The Big Steel Trust The New York Times 17 Nov 1889

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The Big Steel Trust
The New York Times
17 Nov 1889 - attitude tbe has bank and and the from the the...
attitude tbe has bank and and the from the the at at Bismarck's la tbe to 17, aad of i There reports. Is ef the State The Inquiry a Minister Fried-rtohsruhe, the four electoral aud have abolish motion rap-Idly the the TUB BIO STEEL IB VST. BOMB DETAILS OF THB ORGAKIZATIOX TO BR XFFKCTED. Ciavaxajtd, Ohio, Rev. 1& It is somewhat dlffleult to obtain the laslds details and plans for the organization of the Federal Bteel Company from the Cleveland gentlemen who are taking an active part In the combination. They are free to speak ef the low prices and largo sinenses cf the past and the benefits whleh will result from eoneentrstlon. But they care not to tell how they will concentrate. Later developments, however, have made public something of the minor details of the consolidation. The nominal capital stock will be "12,000,-000. Of this S6,O00,O00 will represent the value cf the real estate, buildings, machinery, and good will of the absorbed companies. From tXOOO.OOO to $6,000,000 will represent the cash paid In by Investors. It may be that not more than 94,000,000 in cash will be needed as working capital and for buying outright the plants which owners will not exchange for the new company's stoek. A contract has been made with the banking firm of Drexel, Morgan tt Co. for the cash capital. The bankers will reoelve for the money Its equivalent In preferred stock. The $6,000,000 representing the value of the plants will be Issued as common stock of tbe consolidated company. Common stock will be given la cx-chaage for buildings, machinery, and real estate. Finished stock on hand ready for shipment oa Jan. 1, when tbe Federal Bteel Company will begin operations, aud raw material, were not taken Into consideration wbea the appraisal committees fixed the valuation of plants, and they will be regarded as cash aad paid for In preferred stock. Preferred stock will draw 7 per cent. Interest, which must be paid from ths pro tits. If a dividend Is declared. It will be paid upon tae common stoek up vo 7 per cent. If there Is still a snrplaa remaining a dividend will be paid upon preferred and eommoa stock alike. It is believed that enough stock in the new company will be Issued before the Chicago meeting next week so that the corporation can be formally organised and the Dlreetors elected. The directory will consist ef nine persons, snd a slate has been arranged, Itls aeld.wb.lck will gc through without opposition. Tbe gentlemen who will, ia all probability, be chosen to administer tbe affairs of lbs company are: Stewart H. Chlsholm aad Thomas Jopling of this city. J. W. Gates Of et Louis, Gsorge k Douglass of New-York. George X. Oliver ef Pittsburg, George C Baker of Dec M since. Iowa; Mr. Eatonbon of Bt. Louie. Tbe President of the Bsiem Wire Company cf Halem. Ohio, and a representative of one of tbe three large barbed wire factories or Jollet, ill., m& Galea, will be elected Presldsst. The headquarters of the company will be in Chicago, aad tn tbe matter of general offices it Is said Cleveland will be left la the cold. The selling elBoe will go to Chicago and the purchasing office to Pittsburg. a to selected

Clipped from
  1. The New York Times,
  2. 17 Nov 1889, Sun,
  3. Page 1

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  • The Big Steel Trust The New York Times 17 Nov 1889

    tomjopling – 26 Jun 2013

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