New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-10-08
BETHLEHEM NEXT
In MERGER FIELD
Jump of 40 Points in Stock
Causes Reports That
Combine Is Near.
WALL ST. WATCHES
SCHWAB'S MOVES
Control of Pennsylvania Steel
Co. Sought, Is Battle-Ground
Be Trusts Biggest Rival.

W. CuuSllt, - DNliSl w OuiU
Be Trusts Biggest Rival.
with the plans Of the Midvale Steel
and Ordance Co. completed, at least
for the time being, Wall Street di-
rccted its attention yesterday TO the
probable outcome Of the pending
negotiations for the expansion of the
Bethlehem steel Corporation. vio-
lent Use ia the common stock from
Wednesdays closing price OF 4Ol TO
$50. and in the preferred from l55 TO
l65, during the day gave rise TO re-
ports that developments were rapidly
nearing a conclusion.
The hurried movements Of Charles
VI. Schwab on rumored inspection trips
90 independent steel and shipbuilding
plants in the last few days were taken
ia mean, in steel circles. that not only
Will the control Of the Pennsylvania
Stce. Company be acquired IN the near
futre, but that the expected merger
viii include other concerns which Will
make the Bethlehem combine more
formidable rival of the United States
steel Corporation than the Corey-Con-
verse Rockefeller enterprise.
Those who were in Wall Street just
previous TO the formation of the steel
trust found a parallel to the condi-
tons now prevailing. Al that time
Schwab, with John W. Gates. Danlel
G.. Reid. William II. Moore and others
spent most of their time on private
cars obtaining options on steel plants
for which they paid fabulous prices,
producing a mushroom corp OF MIL
iionaircs in the Pittsburg district
Schwab Again a Central Figure.
To-day Schwab is again the cen
trail figure Of a similar movement, but
those we're associated with him IN l9O0
and 1901 are not actively interested
in the new plans. Schwab IS admittedly
trying TO fulfil desire which ne mas
carried with him since he retired lrOm
the presidency of the United states
Steel Corporation, viz: TO make inc
Bethlehem company the Leading manu-
facturer of steel and allied products
in the United States.
All ATTEMPTS TO obtain information
as to the progress of the Bethiehem
EXPANSION plans at Schwab's Offices yes
terdav. met with no success. He telo-
pboued his secretary that there would
be no announcement to-day" which was
variously interpreted as meaning that
there might be one soon or IN the
indefinite future. In discussing the
stories current in banking and steel
circles the "Iron Age" in its issue yes
terday, said:
"The Eastern steel trade has been on
the oui vive in the past week IN view
of more substantial reports concerning
efforts at mergers. For time the
Midvale company purchase was current
" connected with these efforts. bu'
there is now little inclination 10 thlnS
of that company as a nucleus OF
steel consolidation, whatever plans may
he worked out in lines of munitions
manufacture.
"The report to which most credence
has been given is that the Bethlehem
Steel Company and the Pennsylvania
Steel Company may be brought to-
gether. Bethlehem company ofhceEs
have been in conference in the past
week with representatives of the Penn
svlvania Railroad, and the fact of the
PENNSYLVANIA Railroad ownership Of
control Of the Pennsylvania Steel Com
panv has led to reports that these
companies would eventually be taken
up in a Bethlehem merger. Another
view is that the Bethlehem Steel Com.
panv is seeking to acquire simply the
Pennsylvania Steel Company.
Shipbuilding Plants Important.
"The Mayari ore properties Of the
latter in Cuba, are an Important as
set and the tidewater steel and ship
building plants OF its subsidiary, the
MARYLAND Steel Company, become i'm
portant in view Of the large shipbuild.
ing programme ahead of the United
States, and the entrance Of the coun-
try upon a great career in the expor:
trade.
$50 far as products go, the Bethle-
hem and Pennsylvania companies are
competitors on rails, structural steel,
castings. and TO an extent on tool steel.
ACQUISITION Of the Pennsylvania Steel
Company would give the Bethlehem in
tclests a considerably enlarged pig iron
and steel capacity, the Pennsylvania
Steel Company having carried on an
extensive programme of blast furnace
reconstruction in the last two years,
besides making large addition of open
hearth furnaces. building new bloom
ing mill of the Milliken Brothers steel
plant on Staten Island
The official announcement that the
par value of the stock OF the Midvale
merger was $50 caused a change in the
trading on the curb. Sales were re-
ported on Wednesday at 100, but yes
terday brokers quoted the new stock at
65 bid. The old stock was offered at
$500, az compared with $500 Wednes-
day.
The iron and steel plants Of the Worth
Brothers Company and the Coatesville
Rolling Mill Company are believed
to have been acquired principally 20
insure the combine of its own supply
of pig iron without buying IN the open
market. The companies capacity for
turning out steel making iron is 49,
600 tons annually.
Bethlehem Steel was not the only
"war baby" which showed its ability
to come back" in yesterd Us stock
market. Other gains made which met
with no serious setbacks during the
days trading were American Beet Su-
gar. 3i4; American Can, rs; American
Cotton Oil, Pa; American locomotive,
2is; Baldwin Locomotive, JB; Colo
RADIO Fuel, 5i2; Crucible Steel, rs;
New York Air Brake, 6i2; Republic
Iron and Steel, 2i4, and Westinghouse,
6ss.