The Morris County chronicle. [volume] (Morristown, N.J.) 1877-1915, 1901-02-08
THE BIG STEEL DEAL.
Reported Combination Excites
Wall Street.
MEN IN THE MOVE WON'T TALK.

1t Is Pretty Sure. However, That
Carnegie Has Sold His Interests to
the Morgan Syndicate-A "BfIIfen
Dollar Company
New York, Feb THE announcement
that Andrew Carnegie had disposed of
! the control of the Carnegie company to ].
| Pierpont Morgan and his associates at
| tracted widespread attention among bust
ness men here. Not only Wall street, but
the entire community as well, appeared
| deeply interested in the transactions con
nected with what the local newspapers
! denominated ''billion dollar steel com
bine" 1t was the absorbing topic in ev-
cry brokerage office, and under persistent
| repetitions of the report the stocks of the
leading steel companies made rapid and
violent advances. AS far as positive di-
| rect information is concerned there was
| practically none to be had from Messrs
Morgan and Carnegie Mr.. Morgan, who
is credited with being at the head Of the
| syndicate which has purchased the con-
trolling interest in the Carnegie company,
declined to confirm or deny the report
while Mr.. Carnegie as well would make
no statement whatever. The fact, how
tNOls thdt lncSC tWO lueu pSIDilLeu Tie
reports to continue in circulation without
even attempting a denial was generally
regarded as a strong indication that they
We're well founded and there was some
thing ; the manner in which the reports
were put forward that added to the gen
eral public confidence in their credibility
Numerous alleged semiofficial statements
were put forward, but these could not be
fr.oa hca1 10 L.. AZ. 4
According to these reports j. Pierpont
Morgan is at the head of a syndicate
which contemplates the organization of a
mammoth steel combine to include the
Federal Steel company, the National
Steel company, the Steel Hoop company,
the Sheet Steel company, the American
Steel and Wire company and the Ameri-
can Tin Plate company. The consensus
of opinion among bankers and brokers
seemed to be that what Andrew Carnegie
had really done was to sign contract to
deliver his stock holdings in the Carnegie
company to ]. p. Morgan & Co All
statements as to the price to be paid by
Mr.. Morgan and the business men asso-
ciated with him in the transaction appear
to be mere idle speculation.
Some DOubters
Some business men who in the natural
order of things would not be particularly
friendly to huge combination of this
character did not hesitate to call atten-
ton to the fact that in the spring of
1899 there were very positive rumors
that control of the great Carnegie inter
ests was to be transferred and that an
option had actually been begun by Mr..
Carnegie. Nevertheless the deal fell
through. 1t is claimed that Mr. Il G.
Frick and men associated with him
actually paid at that time $1,000,000 in
cash TO bind the bargain and that failing
to secure the necessary capital Mr.. Car
negie profted by this particular trans
action to the extent of $1,000000 Ii
was claimed by these men that the pur-
chase could have been effected at that
time at lower scale of prices and that
$50,000,000 il cash only would have
been necessary, whereas a considerable
amount of capital would be needed
now On the other hand, interests in
Wall street friendly to Mr.. Morgan did
not hesitate to call attention to the fact
that conditions have materially changed
in the last two years, that this is the day
of big things and that the men now re-
ported to be anxious to secure control of
the Carnegie interest are vastly stronger
in the world of finance than the men who
planned the great steel combination two
years ago.
All reports seem to indicate, however,
that Mr.. Carnegie has obtained higher
price for his stock than was indicated
in the proposed great steel combination
of 1899. Railroad and steel experts ac-
counted for this in two ways. First,
that the price of stocks in general and
steel stocks in particular had advanced
during the two years. Second, that Mr.
Carnegie, having secured an independent
railroad line from his plants in western
Pennsylvania to Lake Erie and having
undertaken large operations in connec-
ton with the town and the harbor of
Conneaut, in Ashtabula county, O., and
having planned an independent railroad
through southern Pennsylvania to tide
water as well, was in a position to ask
from the men associated with j. Pier
pont Morgan a higher price than he
could have positively obtained two years
ago.