Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1904-10-06
RIVAL STEEL GIANT
Republic Iron and Steel Company
Raises a seven Million Dollar Loan
in tho West and Will Expand to
Fight United States Steel Co.

Chicago, Oct. 6.-The Republic Iron
and Steel Company officials have COM
pleted negotiations by which the COM
pany will be able to raise $7,O0O,0OO
cash to prosecute its expansion plans
and meet its floating debt. The
amount will put the company in the
best of condition to extent its competi-
ton with the United States Steel Cor
poration. 1t is raising the funds thru
it's friends in the west.
The First National bank and the
First Trust and Savings bank have ar
ranged to furnish the money. The
steel company will issue $1O,OOO,00O
first mortgage, per cent bonds. 1t
also will issue two year and three year
notes to the extent Of $7,000,0OO. These
notes have been taken by the institu-
tons named. and they will have the
bonds as collateral security for the
notes
Halt Of the notes, Of $3,500,0O0, run
two years, and the other half three
years. They bear per cent interest
and will be issued as funds as needed
by the company. The First National
bank made AN official statement yes
terday, saying:
"A sufficient amount of these two
and three year notes has been sold al
ready to take care Of the companys
hoating indebtedness and to provide
tor its present requirements. The ball
ance will be placed when and as the
company requires the money. There
will be no public subscription. 1t has
not yet been determined whether the
bonds will be sold ultimately, or the
notes be liquidated from the earnings
of the company, which latter with the
revival Of the steel business, promise
to be large"
The Republic Iron and Steel Com
pany proposes to enlarge it's business
and put itself in competition with
the United States Steel Corporation
on new lines.
The discrimination Of tine compnny's
aggressiveness and ability to compete
with the United States steel Corpora
ton, was when it created sensation
in steel circles a few weeks ago by en-
tering into a contract with the Pitts
burg Steel Company. to furnish the
latter with billets. The Pittsburg con-
oern is the largest individual consuln-
er Of billets in the country. Its con-
tracts had been with the Charlton
Steel Company, Which WAS absorbed
by the United States Steel. The lat
ter was unaware of the Republic
company's ability to manufacture bill
let's in so large a quantity as required
by the Pittsburg company, and in con-
sequence assumed there would be no
competition for the renewal of the
Pittsburg Steel Company contract.
But the Republic Ipon and Steel Com
pany completed on July 1 an altogether
modern steel mill at Youngstown, o.
at a cost of nearly 100000. To keep
this plant going it was found necessary
to seek business on a large scale, and
the contract with the Pittsburg Steel
Company was the result.
Now it is announced that these works
are to be enlarged in order to man
ufaoture sheet and tinplate bars.
1t also, has been reported that the
Republic would manufacture steel rails.
The loan which it has just negotiated
will enable it to carry out these plans.
AS the company is the owner of large
ore bodies, it IS In a position to COM
mand all ths raw material necessary
and turn out finished products from It's
own resources.
The company WA organized May.
1899, with capital Of SEQ. al0, 500. pre-
ferred. and S27,ls1,ooD common stock
1t began paying dividends of I per cent
on Ats preferred stock. but diseon.in-
ued them in December, 1903. Mean
While its earnings have gone for i'm
proving the plant.