New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-10-06
STEEL. MERGER
NOT YET CLOSED
Schwab Denies Plan Is
Complete, After Mag
mates Confer.
BETHLEHEM TO GET
PENNSYLVANIA CO
Cambria Steel Co. May Also Be
Absorbed-Rumor of SchWab-
Corey Union.

Among the many rumors that are
holding the interest Of financial circles
concerning pending mergers Of steel
companies one definite fact was es-
tabllshed yesterday that negotiations
are under way for the acquisition Of
the Pennsylvania Steel Company by the
Bethlehem Steel Corporation.
The terms of the deal were discussed
yesterday Ut meeting In the Offices Of
Charles NJ Schwab, at Ill Broadway.
Those in attendance included, besides
Mr.. Schwab. +. T. Stotesbury, of the
firms OF j. p Morgan & Co., New York,
and Drexel e. Co., Philadelphia, who is
also q director of the Baldwin Locomo-
tive Works; Henry Tatnall vice-presi-
dent and director Of the Pennsylvania
Railroad, which owns s20,000,000 of the
Pennsylvania Steel Company's 100000
600 outstanding stock; W. II. Bonner,
chairman of the board Of the latter cor
poration and president Of the Cambria
steel Company; Henry s. Snyder, a
yice-president and director Of the
Bethlehem organization, and Eugene G..
Grace, president of the Bethlehem Steel
Company.
Mr.. Schwab refused TO talk OF tho
plans under discussion at yesterdays
meeting except to say that "thc deal
has not been closed" He declined to
discuss the transaction further. AL
though Nr. Schwab, when pressed for
some definite statement declined TO
admit that the purchase Of the control
Of the Pennsylvania Steel Company was
considered, It was learned in respon-
sible banking quarters that not only Is
IL likely that this deal will soon be
closed, but that negotiations are also
under way for the acquisition Of the
dominating interest in the Cambria
Steel Company. Whether this company
viii be taken over by Mr. Schwab and
form part Of general scheme to con-
solidote large number Of independent
steel companies, however, was not di-
vulged.
One report was that Schwab and w.
f. Corey will bring together all the
independent steel companies whose
products are not In direct competition
with one another. so that there would
be no conflict with the Department of
Justice. In well Informed quarters,
however, a union Of the Schwab and
Corey interests, now represented in
the Midvale Steel Company, was not
considered probable.
Dispatches TO Wall Street yesterday
from Philadelphia stated that the fin
ancing Of the Pennsylvania Steel
Bethlehem Steel transaction by bank
ers is yet 10 be arranged, both az TO
amount and details. 1t is assumed
that the deal will be made by the issu-
ance of securities and that only q few
millions of dollars in cash will be
necessary.
The presence of Mr.. Stotesbury at
- = =. C.l.,, ~ I,.,o
gave rise to rumors that his official
connection with the Baldwin Locomo-
tive Works as a director might indi-
cate that the deal would be a three
cornered one in which the Baldwin
company might be involved through
the sale of its munitions plant, the
Eddystone Manufacturing Company.
ACQUISITION of the Pennsylvania
steel Company By the Bethlehem will
be of material benefit 70 the latter
steel men saw. as the former has a
good rail-rolling capacity. The com
pany % be taken over has a capacity OF
close 70 100000 tons of steel ingots
and ha- produced as high as $4,000
tons In a year. Earnings Of the com
pany have shown q falling off for the
last several years.
+. II. Gary. chairman of the United
States Steel Corporation, announced
YESTERDAY that Homer Williams, now
superintendent of the DuQuesne
Works, AZ Pittsburgh, has been desig-
mated as president Of the Carnegie
steel Company TO succeed A. c. Din
kew. who has Just been elected head Of
the Midvale Steel Company. William
Whgham, assistant 70 Mr.. Dinkey,
has been designated as a vice-presi-
dent Of the Carnegie Company