New-York tribune., 1901-02-14
NO HITCH IN THE DEAL.
AMERICAN STEEL AND WIRE NOT TO
WITHDRAW FROM STEEL COMBI-
NATION-TALK ABOUT THE
PRFSIDENCN
PRESIDENCY

Ruuors regarding the steel situation flew thick
and fast yesterday IN Wall Street. One story
had II that serious hitch had developed in the
negotiations for the absorption of the various
steel companies into the projected gigantic new
corporation and another that the existing COM
panies would go into the new combination on
the basis Of their inventory valuation Dis
patches from Pittsburg declared that Mr. Nor
gan had yielded to the alleged insistence Of Mr.
Carnegie and would place Charles NJ. schwab'
president Of the Carnegie company. and not
Henry &. Frick at the head of the new cor
poration. There were dire reports. too that
certain minority stockholders of the Carnegie
company. conceiving that the terms 10 he
granted them we're not as adva ntageous as those
arranged with Mr.. Carnegie for the purchase
of his holdings. would institute court proceed
ings to prevent the consolidation of their COM
pany with other steel companies. The latest
rumor of all was that the American Steel and
Wire Company was not 10 enter the combina-
tion.
1t may be said the best of authority that
there has been no hitch in the negotiations,
which are proceeding uninterruptedly, and there
seems to be no basis for the report of the with
drawaI of the American Steel and Wire Com
pany The Executive Committee Of that com
pany met yesterday, and after adjournment Mr..
Gates. in answer to a question declared that
matters in the proposed combination were pro-
ceeding favorably, and intimated that an an
nouncement might soon be made, At the office
OF j. p Morgan & Co. late in the afternoon the
statement made that no news bearing on
the matter known there.
Mr.. Schwab was at the Office OF J. P. Morgan
& Co yesterday, but ne. we'll as members of
! that banking house refused 10 talk for publ
/ cation concerning the report that he was TO be
president of the company. The Pittsburg
dispatches said that the selection of Mr.. Schwah
had been definitely made yesterday. but Wall
Street still believes that Mr.. Frck will be des-
ignated for the post, arguing that. as Mr.. Car
! negie many days ago signed a contract OF sale
of his stock holdings 10 the Morgan interests.
! he is hardly in a position now 10 insist upon
! Mr.. Schwab's election 10 the presidency OF the
! new corporation.
! Of the so-called young partners OF Mr.. car
negie are apprehensive about the terms To he
given them. and persuaded that they will not
/ fare well as Mr.. Carnegie. II Is not neHeved
that they will go 10 the length Of starting M
cation TO secure what they conceive 20 be their
rights Judge Gary In his statement last week.
/ II NAV be remembered. said that the minority
shareholders We're 10 be fully protected, and II
is believed that that assurance still holds good.
although Carnegie minority holders VIII PROB
ably get stock. and not bonds, OF the new com
/ many in payment for their respective holdings.
| one OF the news bureaus said yesterday that
\ the several companies which are 10 enter the
| combination with the Carnegie company VIII go
/ in on the basis OF their inventory valuation. ~
| was sought TO show that such basis would
prove especially advantageous in the case OF the
| Federal Steel Company, because OF the ValuabIe
| nIsnts owned by some Of its constituent com
| panies such as the Elgin, Joliet and Eastern
| Railroad and the Minnesota Iron Company An
| official Of the Federal Steel Company. when
/ asked about this point said that thorough un-
! derstanding had not Yet been reached. and that
! until other details had been settled this would
be held In allegiance.
| Several hundred shares OF Carnegie company
stock we're offered the "Curh' yesterday AZ
I | ,O1 but no sales were effected The common
stocks OF the other steel companies made net de-
I cliues amounting in some cases 20 nearly 3 per