The daily telegram. [volume] (Clarksburg, W. Va.) 1901-1926, 1903-11-14

to the furnace were under one control.
Mr.. Carnegie began by consolidating
the plants of Carnegie, Phipps & Co.
with those of the H. c. Frick Coal and
Coke company and gradually extended
his interests until at the time Of the
great Morgan merger It was reported
that the annual capacity Of the vari-
GUS Carnegie works was 2,70O.000 tons Of
pig iron and $500 900 tons Of steel ingots.
1t is said that for his stock and bonds
Of the old Carnegie company Mr.. Car
negle received S1,O6o,0OO In cash and
1903, 100000 in United States Steel cor
poration s per cent bonds, which he
holds as q first mortgage on the prop
erty Of the big corporation.
The Federal Steel company, another
Of the most important factors in the
merger, included in It's assets the sew
eral plants OF the Illinois Steel COM
pany, which at the time OF the consoli-
dalton comprised seventeen blast fur
naces, ten open hearth furnaces, two
rail mills two rod mills, q cotton tie
mill. slabblng mill, plate mill, foun-
dries and plant for making cement
| out OF Stag. The old Federal Steel COM
pany itself boosted two blast furnaces,
two steel mills one rail mill and some
steel and iron foundries. The National
Steel company had properties scattered
through Ohio and Pennsylvania. The
American Tin Plate company embraced
nearly forty organizations, with plants
in Pennsylvania, Ohio, Indiana, Illinois
and West Virginia. The American
Steel Hoop company controlled four
plants in Pittsburg, four in other parts
Of Pennsylvania and seven in Ohio.
The American Sheet Steel company's
properties were located at twenty-eight
points in Ohio, Indiana and Pennsyl-
vania.
All these companies had to be admit
ted into the combine In a way that
would not antagonize any Of them and
on fair adjustment of stock. The
promoters decided that in order to eff
feet q satisfactory and impartial set
Element it would be necessary to issue
as the securities for the new company
! $SO4, 100000 of per cent gold bonds,
$3.50, 000, 900 Of Z per cent cumulative pre-
ferred stock and $550,000,0OO OF common
stock, the bonds going to acquire the
bonds and stock Of the Carnegie COM
pany. Thus was formed the Billion
dollar trust" as It was popularity called.
When the necessary papers were fled
g.. in New Jersey the capitalization was
put at the nominal sum Of 5000, but
| was soon increased to virtually the hg-
ures above enumerated. About a year
later the announcement was made that
in order to effect improvements which
were deemed necessary the corporation
would retire $200.000,000 OF the prefer
red stock and would issue in their
stead $3.50 100000 OF s per cent bonds,
thus increasing the bonded debt to
about s55O,0O000O. This step was fought
by several stockholders, but eventually
the courts upheld the legality Of the
conversion plan. The uneasIness
aroused by the long drawn out litiga-
ton was, as might have been expected,
reflected in the stock market and the
stocks Of the company began to deprO-
ctate in value
Their inability TO recover their pris-
tine vigor is due largely to the depres-
sion caused by the often repeated
charge that the United States Steel
corporation is highly overcapitallzed
organization. This assertion the Off
Gals and directors have vigorously,
combatted.
| CLAIMING A. 1ARTow.