The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-10-29
GOVERNMENT HALTS
SCHWAB SHIP PLAN
Puts End to Steps for Bethle-
EN- Pennsylvania steel
Merger.
NEW MONOPOLY FEARED

The effort Of the Bethlehem Steel
Corporation to secure control OF tho
Pennsylvania Steel Corporation was
nipped In the bud by the United States
Government, which saw in the rams
action an attempt Of the part Of promi-
nent Wall Street interests TO secure
practically a monopoly Of the ship
building industry on the Atlantic coast.
Such q situation, II Is said, would have
seriously interfered with Secretary
McAdoo's plans for a Government
owned merchant marine.
Tho statement hat tho Government
had interfered In the Bethlehem-Penn
sylvania s,eel deal was made yester-
day by a prominent banker. who said
that Il was believed on the part Of the
Pennsylvania Railroad Company, which
controls the Pennsylvania Steel Com
pany, that the sale OF control had been
completed. when something happened
He added that he knew that lawyers
representing the Bethlehem Steel Cor
poration had conferred with United
States Attorney-General Gregory on the
matter and that after these discussions
the plan to buy control Of the Pennsyl-
vania Steel Company was ~ndo
1t was generally understood that
Charles NJ Schwab, head OF the Bethle-
hem Steel Corporation, was seeking TO
purchase the Bath Iron Works. one OF
tho largest shipbuilding concerns In
northern New England, at about the
time he was seeking to acquire the
Pennsylvania Steel Company. which con-
trolls the Maryland Steel Company. The
Maryland company owns a plant at Spar-
rows Point, Md, which IL equipped with
"A shipyard for the building OF all classes
Of vessels.
The Bethlehem Steel Corporation OWNS
the Harlan and Hollingsworth Corpora
ton, a sl.50o.0OO company, which has
a shlpbuilding plant at Wilmington. Del.
and also owns all VI the capital stock
Of the Fore River S~hipbuilding Com
pany. About the only two other big
s%hipuilding companies along the Attain
tic coast are the Newpobtt News Ship
building and Dry Dock Company and
the William Cramp & Son ~Shipbulidlns
and Engine Company. With the compa-
MES he now owns and the ones which II
Is said he proposed to acquire Mr.. Schwah
and the Bethlehem Steel Corporation
would have controlled practically two
thirds of the ~shipbuilding industry OF
the Atlantic.
In Wall Street It Is generally believed
that the steps 10 get control OF NOR.
shipbuilding plants and steel companie,
did not have their beginning with Nj
Schwab. bu; were suggested by power
full ~fnanciers, who saw In the protec'
the chance to reap a Big harvest through
the practical control OF the sh!pbuildinr
industry In the eastern part OF tn
United States. These flnanciers are
understood 10 have felt that. owing 4
the war and the great expansion OF th'
trade of this country. there would soof
be a big and increasing demand fo'
ships. The present congestion of freigh
at the port of New York Is due to E;
lack OF ships. II is said that with th'
tremendous shipbuilding facilities Of tn
Atlantic seaooard gathered under on
management there would be little TIM
wasted in meeting the demand 70
!reight.rs.
Up to u short time ago banking inter
ests and representatives Of the Bethle
hem Steel Corporation were inclined I
discuss the negotiations between tn
mpa and the Pennsylvania Steel In
| terests. II was said from day to da.
, that the deal was progressing and tina
/ an announcement might be expected
Recently. however, an inclination {
avoid discussion Of the matter has bee
apparent at the bethlehem Steel office
and In certain banking circles.