Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1915-10-16
PA. STEEL PLANT
SOLD TO SCHWAB
Continued From First Page.l

stocks held by the Pennsylvania Rail-
road and Reading company interests.
Now that the sale of Pennsylvania
Steel to Charles NJ Schwab is ap-
parently consummated. Steelton folks
are predicting an era of prosperity for
the local plant.
Rumors of changes in management
and product of the local plant have
been widely circulated None of these
rumors however, seem to have the
slightest foundation in fact. Vice
President j. V. w. Reynders and II
number of other officials at the local
offices, when seen by a reporter, all de-
cline TO make any comment on the
SChwab deal
Despite this, however, there is Il
deep-rooted feeling of optimism
around the works and among Steelton
businessmen. Everyone seems to feel
that the local plant, recently i'm
proved by the expenditure of millions,
will now enter upon an unprecedented
era of prosperity.
Since the new No. blast furnace
reached capacity-500 tons of pig iron
daily-Thursday, the ingot production
at the local plant has steadily in
creased. The rolling mills. merchant
mill, forge shops and the foundries are
all running full time and the bridge
and construction department, while
not rushed, is operating at a good
capacity. In this department the
material for the big railroad bridge
across the Mississippi river at
Memphis. Tenn. is being turned out.
Considerable construction work is
still under way at the Steelton plant.
Work is being rushed on the new
forging mill and fence is being built
to enclose the west end mills and the
yards o. the new rolling mills.
Within the rSst few years in the
neigh borhood of s6,000.000 has been
expended for improving and re-
habilitating the local plant. Modern
rolling mills formerly the property of
the Milliken Iron Company. Staten
Island, New York, have been pur-
chased and installed at the west end
of the plant,
The installation of a new ore yard
with modern ore handling equipment
is another improvement. The big
clam shell scoop used in this yard
picks up Z u tons of ore at one sweep
and dumps it on the storage heap.
These larger improvements have
been followed by numerous smaller
improvements to the various depart
ments. To-day, men who know the
steel business. say the local plant is
in the best shape in its history and
\
production never before equaled.
Looking for increased ,shipyard
facilities and a steel plant on the
Pennsylvania Railroad, Charles NJ.
Schwab recently opened negotiations
for purchase of the Pennsylvania Steel
Company Under the Donner direc-
tion this property, too, has come
largely through a reconstruction TO
take hold there also. The Schwab
group outbids the Donner option price
and so gets this company.
For it's holdings of s9,743, 900 pre-
ferred and S7,3SS,900 common stock
of the Pennsylvania Steel, bought for
S10,74S,140 some years ago. the Penn
sylvania Railroad interest now realizes
S12.32s.115, making an apparent
profit of S1.5S0,975 and about $1.300,-
900 more than would have been re-
ceived at the prices fixed more than a
year ago for sale to Mr. Donner.
Thus the combination of Mr. Rea's
forethought. of Mr.. Donner's ability,
of the latent possibilities of the two
steel properties for development under
efficient managemen and of the pres
ent big boom in steel industry has had
happy results for Mr.. Donner, whose
success won him s1,000,000 prize for
the shareholders. big and little. of the
companies who have had their prop
erty enhance in value, and for the
Pennsylvania Railroad and Reading
company systems, which have not
only been enabled to dispose of their
holdings of steel stocks for much more
than had been expected but have also
on their lines steel properties largely
developed and in good way to expand
to greater importance.