The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-03-27
American Steel Hoop Company, Ma
tional Steel Company and Carne-
gle Company Under One Name.
SAVING IN TAX EFFECTED
CAPITALIZATION REDUCED MILLIONS
OF DOLLARS BY THE MERGER.
Carnegfe's Name Not to BE Eliminated
More Incorporation Papers
to BE Filed To-Day.

TRENTON, N. J.. March 26.-Articles of
merger were filed in the Office of the sec
retary of state to-day merging the Ameri-
can Steel Hoop Company, National Steel
Company and the Carnegie Company. The
National Steel Company, with capitaliza-
ton of $63;OOO, 900. The combined capital Of
the old companies amounted to $252, 100000
BY this merger the new corporation will
save over $1,000 each year in fees paid to
the State of New Jersey. The directors
of the new corporation are w. E. Corey
C. NJ. Schwab, E. H. Gary. w. w. Black
burn and Thomas Murray. The officers Of
the company are: w. E. Corey, president;
w. w. Blackburn, secretary treasurer; w.
c. Causland, assistant treasurer; j. ].
Campbell, assistant secretary and auditor.
The officers of the new corporation are all
old officials of the Carnegie Company.
The outstanding shares of stock of the
three merging companies, preferred or COM
mon, are to be exchangeable or convertible
into stock of the consolidated corporation
at the rate of one-quarter share of stock Of
the consolidated corporation for every share
of the stock of the merging companies.
The secretary of states Office received a
telephone message this evening from the
office of the United States Steel Corpora
ton saying that another charter would be
filed by that company early tomorrow
morning No information was given as to
the nature of the charter.
PITTSBURG, March 26.-The only expla-
nation offered in Pittsburg for the filing of
articles of merger at Trenton to-day by
subsidiary companies of the United States
Steel Corporation is that the latter is about
to carry out its plan of merging all its con-
stituent companies. practically abolishing
the subdivisions of the general corporation
and having the parent concern become the
operating as well the stockholding con-
Germ. This plan will do away with the in
dividual organizations, such as the Car
negie Steel Company, the American Sheet
Steele Company, the American Tin Plate
Company, the National Tube Company, the
Federal Steel Company, the American
Bridge Company and all underlying con-
Germs now operated separately. 1t will also
simplify matters considerably, and by ar
ranging them as departments of the gem
eral corporation there will be practically
no change in methods. while a tremendous
saving in capitalization tax will follow. At
present the United States Steel Corpora
tion pays a tax in New Jersey it's gen.
eral capital, while each of the underlying
companies pays tax on its individual capi-
trough III Is represented IN the general
capital of the corporation. In other words.
the corporation is paying taxes twice on its
capitalization.
In to-days new merger there appeared
TO be evidence that the name of Carnegie
would be obliterated from the business of
the United States Steel Corporation. A
careful examination of the matter, how
ever. shows that while the Carnegie Steel
Company is merged with the others, that
the National Steel Company under its new
form. becomes 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 company
of ali of the stock of various subsidiary
concerns formerly a part of the Carnegie
interests. President Schwab. of the General
Corporation, said that the name Carnegie
would never be eliminated from the United
States Steel Corporation and especially
as far as il concerned Pittsburg- On the
contrary, the Carnegie Company will con-
troll in the future not only its old interests
but the interests of the American Steel
Hoop and the National Steel Hoop COM
panies. Ii had been doing this for the last
year. and Mr.. Schwab said that the merger
was simply the formal completion of the
legal matters In connection with the new
arrangement
Under the new ruling the National Steel
Company viii control the Carnegie Steel