New-York tribune., 1901-03-02
STEEL CIRCULARS READY.
SEVERAL ADDITIONAL COMPANIES SAID
TO WANT TO ENTER THE
COMBINATION.

IL was learned yesterday from a well informed
source that circulars signed by the directors Of
each Of the companies which 10 be taken into
the United States Steel Corporation had been pre-
pared and would be sent out last night to the
stockholders these circulars stating the terms
offered by j. p Morgan & Co. for exchange of
their stock adding that the signing directors had
agreed turn In their holdings those terms,
and advising the other stockholders also to con-
TO exchange their shares for stock of the new
corporation. II. II. Porter, chairman of the board
of the Federal Steel Company. yesterday said that
the directors Of that company had informally con-
sidered the Morgan proposition. and had pract-
cally agreed to accept the offered terms. John w.
Gates. chairman of the board of the American
Steel and Wire Company, was quoted as saying
There is not a word of truth in the story that
there is a disagreement between Mr.. Morgan and
myself There is absolute accord between US. 1t
is true were dissatisfied with the terms and
prices offered for our STOCK neyertheiess' eie the
have dseded b to enter nrn the aad
yesterday. At the meeting Of the directors held
yesterday the publication of a circular was au-
pany that certain percentage of the stock has
been deposited with Mr. M9rgan and adding & IT IT
for the interest Of the other stockholders TO enter
the combination
1t is reported that several additional steel
panies are desirous of being taken into the new
combination. Their names not mentioned, but
II is hinted that among them are the Tennessee
Coal and Iron Company and the Soss-Shefield
Iron and Steel Company Both are Southern COM
panies In financial circles. well in the trade
II is believed that the United States Steel Corpora
tiOn will not for the present at least absorb any
companies other than those already accepted by
the underwriting syndicate although IL is said that
the American Bridge Company may come in at
future date.
1t is again reported that early in the negotiations
it Mr. Morgan's purpose to take in several
properties besides those which were finally decided
upon. in which case the consolidated company
n MN
announced in The Tribune 10 be the intention. in
stead of 100000. the amount now fixed uron.
II decided however IT is said. that 1t would
be unwise include any companies beyond the
eight selected.
Experts have been estimating on the earning
capacity of the great combination. They have
taken their figures from last years reports Of the
companies concerned. but with this basis
estimates have varied materially. 1t is unotically
year were Close 10 $l0o5ooOo but $25c05co0 is re
Bower under normaI condittens The National Tube
Company is down for N2oeo0co profits; and next next
In the aggregate the earning capacity OF me eignt @
paeed at WhGh abont dTs 81 90 g. into me
AS the company is capitalized at 81 100 G".
ments will be about s4sSoooeo SO that with gen
eral earnings of 81 coo0oo. an average Of per cent
is figured for common stock earnings; on the as
sumption that per cent is put ss aside d yeary @ Tr
betterments. depreciation ETC. inns would SUI sun
leave more than per cent for common STOCK
The reason Tor the inactivity OF the HtN Soii-
pany's shares in the outside market became ap-
parent yesterday, when il was learned that Stock
Exchange houses engaged in the purchase and sale
of these issues had given orders TO their repre-
sentatives not deal with brokers save those VINO
gave up other Stock Exchange houses as their
principals. Naturally this had tendency to re-
strict business a marked degree. This discrim-
ination. il explained, applied only TO dealings
in the stocks of the new company. Otherwise re-
lations between the curb and the Stock Ex-
change houses reported TO be entirely har-
monious. The steel stocks in the regular market
were stronger yesterday, substantial net gains
being made by several Of them.