transfer OF the latter's controlling in
terest in his company, and that there is good
prospect that the two men viii reach a agree
well informed Wall Street men to be fact.
The Moore properties" have in the past been in
virtual accord with the Carnegie interests. and
It is reported now that any arrangement for
control OF the Carnegie Company by Federal
Steel interests will be found include a pro-
vision for control also Of one of the four Moore
companies, which would mean substantially con-
troll Of all four, identical interests dominate
all
Mr.. Carnegie's stock and the controlling in
terest in the American Tin Plate Company. it
is said, may not pass directly TO the Federal
Steel Company, hut may be turned over to MI
Morgan, 10 be held by hiEc as trustee. Such an
operation il is said, would not require the rails
ing ana payment of a prohibitive amount or
actual cash.
1t has always been Mr. Carnegie's policy, a
policy which has required courage Of high or
der TO spend money with the utmost freedom
IN keeping his various plants UP TO date. No
piece Of machinery. however costly, has been
allowed 10 remain in place long enough to be-
come in any degree obsolete, and every I'M
proVement in equipment has been promptly
adopted by the Carnegie company me aver
age length of service Of its machinery II Is SAID
has been only about five years. The result OF
adherence to this policy, large as has been the
expenditure involved, has been to make the
Carnegie plants the perfectly equipped proper
ties they are to-day. and 10 give them an enor-
NOUS advantage over any Of the competitors OF
the Carnegie company, although some OF those
competitors, like the Federal Steel Company,
also admirably equipped Under all these
circumstances, and taking into consideration
also the vast reserve resources Of the Carnegie
company from the placing of its Sl60OOOOOO
bond issue, an important element in Wall Street
believes that there is nothing improbable in the
opinion that when Mr.. Carnegie expresses
willingness to dispose OF control or the Carnegie
company Mr.. Morgan, representing the inter
ests Of the Federal Steel Company, the National
Tube Company and the American Bridge Com
pany is on his part willing 10 enter into nego-
tiations with Mr. Carnegie; for the alternative
st seems, is war, with the Carnegie company
on the aggressive.
Chicago, Jan. 19.-John Lambert, of the Amer
ican Steel and Wire Company, said that he had
TO knowledge Of the reported purchase by the
Federal Steel Company interests of a control
ling interest in the stock OF the American Steel
and Wire Company.
II know nothing about the Federal Steel Com
pany having acquired stock IN company"
said Mr.. Lambert. Il hope ii is So because
Morgan and his followers are good people to
have as stockholders in a corporation. But so
far as know there is not word Of truth in
the present rumors."
Nathaniel Thayer, of Boston, Of the lead
ing officials Of the Federal Steel Company, also
said that he had heard nothing concerning the
proposed absorption OF the American Steel and
Wire Company, and could not understand how
his name came TO be used in connection with it.