Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1901-02-19
THE BEHEMoTH COMBINE.


THE BEHEMOTH COMBINE.
The new Billion Dollar Steel Trust
is said to have been In process OF in
cubation many months ago and that
the charters of companies compos-
ing It were then altered so as to per-
nit the consolidation. The companies
are: Carnegie Steel Company, Federal
Steel Company, American Steel and
Wire Company, Rockefeller Ore and
Transportation Interests, National
Steel Company, American Tin Plate
Company, American Steel Hoop Com
pany, American Sheet Steel Company,
National Tube Company and American
Bridge Company. Under their original
charters most of these companies
could not have entered such combine
without the consent of the minority
stockholders, who would inevitably
have protested against the deal. There
fore each company months ago put
into it's charter this provision giving
the board of directors power:
with the consent in writing and pur-
suant also to the affirmative vote of the
holders of a majority o. the stock, issued
and outstanding, at a stockholders meet
ing duly called for that purpose to SELL
assign, transfer or otherwise dispose of
the property of the CORPORATION as en-
tirety, provided always that a majority of
the whole board concur therein
This enabled the majority to force
the minority stockholders to accept any
price they pleased for their stock pro-
viding all shared alike. By this
means Mr.. Morgan has been enabled
to dispose OF all the stock of all these
companies by simply controlling a
majority of it, and to herd the compa-
MES together into the new billion trust.
An ingenious provision in the char
ter of the new monster trust is this:
The company may cause or permit the
title of any property or business acquired
to be or remain in the name of any indi-
vidual or of any other company and man
aged for this company, this company
may take over and carry on the business
of any other company or companies Ell
Their by acquiring the shares of stock or
any securities controlled by mortgage or
otherwise and thus exercise all the pow
ers of holders of the shares of stock there
of, manage its affairs, elect it's officers and
hold its control, and as well receive and
distribute as profits the dividends or in
terests, as the case may be. on such stock
or security and distribute them as divi-
dends on the stock of this company
This enables the billion trust to
component companies all into its own
arteries.
But all is not plain sailing for the
colossal combine yet. Although the
minority stockholders have no say in
The formation of the combine, they still
own their stock and heye some power
left to harass Mr.. Morgan. 1t is limited.
however, that if Mr. Morgan fails to
pacify these small holders with money
he may deal with them with a club.
He may make the market so shaky for
their stocks that the banks will refuse
them as collateral and they will be
glad to let 60 1t is familiar method
which the big fellows have of shaking
out the small holders, and it rarely if
ever fails to work if continued long
enough. In this case it may take a
long time, as there are said to be $4,000
individual stockholders in Federal Steel
alone and many of the other compa-
MES, except the Carnegie concern, have
almost as many individual holders. To
unite these and discipline or shake out
the refractory ones will be a Hercu-
lean undertaking. But it must be done
before the vast properties of the alb
sorbed companies can be united.
According to the New York World.
the new billion trust had It's origin
years ago when ]. Pierpont Morgan
promoted and financed the Federal
Steel Company with a capital of $780,
100000, of which S1OO,0O0OO0 was re,
tanned unissued. The object of this
company was to get control of the iron
mines of America and of the worlds
market for iron and steel. Almost i'm
mediately there sprang up seven or
eight rivals-Tin Plate, National Steel.
Republic Iron and Steel, American
Sheet Steel and American Steel Hoop
being chief among them. william H.
Moore and other able men caught Mr.
Morgan's idea and developed it In q
way that fatigued him. An independ-
ent factor was Andrew Carnegie who
possessed moro mAnes, more manufac-
turing plants and more abiliH = mar