The sun. [volume] (New York [N.Y.]) 1833-1916, 1902-12-17
U. S. STEEL BUYS Big RIVAL.
SfJ .OOO.OOO BOND ISSUE no PAY
FOR UNION STEEL 90.
Works Near PittsburE and ~ sharon. Pa.
Acquired by the TransactiOn-AlsO
Large Coal and Ore Properties, Lake
steamers and Railroad Facilities.

United States Steel Cooperation had ac-
CURED control Of one Of its most formidable
competitors, the Union Steel Company.
owning the Union and Sharon steel plants.
near Pi,tsburg, on the Monongahola River.
and at Sharon. Pa, respectively. The
deal was complet ed in Chicago. yesterday.
by George W. Perkins, chairman of the
Fir ance Committee Of the Steel Corporation.
The details of the transact ion were con-
veved 10 the Office of the United States
Steel Corporation over Il private wire.
Logan 4 Bryan, Chicago Board Of Trade
firm, which also holds membership in
the New York Stock Exchange and is known
rs one of the largest wire" houses in the
country, controlled yesterday What was
-aid to be the only open wire between here
and Chicago. other Geographic communica-
ton having been interrupted by storm.
Unable to use ordinary means Of getting
the news of the closing Of the deal to this
city, Mr.. Perkins applied to Logan 4 Bry an.
IN Chicago. TO transmit despatch to Charles
Steele Of J. p. Morgan a, Co. Permission
vas, Of course, granted to Mr.. Perkins to
send the desired despatch.
Mr.. Perkins, despatch, which was re-
coived at Logan 4 Bryan local o"ices, told
Mr. Steclr that Mr. Perkins had just closed
he bargain and signed the papers. II
then made the following statement. which
vas given out by Mr.. Steele last night;
The E.narce and Executive committees of
the u,trd states steel corporation. accom-
panied by tn" presidents and other prominent
officers Of the subsidiary companies Of IT,"
>,.pl CORPORATION. hay" recently made an
,r,sr.,t'on OF Nh" mon nnd sharon Ste Ste
company, and a. Il result the Finance Cow
'nIttte by direct NEGOTIATION mas purchased
the .amo for the steel tornorntlon on the
fh"sc plants are located near Pitt burg.
Pa "a n" Mouou s1hcla River, and AZ sharon
time before the iormatIO OF the ntcd states
steel to"porttton and other Vol is ~ opera
,t21 q gonS Hr1l.rt,sGs mdSr 'iv ON 9nr
unccs and twenty-five Cpeu hearth furnaces.
capacity to manufacture Ii'N h"r- of nails
daily. new and modern tube ul.ls, bar mills.
Tin mills sheet mills plate mills a.. They
havc about 5000 acres OF CoklrS coal in the
ConnclSyll" region, besides terminal rail,
roads IN the COX" region. q POO 2, res OF fu"l
coal on tho Nonongahel. river. lu"stone
properties and valuable developed ore mines
In "a" Me,ahG region and MarGu"tt' region,
Cpnta ming about ih"pWn tons @. Jr", TWO
lax steamers and steel railroad cars.
The steel CORPORATION pays tie exact cost
Of the manuit cturing plants, to be deter
mined 10y auditors appointed for that purpose
For the real state. ore properties aud the
coal hrds they will pay something NOR
present MARKET value.
Tie stock olior- of the Union and Sharon
nlants agree to furnish about sop"oo ne"
cash to be- expended in TIE Oupl, ton OF inn
rrovemeuts and further development OF the
properties In such manner as tie steel Cor,
pa wing COR ~ properly vim be bya bond issue
OF as mn. ONo secured on the property and
nrinGipal and interest suarante.d by the
put into the manufacturing property, the
stockholders will receive thess bonds AZ par
COR the value OF real estate, ore, and coal tn"y
will eccivc bonds A. "ar. ana for TO sihoooooo
new cash t'ev will receive bonds q par
r. ren,annnr a.. g., o1 I w. ~ , Ernt 10
such further UHr 'rVmer'S Of ~" nropert v
- may he d'ctovd o. b. tnr S'vr, Corpora
tion.
The sellers profit in The transactio ion arises
solely from their - ,its In op'tittng their
plants to date ard IN ~" increased value of
their ore, coal and real estate. which wer"
purchased -oWettr ago.
This is an advantageous purchase for the
steel CORPORATION. - ties" pror'rtles ar"
located near IL other plants and the general
rypense of managing 'h' bG-i1"ss with the
addition OF these two large and ,odern plants
viii not be increased, and also for the rcason
that the corporation - now short of pix iron
and open-h"arth capacity
A representative of the United States
Steel Corporation said last night:
The Steel Corporation simply guaran
toes the interest on the amount Of the
l"ifli1s l~-u'U ny liN' NUlon Nlf'l
which amount Is strit tly limited by the
value of the property Of that company.
IN effect the Union Steel Company sells
ts properties in exchange for a guarantee
Of interest on its bonds The bonds will
probably he per cents and probably not
more than NO.Oo 900 Of them will be issued.
THE deal, Of course il entirely distinct
from, and has no bearing upon the Unite ed
States Steel Corporations bond CONVEX.
sion plan, by which it il proposed To con
vert s2ooOoo, OCco preferred stock into a
similar amount Of bonds, and To make an
additional Issue Of $50 90 900 bonds"
The consolidation of the Union Steel
Company and the sharon Steel Company
was pract icalv completed in the latter part
81 last November. The transaction repre-
sents between $40, 900. 900 and $50 600 900
The Union company has been the largest
competitor Of the United States Steel Cor
poration, having a capacity second only
20 that Of the Steel Corporation. Its pro-
duction has been about per cent Of that
Of the Steel Corporation. The I.ackawanna
Iron and Steel Company with it's plants
at Buffalo ranks third in the matter Of
capacity,
The merger agreement was signed BY
William Finn. John Stevenson, Jr, and
George W. Darr for the Sharon steel Com
pany and A. W. Mellon. r. Is Mellon and
W. II Bonner for the Union Steel Company
II has been believed in well-informed steel
circles that II. G. Frick. one Of the largest
holders Of the shares of the United States
steel Corporation. was one Of the main
hackers OF the big independent company
1t has been the purpose OF the Union
company to build a railroad running from
Donora by wav of South Sharon to Elk
Creek Harbor. fifteen miles west Of Erie.
Tho line will be nearly 40 miles long. The
officers Of the Union company are, A. W.
Mellon. president; W. II Bonner and John
Stevenson, Jr., vice-presidents. and former
Senator William Finn. chairman OF the
board of directors.
The corporation has its own furnaces and
mills of all kinds. II owns extensive ore
fields in Minnesota, coal mines and coke
fields and FINEST one qliarries
The property of the Sharon Steel Com
pany consists of 1000 acres Of land one
blast furnace in operation, two under con-
struction, twelve open-hearth furnaces in
operat ion blooming mills tinDlale works