The Billings gazette. [volume] (Billings, Mont.) 1896-1919, 1901-02-26
STEEL MERGER AN ASSURED
FACT.
OVER ONE BILLION DOLLARS
Capital Stock Of Corporation Will
Be Floated at Home
and Abroad.

New York. Feb. 25-Oficial an
nouncement of the Morgan steel COM
bine will probably be made tomorrow.
Up to a late hour tonight it looked as
if a statement would be made in time
for the morning papers. but after a
protracted conference at the Office of
J. p. Morgan & Co., Robert Bacon,
member of the firm, said the official
announcement would have to be with
held for another day. .
The nominal capitalization of $500
of the United States Steel corpora
tion is understood to mean that the
incorporators have simply taken pre-
caution to file papers before anyone
else claims the chance to use the title.
The incorporators include ex-Judge
Curtis, who is a partner of William
Nelson Cromwell of the law firm OF
Sullivan & Cromwell.
Cromwell, President Gary of the
Federal Steel company, Max Pam, rep
resenting the American Steel and Wire
company, and Francis Lynde Stetson,
who is one of Morgan's confidential
advisors, were in conference a greater
part Of the day. With these gentlemen
from time to time were representatives
of the various concerns which are to
form the great combination. There
were uniformed statements that COM
mittees representing these companies
had prepared circular letters to be sent
to their stockholders, and that these
letters gave the exact terms and all
details and that the shareholders would
be urged to accept the terms set forth.
A director of the American Steel and
Wire company said of this: II do
not know what the directors of other
companies interested may have done,
but l can say that as yet we have pre-
pared no letter for our shareholders. +"
Morgan B Go. are declared to have
made all arrangements for financing
the commission. They have also, ac-
cording to reports, completed all de-
tails necessary to the exchanging of
old securities for new. Regarding the
securities of the company, a prominent
bank official was quoted as saying that
not more than 81, 500, 900 of actual
cash would be necessary and that this
sum had already been put aside by the
underwriting syndicate.
Speedy applications will be made,
it is said, to list the shares of the COM
pany here and on the London stock
exchange. The underwriting syndi-
cate is said to have offers for shares of
the new combination aggregating
about 500, 900, 90. It is reported that
London, Paris, Berlin and Frankfort
bankers have taken kindly to the ad-
vances of the underwriters.
From a we'll informed source comes
the statement that the United States
Steel corporation will have 81, lOO,-
600, 900 capital stock. OF this $780,
0O0, 900 will be 5 per cent general
mortgage bonds; $500, 900, 900 of z per
cent preferred stock and $500, 900, 900
Of common stock.
The corporation will take over the
Carnegie Federal Tteel, Steel and Wire
and the others companies named, by
the exchange of stock. The valuation
OF the subsidiary concerns have been
arrived at by close examination of
their assets, as we'll as of their earn
ing power. Moragn is said to have
declared that without the combination
the companies to be absorbed in one
would have spent for betterments at
least $50, 600, 900 a year for the next
five years. With the element of COM
petition eliminated, it is figured that
all, or nearly all OF this will be saved.