The Providence news. (Providence [R.I.]) 1891-1906, 1902-08-13

New York. Aug. 13.-The Bethlehem
Steel company was formally transferred
today TO the United States Shipbuiitiing
company-the new shipbuilding combine
and the organizers OF the combination
stated that 1t was now completed and
would at once start In business.
MORE CAPITAL. MORE BONDS.
The capital has been increased from
$50. .000, 900 TO s45, 10000. The original issue
OF sle,ooo.ooO per cent. first mortgage
bonds will stand. but another bond issue
is planned In conectnion with the acaui-
sition OF the Bethlehem Steel company
The combine will not take in vickers
Sons g. Maxim.
Daniel Leroy Dresser. president OF the
Trust Company OF the Republic, made
this statement today:
THE business organization will begin
at once by concentrating In different
yards different types OF vessels and In
Producing economies which ought 10 re-
suit in increased profits over those shown
by the reports given us by the auditors
who examined the Independent companies
before they were brought together. From
advice given us from those in charge OF
the. separate plants and taking into corr
sideration the fact that a battleship can
be built by the company In the shortest
possible time. there is every promise OF
increased business and the future OF the
company ought TO be assured There have
been no negotiations whatever between
Vickers' Sons q Maxim and the United
States shipbuilding company.
CONTRACTS FOR MILLIONS.
"Our desire II to put American ship
building establishments upon such a basis
that we can build foreign ships here. No
steps looking TO taking In English plants
have been taken. The United States
Shipbuilding company was put In shape
to began business today. On Monday
the shipyards were transferred and to-
day the great Bethlehem Steel company
was formally turned over.
The United States Shipbuilding COM
pany can now make proposals for COM
plete vessel. armor. guns. forgings, ma
chinery and hull. No other plant, either
here or abroad. can do this. although
some do produce ship and guns The
company Is today building the largest
cargo carrying steamers In the world and
has a feet In course OF construction OF the
value OF sS7, 100000. and the contracts total
I'm hand aggregate so, 000 000."
Charles M Schwab, president OF the
United States Corporation. secured com
troll last year of the Bethlehem COM
pany at time when certain important
Wall street financial interests were ar
ranging TO include II In deal which
would combine II with vickers' Sons a.
Maxim of England. and the Cramp Ship
building Company of Philadelphia.
j. +. Morgan was abroad at the time
and when he returned and looked into
the matter, he insisted upon Mr.. Schwap
letting go of the Bethlehem company and
j. p. Morgan e. Co. took 1t over.
scHwAB AND MORGAN ON AGAIN.
According to story circulated today,
the Bet.Alehem company before being
transferred to the United Stats Ship
building company was again taken over
by Mr. Schwab. the latter paying today to
j. p Morgan a Co. g.500.000.
Mr. Schwab then turned over the Betn-
lehem company TO the United States
Shipbuilding' company In exchange for
$40 600 5000 OF trust deed certificates,
IS, Oo0, 900 OF preferred stock and $s.0oo.Uc
Of common stock OF the United States
Shipbuiding company.
A representative of the new shipbuild-
ing company who was questioned today
as 10 the above story, refused To discuss
the terms by which the Bethlehem Steel
company was acquired
Mr. Schwab visited the Offices OF tho
United States Corporation In this city
today for the first time since mis- ILL
ness He said he was going Ito take
things easy for a while" Later in the
day he took a train to return to Loretto,
Pa.