New-York tribune., 1907-11-08
TIC. I. STOCK DEPOSITED
TURNED IN TO MORGAN.
More than a Majority Erch0nged-
10000 Shares ETpected.

Deposits OF Tennessee Coal Iron and Railroad
stock with ]. p Morgan & Co. in accordance
with the terms of the transaction by which the
United States Steel Corporation obtained con-
troll of the property. We're made yesterday. At
the close of business it was announced by the
Morgan firm that 175,O0O shares of the stock
had been deposited in exchange for United
States Steel Corporation sinking fund per cent
bonds The latter, 1t was said, would be de-
lvered to the Tennessee stockholders before the
end of the week.
The stock turned in yesterday consider
ably i3ore than a majority 1t is estimated that at
least $25000,009 of common stock, 250000
shares will be deposited. John ". Gates, Leonard
c. Hanna, Grant 3. Schley and Colonel Oliver H
Payne were among those who delivered their
stock yesterday.
The governing committee of the New York
Stock Exchange, at a special meeting yester-
day. authorized the listing of S30.O00000 United
States Steel Corporation sinking fund per cent
bonds, which, most Of which. TO be used
in paying for the Tennessee stock 10 be
quired by the steel corporation The holders
Of Tennessee stock, It is authortatively stated,
are to receive about $11900 in bonds par value.
for each 100 shares of stock. as the stock has
TO be taken at par and payment made for 1t in
bonds at about 81. their market value at the
time the transaction arranged. At that
time Tennessee stock selling at 130. 1t
closed on Wednesday at 129. and yesterday at
101. while the Steel sinking fund bonds de-
clined during the day from SJA at the opening
to S215 at the close
A member of the syndicate which formerly
held control of the Tennessee company said
yesterday that all the large stockholders would
turn in their stock to j. p Morgan & Co. He
added: Every member regrets that conditions
have forced the sale Of the property. If there
IS any water in the United States Steel securl-
ties at present it will be than eliminated
through the acquisition OF the Tennessee Com
pany. The latter has not been In position to
demonstrate its earning power. 1t has been
putting millions into construction work
the benefits from which just about TO
mature. The steel corporation has secured
bargain which cannot Be duplicated in one hun
dred years"
II was said yesterday that the principal men,
bers of the Tennessee pool held on an average
13, 800 shares each Of common stock. The hold
ings Of three of the pool members-John W,
Gates Leonard c. Hanna and Grant b. Schley-
were however understood TO be considerably
In excess of this average. 1t was the pool stock
that the Steel Corporation purchased. lndivld-
ual stockholders have been informed that their
stock would be accepted on the same terms as
within fifteen days from the time the Steel Cor
noration bought control of the property
The directors Of the Tennessee Coal, Iron and
Railroad Company will hold a meeting to-mor-
row to transfer the physical control OF the prop
erty to the United States Steel Corporation
referring 10 the Importance to the South OF
the passing of the control of the Tennessee Coal
Iron and Railroad Company to the United states
Steel CORPORATION THE Manufacturers Rec
ord. I'm this weeks issue says in part:
Now that the Steel Corporation has secured
control NJ the Tennessee company the world will
no assured Of the development OF the iron and
steel interests of Alabama on scale commen-
s,rata with the natural advantages OF that state.
Backed by the vast resources in money brains
end energy OF the Steel Corporation, the Ala
hama district with it's practically limitless re-
sources Of coal and iron ought 10 leap forward
into a far more commanding position than ever
before in the worlds metallurgical affairs For
good business reasons. as we'll as public policy,
Will compel the Steel Corporation to make the
most of the advantages Of Alabama for iron and
steel production.
With the Steel Corporation owning these vast
properties in Alabama, It will be reasonable to
expect that it will carry forward a much
larger scale than the former owners could pos
sibly do the fullest utilization of the wealth of
raw material it has obtained, and the develop
ment OF the properties OF the Tennessee COM
pany. through the entrance into the Alabama
district of the Steel Corporation, will unques-
tionabIy prove of very great advantage not only
to all other iron and coal properties in that state
but in the whole Central South.
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