The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1902-12-19
Of BIG II
STEEL PLANTS
The Trust Gains Control Of Union
and Sharon Mills Near
Pittsburg
A BOND issue OF s45,Ooo,ooo.

Chicago, Dec. 17.-Judge Elbert H.
Gary, chairman of the United states
Steel corporation, announced yester-
day the purchase of the Union and
Sharon plants Of the Union Steel COM
pany near Pittsburg, the transaction
involving a bond issue of 45,000,0 900.
Judge Gary gave out the following
statement embodying details Of the
transaction:
"The finance and executive commit
tees of the United States Steel corpo-
ration, accompanied by the presidents
and other prominent officers Of these
subsidiary companies Of the steel cor
porauon, have recently made an in
spection of the Union and Sharon
steel plants now controlled by the
Union Steel company and as result
the finance committee, by direct ne
gotiation, has purchased the same for
the steel corporation on the follow
ing terms:
These plants are located near
Pittsburg, Pa, on the Monongahela
river and at Sharon, Pa, respectively;
they were started some time before
the formation Of the United States
Steel corporation and not in opposi-
ton to it. These properties have rod,
wire, nail and other works in opera
ton as going properties; when fully
completed they will have five modern
blast furnaces and twenty-five open
hearth furnaces. with a capacity to
manufacture $500 kegs Of nails daily,
new and modern tube mills, bar mills,
tin mills, sheet mills, plate mills, ETC.;
they have about 5000 acres of coking
coal in the Connellsville region be-
sides terminal railroad in the coke re-
gion, $500 acres Of fuel coal on the
Mopongahela river, limestone prop
critics and valuable developed ore
mines in the Mesaba region and Mar
quette region, containing about 40,-
600, 900 tons of ore, two lake steamers
and steel railroad cars. e.
"The steel corporation pay the exact
cost Of the manufacturing plants. ETC.,
to be determined by auditors appoint
ed for the purpose. For the real es-
tate, ore properties and the coal lands
they will pay something more than
the cost value but not to exceed the
present market value. The stockhold-
ers of the Union and Sharon plants
agree to furnish about $4,000, 900
new cash to be expended in the COM
pletion of improvements and further
development of the properties in such
manner as the steel corporation may
determine.
The manner of paying for the
property will be by bond issue of
$45,C00,000 secured on the property
and principal and interest guaranteed
by the steel corporation. For the
actral money put into the manufac-
turing property the stockholders will
receive these bonds at par For the
value of real estate, ore and coal,
they will receive bonds at par, and for
the $10,00O,0 900 of new cash they will
receive bonds at par The remainder
of the bonds will be kept in the treas
ury for use at some future time in
such further developments of the
property as may be decided on by the
steel corporation.
"The sellers profit in the transac-
lion arises solely from their profit in
operating their plants to date and in
the increased value of their ore, coal
and real estate which were purchased
some time ago. This is an advantage
GUS purchase for the steel corpora
tion. as these properties are located
near their other plants and the gener-
al expense of managing the business
with the addition Of these two large
and modern plants will not be in
creased and also for the reason that
the corporation is now short of pig
iron and open hearth capacity"