The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-11-06
u, S. STEEL TAKES
OVER TENNESSEE
Acquisition Of Control Of Rival
Corporations Officially
Given Out.
FINANCIAL EFFECTS

Hts FINANCIAL EFFECTS
NEW YORK. November 5.--Oficial
announcement. was made Tonight that
OF control of the Tennessee Coal. Iron
and Hallway Company by the United
States steel Corporation were conclnd-
ed at a conference held at Mr. Nor.
ration will secure sufficient stock OF
the Tennessee company to give 1T con
troll. the exact amount not yet being
determined, In exchange for which II
The character of these bonds has not
been decided, but. It is learned that y
will be the sinking fund fives, OF
in the treasury of the steel corpora.
ton. IT is estimated that SIS. 900, 600
of these bonds will be issued to pay
for the control of the Tennessee Coal;
conferences Of the directors Of the
Trust. Company. of America and the
Lincoln Trust Company were held to-
Total capitalization.
The ommon stock of the Tennessee
company. OF which about. s30,000,00o is
outstanding (tle preferred is less than
s25o.ooo). has long been closely held,
ner cent at a a niS1, fi diysdsnd Il Pays has oni Eo,5 !
u ~ VIZ N+'ih ott q oiNA
as high as 166. ex-rights. and a sale
Of 100 shares was made at 1876 on the
Stock Exchange. According to report
the United States Steel Corporation, or
vide. the sum required for taking over
at about so the syndicate's holdings of
around 20 per cent. of the outstanding
stock 7TL Of the Tennessee company:
lated to the arrangements making for
turning additional cash over to the
trust Company OF America. The sale
VIII DO much to relieve the present
of the stock OF the Tennessee COM
pany are now held as collateral for
loans by local banks. The taking up
Of these loans by the new owners OF
cash of the financial insti-
buttons.
U. S. stecl's Increased Output.
With the acquisition of the Tennes-
see Coal, Iron and Railroad Company,
the United States steel Corporation;
about 60 per cent of the steel business
of the country. would largely increase
that percentage. and II was reported
of ex-Judge Gary and Mr.. F'rick in
journeying to Washington was to as
certain whether or not the taking over
viewed by the administration as. an
undesirable transaction which might
possibly in time to come cause the
Steel Corporation to be looked upon as
approaching a monopoly.
History of the Merged Company.
The Tennessee Coal. Iron n Railroad
Company was incorporated under the
laws of Tennessee forty-seven years
ago under the name of the Tennessee
Coal and Railroad Company. Its title
was changed to the present one in
1881. There have been numerous
plans for the consolidation of the
Tennessee Coal and Iron Company and
other iron and street properties, in
Guiding the Republic Iron and Steel
Company and the Sloss-Shefhield Steel
and Iron Company, but they were never
contaminated.
In December. 1905, leadin;; interests
in the Republic Iron anil steel Com
pany bought a control Of the Tenncs-
see Coal and Iron Company, IL seven
OF the directors of the foiine" corr
pany We, elected to the board of the
Tennessee company. These men We're
John w. Gates, C. S. Guthrie, L c. Han
ma, e. w. Oglebay. Grant l. SchlcS. S.
G. Cooper and e. j. Berwind. Oakicigh
Thorne was also elected q director in
the company at that time.
a majority of the s22, SOD,r G stock
then outstanding, said to be 20 per
cent, was pooled under an agreement
entered into by John w. Gates. l.. e.
Hanna. Grant p. Schlay, George "A. kes-
sler. Oakleigh Thorne n Oliver ii.
Payre. When they began buying the
price Of che stock was LeSwran ~ and
rs. but it rose rapidly when the plan
became known. and the average cost
price of the stock in the pool is I'M
derstood to have been about s1oO a
| share In f March Vvhep rho rriro rf
the stock broke sharply it was re-
ported that the pool had been unable
to hold out and had been forced to
unload part of its holdings. This was
denied. however, at the time, and later
a semi-ofticial statement was issued that
the members of the pool bank taken up
all their stock. In the meantime the
price had rallied nearly two points
higher thar before the break.
On January 81, 1906. the stockhold-
ers voted to increase the capital
stock from s2S.0oo.0o to cs0.O hn. 900, OF
which amount s3.42a.1S0 was supscrib.
ed for by the stockholders at par. and
$3,isO.00o alditi )ru. was offered at lar.
making the total outstanding sa9,I5a,-
$50, On October !6. 1906. the author
lied issue of common stock was in.
creased from $4,000 900 to $4,000. 900.
LIN March of the same year the com
pany purchased the Birmingham South
ern Railroad from the Louisville and
nashville and the Southern Railroad
Company. 1t operates valuable coal and
iron mines. blast furnaces and foun-
dries IN Alabama and Tennessee. In
ls9. IT absorbed the De Bardeleben
Coal and Iron Company, the Cahaba
Coal and Mining Company and tho Elk
ce'sior Coal Company. 1t also controls
a stee, i1llll at Ensley, Ala, having a
eapaci.S Oh loo,ooo tons Of rails and
100000 tons of other steel products =
year. :"
For the year ended December 81.
1906, thcg gross sales and earnings wera
sl8.2Go,sl and net earnings 50 u. 1sn