The diamond drill. (Crystal Falls, Iron County, Mich.) 1887-1996, 1916-02-12
PRELIMINARY STAGE OF AMAlCA-
NATION IS AT HAND
PICkANDS-MATHER BALKED
Asked Too Much of a Price For Iron
Ore and Vessel Holdings So They
We're Passed by For a While

much smoke there must be some fire."
Is being verified in the iron and steel
circles of this nation today. For
nearly a year back periodical an
nouncements were put out TO the ef-
feet that big amalgamation OF inde-
pendents is being formed. The failure
of this move to bring results has lead
many To believe that the reports were
faxed for the purpose OF influencing
the securities market.
However. the rumors have been
persistent and the fact that the merg-
ing OF Independents into knots or
groups of independent consultations
has been going on right along leads
the financial writer's to the opinion
that the plan is TO first consolidate
into groups and after the grouping
has been made and the securing OF
control made easier the grand finale
of huge consolidation will follow.
MidvaIe- Cambria Consolidation
The first move in this grouping
program was brought about when the
Pennsylvania Midvale and other
smaller units consolidated into larger
units
The second stage or the consolida
tion came during the week when the
Midyale corporation took over the
Cambria steel company. II is stated
that the Midvale- Cambria consolida-
tion was not the only thing on the
boards. The consolidation OF the
Lackawanna Steel and the Youngs-
town Sheet steel and Tube Co. with
their Pickands- -Mather connections
was the really desired thing but the
high price asked by the Pickands-
Mather people for their securities
caused the momentary passing of this
plan.
The Lackawanna Steel Co. came in
10 local notice when the Pickands-
Mather people expanded their opera
tions in the late Nineties and organiz
ed the Verona Mining company. II is
understood that the Lackawanna In
terests own half OF the stock of the
Verona company, the Pickands-
Mather people mining the ore.
Something over a year ago similar
arrangement was made between the
Pickands- Mather people and the
Youngstown people which brought in
TO being the Balkan Mining Co
The Pickands- -Mather people were
always carriers OF ore but recently
they greatly extended their shipping
capacity and are now next 70 the Steel
Corporation in size as a carrier on
the great lakes
II was TO get hold OF this immense
interest with the large ore supply
that the reach-out was made for the
Lackawanna and the Youngstown
but reports are 10 the effect that the
price demanded by the Pickands-
Mather people for their interests was
so great that the men at the head OF
the consolidation didn't feel they
could pay the price and passed the
big deal up for the time.
Ore Connections Necessary
II was the ore holdings OF the Steel
Corporation that held the big corpora
tion up during It's days Of adversely |
When the value OF the stock Of the |
corporation was attacked Pres.
Sthwab testified that the value of the |
ore held by the corporation was 81 90 |
per ton in the ground and that yalua-
tion sustained the prices OF securities
until sufficient was put into the cor
poration out of the earnings 10 soak |
up the water and make the Steel
Corporation securities represent some
where near their par value In pro-
perty
Observant ones see the same move
on the part OF the present promoters;
It's the ore holdings that must be Sc
cured to sustain the fictitious values
on the stock and allow a big profit TO
the underwriting syndicate and the
Pickands- Mather people have tie ore
holdings.
Failing 10 get the Lackawanna and
the Youngstown the next best pro-
position with ore holdings was picked
up and the Cambria Steel company
which owns the Vulcan mines OF the
Penn Iron Mining Co was brought up
at value OF $500 per share and con-
soIIdated with the already swelled
CONTINUED on Page ~