The Washington herald., 1907-11-07

acted in the financial district on larger
scale to-day than on any previous day
in more than three weeks. The alarm
was all out of the air and there was
hardly a trace OF the commotion that
has been in evidence in recent weeks
The street was satisfied that all the ap-
prehensions Of further disturbance on ac-
count If the Trust Company Of America
and the Lincoln Trust Company had been
effectually removed by the action OF the
conferences the previous night. These
institutions abandoned the halting and
hesitating manner of paying checks, but
opened wide the windows and met all
eomers with the utmost promptness.
The directors OF the United States Steel
Corporation formally ratified the trans
action for the acquisition Of the Tennes-
see Coal and Iron Company. The action
Of the directors was unanimous. and they
appeared very well satisfied with the out
come Of the negotiations Judging from
a number Of expressions by bankers not
concerned in the affairs of either COM
pany. they had abundant reason for sat
! isfaction, for, II was pointed out the
Steel Corporation got hold Of a very
valuable property st fair price. relieved
the tension on the Trust Company Of
America by enabling the substitution Of
marketable for unmarketable loans. and
thus contributed greatly toward restoring
the stability of the financial situation
sgnerally-
Provided a Quick Asset
Moreover, the terms OF sale. providing
for the payment Of steel pe- cent bonds
for T. c. and l. stock dollar Tor dollar.
were considered entirely fair 10 .he
sellers. especially as they. like the Trust
Company Of America. were provided
with quick asset in exchange for a
slow one Apparently this was also the
opinion OF those holders Of Tennessee
! Coal and Iron whose stock did not form
part OF the original transaction. IL was
! announced that John W. Gates oliver
I H. Payne and others OF these holders
would accept the offer made by the steel
! corporation to give steel bonds for all
7. c. and l stock offered within fifteen
days 49, ~-~~--~- .-
! The acquisition OF the company is par
ticularly advantageous to the Steel coz
/ porauOn because iron ore and coal prop
critics go with IT, With the Great North
/ ern and Northern Pacific ore lands ac-
/ quired last year. together with previous
! holdings. the steel corporation has iron
J tr tFar
2.D0,00o0J0 tons. OF which Approximately
! 10O0o0.000 tons come with the Tennessee
Coal and Iron Company Il would be
necessary greatly 10 increase the capacity
Of its plants 10 exhaust these deposits
I'm century The coal in the Tennessee
Coal and Iron Company's mines is csti-
mated in amounts ranging from l.JG0.O0).
coo TO 26o,00o.0OO tons a few hundred
million tons off the lower estimate would
still leave a desirable quantity
Good Bargain, Says Gates.
THE steel people got the best bargain
in the country" said John W. Gates. in
speaking Of the transaction. '.J did not
want 10 sell my stock. but had to fol-
low the crowd I have my stock In q
]
morrow. Had Tennessee stock been
thrown on the market ] would have
been better, as I could then have In.
creased my holdings at a low price. The
iron ore and coal deposits of the com
pany are worth many times more than
the entire cost of the property TO the
steel corporation. Based on 10 cents a
ton for the 700.00O000 tons of iron ore
and 5 cents a ton for the 100000 tons
Of coal, We have valuation Of S11O,OO0. .oO
and this figure is far below the actual
value Of the Tennessee company's known
deposits of raw material The purchas,
Of the company is a big bull card for the
securities of the United States Steel Cor
poration."
International money movements wer,
again distinctly favorable. Under the in.
1uence Of the shipment Of $4,000. 900 gol,
from the Bank Of France TO the Bank o,
England, and large offerings OF cotton
grain. and stock bills. demand Sterlinl
declined tumultuOusly 10 4S5 and 1854
off 21z cents for the day. Concurrently
with this movement the engagement o.
gold for import continued briskly Lazar,
Freeres secured s. 900. .000: the Bank o
Bank of Portland, Ore. $4,000 TOta
engagements for the movement were thu
increased TO more than $37.OoO0OO.
Gold Imports Distributed
The gold brought in by the Kronprin
zessen CeciIe on the previous day was dis
tributed among the consignees before IN
opening Of business. Most of the S. 900. %
was in American gold coin. and many O
the consignees used il in their own office
or deposited it in banks without putin,
{ il through the assay Office. About s.
900 OF American gold coin. come bacl
home after wanderings abroad. was ex
changed at the subtreasury Tor gold Ger
tihcates. About $S.250tel OF the gold wa
taken in at the assay Office
The prcmcm on currency declined 10
ward the close from S7l per cent AZ I'm
opening TO SA per cent. In some case
but 21k or 3 per cent was pdid. hut thi
was only when small amounts were Of
fered or when the currency was in bill
OF the largest denominations Small bill
still commanded thA highest premium
The reduction in the premium was du
t 70 large offerings of currency taken from
=. safe deposit boxes by men who were en-
4 tirely treasured regarding the stability O
Continued on Page 3, Column 4.
. No. 1 Cypress Shingles, $3.50 Per LOO