The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1903-08-08
EXPL PLAlNS
DROP IN
CHEMICAL
Raid by Rockefeller to
Secure Control.
PHOSPHATE AND
COTTONOIL BUSINESS
oLulIuQl u VII OOlilpolly NOW
Said tc Have Monopoly.
HOW THE COUP
WAS EFFECTED
Consolidated Gas Company Offered to
Sell Nine Millions Of New Stock.
The Holders Expected Much
Larger Dividend-other
Interesting Re-
ports.
HOW THE COUP
WAS EFFECTED
fsnecIa1 to The TImes-DIspatcb.l

| Especial to The Tlmes-Dispatch.)
! NEW YORK, August 7.-Rumors Of the
most interesting nature In regard to vir-
Iinia- Carolina Chemical stock were cur
rent here to-day. One was to the effect
that the Standard Oh interests had Sc
cured control and the recent violent at
tack on the stock was part of the scheme
of the Rockefeller interests to get control.
BY the purchase of $4,000 900 par value
in stocks and bonds of the Virginia. Car
olina Chemical Company, Standard Oil
interests, it is reported to-day, secured
control of the great fertilizer and sui
phuric acid concern of the South.
Rockefeller interests already control
the American Agricultural Chemical
Company and the American Cotto. OH
Company. They also control the Am.rl-
can Linseed Company. These various
chemical and vegetable oil companies give
to the Rockcfellers practically monop-
oily Of the phosphate and cotton oil busi-
ness.
The Virginia-Carollna Company has
sa9, ,9s4,4 400 OF stock outstanding and
81, 100000 in bonds. These bonds were
issued last October. The Rockefelers
have taken over from bond house on
Broad Street the securities. The deal
was put through by the National City
Bank, which supplied the money needed
by the chemical company to pay off cur
rent obligations.
It Is believed that the raid In Wall
Street, which terminated Thursday just
before the close of the market, and which
was begun on Tuesday by the remark
able offer Of the Consolidated Gas Com
pany to sell 100000 worth Of new stock
when stockholders confidently expected
that dividend much larger than that
would be paid was for the purpose Of
unsettling the market and securing this
chemical stock.
After the whole market had been
thrown into a state of Generalization
under heavy selling of Consolidated Gas
and United States Steel shares, the Chem
ical stock was attacked and false rumors
Of trouble in strong houses were circu-
lated. This brought thousands of shares
OF tho Chemical stock into Tho market,
feller brokers.
LOAN NEGOTIATED.
Tho statement Is made to-day that
the Virginia Carolina Chemical Com
pany had completed negotiations for
large loan with local syndicate.
1t was stated by some of those usu-
ally in close touch with the manage
ment OF the NlTSlllld-SdIOAllId SLciHiSaA
Company that the amount OF the loan Is
between 100000 and s100O.000.
Tho syndicate, according to report, in
cludes J. p Morgan & Company. Ma
t!onal City and First National banks, The
Morton Trust Company and several other
| Institutions.
President S. 7, Morgan. OF the Virginia.
Carolina Chemical Company. Is ret'cent
In regard to the matter. Mr. Morgan
at Oregent. is
that the Virginia Carolina Chemical Com
many is In no financial trouble. I will not
deny the report that the company has
negotiated largo loan, neither will
confirm It,"
on change Virginia Carolina Chemical
showed good strength in the early deal
ines. and sold as high as 27 3-4. Later,
however, 1t broke sharply, selling down
about a 10 points. 1t Is understood that
It's weakness was caused by the liqudd.
ton of certain loans.
1t is stated that large line of
the Virginia-Ca Carolina preferred and
common stocks have been accumu-
lated within the past few days by
dated Tobacco Company. This stock
ia soid to have been accumulated In
the omen market, and If 1t portends any
,mnortant development the nature of this
has NOT no far been disclosed.
People identified with American Cotton
ri, of which Virginia. Carolina is the
most formidable competition, say the stock
| or the latter is cheap around the present
level. They regard the preferred as par
| tIcuInrly attractive, and say that with
good management there Is absolutely no
| reason why dividends on this issue should
not he continued indefinitely. The fact
that the Virginia Carolina Company has
haen Obliged to come into the market for
monov Is, according to Cotton OIL people.
hy no means as serious matter as the
| Sweat seems to suppose, since In the
ratura of the business all such enterprises
must draw on the bankers frop time to
time While II Is always questionable
nolcy for an industrial company to bor-
row money In order to wage war against
,omnat,tors. the ends achieved will justify
tha means should 1t prove, as Virginia.
raro,ino chemical people assert Is fact.
that Considerable competition is at the
;,,t - alimination, In this case profits
fon tba nresent fiscal year might be con-
| sidered in excess or nose TOT tho last.
One Of the highest officials OF Virginia.
| rerolina chemical Company says that
the shut down OF the plants at Chareson,
q n ,r,s M account of the usual sum
80 ~ ranairs and cleanlngs. and was not
az, @ - nm oyer-production OF fertilizers
wv ~ a,so stated that j. p. Morgan and
raanv were among the recent largest
,anhers ~ money to the company.