The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-09-23
DID STEEL TRUST
CAUSE THE WRECK
Consolidated Lake Superior Stock
holders Seek Niger in the
Woodpile.
A Plan for Reorganization Is Sug-
gested and May Be Car
ried Thru.

Chicago. Sept. "a special dispatch
from New York to the Tribune says:
Has the United States Steel corporation.
by clever manipulation, accomplished the
destruction of it's own dangerous rival?
Many Of the stockholders In the Consoli-
dated Lake Superior company, which has
become a hopeless wreck, say yes, and
they quote much evidence to bear out
this assertion
The properties and assets Of this $117,-
000 900 corporation, whose object was to
develop the Sault Ste. Marie section its
water power. its mineral deposits, and the
host Of kindred industries, are to be sold
under the hammer because of inability Of
the company to meet an indebtedness of
S5,050, 900 now long overdue.
Many Investors Hard Hit.
Greater than the disaster which has
overcome the $500 employees Of the
company by the shutting down Of its
many industries pending attempts to set
tie it's financial difficulties, Is the loss to
thousands of investors turnout this coun-
try and Canada, many of whom have put
the savings Of a lifetime into the stock.
OF these many do not mince words In
laying the blame for all their troubles on
the United States steel corporation. They
say the vast resources Of the steel trust
were brought into play to wreck the new
company, and that money, influence and
questionable methods have accomplished
their purpose. .-
Efforts to Raise Money Fall.
Since disaster first threatened the Con-
soidated the efforts Of many Of the most
able financiers In this city have been de-
voted to an attempt to get it on its feet
again. but all in vain. When it seemed
certain the needed money was in sight
some mysterious influence interviewed and
all was in the air again Reorganization
several times was believed accomplished
when one or two Of the men promising aid
backed out, making the scheme impossi
BILE.
VIII Steel Corporation Buy?
1t is said that, at the auction sale the
United States Steel corporation will be on
hand with the millions necessary to Sc
cure the property and with so little oppo-
sition that the trust will be certain Of a
bargain and will have made itself stronger
than ever. Later this report was denied
with emphasis. However, a short time
will show, as 1t was stated to-day that
the Speyer syndicate probably would sell
the assets Of the company at auction
Oct. 1.
Even Francis H. Clergue. the original
promoter of the 500 enterprises, now is
accused Of working In the interests Of the
steel corporation, and his sudden appear
ance at the 500 Is construed by many to
confirm this idea.
What the Victor Gains.
The immediate advantage of the secur-
ing Of the Consolidated by the trust would
be the gaining of control Of the Canadian
markets. Just at present the Grand
Trunk and Canadian Pacific are heavy
buyers Of steel rails. With the prefer
entail tariff the American mills Of the
steel trust cannot compete with rails made
on the Canadian side. Therefore it is i'm
portant for the trust to have mills across
the border. -. ..-...>
~ s. ss Sale Is Announced.
The formal circular of Speyer & Co.,
announcing the sale, was given out this
afternoon. The securities Of the sub
sidiary companies held by the Consoli-
dated Lake Superior company, with vari
GUS notes made by the subsidiary COM
panes In course Of the advancement Of
moneys on the loan Of Speyer & Co., these
notes Endorsed by the Consolidated COM
pany are to be sold at public auction on
Oct. 1 at 161 Broadway, New York.
The terms of the sale require the Sc
curities to be bid for and purchased in
one parcel and Speyer & Co. reserve to
themselves the right to bid in the prop
critics offered.