Devils Lake weekly world. (Devils Lake, N.D.) 1911-1914, 1911-11-03
BIC SUIT IS NO
PERIL TO CIT IS

Pittsburg, Oct. 31.-When the con-
cussion caused by the filing Of the
equity bill to dissolve the United
States Steel corporation subsidized,
many began to wonder what the eff
feet of such disintegration would be
upon the numerous endowments by
Andrew Carnegie of institutions and
projects with the gold bonds of the
gigantic company, how the stockhold-
ers would be compensated, and, In
general, just how the reconstruction
would be made. These questions are
fraught with so much Importance and
interest that q statement has been
obtained from an authoritative source
which may not follow the procedure
precisely, in event of the government
winning, but which is based upon the
court orders, in the settlement of the
Northern Securities merger, the to-
bacco trust case and the Standard
oil readjustment.
Mr. Carnegie owned $305, 100000 in
United States Steel bonds bearing 5
per cent interest in gold. A substan-
tial portion Of these bonds he has
donated from pure philanthropy to Ii
braries, foundations for research, col
| lege professors pensions, hero funds,
American and European, the latest in
italy and numerously otherwise.
VIZ "
these endowments. The business Of
the great corporation will proceed,
the interest be regularly paid until
the final court gives, if the decision
/ be for dissolution, sufficient time for
REIMBURSEMENT.
! Must Liquidatc Bonds.
/; Then these bonds must be paid off,
or in some way taken care of. No
. court can destroy property, and back
of the bonds is property. So the
! American Tobacco company is now
discharging it's bonded obligations and
/ the Standard Oil company has vir-
! tually completed preparing it's script
| to wipe out preferential liabilities. So
none of these cherished endowments
/ of Mr.. Carnegie will financially feel
the tendency of the big suit.
| How about the recompense of
! stockholders in the giant corporation?
The process will in all likelihood be
that employed under court decree in
| the famous Northern Securities merg-
er dissolution. The stock of the hold
! ing company for the merged lines
| of the Northern Pacific and Great
! Northern was prorated, each stock
| holder receiving stock of each of
these companies Of aggregate value
equal to his stock in the merger.
! 1t will be recalled that the late E.
/ H. Hartman petitioned the court that
he be returned entire the stock of the
Northern Pacific which he contributed
to the merger. But the court said:
mo. That would give you control
Of the Northern Pacific, and you must
accept portions Of stock in each of the
two roads like all the other parties
to this illegal merger. In court of
/ wrongdoing."
4 An Instance Stated
=, So If some stakeholder, having, for
instance $1,000 worth Of certificates
in the United States Steel and the
court decree dissolution, he will re-
ceive the equivalent Of his $1,000
not likely in the parent company with
which he was at first affiliated, but
blocks in several of the companies
now constituting the big corporation
This answers also the curious query
that has been heard about how the
young lieutenants, whose fortune
grew like Jonah's gourd over night
will fare. These heirs of Aladdin
will not resume necessarily virtua
control Of the Carnegie Steel com.
pany, with swollen stock holdings
but will find the readjustment scat
, tering their compensation among sew.
eral of the component companies.
, Many persons seem to rest under
/ the erroneous impression that thu
stock, which was allotted to employs
of the Steel corporation to be pait
! for on the installment plan, wa
| common stock. There las one op
: portunity afforded employees to pro
cure preferred stock, and consider
able amount Of the higher class is 81
held. OF course, it is not remarkable
cate has not been issued.
One VerV imDOrtant Statement
, heard yesterday, in quarter tina
would command attention anywhere
is that the steel corporation feels 81
). confident Of it's own invulnerabilit,
that it will aid the government il
Fastening the final disposition of tn,
cases, and that it stands ready to zeal
the bluff" Of Attorney General Wick
ersham, if his alleged assertion b.
correctly reported. that he believes
the case incomplete" If it be "com
plete" there will be no need of ex
aminers securing the country for evi
dence to compile into bulky volume!
for the trio of judges to digest.
Steel Corporation Ready.
} Obviously, the Steel corporation
, has it's defensive testimony ready, anc
: whenever the legal preliminaries are
settled it is squarely declared that i,
; will interpose no dilatory pleas OF
} seek delay. Its interests are wholly
; bound up, it is said, in speedy ad.
Indication.
AS the case was analysed by lega
expert, it is apparent that the gov.
eminent seems not to rely upon prov.
ing the corporation a trust so much
as upon proving that it is monopoly
Many have argued that it cannot be
what in the purview of the Sherman
act is meant as a trust because it is
not a combination of Subsidiary
companies but Solidarity" unit
owning all its constituent parts, al
on a level. Therefore the trial is apt
to hinge upon the character Of mon.
opolizing steel production and con-
trolling prices and thus restraining
the corporation directors are report
ed as feeling assured of winning.
In steel circles there continues &
seeming "gentlemen's agreement" tc
refrain from discussing the suit with
quotation by name. but confidential.
ly" there was manifest yesterday a
decided resumption Of cockiness. The
first shock had passed and normal
equilibrium was regained, coupled
In business circles generally calm
had also returned, for a diagnosis OF
the whole situation showed this re-
gion to be guaranteed against any dis
aster and probably winner, what
ever may be the issue Of the litiga-
ton.
Ten More Names Added to List-Isan.
/ quct Looked Forward to
! by Teams
Though the membership contest OF
the Commercial club closed last Sat
/ urday the members increase every
day according to Secretary Cowley. AS