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1902.] MARINE REVIEW. 25 METAL HOSE. The American Metal Hose Co., No. 41 Dearborn street, Chicago, is finding a very large market for a flexible hose that is made entirely of metal, and about which little is yet known among American engineers. The hose has been adopted by the German navy and by the North German Lloyd Steamship Co., and among large concerns to which the Chicago company refers are the Chicago Edison Co., Illinois Steel Co., Standard Oil Co., Metropolitan Elevated Ry. Co. and South Side Elevated Ry. Co. of Chicago, Illinois Central Ry. Co., Nelson, Morris & Co. and McCor- mick Harvesting Machine Co. The iollowing matter descriptive of the hose and the claims made for it is given out 'by the Chicago company: The successful an economical conveyance of corrosive, destructive or dangerous liquids and gases by means of flexible steel and copper pipes - js an art but little understood by the American engineer. This hose con- stitutes a reliable and practically indestructible substitute for rubber hose, having the durability of metal and the flexibility of rubber. Metal hose, in consequence of its construction and the material employed, is impervi- ous to the influence of all destructive mediums, and is therefore adapted to technical purposes of all kinds, such as conveying steam, compressed air, water, oils, acids, alkalies, gases, benzine, gasoline, naphtha, etc. The metal hose that has been made heretofore has been known to the trade as flexible metallic tubing. This tubing is quite different from metal hose, inasmuch as it consists of a single tube which can be used with satisfactory results only where the hose is not handled, twisted or sub- jected to external abuse, and has not therefore come into general use. This tubing has been made in England and France. The metal hose described herewith is quite different. It is not an india rubber tube enclosed in metal, but is constructed from a metallic tape, which is rolled up in the form of a spiral, so that the edges overlap and fit into each other without de- ,tracting from its power of motion. As Hi] iif the tape is rolled up it forms a groove hh ye the reception. of a packing. It is y completely enclosed in the packing as it rolls and there it remains fully pro- tected from internal or external wear and tear. The packing causes the tubing to be perfectly tight, while the jointing induces a flexibility superior to rubber hose of equal dimensions. As this hose will not kink, crush, nor blister, it always delivers to its full capacity and will assure a relatively s larger opening than rubber hose of FIG. 1. equal diameter; furthermore, as_ all couplings and connections are made from T the outside, leaving the full internal diame- Ater constantly available, a smaller size of / metal hose can be used. Metal hose is distinguished by three sys- tems--l, 2 and 3, as shown in the illustra- tions. System 1--The packing is of rubber and lays between the overlapping edges of the tape. This hose is made only for light work, such as gas, and for discharging pipes where there is not much pressure. System 2--Is packed with asbestos; the packing does ,not simply lay between the «| overlapping edges as in the case of system 1, but is held firmly -in a groove of the tape. (See Figs. 2 and 3). System 3, double hose-- The double hose for steam is'shown in Fig. 4. This hose is constructed of two tubes, one inserted within the other and firmly fast- ened at the ends. The coils of each tube are in opposite directions. Whilethe ™ coils of the sin- 'Wele tube may ~tbecome un- twisted from alcareless hand- Bling or when subjected to great strain, this can never be any\e @ the case where : FIG. 4. the double hose 1s used. This double hose is absolutely safe and will withstand the great- est demands that can be made with respect to tightness and power of resistance, and be made in special cases to withstand a pressure up to 3,000 Ibs. per square inch. For conveying steam under any pressure its lise is unequaled. It is in successful use for blowing flues, rock drills, on railroads, in mines, tunnels, etc. _ For the conveyance of greasy liquids which speedily attack rubber, this hose gives the best possible results, as the flexibility is increased by the lubricating nature of the liquid passing through it and its life is thereby Prolonged. ETT Of $50,000,000 314 per cent. bonds to be issued by the Pennsylvania Railroad Co. $25,000,000 is to be used for purchasing 19,000 fifty-ton. steel Cars and 260 locomotives. Makers of Steel rails, railway cars and-loco- motives all have on their books a big business running into 1903. HOW THE AMERICAN STEEL & WIRE CO. WAS ORGANIZED. (Mr. John H. Parks is suing John W. Gates in New York for an accounting of the profits from organizing the American Steel & Wire Co., now one of the underlying companies of the United States Steel Cor- poration. The case is interesting in that it shows how the big wire com- pany was organized. Gates claims that he owes Parks nothing, because the first plan formulated, to which Parks was a party, failed. The plaintiff had established that he was one of six parties to a certain agreement signed by Gates. They were a New York banking house, Gates, his side partner, ex-Judge Gary, a Western lawyer named Ten Broeck, Mr. Ladd, a Providence manufacturer; Mr. Wolff, a manufacturer from St. Louis, and Parks, who was described by Gates as a promoter. Judge Gary, Gates, Ten Broeck, Ladd and Wolff had held a conference in Gates' apartment at the Holland House and there an agreement was drawn up and another conference was held at the office of the banking firm. This banking firm was about to finance the scheme, but in the face of the fact that the Spanish-American war was brewing the banking house declined to go on with the undertaking and so notified Gates and Judge Gary. Later on the project was put through, Gates declares, through the efforts of another banking house, Judge Gary and some western steel men. But Parks asserts that he was still in the deal for the reason that the agreement signed by Gates was still in force, inasmuch as he had never been officially notified to the contrary. Gates, on the other hand, declared that Ten Broeck and Parks and the others who had entered into the first agreement had been notified that it was all off. And in addition to this, Gates declares that the formation of the American Steel & Wire Co. was not the result of the first agreement, but of a second one drawn up later, and known as the Standard Trust agreement. William D. Guthrie, Mr. Gates' counsel, asked Mr. Gates to tell the story of the conference at the Holland house. Mr. Gates said that it took place in 'September, 1897, after he had obtained options on various plants. Copies of some of these options were produced. The witness said the first agreement failed tbe- cause in the first place there was the declination of the bankers to finance it, and then some of the manufacturers commenced to tire of waiting. Others thought the commission too high. "T told Mr. Ten Broeck the jig was up," said the witness. "After that Judge Gary and myself decided to organize on a smaller scale in the west. I owned a quarter interest in the Consolidated Steel & Wire Co. of Illinois and it was worth $1,000,000. We proceeded to form the Almeri- can 'Steel & Wire Co. of Illinois by combining the Elwood Manufacturing Co., the American Wire & Nail Co. and other concerns." "What did you get in exchange for your stock in the Consolidated Steel & Wire. Co,?" = "T got $1,750,000 of the preferred stock in the new company and $1,750,000 of the common stock of the new company," answered the wit- mess. Mr. Gates then proceeded to tell how each separate company was bought up in organizing the American Steel & Wire Co. of Illinois. In some instances owners of plants accepted promissory notes signed by Gates and Gary. In others they accepted notes and stock. In still other cases they took half cash and half in stock. The cash in many instances was raised by the issuing of notes, but there were no profits made in the manner of raising the cash, M'r. Gates explained. This was one of -the points, apparently, which Gates' counsel wanted brought out prominently. 'Counsel then took up the formation of the American Steel & Wire Co. of New Jersey. Mr. Gates said that a conference was held in Chicago first. He was there. Later, on Jan. 2, 1899, he talked the matter over at a dinner which he attended at the residence of Jefferson Seligman. "There were a dozen at that dinner," explained the witness. "I told the amount of underwriting I would take and the amount others in the wire business would take. Then and there the syndicate was agreed to, the agreement being that Seligman & Co. was to underwrite half of $28,000,000." "How much had you invested in purchasing other properties?" "Albout $2,000,000, and I turned in these properties at aictual cost to the new corporation. There was not a dollar profit in that move at that time. I was one of the new syndicate underwriters." Going 'back to the organization of the American Steel & Wire Co. of Illinois, Mr. Gates said there was no secrecy about it, inasmuch as the newspapers printed stories about it daily. He gave a similar answer in reference to the New Jersey company, although a previous witness had testified to the contrary. The witness said that he had subscribed for $2,150,000 of stock in the American Steel & Wire Co. of New Jersey, but got a trifle less than that. "Now, Mr. Gates," said Mr. Fox, cross-examining the witness, "was not the total amount paid in and turned over to the company, $40,000,000?" "Ves," answered the witness, '$40,000,000 was the amount turned in." The witness went on to explain that he first turned in his stock of the Consolidated Co. of Illinois to the American Steel & Wire Co. of IIli- nois, receiving in return for it stock from that company. Then he turned in the stock so received to the American Stee! & Wire Co. of New Jersey, receiving in return stock in that corporation. The last exichange was made at the rate of one share of American of Illinois for one and one- sixth shares of American of New Jersey. Then came the formation of the American Steel & Wire Co. with a capital stock of $90,000,000. Q. How much of this was common stock? $50,000,000? A. Yes.- Q. And you made a profit out of the underwriting? A. I did. Q. Now, Mr 'Strauss of Seligman & Co. testified that they delivered to you, under the agreement by which you paid $2,000,000 hard cash, a certain amount of preferred stock and a certain amount of common stock. You received from Seligman & Co. a certain amount of stock, did you not? A. I did not. Q. You noticed from the testimony that $26,000,000 of the $90,000,- 000 of capital stock was unaccounted for. What became of that $26,000,- 000 of stock, so far as you are concerned? A. I don't know. Q. Didn't you get some of that stock? A. Not one share. Then you did not get any more stock than you subscribed for and paid for? A. Not one share. "That's all,' remarked Mr. Fox, and as Mr. Gates stepped down from the, witness stand he shook hands with Judge Gary and smiled. } se The CfeVéland 'Pneumatig; Tool Co. reports a large order frofn,one of the Pacifié céast ship building companies. The Cleveland company does not belong to any combination of pneumatic tool manufacturers.