The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-10-09
MIDYALE MERGER
! WITHIN The LAW,
REPLY DIRECTORS
Insist That Great steel Com
binatiOn Violates No
: Federal Act.
CURB SCRA MBLES
TO GET NEW STOCK

Curb trading IN the stock of the new
Midvalc Steel and Ordnance Company.
when issued. began yesterday. Strong
demand carried the stock from 60 to
s3ia. 1t closed at 73is after more than
$1,000 mares had been sold.
Directors Of the corporation comment
ing on reports from Washington that the
Acknowledgement would closely watch
the great merger said that the combi-
nation did not violate any law. They
insisted that every step that had been
taken complied with all Federal acts.
They felt sure that there was no posi-
bility Of action against the company
by the Government.
Figures showing what the new COR
poration had paid for its properties. in
tended to prevent criticism by the Gov
eminent or tlI. Federal Industrial Conn
mission on the score of "watcred stock
were given 10y n person in a position to
speak with authority Of the affairs of
the company These were:
The MidvaIc steel Company went into
thc new corporation FOR $4,000 900.
This was the price paid by the final
syndicate for control OF the original Mid
vale company. TIL prices at which the
holding company took over the three
other properties acquired were $50 ,0O0,-
900 for tho Remington Arms Company
OF Delaware and slS,5o0. 600 for the
Worth Bros. Company and the Coates
willie Rolling Mill Company.
Plants cost s8O,5OO,OOO.
Tho plants OF the company-and this
does not include the value of the option
on 500. 900. 900 tons of ore-cost the Mid
vale holding company, therefore, 500
500. OO0. William Il. Corey, president Of
the Midyale corporation, in his am
nouncement said that the company had
working cash capital of sl5, GOO 900. The
Nidvalc. therefore, has properties and
cash amounting to $4,000. 900.
The interests behind the company sub
Ocribcd for tho $50 stock at par. THIS
gave III" company $4,000, 900. me
35.50o,o0o In excess of mis- represents
cash in the treasury of one of the com
panies acquired. II is believed that this
was the Remington Arms Company,
which has n cpntraot for the MANI
6acturc OF 1000. 600 Enfield rifles. II
has been the practice Of the British
Government in placing such orders to
nay from 20 10 20 per cent. of the cost
In advance.
The value of the Remington Arms
Company OF Delaware. which goes into
the combination at $50. 100000 Is de-
rived from the rifle contract. The cost
OF these rifles Is about $3.50. 1t was
said yesterday that AN estimate OF $50
900. 900 net profit on the contract was
modest.
Tho value of the option on 800, 900 900
CONS of ore was not estimated. The
Cuban ore Is said to be OF high grade.
suited to the Midvale's requirements.
Corey Keeps secret.
Mr.. Corey said yesterday that as the
Midvale had not yet actually acquired
the property on its option he was not
at liberty to tell the name of the prop
0rty.
Interests close to the property said
yesterday, in answer to rumored suS-
gestions Of "watered stock" that all
Of the stock subscribed WAS paid f0r
IN cash at par by the men in the new
company. There will be no promotion
rewards. The organizers will receive
their profits from the privilege OF sub
scription to the stock at par. The COM
pany has no debts.
1t was said by several important in
eerests in the company that there would
Uo lO ia INbliS ol'4AAo VI NV
stock. II is believed. however. that al
ter q period of organization and opera
tion SOM. of the interests IN the com.
pan will sell a portion of their hold
ings. II has not been decided whether
application will he made to list the
shares ON the Stock Exchange.
Directors of the company said that the
dispatches from Philadelphia saying
that the British Government really con-
trolled the new Midvale were silly,
"If the British Government own my
stock" said one director. ~ wish Il
would pa me the cold cash I gave VI
for it,"
Tho report that the company woult
have "A working agreement with Nickers,
Maxim, Ltd, the great British ordnanc'
concern. 1t was said. was probably re
sponsiblo for the story Of British control
Such control was denied.
Getting ON Working Basis.
The affairs Of the new corporation
were being rapidly rounded into SHAPE
yesterday under the driving activity o
President Corey. Vice-President Alva q
Dlnkey and several OF the directors viii
are operating men. Among these Am
brose Mcneil. president OF tho Interna
tional Nickel Company, WAS taking
prominent part in the arrangements TO
getting the big combination under Wa!
for a large expansion I'm orders and pro
ductiou. A number of the directors me
at the Guaranty Trust Company in tn,
morning and informal conferences wer
continued during the day, centring abou
Mr.. Corcy's office in the Banker Trus
Company.
The announcement from Washington
that At,orney-Genera! Gregory woul'
ecrut!nize tho combination did no
slacken the efforts of the leaders OF tn,
neU lprYOratipn ItS officers vera en-
phatic in their statements yesterday tina
they were positive that the arnalgama
ton was entirely within the Law.
The negotiations of Charles NJ
schwab for the Pennsylvania steel Com
pany and possibly the Bath Iron Work
rested yesterday 40 far as New Yorl
was concerned, Mr.. Schwab had lef
town. presumably on a trip 10 the Beth
1ehem plant. President trace and Vice
President Snyder had gone to Bethlehem
KILLED IN 6 STORY FALL.