New-York tribune., 1902-08-06
TO FIGHT STEEL TRUST.
BRITISH AND CANADIAN IN
TERESTS TO COMBINE.
COMPANIES IN CAPE BRETON AND NOVA
SCOTIA TO JOIN FORCES WITH
BRITISH FIRMS
TBY TELEGRAPH To THE rRrnUxE.I ]

lHf TELEGRAPH To The TEIEUNE-I
Montreal Aug. 5-Forowing closely upon thu
announcement that Canada is likely to have
fast transatlantic steamship service to compete
with the Morgan combination comes the news.
rumored in London and verified here, of the for
nation of a gigantic British-Canadian steel
combination, TO enter the Industrial world IN
competition with the United States Steel Cor
poration. Not only Will the new combination
strive vigorously for the control of the steel
market Of the world but for the production Of
manufactured steel products cheaper than ever
before
The Dominion Steel Company and the Nova
Scotia Steel Company are the Canadian factors
in the new steel trust. but the most important
factor is we'll known English steel and iron
corporation which has extensive works estab-
hshed in all the principal English mining areas
in the Midlands, in Lancashire and In South
Wales.
HOW THE SCHEME WAS PLANNED
Six weeks ago Senator G. A Cox presidant
Of the Dominion Steel and Coal Company, went
to London He returned to Montreal a few
days ago 1t now develops that Mr. Cox's mis-
sion to England was to confer with the princf-
pals of this immense undertaking. and it is fur
ther learned that the negotiations have so far
proceeded as to render the powerful combina-
ton almost a certainty within reasonably
short time
Senator Cox and the managing director Mr..
Ross, who returned to Montreal from Cape
Breton last night. had a long conference to-day.
This evening these two men, accompanied by
Mr.. Forget. vice-president of the Dominion Steel
Company, and r. B. Angus director, left here for
Sydney on Mr. Rosss yacht Gundreda. In Cape
Breton they will meet and confer with other
directors of the two Canadian iron and steel
companies.
INSPECTING CANADIAN MINES
In the last two months representatives OF tbs
English steel concern. whose name is withheld
from publication for the present for technical
reasons. have visited Cape Breton and closely
inspected the works and mines of both COM
panies.
While Mr. Ross and his associates decline 70
discuss the projected combination. It may be
stated with authority that the greatest diff
Guilty which the moment stands in the way
OF a speedy settlement of the terms Of analsa-
nation is the valuation Of the respective con-
Germs whose properties would form the trust.
The value placed upon the English steel com
pany's holdings is considerably higher than
that of the two Canadian undertakings put to-
gether
THE CAUSE OF THE COMBINATION.
The incentive which prompts the English cor
poration TO combine with Canada is the belief.
which amounts practically to a certainty. that
steel in the comparatively undeveloped state
required for treatment by their own machinery
can be imported more eheaply from Canada
than it can be obtained either in Staffordshire.
Lancashire GIanorganshire- II be OBJ
tanned moreover. in a form that is peculiarly
well adapted TO the special industrial opera
tions they carry on in the manufacture Of ma
chinery used in other industries
For some time it has been felt that some
such far re- thing combination as this would be
the most effective way Of re-establishinS the
Industrial equilibrium which has been consider
ably disturbed by the formation OF the Ameri-
can Steel Corporation, which, it may be re-
membered at one time threatened 10 ABSORB
the Canadian steel industry. With the dis
placement of President Whitney. of Boston.
however that danger was averted-