Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1915-09-25
MONEY KINGS
in STEEL WAR
TO THE DEATH
Morgan and Corey Buy
Midvale to Escape Grip
of Schwab
OLD GRUDGEs. REVIVED
Two Former Trust Heads in
Mighty Fight for
Control

Analysis OF rumors and reports arising
from the sales Of the Midvale Steel
Works Of this city and the Cambria
Steel Company today indicates that two
enormous new steel concerns, worthy
rivals of the United States steel Cor
poration, are in the making.
The greatest captains OF industry In
the United States are behind these plans.
forming two powerful groups, one OF
Ponnsylvanians and one Of New Workers.
In race for supremacy in the manu-
fracture of munitions
On one side are the Morgan interests,
nanked by W. e. Corey. former presi-
dent of the Steel Trust; L. c. Converse,
Percy A. Rockefeller Ambrose 1. Mo-
nell and Frank A. vanderlip.
On the other side are Charles NJ.
Schwab. Alfred 1. du Pont, head of the
great powder-making interests and Ef-
,nngham B. Morris, president of the Gil
rard Trust Company and director of nu-
merous railroads and steel companies.
Midvale has been sold three times
within the last few weeks. according to
the New York World. william A. Read
a. Co, and Montgomery Clothier g. Co
first bought control for S19OO0,OOO. They
added N,00AOoo to this figure They
70 Percy A. Rockefeller and the "City
Bank group of New YorH f1nanciers
The price then was jumped to s22 O00, 900
and control of the company transferred
10 the Converse-C -Corey-Monel party.
backed by the Morgan interests.
REFUSED WAR CONTRACTS.
Midvale Steel has taken no war con-
tracts so far. A daughter OF Charles
Jefferson Harrah, president Of the COM
pany, is married TO a German. This is
said TO have been the reason why the
company would not accept war contracts.
With the Midvale out OF the bidding,
Charles M. Schwab has had virtual con-
troll of the munitions situation. Mdvale
Is one eof the few plants outside of the
Bethlehem Steel Company that is pro-
vided with modern equipment for armor
plate and heavy ordnance. Here virtu-
ually all plate for Government battleships
is made. 1t has been rival to Schwab
in peace times, but 1t did not compete
with him in the European market
According to the World, relations be-
tween Schwab and the Morgan interests
have been distinctly unfriendly since his
elimination from the United States Steel
Corporation in 1908 But at the outbreak
of the war, when the Morgan interests
became the financial agents of the Allies,
It was found that Schwab was inds-
pensable to them. The Pennsylvania
steel king took full advantage of this
situation, 1t is said. He exacted his own
price Tor war material. For a year the
Morgan interests, helpless, have had to
meet his figures.
MORGAN FORCED TO BUY.
This condition decided the Morgan in
terests to buy up the Midvale and thus
become independent of Schwab, 1t is said.
1t is now apparent that Mr.. Schwab be-
came aware of some such intention. He
Immediately became active, but no inkling
OF the stupendous contest for supremacy
In the making of munitions of war leaked
out until Mr. Schwab yesterday came to
this city and conferred with Mr.. du Pont
and later with Mr.. Morris.
The plans of this Pennsylvania group
are no whit less ambitious than those of
the New Workers. Henry C. FTick, said
to be the largest individual stockholder
of the Pennsylvania Railroad and asso-
ciated with the interests about to obtain
control of the Cambria Steel Company is
said to be with the Pennsylvanians
The Baldwin Locomotive Works of this
city is said to be included in the plans of
the Pennsylvanians for a great combina-
tion to compete with that being created
by the Morgan interests. Every effort
naturally. is being made to keep details
secret until the plans are consummated.
Alba b. Johnson, president of the Bald
win Locomotive Works, adopted his GUS
tomary policy when questioned He de-
clined either to deny or affirm the report
that the works had been or was about to
be sold.