The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-02-07
GIGANTIC DEAL
NEARLY ONE BILLION DOLLARS Al
LEGGED TO BE INVOLVED.
Negotiations Looking to n "Unifca-
tion OF Interest," sn the Great
steel and Iron Industry.
MUCH SECRECY OBSERVED
BUT IMPORTANT NEGOTIATIONS ARE
SAID TO BE UNDER WAY.
Transferred His Vast Hold
fngs to J. p. Morgan & Co.
u. G. FRICK THE PROMOTER
naR. CARNEGIE OFFERED 81, 500 FOR
EACH SHARE OF HIS STOCK.
He IL Said, However, Not to Be Dis
posed to Sell His Bonds at
the Price rendered.
GOSSIP ABOUT THE DEAL
CONSOLIDATION OF NINE GREAT COM
PANIEs Is POSSIBLE.
Their Entire Capital Stock IL $794,-
100000, of which About $780,
100000 Have Been Issued.
He IL Said, However, Not to Be Dis
posed to Sell His Bonds at
the Price rendered.
GOSSIP ABOUT THE DEAL
CONSOLIDATION OF NINE GREAT COM
PANIEs Is POSSIBLE.
Their Entire Capital Stock In $794,-
OOO,OOO, of which About $780,
100000 Have Been Issued.

NEW YORK, Feb e.-The announcement
this morning that Andrew Carnegie had dis
posed of the control of the Carnegie Com
pany TO J. Pierpont Morgan and his asso-
ciates attracted widespread attention
among business men here to-day. Not only
Wall street. but the entire community ap-
peared deeply interested in the transac-
tions connected with what the local news
papers denominate "bilhon-dolar steel
combine II the absorbing topic in
every 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 direct information Is
concerned there was practically none to
be had to-day from Messrs Morgan and
Carnegie. Mr. Morgan declined to confirm
or deny the report, while Mr.. Carnegie. as
we'll would make no statement whatever.
The fact, however, that these two men per-
mitted the reports TO continue In circula-
tion without even attempting denial was
generally regarded as strong indication
that they were well founded. and there was
something in the manner in which the re-
general public confidence in their credible
ity. Numerous ''semi-official' statements
were put forward, but they could not be
traced back to the principals in the deal.
According to these reports ]. Pierpont Nor
gan is at the head of syndicate which
contemplates the organization of a man.
moth steel combine to include the Federal
Steel Company, the National Steel Com
TT
Steel Company. the American Steel and
Wire Company and the American Tin Plate
Company.
All reports seem to indicate that Mr.. Car
neeie has obtained a higher price for his
stock than was indicated in the proposed
great steel combination Of 1899 Railroad
and steel experts accounted 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 inde-
pendent railroad line from his plants In
western Pennsylvania TO Lake Erie and
having undertaken large operations in con-
nection with the town and the harbor of
Conneaut. in Ashtabula county. Ohio. and
having planned an independent railroad
through southern Pennsylvania to tide
q
from the men associated with ]. Pierpont
Morgan a higher price than he could have
obtained two years ago.
H. C. tricks WORK.
Ever since Mr.. Frick, two years ago,
secured the option on the Carnegie prop
critics, reports have been repeated and re-
ite-ated TO the effect that Mr.. Carnegie
expected In the near future to retire from
business. About three weeks ago these
rumors appeared in Wall street with re-
markable frequency. Somehow the mat
ter seemed TO hang fire. and it was not un-
I'll within the last twenty-four hours that
dstailed reports seemed TO indicate that
Mr.. Frick, formerly Mr.. Carnegie's right
hand man. was assisting Mr.. Morgan in
bringing about the combination. One of
the things that seemed to indicate that a
great steel combination was in process of
formation was the apparent arrangement
OF an alliance or an understanding between
powerful interests and j. w. Gates and his
associates in the American Steel and Wire
Company. This was followed by general
rise in all of the steel and iron shares of
the larger companies.
In the steel and iron trade. where calm
bination was taken. IL was the opinion to-
day that the course OF such deal as that
proposed would bring the Carnegie. the
Federal Steel and National Steel companies
and the billet mill OF the steel and wire
company under one management, while the
companies turning out finished products, :;
was suggested. would perhaps be looked
after by another management The COM
panies turning out the finished products.
IL was pointed out, could by this means
use all biIlets, bars and other unfinished
materials OF the Carnegie, the Federal
Steel and the National Steel companies.
thus enabling the combination OF the steel
interests TO regulate the output and pre-
vent all possibilities of cut-throat com
petition. A consolidation of all of these
interests along the lines indicated, IL n
claimed. would require a capitalization of
s55o.o0o.0oo although a prominent man Is
quoted as saying that not more than one
fourth OF this sum would be required IN
sctual cash Mr. Carnegie is said to own
= per cent. OF the capital stock OF his