New-York tribune., 1905-02-24
VIOLENT STOCK BREAK.
COAL AND IRON JUMP.
HoadIey Denies Haring Corner =
His Syndicate Gets Control.

INTEREST IN the stock market yesterday centred
| in the companies reported TO be included in the
plans of the Hoadey syndicate for a combination
Of Southern iron, steel and coal properties espe-
cially the Tennessee Coal. Iron and Railroad Com
pany the movement in which suggested the exist
ence of a corner" In the last hour Of trading.
after these stocks had made exciting advances. the
entire market broke violently. closing weak
In response to numerous inquiries the following
statement issued late in the afternoon oy
Joseph II. Hoadley:
Neither any of my associates have cor
ner' in T. C. I. stock Nothing could be further
from purpose than to have such a situation
exist"
The exact situation regarding the Tennessee Coal
and Iron Company has not yet developed, but Of
fetal announcement was made late in the day by
J. C. Maben. president of the Sloss-shefheid Steel
and Iron Company, that control OF that corpora
tion had passed to the HOadley syndicate. Mr.
Maben saidi
Arrangements were concluded to-day for the
transfer of majority Of the common stock OF the
Sloss- Sheffield company to ]. II. Hoadley and his
associates. not at liberty TO state the price
to be paid by the purchasers for the common stock
but 1t is agreed that majority, which is controlled
by my friends and myself, shall be deposited with
the Central Trust Company. to which shall be
paid the agreed price the stock, and IL Is stpu
lated that every holder of minority stock, down 10
a single share, shall be entitled to deposit his
stock and receive therefor the same price that Is
paid to the majority holders. The purchasers sx-
is agreed that it will be transferred at 40 and &C
crued dividends If 1t is not taken over 1t must be
amply secured both as to dividends and as first
lien on the properties that are held by the cor
poration The preferred has been regular Garner
of Ia per quarterly dividend"
The authorized capitalization Of the Sloss-Shehleld
Company is sl0G0,000 each of common and per
cent non-cumulative preferred stock. OF the COM
mon stock s7.59OO0 is outstanding. and OF the pre-
ferred &C. 7OOO0o The acquisition Of the Soss-Shef
field COMPANY it is said, will be followed by the
formation of holding company whether or not
the control of the Tennessee Coal and Iron Com
pany is obtained
At a meeting of the board of directors OF the
Alabama Consolidated Coal and Iron Company yes
tardav d G. Boissevain, who is said to represent
extensive Dutch stockholding interests. and I. H.
watkins of Simpson & Watkins, the well known
coal aperators were elected directors. As the Ala
hama Consolidated Coal and Iron Company, control
o1 which was recently acquired by the HOadley in
terests is the concern which is the centre or the
nlans for consolidation the election of these men
was considered important
Raoorts that the projected holding company
might be capitalized $lOOO0OOO and that it was
nroposed later to turn over TO the United States
Steel Corporation the companies which it would
control could not be confirmed; but IL is known
that leading banking houses are contemplating the
financing of such holding company If the present
movement for consolidation shall be carried
through by its promoters
II is understood that the Hanover National Bank
interests hold the cerunc2IeS Tor majority or
the stock, of which more than $50, $4,000 is out
standing of the Tennessee Coal and Iron Company.
The Hoadey interests according 10 their assertion,
hold contracts for majority OF the stock; the
conclusion being that considerable part OF their
holdings consists of contracts for the delivery OF
stock which be delivered reprsssnIiag sales
TO them by shorts.
An unconhrmed Wall Street rumor yesterday was
that Mr.. Hoadley and his friends also held options
on a large block OF the Hanover Bank party's stock
and that the exercising of these options would give
them. with their holdings purchased in the open
market, control of the Tennessee Coal and Iron
Company.
The stock OF that company opened wide in
the morning. with sales OF 12OOO shares at from IS
to 81. and on heavy trading advanced to s7I, by
early afternoon, maximum rise or about IL points
AS already said. reports were flying about that
there a in the stock and 1t is probable
that good deal OF the buying represented cover
ing by the large short interest Il was also re-
ported that competitive buying BY the Hanover
Bank and HOadley interests was in proSress.
Sloss-Shefteld common stock, which had opened
at los, had advanced 10 lis by mid-afternoon sRd
the preferred had risen from ll6S at the opening
to lS0; while International Power which had
opened at s5, liza points Up from Tuesdays close
an overnight advance which would be considered
remarkable in the OF any other stock on the
lst-rose 20 100 In the last hour came a Vum0r
found later TO be untrue. that a prominent bank
had called loans TO the of SsOOaOOo and
another rumor that one or more banks had declined
tn accept collateral the stock of one of the
concerns Identified with the merger plans.
II also said that the Hoadey party had
always. .Remsmber the Full Name