The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-12-17
Which Has Secured the Union and
sharon Plants of the Union steel
Company Near Pittsburg.
STATEMENT BY JUDGE GARY
WHO SAYS BONDS WILL BE ISSUED
TO PAY FOR PROPERTIES.
Stockholders of the Union and Sharon
Plants to Furnish $4,000 900 Cash
to Complete improvements.

CHICAGO, Dec. 16.-Judge Ebert E.
Gary. chairman of the United States Steel
Corporation, announced to-day the pur-
chase of the Union and Sharon plants of
the Union Steel Company, near Pittsburg,
the transaction involving a bond issue CT
SIS. 100000. Judge Gary gave out the follow
ing statement embodying details of the
transaction:
1.-The finance and executive committees of
the United States Steel Corporation ac-
companied by the presidents and other
prominent officers of the subsidiary COM
panies OF the steel corporation, have re-
Gently made an inspection of the Union
and Sharon steel plants. now controlled by
the Union Steel Company, and as result
the finance committee, by direct negotid-
ton, has purchased the same for the steel
corporation on the following terms: These
plants are located near Pittsburg, on the
Monongahela river, and at Sharon, Pa. re-
spectively; they were started some time
before the formation of the United States
Steel Corporation, and not in opposition TO
it.. These properties have wire. nail and
critics: when fully completed they will have
five more blast furnaces and twenty-five
open-hearth furnaces, capacity to manu-,
facture 800 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 Con-
nellsville region, besides terminal railroads
in the coke region and Marquette region,
containing about 100000 tons of ore, two
lake steamers and steel railroad cars.
THE steel corporation pays the exact
cost of the manufacturing plants, TO be de-
termined by 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 ex-
coed the present market value. The stock
holders of the Union and Sharon plants
agree to furnish about slO.OoO0OO new cash.
10 be expended in the completion of i'm
provements and further development of the
properties in such manner as the steel cor
poration may determine.
1.-The manner of paying for the property
will be by a bond issue of $45, 100000. Sc
cured on the property, and principal and in
terest guaranteed by the steel corporation
For the actual money put into the manu-
featuring property the stockholders VIII
receive these bonds at par; for the value of
real estate, ore and coal they will receive
cash they will receive bonds at par; the re-
mainder of the bonds will be kept in the
treasury for use some future time in such
development of the property as may be de-
cided on by the steel corporation.
1.-The sellers profit In the transaction
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 advantageous purchase for
the steel corporation, as the properties are
general expense of managing the business
with the addition of these two large and
modern plants will not be increased, and
also for the reason that the corporation is
short OF pig iron and open hearth ca
Dacity.'