Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1914-04-25
R|CK-DON|VER MAY
ABSORB PA. STEEL
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been abroad in Steelton to the effect
that the Steel Company contemplated
a number of sweeping changes in its
executive force.
One of these rumors Is to the effect
that William H. Donner, now at the
head of the Cambria Steel Company,
is to be made the executive head of
the Pennsylvania Steel Company, sue
ceeding e. c. FELTON,, the present pres
ident of the company. One of the
largest individual stockholders Of the
Steel Company hereabouts yesterday
said that Mr.. Donner would come to
Steeltou on or about June l.. Another
rumor afloat is to the effect that John
w. Dougherty, former general super
intendent of the Steelton plant, is to
return as vice-president, replacing j.
V. w. Reynders, now vIce-president.
Reynders Wouldn't Talk
Mr.. Reynders, when shown copies
of the stories printed in yesterday s
papers, declined to say anything tor
publication. IT am not in a position
to make any comment" he said.
An effort to have some of the ru-
other sources met with little success.
One man who has followed the history
of the company carefully intimated
that it was his belief that no changes
in the ownership or control of the
local company would be made. but
that there would be several changes in
the personnel of the management.
Friends of Vice-President Reynders,
however, expressed the opinion that
Iaf
mors. They pointed to the great i'm
provements made to the local plant
under his management and averred
that 1T was highly improbable that
there would be any change while the
company's big extension plan was be-
ing carried out.
Just recently the company an
nounced change of policy. Instead
of depending solely upon the railroads
for orders, the equipment of the plans
Will be changed to enable the COM
pany to enter a wider field of opera
tions, especially along the lines of
structural steel manufacture. These
changes will cost in the neighborhood
of $40, 100000 to complete. To better
handle the changed output q new
company was organized with Mr..
Reynders as one of the principal in
corporators. This, friends Of Mr..
ReynderS point out, would preclude
the idea of a change in the local man
agement while this improvement plan
is being carried out, at least.
Rumors Are Current
Commenting on these rumors, which
seem to be current in the stock ex-
change .as well as in Steelton, Phila-
delphia newspaper this morning says
Financial quarters heard a report
yesterday that the Frick-Donner
group, which is largely dominant in
the Cambria Steel Company, might
acquire the big stock holdings of the
Pennsylvania Railroad interest in the
Pennsylvania Steel Company and also
take over the controlling block of
Cambria Steel stock. Such deal is
far from impossible. Whether it shall
develop or not, information received
in circles often well advised runs to
the effect that important managerial
changes are about to be made in the
Pennsylvania Steel Company.
"The understanding received is that
William H. Donner, now at the head
of the Cambria Steel Company,
where he was placed by the Frick in
fluence, is to be made also either
president or chairman of the Pennsyl-
Vania Steel Company. 1t would be
likely for any changes contemplated
to be made at or Immediately follow
ing the annual meeting, which comes
May IL. Under the Donner manage
ment the Cambria Steel Company
made a very fine showing of earnings
for last year.
THE Pennsylvania Steel Company
has been obliged to discontinue divi-
dends on its preferred stock. About a
year ago the controlling stock interests
provided $3,000,000 on a $4,000, 900
program of rehabilitation of the
plants. If these interests, the Penn
sylvania Railroad and the Reading
Iron Company, intend to stay with
the property or to sell out, they in
either case would want to see operat-
ing results better than have been got
out OF the company under the FELTON,
management. The Cambria Steel Com
pany did not realize results under the
Stackhouse management which salts
fled the forward-pressing Frick in
terest."
The Philadelphia News Bureau in
commenting on the rumurS has this
to say:
There are many rumors afloat as
to the merger or acquisition of the
Pennsylvania Steel Company by the
Frick-Donner interests. Officials have
refused to make any statement, but it
is likely to prove that the stories are
exaggerated. Last year when the al
legged Cambria Steel deal was first ex-
plotted well informed people would
have been less surprised if the rumors
had been in connection with Pennsyl-
vania Steel Company. But in the end
the rumors did not materialize as to
the Cambria Steel Company, and but
little was said about Pennsylvania
Steel.
Recently the Pennsylvania Steel
Company has entered upon plans for
the expansion of its plant, which are
well under way.
ut may be possible that these plans
will include some changes in the con-
duct of the company or the personnel
of the management, but it is said to
be unlikely that there will be any in
ownership or control"
nC0D0C DArD Ic