AMERICAN STEEL COMBINE.

Timaru Herald, Volume LXIV, Issue 3559, 6 May 1901, Page 3

AMERICAN STEEL COMBINE.

The sale of the Carnegie Si eel Company, savs the New York correspondent of "The Times," is part of one immense transaction, by which the Carnegie Company, the Federal Steel Company, and other leading American concerns will be combined. The financial and industrial worlds are equally aroused by these events. They involve, first, the formation, of. by- far- the. largest industrial trust that has ever been known in the world; and secondly, a financial transaction, on a scale which startled, even Wall street. There is no written agreement. Not :the least remarkable feature of 1 his measure is the fact that it rests entirely between Mr Carnegie and Mr Morgan, who have each other's word for it, and nothing more. Mr Carnegie pari 3 with •his entire interest in the Carnegie Company, 54 per cent, of the whole capital •value of which for the purposes of this I sale is agreed . to be 400,000,000 dollars (£8,000,000.) He takes his pay in 5 per cent, gold bonds o f the new company at ; 'par, they being probably worth £l2O. The new company including the Federal Steel, American Steel and Wire, National Tube, and several other concerns, seven in all, 'has a capital of l,000,000,000dols." Mr J. Pierpont Morgan, who conceived and. .worked ..out this gigantic financial ■trknsaction, holds a unique position in monetary circles,, for. he . "owns most of the railroads, the best dogs, the finest yachts, -the rarest books, and the choicest cigam" Mx Morgan made his money in-reorganis-ing—or, as a Wall street wag once said, re-Morganising railway properties that had become demoralised. The industrial and financial worlds have been aroused by his latest move, which involved the formation of,the largest industrial trust yet known, q hW9-eB etaoin shrdul cmfwypt shr-