The Birmingham age-herald., 1903-03-27
President SchWab Discusses the New Merger of Steel
 Interests
JONES AND LAUGHLIN Co.
 WILL NOT BE ABSORBED
Formation of the National Steel Com pany VIII Reduce Taxes In New
 Jersey and Not Affect :, Property Interests. X

Pittsburg, Pa, March 26. = President Schwab's return to Plttsburg today was in line with his plans announced last week. Tonight MT. schwab spent at his home. He said:
 There is only one thing that I can give in the way of news, and that is that there is absolutely nothing in the report that there were negotiations pending for the absorption of the Jones and Laughlin Steel company"
 In the new state merger there appears to be evidence that the name of Carnegie would be oblterated from the business of the United States Steel corporation. A careful examination of the matter shows that while the Carnegie Steel company Is merged with the others, the National Steel company. under it's new form, be- came a subsidiary corporation of the Carnegie company. The Carnegie Steel company Is Pennsylvania corporation, while the Carnegie company is a New Jersey corporation and the owning com pany of all the stock of various subsidi- ary concerns formerly a part of the Car negie interests.
 President Schwab said that the name Carnegie would never be eliminated from the United States Steel corporation busi- ness, and especially as far as it con- cerned Pittsburg. On the contrary, the Carnegie company will control in the fu- ture not only its old interests, but the interests of the American Steel Hoop and the National Steel companies. It has been doing this for the last year, and Mr Schwab said that the merger was simply the formal completion of the le-
 
 arrangement.
 Under the new ruling the National Steel compP. will control the Carnegie Steel company, the American Steel Hoop com. pany and the old National Steel proper ties, and It in turn will be owned anu controlled by the Carnegie company, which is a greater part of the United States Steel company.
 The capital stock of these various com panies. being reduced to one-fourth of their original amount, will reduce the tax under the New Jersey laws, and with out affecting the property interests of the concerns mentioned.
 Articles Filed.
 Trenton, N. J., March 26-Artieles of merger were filed in the office of the sec retary of state today merging the Amer ican Steel Hoop company, National Steel company and the Carnegie company. The merged corporation Is to be known as the National Steel company, with capital ization of $6S,000,000.
 The combined capital of the old com panies amounted to $252 100000. By this merger the new corporation will save over S7000 each year in fees paid to the state of New Jersey. The directors of the new corporation are: w. E. Corey, c. M Schwab, E. H. Carey, w. w. Blackburn and Thomas Murray. The officers of the company are: w. E. Corey, president; w. w. Blackburn, secretary-treasurer; w. c. McCausland assistant treasurer; J. J. Campbell, assistant secretary and auditor. All the new officers are from Pittsburg
 An Explanation.
 Pittsburg, March 26-The only explana- tion offered in Pittsburg for the filing of articles of merger at Trenton today by subsidiary companies of the United States Steel corporation, is that the latter is about to carry out it's plan of merging all it's constituent companies practically abolishing the subdivisions of the gen. eral corporation and having the parent concern become the operating as well as the stockholding concern. This plan will do away with the individual organiza- tions, such as the Carnegie Steel com pany, the American Steel Sheet company, the American Tin Plate company, the National IuDe company, the Federal Steel company the American Bridge company and all underlying concerns now operated separately. 1t will also simplify matters considerably and by arranging them as departments of the general corporation. there will practically be no change m methods while a tremendous saving in capitalization tax will follow.
 At present the United States Steel cor poration pays tax in New Jersey on its general capital. while each of the under lying companies pays a tax on it's in dividual capital. though 1t is represented in the general capital of the corporation. In other words, the corporation is paving taxes twice on its capital stock.