Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1915-09-25
COREY TO HEAD
MIDVALE STEEL =?
May Lead New Purchasers
Cambria-Pennsylvania Com
bine Apparently Shaping

William E. Corey, former president
OF the United States Steel Corporation,
heading a group of practical steel
men, will be found in possession of
the Midvale Steel Company when the
negotiations for it's sale now at the
closing point have been finally scaled.
This statement came yesterday from a
financier who has been in close touch
with every detail of the sale.
William A. Read & Co.. bankers,
yesterday confirmed the advices that
the Midvale had been acquired by new
interests, but the maj papers will not
be signed for a few days. The deal,
involving approximately $4,000. 900
IN cash, has been financed, and is be-
ing cleared through the Girard Trust
Company of Philadelphia.
The negotiations, which have been
carried on by Roland L. Taylor, the
Philadelphia member of William A.
Read & Co., will be far reaching in
their effect, but the firm stated that
the interests acquiring the MidvaIe
property neither represent the Cam
bria Steel nor the Pennsylvania Steel
companies.
Schwab Wants p. S. Co.
Charles NJ. Schwab, president of the
Bethlehem Steel Corporation, who was
in this city yesterday on a brief visit,
is mentioned as one of the steel group
interested with Corey in the acquisition
OF the Midvale, but from what could
be learned yesterday it may be that
while he was ready to take an interest
in that property a few months ago, he
has turned his attentions elsewhere.
In this connection the report comes
up strongly again, from many sources,
that he is negotiating for the purchase
of the Cambria Steel and the Pennsyi-
vania Steel companies. Those in a
position to know declare that he is
especially desirous of owning the
Pennsylvania Steel Company, if for no
the Maryland Steel, at Sparrow S
Point, as a base for submarine boat
construction.
May Merge With Cambria
At the same time it was learned that
at least a part of the Frick- -Donner op-
tion on the Pennsylvania Company's
holdings of Cambria Steel had been
exercised and paid for, although
President Donner of the latter COM
pany, refused to talk on the subject.
He and II. G. Frick also have an
option on the Pennsylvania Com
pany's holdings of Pennsylvania Steel
All this leads to the financial districts
to expect some announcement of at
least a combination of the Cambria
Steel and the Pennsylvania Steel
properties.
While the various interests as
sociated one way or another with the
steel company deals do not connect
the Midvale with the Cambria Penn
sylvania combination, in industrial
circles the talk is of a concerted move
upon the part of more or less as
sociated steel interests to find the
means of speeding up the manufac-
ture of munitions for the Allies.
Deal is Ready?
Although the disposition of the Mid
vale seems pretty well indicated the
deal in Cambria and Pennsylvania
Steel is still clouded in mystery. Be-
yond the exercising of part of the
Donner-Frick option yesterday, in
volving a cash settlement, nothing au-
was forthcoming. The
Donner-Frick option covers $22,504,-
100 worth of the entire $45,000,00O
Cambria Steel stock issued. If, as re-
ported, the option is at s55 a share,
the taking over of the entire Pennsyl-
vania holdings would call for a pay
ment of s24,754,510. How much was
involved in yesterdays transaction was
not stated. 1t was an advance, how
ever, toward the consummation of the
big project.
The details of the Cambria Pennsyl-
vania steel deal. whatever 1t may
prove to be, may not be told until
after the next meeting of the COM
panies' directors. At the meeting of
the Cambria board this week, the mat
ter was held UP pending the express
sion of the wishes of the new inter-
ests, lately entitled to dominant voice
in the readjustment of the company's
affairs, but 1t is understood, only de-
tails remain to be settled. The deal
is ready to be sprung.
The Cambria Steel transaction
overtops that in Midvale, for the for
mer property is capitalized at $45,-
900, 900 and 1t is likely that $4,000, 900
additional in treasury stock will be
isued. If the Pennsylvania Steel Is
merged with the Cambria, as Is ex-
pected. then the figures will run up to
a total of not less than ss2,47S,S 800.