The times. [volume] (Washington [D.C.]) 1897-1901, 1901-01-14


are under way looking for the purchas
of control of the Carnegie Company by J
Pierpont Morgan and his associates. Thi
was said to be the first step in an ex
tensive plan of virtual consolidation il
the industrial field along the lines recent.
ly carried out in the railroad world il
bringing various roads under the socalleC
community of interest control TIL,
present plan, according to the report. con
templates the bringing of all the grea
| steel companies under the control of
small group of capitalists. While an act.
ual merger OF IL, properties may not b,
| brought about, the scheme considered pro.
vides that the control of all the big prop
critics shall be vested in the same hands
and that the companies shall be econom-
ically and carefully operated and rate
! cutting and ruinous competition done away
with
No step in this direction could be made
! without first considering the Carnegie
Company by far the largest, most power
full, and most resouNeful of all the steel
companies. This corporation is capital
lied at s160000,000, and there is outside
/ Of this an equal amount of bonds an
| drew Carnegie owns an absolute majority
| of the stock and of the bonds. He has
| personally more than SO per cent of this
enormous amount and the remaining in
terest is owned by his thirty-two partners
and few other holders
Recently. according to sources gener-
ally regarded as well informed, negotia-
I fnn- h1r-a Igg,
pont Morgan, representing a pool OF cap
italists, and Mr. Carnegie looking to the
purchase of Mr.. Carnegie's entire stock
holdings. If this transaction be effected
Mr.. Morgan will, through his interests in
other big steel properties and the newly
acquired control of the Carnegie company,
be in a position practically TO dictate to
every other steel company in the coun-
try; and with this done it is believed that
the few independent organizations would
be easily persuaded to come into the COM
bination. 1t is understood that the plan
of taking over Mr. Carnegie's stock in the
Carnegie company does not contemplate
any change in the ownership of the bonds
as their acquisition is not necessary for
control. The stock alone is TO be trans
ferred, but what price will be paid for il
cannot be learned. The stock is not listed
on any exchange, but it has been quoted
The shares are 81, 600 each
The Carnegie company is the biggest
steel company IN this country or in the
world. Its affiliations are of the widest
and broadcast character. extending to rail-
roads, steamship lines, iron and coal
mines. cooking ovens, and other proper
ties. Its resources are great and its pow
er is almost unlimited. The acquisition
of control of this company by Mr.. Morgan
and his associates added to their great
holdings now in the Federal Steel Com
pany and other companies would make
them absolute masters of the situation.
Next 20 the Carnegie Company the Fed
eral Steel Company is probably the larg-
est steel company in the country. This is
looked upon as nominally a Morgan prop
erty. 1t is controlled by M. Morgan and
his associates. 1t owns extensive plants
and has done an enormous business. and
has been the most energetic competitor
of the Carnegie Company.
Control Of these two properties vested
in one community OF control would be
a great undertaking, but it is said that
the plans do not stop here. The next steel
company in relative Importance is the
American Steel and Wire Company, which
is controlled by John W. Gates and CAPT
talists allied with him. and it is reported
that this corporation also may in time be
brought into line with the Carnegie and
Federal Steel companies. Ex-Judge Will
lam H. Moore and his associates in Chi
cago and New York control a number OF
important steel companies, and IT is IN
derstood here that the development OF Mr..
Morgans plans for unifying the steel in
dustry will include these so-called Moore
properties National Steel Company,
the American Tin Plate Company. the
American Steel Hoop Company, and the
American Sheet Steel Company. Then,
too. there are the Republic Iron and Steel
Company, the Pennsylvania Steel Company.
the Empire Steel and Iron Company. and
others which 1t is thought will be brought
into the community OF interest if the
project for unifying the Carnegie and Fed
eral Steel interests shall be put through.
The National Tube Company is already
classed a Morgan property The Smeri-
can Car and Foundry Company and the
Pressed Steel Car Company, its rival, may
be harmonized along with the rest.
These companies have all for the last
three years been doing an exceptionally
good business and profits everywhere have
been enormous. The far sighted fnan-
ciers who, it is said, have undertaken the
task of harmonizirg all these interests
and bringing them under the community
of interest control have looked ahead and
see a time when there must be closer opc-
ration and smaller margin Of profit.
lhelr plans are more for the future than
for the present, as all the companies are
doing well just now. OF course. no union
of interests could be effected without the
control of the Carnegie Company. l. is FOR
this reason that it was deemed advisable
to Open negotiations with Mr.. Carnegie it
is said here. and upon the successful ter
mination OF these negotiations depends
largely the development Of the rest OF the
plan.
Aside from the money to be made and
to be saved by this harmoniZing and bring
ing into community control OF the steel
companies, Mr.. Morgan and his associates,
ii is said have looked at the matter from
the point of view of railroad men. They
practically control the railroad situarion
now. A company as rich and powerful as
the Carnegie Company, however, could
build a railroad almost any time it desired
to parallel almost any line in the country.
Il was in a way to remove the steel cCm-
panies from this field that the present plan
was undertaken, it is said, the outcome
of which viii be, IL is believed here that
all the great steel companies of the coun-
try will be welded together under com
munity control, and that this community
control viii the same dominating the rail-
roads, so that the same hands will control
both.
rnTJEnT NC, crDrrT- ENnEn