The Virginia enterprise. [volume] (Virginia, St. Louis County, Minn.) 1893-19??, 1915-10-01
hlDVALE STEEL
CONTROL CHANGE
Passes Over From Interests Who
Founded Company in 1866
Heirs Waited Chance.

Control of the Midvale Steel Co.
has passed out of the hands of the
Harrahs and the Sellers, interests who
founded the company so years ago
Like many other prominent iron and
steel companies, its beginning was ex-
ceedingly modest. Its growth in in
dicated by the sales price, approx
mately $40 100000 to be paid in cash
The transaction was completed Fri
day, when an agreement Of sale was
signed, after negotiations lasting sew
eral weeks.
Founded in 1866.
The Midvale Steel Co.'s plant at
Nicetown, Philadelphia, now spread
ing over so acres, was established in
1866. The company was incorporated
in 1881. At present it manufactures
crucible and open hearth steel cast
ings, hammered car axles, steel gun
forgings, forged armor plate, steel
tires and other forms of forged and
finished steel products. Its equip
ment to manufacture armor plate and
gun forgings are what is bringing
the company into prominence today.
The company has been large maker
of armor plate for the United States
government since. Only two other
American concerns are equipped for
this business, the Bethlehem and Car
negie Steel companies. The Midvale
company has taken none of the for
eign war business and it is popularity
supposed the present change in con-
troll will be the signal for a different
policy in the company's affairs with
respect to foreign business. In 1881
the chief products Of the company
plant were locomotive tires and axles,
tool steel, etc., although it did make
some forging and castings for ord
nance purposes even then.
Policy of Secrecy.
Little is known to the general pub
lie concerning the plant and equip
ment of the Midvale Steel plant. It's
management has maintained a policy
Of strict secrecy in this as we'll as in
many other respects. The late James
Swank, of the American Iron and
Steel association, was unable to Sc
cure any statistical data Of the CON-
pany's works after the year 1884. In
that year, when William Sellers was
president, the plant had an estimated
capacity of $4,000 tons of crucible
and open hearth steel.
Waited Chance to Sell.
Litigation in 1918 over ownership
of block of Midvale Steel shares
indicates that some Of the principal
owners of the company for years have
been awaiting an advantageous oppor-
tunity to sell their holdings. In the
will of Charles J. Harrah, who was
president of Midvale before his death,
the sum of $25O,OOO was left in trust
for his daughter, Georgiana Harrah
Peterson. This sum was represented
in shares Of stock in the Midvale
company, with the right to income
and the power to dispose of the prin-
cipal at her death. With the read
justment of the capital stock in 1910
Mrs. Peterson's interest became $500
shares. These she had, by an agree
ment with all other heirs early in
1910, assigned to the executors of her
fathers will, in trust for 10 years or
until such time as the control of the
company could be sold advantageous
ly. Mrs. Peterson died in 1911, de-
vising her estate to her husband,
Arthur Peterson. The contention
raised was that, whatever may have
been the legal status of these earn
ings prior to this agreement, now that
they were represented by shares in the
capital stock which had been assigned
to trustees who held the legal title at
the time of Mrs. Peterson's death:
they did not pass under her bequest
to her husband, inasmuch as they
were not then property and estate
which testatrix held Gin her own right
free from trust"
The supreme court Of Pennsylvania
did not support this contention, but
decided that the husband was entitled
to the fund, agreeably to the manifest
intention of the testatriX.