Harrisburg telegraph. [volume] (Harrisburg, Pa.) 1879-1948, 1915-10-25
SCHWAB TO DROP
PA. STEEL DEAL?
Reported Opposition by Nor
gan Interests May Halt Beth
lehem Expansion

In certain steel circles it was inti-
mated yesterday that Bethlehem Steel
! interests are disgusted with the trend
negotiations in the Pennsylvania Steel
deal have taken and that it would not
be surprising II they called the deal
off. Some Influential friends of Charles
NJ. Schwab, head of the Bethlem Steel
Corporation who has been negotiati rs
for the purchase of the Pennsylvania
Steel holdings of the Pennsylva ;S!a
Raiiroad and Reading Company ha y"
advised him to drop the matter: ae-
cording to reports in Philadelphia f.
nancial circles yesterday.
Just at time when it was expected
official announcement would be forth
coming of the transfer of control of the
Pennsylvania Steel to the Schwab inter-
ests. it is learned that certain obstacles
have been raised which would put Mr.
Schwab in the position of being COM
petitive purchaser for the property, a
position which he does not seem will
been raised by the Reading Company
which is regarded as a Morgan prop
erty; falling to ratify the sale of its
parent change of heart of William II.
Donner, president of Cambria Steel
and chairman of the Board of Pennsyl
the Pennsylvania Steel holdings of the
Pennsylvania Railroad and Reading
Henry - trick, director of the Penn
sylvania Railroad, and of the United
States Steel Corportion, is supposed to
be back of Mr.. Donner. Mr.. Schwab
apparently has run again opposition
in his ambitious plans to build up an
independent steel concern which would
be second only to the Steel Corpora
tion. How the ingenuity of the Beth
lehem head will meet the new situation
VIII nc watched with interest in steel
and financial circles.
Naturally there is much speculation
among the thousands of men employed
m Gxl lNTaF 10 Tn,sIrs.
the proposed transfer of the big plant
to the Schwab interests. While there
Is an apparent hitch in the negotiations
gain control of the property.
II the Pennsylvania steel Company is
TO be linked up with another, says an
lehem. The companies compete only
in general way. so that little chance
exists for objections from the Depart
ment of Justice. Both have shipbuild-
ing interests, but it is scarcely to be
| expected that the Government would
| ind fault with community of inter-
ests in this line at time when the
country is calling for greater tonnage
on the high seas. The Bethlehem pro-
/ ducts. have of late been centered more
in ordnance and other forms of war ma
partment Will be extended largely in
! the future. The Pennsylvania has q
major part of its capacity devoted to
structural steel and other forms of
steel Tor use in the peaceful arts. And
then, too. the Pennsylvania owns a
vast acreage of Cuban iron ore of spe-
| cial value in the manufacture of big
| guns and armor plate, which would
| supply a product of great value to fhe
Bethlehem works.
A number of buildings are now un-
! der construction at the Steelton works
| for the manufacture of forgings. There
| is also being turned out breastplates
similar to those used a thousand years
| ago by the armored soldiers of the early
Z a iC f,xIl
| ted by the Mauser rifle fired at three
different ranges The plates are being
| shipped to another firm which has the
| contract for covering them with cloth
| that will make their use more comfort
able.
Rapidly. the big plant is being oper-
ated at almost fun capacity and there
i save one or two