The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1902-12-17
ABSORBED By STEEL TRUST
ANOTHER GREAT TRANSACTION
INVOLVING $40, 900, 900.
Union Steel Company Taken Over
Terms of the DeaI--Properiy 10 be
Paid for by a Bond Issne of S45, ,OOO,-
OO0-Vhat 1t Consists Of

OOO-What 1t Consists Of
Chicago, Dec. 16.-Judge Elbert H.
Gary, chairman of the United States
Steel corporation, announced to-day
the purchase of the Union and Sharon
plants of the Union Steel company, near
Pittsburg, the transaction involving a
bond issue of $45,OOO,OOO Judge Gary
gave out the following statement en-
bodying details of the transaction:
1.-THE executive and finance committee
of the United States Steel corporation,
accompanied by the presidents and 9TH
er prominent officers of the subsidiary
companies of the steel corporation, have
recently made an inspection of the
Union and Sharon steel plants, now
controlled by the Union Steel company,
and as a result the finance committee,
by direct negotiation has purchased the
same for the steel corporation on the
following terms:
'These plants are located near Pitts
burg, Pa, on the Monongahela river,
and at Sharon, Pa, respectively; they
were SldL IGu +SUI1IG llI1lG DGSOEG lIlG lOI
nation of the United States Steel cor
poration, and not in opposition to it.
These properties have wire, nail and
other works in operation as going prop
erties-when fully completed they will
have five more blast furnaces and TWEEN
ty-five open hearth furnaces, capacity
to manufacture seventy~five hundred
kegs os 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 nominal rail-
roads in the coke region, $500 acres of
fuel coal on the Monongahela river, lime
stone properties and valuable developed
ore mines in the Mesaba region and
Marquette region, containing about 4O,-
100000 tons of ore, two lake steamers
and steel railroad cars.
1.-THE steel corporation pay the exact
cost of the manufacturing plants, to be
determined 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 exceed the present
market value. The stockholders of the
Union and Sharon plants agree to fur
nish about $10,OO0,0o0 new cash, to be
expended in the completion Of improve
ments and further development of the
properties in such manner as the steel
corporation may determine.
THE manner of paying for the prop
erty will be by a bond issue of 5,OOO,-
900, secured on the property, and prin-
cipal and interest guaranteed by the
steel corporation. For the actual
money put into the manufacturing
! property the stockholders will receive
these bonds at par; for the value of
real estate, ore and coal, they will re-
ceive bonds at par, and for the $lO,OOO,-
900 of new cash they will receive bonds
at par. The remainder of the bonds
will be kept in the treasury for use at
| SOME future time, in such further de-
velopment of the property as may be
decided on by the steel corporation.
| 1.-THE sellers profit in the transaction
arises solely from their profit in oper-
ating 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 advantage over purchase
for the steel corporation, as the proper
ties are located near their other plants
end the 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 now short Of pig
iron and open hearth capacity"