Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1916-12-29
$11,5OO,OOO PAID
FOR STEEL FIRM
Superior Company, of Car
negie, Pa, Bought by
New Organization
pH1LADELPHIANs IN DEAL
Stock, Now S50O,O0O, Will Be
Placed on Market-Domestic
Patronage

Capitalists Of this city and New York
have purchased the Superior steel Com
pany, Of Carnegie, Pa. for Sli, 500. 600
Announcement of the sale was made today
The price at which tho company was
taken over Is $ii00O.00O greater than the
capital stock, which Us 100000. OF the
total capital stock only Si57,200 was Is
sued, making the profit to the owners s1t.-
042,UOO. u being close corporation. No
stock was on the market
The Carnegie plant Is one OF the largest
establishments OF lts kind In the country
and manufactures steel for such Industries
as the Ford Motor Company. the Victor
Talking Machine Company, the Yale &
Towno Manufacturing Company, Hale &
Kilburn Company and Dodge Brothera au-
tomobilo factory
DOMESTIC PATRONAGE
The Superior Steel Corporation manufac-
lures hot and cold rolled strip steel but
cold rolled steel constitutes It's chief out
put The products are devoted chiefly to
the domestic market and the company has
had but few war orders
The sale OF tho company was effected
In this city on December 26. Negotiations
had been In progress for three monthH and
the contamination of the deal had been
freely predicted.
The cause OF the sale. It is said was due
largely to the desire OF j. $. Seaman. Pitts
burgh capitalist, TO retire. Mr.. Seaman
has been inactive for some time, but was
the chief stOCkhulder Of the superior Conn
pauy His gon-iu-law, j. III. Hammond, the
president, win continue his connections with
the concern.
The Superior steel Company will not
become extinct under the new arrangement
A new company will be formed to be known
ns the Superior Steel Corporation and the
latter concern will be a holding company
of the older institution. The Superior was
ipppruprnt a1 uDdnr laws of penngytyu-
MIA on August L. 1892.
PHILADELPHIA CAPITAL
The Philadelphia bankers who tool; over
the Superior plant are Cassatt & Co. and
Frazier a CO. Two New YOTS banking
houses Merrill, Lynch & Co. and white.
Weld Co also were involved In the deal
The new arrangement will cause no
change In the manufacturing system, but
the concern will be refnanced and new
stock offered for sale. In the company just
organized to take over the property there
will be the following capitalization: S3,50O-
600 eight per cent convertible first pre-
ferrcd stock 81. 600, 900 eight per cent cumu-
lativc convertible second preferred stock and
SG.OOOOOO Of common stock.
The plant at Carnegie iS said to have
n capacity Of making $4,000 tons OF hot
rolled steel Il year, Of which about 10000
tons are used to supply the cold rolling
mills
PROFITS or YEAR
In the four years ended November 30
of this year the total dividends are said
TO have approNlmated Si,665.225 lcav-
ing a surplus profit Of about $l,SO0,0OO.
Julian Kennedy. steel expert, acted as
technical adviser to the purchasers In tho
sale negotiations. Temporary officers have
been elected, whose names have not been
announced. Permanent officials of the new
company win be named at meeting to be
held in this city within a few days. The
time and place Of the meeting have not been
determined.