The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1902-12-19
U. S. Steel Co. Buys Opposition.

A dispatch from Chicago to the daily
press of Tuesday says: Judge Ebert
H. Gary, chairman Of the United States
Steel corporation, announced today the
purchase of the Union and Sharon
plants of the Union Steel company,
near Pittsburg, the transaction involv-
ing bond issue Of $45 100000.
Judge Gary gave out the following
statement embodying the details of the
transaction:
The finance and executive committee
of the United States Steel corporation
accompanied by the president and
other subsidiary officers of the Steel
corporation have recently made an in
spection of the Union and Sharon Steel
plants controlled by the Union Steel
company, and as a result the finance
committee by direct negotiation has
purchased the same for the steel cor
poration on the following terms:
These plants are located near Pitts
burg, Pa, on the Monongahela river
and at Sharon, Pa, respectively; they
were started some time before the for
nation of the United States Steel COM
pany, and not in opposition to it. These
1890
other departments in operation. Fully
completed they will have five more
blast furnaces and twenty-five open
hearth furnaces, capacity to manufac-
ture $500 kegs of nails daily, new and
modern tube mills, bar mills, sheet
mills, plate mills, etc. They have
about $500 acres of coking coal in the
Connellsville region besides terminal
railways in the coke regions, $500 acres
of fuel coal on the Monogahela river,
limestone properties and valuable de=
veloped mines in the Mesaba region
and Marquette region containing about
100000 tons of ore. two lake steam
ers and steel rail cars.
The steel corporation pays the manu-
featuring plants the amount to be de-
termined by the auditors appointed
for that purpose. For the real estate,
ore properties and the coal lands they
will pay something more than the cost
value, but not to exceed the present
market value. The stockholders of the
Union and Sharon plants agree to fur
nish about $10,000,000 new cash to be
expended in the completion of i'm
provements and further developments
of the properties in such manner as the
steel corporation may determine.
The manner of paying for the prop
erty will be by second issue of $685.
100000 secured on the property and
principal and interest guaranteed by
the steel corporation.
For the actual money put into the
manufacturing property, the stock
holders will receive these bonds at par;
for the value of real estate, ore and
coal they will receive bonds at par and
for the s10,OO0,000 of new capital they
will receive bonds at par. The remain
der of the bonds will be kept in the
treasury for use at some future time
in such further development OF the
property as may be decided on by the
steel corporation.
The increased value of the ore, Goa
and real estate, which were purchased
some time ago will be assessed. This
is an advantage over the purchase fol
the steel corporation as the properties
are located near their other plants
and the general expense OF managing
the business with the addition Of these
two large and modern plants will mo-
be increased, and also for the reason
that the corporation is now short o.
pig iron and open hearth capacity.