The evening times., 1901-04-16


and 3, 10 in preferred on August l',
I>9S. after the company had passed
through three or four years of VlciSSItude
and ther" were overdue dividends on the
accUmuIative preferred stock amounting
to nearly 100 per cent. 1t was decided 10
cut the capital stock in half It was
therefore, reduced TO SINII6-'HA After this
/ reduction in the capital stock ther" came
the great Industrial boom of the country
and the company has been making great
ft.ll Of money. All of the back dividends
on tie preferred stock were paid and the
stock was again increased. this tine t.
S-2-uy1Un- and the company has paid Two
dividends. one of 6ie per cent Ia 1890 OF
the common and , per cent in 1893
on" of the greatest OF SfT- MOrgaU'S 3 re-
organizations is the Federal Steel Com
panH, which was brought out by him on
= ptcmber ., lH9S- The company was Il
combination of the Minnesota Iron Com
p1ny and the Illinois Steel Company tn
Iclgiu, Joliet. and Eastern Railway Com
p%ny- the l-Oraiu steel Company Of Ohio.
and the LOrain Steel Company of Penn
ss-ivania. To acquire these companies the
Federal Steel Company paid out S1I3tl. 45+
III cash and issued 81, ,6ig shares of prefer
red stock and i6i.Ni3 of common stock In
addition 10 that II paid S5-g3Urg ia cash
for additions to the IOTdiu property This
made q total Of Sil4. oS6.6 .654- The auThoriz-
I'd capita @ !ization Of the new trust was
2-VJ.uOu-hn- Since - organization the Fed
eTal Steel Company has paid but two dIIi-
! cvIlt4S on Its common stock, "a per C"D-
was paid in 1909 and per cent ia Feb
rlIlry of the present year.
Another of Mr. MOTgan-S ventures has
been the organization of the National
CasSet Company, to manufacture and
sell cdSketS, collins. and funeral supplies
The company has capital stock UI
$os H-t& II Is a paying venture
On February -. 1889. aiT. Morgan
The original capitalization of the com
pany was $!5.ts1. This was. however. III
creased To &1oga-to1 common and $i1-G9363G
preferred stock 1t was a combination of
the principal tube organizations and iron
pipe works 6 the country Nearly all
! the preferred stock except Mr.. Mgrgan's
allotment was paid out TO the owners of
/ the various plants as purchase money and
! the S4V.el.glI of common stock except the
portion reserved for the syndicate was
/ distributed as q bonus BlEiGcnuS on the
preferred stock were begun on October ,.
/ 1889. One dividend Of Der cent was paid
J on the common stock in 1885 quar-
J terry dividend of - per cent was also paid
( IN FEBRUARY of the present year. Thus
( far per cent dividends have been paid on
I the preferred stock.
{ Early IN 1900 MI Morgan undertook the
/ organization of the American Bridge Com
( pa1y. which was consolidation Of all the
/ principal makers OF bridge. iron; and
! structural iron for bridge building iH the
/ tinted States The company controls
! abcdt 90 per cent of the bridge tonnage of
! the country. The authorized capital stock
! OF me companies consists Of 30 Goa. 600 of
/ Per cent aCcumuiatiVe preferred stock
! and S35.a51G09 Of common stock The Sc
I cuTitieS OF the company are 70 be held for
/ q'rWTIIEE syndicate The preferred stock
( has paid but one dividend of 25x per cent.
( This was paid in January OF the present
Mr. Morgan had hardly completed the
: organization OF the American Bridge
/ Company when the aSf5rs- --ssveuess of the
/ pennsylvania Coal Company. which was
I the leading independent operating com
paUy in the I.IckaWaQuI- Valley. began
! tn attraC' his attention. The PeUnsylva-
MIA Coal Company was owned by the
/ heuicgi Bank. the Central Trust Com
( paUy. Mrs IetJy Green and group OF
/ miiiionairrs who were not wholly friend
/ ~ 20 Mr. Morgan They We're lacking
/ the new Wyoming Valley Railroad which
! vas gradually pushing its way from
/ NilkeSbGrre to the water. along the aba1-
Gofled rlgtit OF way to the Delaware and
! Hudson Canal To allow this railroad TO
/ be built would have been fatal 20 the in
! terestS Of the Erie Railroad. with which
/ Mr.. Morgan Is so closely identified. There
/ was only one way to prevent II and that
I Was 90 buy the Pennsylvania Coal Con-
! uanv. which was the mainstay Of the in
dependent road
When LIr. Morgan started the ueEotia-
tIouS for the purchase of thu coal com
1 pasy the shares of the PtunSyIya MIA Coal
/ Company were fuu b1I on the market.
/ Within few days tine stock advanced To
- share IC was finally announced on
December a that syndicate formed by
) = Morgan K Co. had acquired the
I Pennsylvania Coal Company at 552 per
cent OF NZ4E q share the par value Of the
Z stock heiI 9 so q share IL was also an
il certain assets OF the company Vaiued
IT $3.50 d share. making the actual value
OF the stock after the Morgan purchase
| - per cent Of par.
\ few days after the announcement
that the Morgan syndicate had purchases
! the PenHsy Ivauia Coal Company J p
/ Morgan K Co. announced that they had
! sold the company to the Reading Rail
! It a slight advance above II" price they
[ had paid The slight advance amounted
| to S9oD.Wp- which was the profit which
/ NfT. Morgan made ont Of the deal. which
| took abOIt thirty days Th- minority
/ stockholders OF the Erie Railroad. con
| SideTed that this advance was eNoTpitanJ
and brought suit in the courts 10 re-
strain the sale The Supreme Court. how
ever. decided that in view Of the amount
of capital involved and the enormous c&-
! tent of th- deal. Mr.. hiorEaas profit
OF Sg.gO 60 was not diSpropOTtionate-
The last Of the great deals which Mr-
| Morgan made this year prior To the or
ganization Of the United States Steel Cor
DDratiCn was the purchase OF the JtFSeJ
Central Railroad from tn First National
Bank crowd and the sale. thereafter. %
the Reading Company at Sl5p per share
The terms Of the purchase Of the Central
Railroad OF New Jersey from the First
! National Bank Interests have never been
disclosed, but II IS stated upon very good
| authority that MI Morgan bought the
stock At 80 fat He Therefore made a
| profit oI 10 per cent on over --.DJ SndTsS
| of stock His profit on this deal was 8
| GgGUub- Immediately after tho purchase
| the directors Of the Reading Company
| met and ratified the deal. AIr. Morgan
controls a majority Of the stock of the
| Reading Company
The public Is familiar with tho public
I details Of the formation OF the United
/ States Steel Corporation. 1t remembers
I hat the properties whose aggregate cari-
! tai stock is less than SIip.vUD 900 is ca pi-
! taIiZed and bonded at over $ltgu.guG oB.
! There are some details Of this OTganiZa-
| ton however, which have not been made
public
| When Mr. Morgan first planned the Uni
/ ted States Steel Corporation he set a
| rather low valuation on the stock Of the
| Moore companies which are the Ameri-
/ can Tinpiate Company, the National Steel
/ Company. the National Steel Hoop Com
/ paHy, and the National Sheet Steel Com
! pany- The MoOTcS, however. are very
/ shreWd gentlemen They knew very well
/ that the United States Steel Corporation
( would not at its inception invite 4 great
steel war. as the success Of the financing
/ Of the concern depended eutireiy on the
! tranquility in the steel trade They
| therefore made a very bold threat to Mr
/ Morgan TheS said that ii he did not
! take them in at valuation which they
/ themselves fixed they would precipi-
/ tate the steel trade Of the country into
| one OF the most disastrous wars Of prices
| that il had ever knoIR Nj Morgan WAS
| startled. He had not expected opposition
| from this quarter He knew Of course
| that he could crush the Moores. bat that
! il would require . prolonged battle 70 dc